Xin Ou
Research expert covering Greater China
Sustainable consumption in Australia - statistics & facts
Across Australia, the demand for eco-friendly and ethical goods and services has been gaining momentum. For several consumers, sustainability has become a more significant purchase criterion in their shopping journeys, alongside the societal impacts of their product purchases. Nonetheless, as cost and convenience are propelled into center stage and the prevalence of ‘greenwashed’ products becomes more evident, will Australian consumer actions be able to match their sustainability awareness and intentions?
While increasingly frugal shoppers struggle to prioritize sustainability, its role in purchase decisions varies across different demographic groupings. According to a 2024 survey, Australia’s higher-income households were the most likely to shop sustainably, likely due to greater flexibility in their budgets. Alongside this, female and younger consumers more frequently gave precedence to sustainability during the buying process than their male or older-generation counterparts.
With many Australian consumers trying to strike a balance between sustainability and affordability when shopping, brand optimization of product labeling, price incentives, and fostering their reputation as an honest and authentically eco-friendly retailer could be key to closing shoppers’ value-to-action gap regarding sustainable product purchases.
Do-say gap: action versus intention
Concerns surrounding the environmental impacts of product purchases on wildlife and nature, alongside the goal of protecting the planet for future generations, were voiced as the key motivations for buying eco-friendly goods among Australian shoppers. Nonetheless, while the desire to purchase sustainably is growing, awareness and intentions are not always translating into proactivity. With consumers impacted by tight household budgets, price and product quality often remain the key priorities. Alongside high price tags, a recent survey of Australians highlighted that difficulty navigating product labeling and widespread skepticism of business green claims were prevalent barriers to purchasing sustainably.While increasingly frugal shoppers struggle to prioritize sustainability, its role in purchase decisions varies across different demographic groupings. According to a 2024 survey, Australia’s higher-income households were the most likely to shop sustainably, likely due to greater flexibility in their budgets. Alongside this, female and younger consumers more frequently gave precedence to sustainability during the buying process than their male or older-generation counterparts.
Closing Australia’s fashion loop
Mindfulness around fast fashion’s adverse environmental and social outcomes is rising, with several Australians seeking ‘greener’ alternatives and purchasing routes. To lessen the ramifications of their fashion habits, Australian intentions to reduce apparel purchases and research responsible disposal methods are mounting. Australia’s Gen Z and Millennial shoppers are the driving force behind eco-friendly clothing purchasing, with Boomers the least likely to have bought sustainable fashion. Yet, while Australians hope the clothes labeled as 'sustainable' are truly eco-friendly, several doubt fashion brands’ transparency. Moreover, Australia’s high clothing consumption and waste levels continue to outpace its fashion circularity initiatives.‘Green’ food consumption efforts
Elevated demand for sustainable options in the grocery and food service sectors is another notable trend. To offset their carbon footprint, Australia’s eco-conscious shoppers increasingly minimize food waste, opt for plant-based foods, and practice more mindful meal delivery habits. Additionally, due to high consumer expectations of hospitality venue sustainability practices, including using sustainably sourced, seasonal produce and donating unused food, over half of businesses cited sustainable food sourcing as a top priority for 2025.Mending the business-consumer trust gap
The consumer call for accurate reporting and product labeling alongside concrete explanations of the products’ beneficial environmental impacts has heightened following recent scrutiny of many Australian businesses’ green claims. Despite the vital retention opportunities afforded by aligning with shopper sustainability expectations, knowledge and awareness of the circular economy remain limited among some organizations. To curb misleading and uncorroborated assertions, the Australian Competition and Consumer Commission released extensive guidance for businesses on making environmental claims.With many Australian consumers trying to strike a balance between sustainability and affordability when shopping, brand optimization of product labeling, price incentives, and fostering their reputation as an honest and authentically eco-friendly retailer could be key to closing shoppers’ value-to-action gap regarding sustainable product purchases.
