In the framework of the InvestCEC project, a replicable model for the implementation of circular economy projects in cities and regions across Europe is being developed, taking into account all stakeholders, such as investors, non-profit funded bodies, regional and local authorities, entrepreneurs, clusters, policy makers, and the general public. This is related to the fact that the circular economy has gained a lot of attention in recent years as a possible solution to environmental challenges and resource scarcity. However, the success of the transition to a circular economy depends to a large extent on the attitudes and behaviours of consumers. This article examines how different generations perceive and relate to circular economy concepts.

Generational Differences in Awareness of the Circular Economy

The concept of the circular economy, which is defined as an economic model that seeks to minimise waste and maximise the efficient use of resources by reusing, recycling and regenerating materials and products, promoting sustainability, has gained a lot of traction in recent years and generations have different perspectives on its importance and application. For example, baby boomers (born between 1946 and 1964) (1) have a more traditional perspective, may be more resistant to change and focus on the financial aspects of the circular economy and are less familiar with the concept, but recognise its importance for future generations.

Generation X (born between 1965 and 1980) has a more pragmatic outlook, focused on operational efficiency and see the circular economy as a way to optimise resources and reduce costs with an interest in practical applications in real-world contexts. For example, establishing a collection and repair service for used appliances in a community, where local technicians refurbish appliances and then resell them at affordable prices, promoting savings for consumers, reducing e-waste generation and boosting the local economy.

Those born between 1981 and 1996 (Millenials) generally value sustainability highly with a focus on innovation and business opportunities in the circular economy. They are also interested in circular products and services as a business strategy and seek to balance sustainability with economic viability.

Generation Z (born between 1997 and 2012) is the youngest adult generation that shows the greatest commitment to the circular economy principles, being at the forefront of climate activism and strongly supporting circular economy initiatives by prioritising green and ethical products. They see the circular economy as an urgent need to address the environmental crisis and often researching a company’s sustainability practices before making purchases. This translates into a greater willingness to pay premium prices for sustainable and circular products.

An example of this would be the development of a sustainable fashion business. Instead of creating garments that follow the traditional ‘throwaway’ model, a circular economy strategy would be followed by offering garments made from recycled and biodegradable materials that would allow customers to return used clothes for recycling and get discounts on future purchases, combining innovation (recycled garments and technology) with business opportunities (discounts for loyal customers).

Perception of circular economy products and practices

Different generations have different perceptions and behaviours in relation to circular economy products and practices. These differences influence their purchasing decisions and their commitment to sustainable consumption. Generation Z and Millennials show a greater concern for environmental sustainability compared to older generations. This increased awareness influences their purchasing behaviour and attitudes towards circular economy products. 

Generation Z is willing to pay higher prices for environmentally friendly products, influenced by the perception of the circular economy in their purchasing decisions, showing a correlation between more expensive food purchases and the purchase of organic products. 

Millennials tend to value this type of food more, considering it an important way to contribute to the care of the environment and their own health. For them, consuming organic is related to a conscious and sustainable lifestyle. 

Generation Z: although they also have an interest in organic food, they do not prioritise it as much as Millennials. Their focus may be more on overall environmental impact, such as reducing plastics or choosing local food, rather than focusing exclusively on organic. Generation Z, while also supportive of sustainable consumption, often prefer to focus on holding companies accountable for being sustainable, rather than relying solely on their own individual actions.

In terms of sustainable consumption practices, Millennials demonstrate a greater willingness to actively engage in sustainable practices such as recycling, using reusable products or supporting brands that promote sustainability. This is related to their desire to make a tangible change and their interest in innovative business strategies.

Finally, Generation X and Baby Boomers exhibit different product perceptions and circular behaviours, influenced by their unique generational experiences and values, and in relation to clothing, for example, Baby Boomers place more importance on the comfort, value and quality of clothing than Generation X and Generation Z. Both generations shop online, but face issues such as concerns about the risks of credit card transactions. 

Factors Influencing the Adoption Of Circular Behaviour

The factors influencing the adoption of circular behaviour vary but there are common factors across all generations such as environmental concerns, which positively influences circular purchasing behaviours,(5)positive attitude, perceived benefits and confidence towards the adoption of the circular economy practices. In terms of generation-specific factors, Generation Z are digital natives e.g. using e-wallets for sustainable shopping and are more susceptible to social norms and peer influence through digital platforms(6)Millennials tend to show a strong interest in sustainable and green fashion and are often more sensitive to economic incentives for circular behavior(7)

Generation X and Baby Boomers have established habits and may need more convincing to change ingrained consumption patterns although they generally have more resources to invest in circular products or services, even if they have a higher initial cost.

Challenges and Opportunities

Adopting circular behaviour presents unique challenges and opportunities for different generations. The characteristics and experiences of each generation shape their approach to circular economy practices. 

For Generation Z, the main challenges are high digital dependency can lead to physical and emotional health problems.Excessive screen time has been linked to problems such as disturbed sleep patterns due to exposure to blue light(8).Emotionally, constant connectivity and use of social media also contribute to increased levels of anxiety, depression and feelings of loneliness(9). However, they have different opportunities as they are highly tech-savvy, so they are well equipped to adapt to digital tools for circular economy practices, and they have grown up with greater environmental awareness. Therefore, this generation may be more receptive to circular economy concepts (10)

Millennials may have to balance their desire for sustainability with career advancement, financial stability and possible resistance to changing established consumption habits although they often value purposeful work, which aligns well with circular economy principles and are often adaptable to new technologies and practices, making it easier to adopt circular behaviours.

Generation X may be more accustomed to traditional linear economy models, which requires a shift in mindset balancing family responsibilities with the adoption of new circular practices although they are often in leadership positions, allowing them to drive circular economy initiatives and have experience in navigating significant technological change, which can be valuable in transitioning to circular practices (11)

Baby Boomers may be more resistant to change, as they have spent most of their lives in a linear economy model and may have difficulty adapting to new technologies associated with circular practices. On the other hand, they have extensive work experience that can provide valuable knowledge to apply circular economy principles often in positions of influence, enabling them to support and fund circular initiatives.

Conclusion

The transition to a circular economy faces unique challenges and opportunities for each generation, shaped by their characteristics and historical experiences. Baby Boomers, while more resistant to change and accustomed to a linear economy model, possess work experience that can be valuable in financing and implementing circular initiatives. Generation X adopts a pragmatic perspective, focused on efficiency and value for money, but needs to overcome entrenched consumption patterns to adapt to circular practices. Millennials, with their interest in sustainability and innovation, are better positioned to balance environmental impact and economic viability in their consumption decisions. Meanwhile, Generation Z, highly connected and aware of environmental challenges, leads the way in climate activism and shows a notable willingness to pay for sustainable products, although their digital dependence poses challenges. Overall, the adoption of the circular economy benefits from common factors such as environmental concerns, simplicity of solutions and perceived benefits, but must be tailored to the specific needs and constraints of each generation to maximise its impact and ensure a more sustainable future.

References

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