Retail Sustainability Impact: Gen Z Drives FMCG Change

Managing director of The Category Management Company, Patrick Finlay, points to two studies highlighting Gen Z’s sustainability focus. A Barclaycard study suggests 82% of Gen Z are concerned about sustainability, while First Insight found that 75% prioritise sustainability over brand names (49%) when making purchase decisions.

“Recent examples of green initiatives include Frugalpac’s paper bottle innovation, Aldi’s wine selection, and Greenall’s Gin,” Finlay noted. “Even Asda’s discontinued refill and reuse trial demonstrates a willingness to experiment and learn.”

Finlay argues that implementing meaningful sustainability strategies will take time, with major retailers aiming for net-zero internal operations by 2035. The question is whether traditional product range extensions will suffice given Gen Z’s environmental expectations. He believes that creating lasting value requires bold, long-term investment, especially in uncertain times. He warns that eco-conscious younger generations will make purchasing decisions based on their values without expecting to pay a premium.

“Our industry needs retailers and suppliers to lead and innovate,” Finlay states. “We’re still experimenting, like Asda’s refill trial – planning, executing, learning, and refining. Staying relevant means adapting to trends and acting on them, learning from both successes and failures.”