The cost of living crisis has yet to deter young consumers from spending more on brands with green credentials, according to research from CACI

Younger consumers continue to gravitate towards brands with green credentials despite the cost of living crisis, according to a new survey from CACI.

The consumer and location intelligence specialist conducted a survey into expected spending habits during the cost of living crisis and found a majority of adults under 34 are still willing to spend more on brands that align with their core values.

Nearly three-quarters (74%) of people aged 18-24 would be willing to spend more on a brand that aligns with their core values, while 57% of 25-34 year olds would do the same, according to the survey.

The research follows an ESG-focused survey conducted by CACI earlier this year, which drew similar conclusions about the willingness of younger people to spend more to achieve a higher sustainability standard.

The 18-24 and 25-34 age groups own proportionally more EVs than older generations, and were more willing to increase energy spend if it meant securing it from purely renewable sources.

Hannah Smith, Senior Consultant at CACI, said: “The cost of living crisis is a cause for concern and undoubtedly impacting spend, with over 50% of the population concerned about their finances, but our study does demonstrate that there is opportunity for brands.

“Much like the pandemic, this is accelerating changes in consumer behaviour that were already on the move, so if businesses can grapple with this, there is the possibility of coming out the other side stronger and better aligned with what customers actually want.

”We are very much in the age of conscious consumerism. Younger generations have become more considered with how they spend their money, scrutinising company values with a particular focus on ESG.

“While they might not yet be as cash rich as older generations, and are more likely to be affected by the cost of living crisis, they are more willing to push their spending to the limit to be more sustainable, even if it means delaying the aspiration of home ownership.

“Businesses that are able to adapt, or target younger people with effective marketing to highlight existing credentials, will be in a great position to attract customers now, and win their future loyalty.”