Japan's Young Generation Leading Ethical Consumption: Examining Their Consumption and Values!

─Unraveling the Latest Survey! Sustainable Lifestyles Across 12 Countries? Part 3─

In July 2021, Dentsu Global Business Center and DENTSU SOKEN INC. jointly conducted the " Sustainable Lifestyle Awareness Survey 2021 " across 12 countries (Japan, Germany, UK, USA, China, India, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam). This time, Yuri Takahashi from Dentsu Global Business Center and Taro Magome from DENTSU SOKEN INC. delve into the consumption patterns and values of Japan's younger generation (survey respondents aged 18-29 in this article).

*For the definition of "highly engaged in social activities," please see here.

<Table of Contents>
▼Shared Concerns About "Racial Discrimination" Among Young People in Japan and the West
▼High "Ethical Consumption" Mindset Among Young People
▼Companies "Chosen" and "Not Chosen" by Young People
▼New Consumption Trends Led by Young People
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Shared Concerns About "Racial Discrimination" Among Young People in Japan and the West

As shown in the table at the beginning, when focusing solely on Japan's younger generation, "racial discrimination" emerged as the top concern—an issue that did not rank highly in the overall national survey. Looking at other countries, the same trend was observed in Western nations like Germany and the UK. In the US, while it ranked high overall, it became the top social issue of concern specifically among the younger generation. Notably, "racial discrimination" ranking highly is a characteristic unique to Japan's younger generation within the Asian region.

The graph above compares the percentage of respondents expressing concern about "racial discrimination" versus "economic stagnation" by gender and age group. Among the younger generation, the percentage expressing concern about "racial discrimination" was approximately 30 percentage points higher than those concerned about "economic stagnation," with only 18% of young people showing concern about the latter.

Why does "racial discrimination" attract so much attention among young people in Japan? One possible reason is the opportunity to learn about overseas movements like "Black Lives Matter" and "Stop Asian Hate" in real time via social media. Social media ranks high as a "trigger for becoming interested in social issues" among young people in every country, playing a significant role.

Because global values permeated younger generations faster than older ones, expressions and behaviors that weren't heavily scrutinized just a few years ago are now rapidly being reevaluated, particularly among young people in Japan. This shift has heightened sensitivity towards "racial discrimination."

In particular, tennis player Naomi Osaka's act of expressing her message through a mask during a match became a global social media topic, prompting Japan's youth to perceive the issue of "racial discrimination" as something personally relevant. Regarding perceptions of "sustainability," the word "diversity" ranked third among terms cited by Japan's youth.

So why is there less interest in "economic stagnation"? Naturally, a key reason is that many young people are students, meaning they have fewer opportunities to engage with the economy in the first place. Furthermore, for this generation who grew up amid persistent economic downturns and recessions, economic stagnation feels like an everyday reality. It doesn't seem to be perceived as an immediate, pressing social issue. Conversely, the high level of concern among those in their 40s and older might stem from their awareness of the contrast between Japan's period of strong economic growth ( ) and the current situation, leading to anxiety about the future.

High "Ethical Consumption" Mindset Among Younger Generations

So, where are the younger generation's interests focused when it comes to consumption?

The graph above compares responses from younger generations and all Japanese generations regarding "whether they consider environmental impact when purchasing products." It shows that compared to the Japanese average, a higher proportion of younger people consciously practice ethical consumption that considers the environment.

Companies Chosen and Not Chosen by Younger Generations

Next, let's examine what types of companies' products are supported by the younger generation. As the graph above shows, Japan's younger generation considers a company's approach to social issues and ethical values when purchasing products. Interestingly, interest remains high even among those in their 60s, forming a U-shaped curve.

This U-shaped curve also appeared in responses to statements like "I choose products with traceability even if they cost more" and "I choose vegetable-centered menus over meat to reduce the impact of climate change."

Among Japan's younger generation, the proportion of people who avoid purchasing products because they perceive "problems with a company's ethics" or "potential negative impacts of the product on climate change, etc." may be higher than in other age groups. The lower ethical consumption motivation among those in their 30s to 50s can be attributed to increased responsibilities related to family and work, resulting in less mental and financial leeway compared to other generations. Conversely, those aged 60 and above likely have the freedom to incorporate their personal values into their consumption behavior, extending their awareness beyond price to the broader societal impact of a product.

Younger generations actively seek daily updates on social media about the actions of their favorite influencers and close friends. Moreover, they are in an environment where they can not only receive information but also constantly share their own lifestyles and opinions. The tendency for social media to significantly influence the values of younger generations is observed not only in Japan but worldwide. If these values and behaviors remain unchanged as they age, they are likely to shape the future vision of society and the economy.

※Environmental Premium = The additional cost added to a product compared to others to reduce its environmental impact

Finally, we examine the impact of the "ethical consumption" mindset on business. The chart above shows responses to the question: "If a company doubles its development costs to halve the environmental impact of a product compared to current offerings, how much higher would you accept the purchase price?" Differences between product categories are not large, with roughly 30% indicating they would accept a significant price increase.

A New Consumption Trend Led by Younger Generations

This survey reveals that younger generations are leading the "ethical consumption" mindset in Japan. Globally, heightened awareness of environmental issues and sustainability, particularly among younger demographics, is a shared trend.

In Japan, the proportion of young people in the population is low, and the volume impact they have on consumption and industry is often underestimated. However, for companies, it seems undeniably important to develop products and services and implement marketing strategies that nurture the "ethical consumption" mindset that is indeed emerging among young people.

Moving beyond simply offering value like "better quality at lower prices" or "greater convenience at the same price through technological innovation," explaining that "the higher price reflects social value" could also help attract and retain younger fans. We hope that the sustainable lifestyles led by the younger generation will trigger the emergence of new consumer cultures and economic vitality in Japan.

[Survey Overview]
Title: "Sustainable Lifestyle Awareness Survey 2021"
Survey Method: Internet survey
Conducted by: Dentsu Inc., DENTSU SOKEN INC.
Survey Period: July 8–20, 2021
Countries Surveyed: 12 countries (Japan, Germany, UK, USA, China, India, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam)
Sample Size: 4,800 people
Eligibility Criteria: 500 men and women aged 18–69; 300 men and women aged 18–44 in the six ASEAN countries
Japan: 500, Germany: 500, UK: 500, USA: 500, China: 500, India: 500,
Indonesia: 300, Malaysia: 300, Philippines: 300, Singapore: 300,
Thailand: 300 people, Vietnam: 300 people

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*Percentage composition (%) is rounded to the second decimal place, so the total may not always add up to 100%.
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Details here

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