Mastercard Report Finds Younger Generations Driving Shift Toward Conscious Consumerism and Circular Economy
Shifting personal priorities are reshaping the next generation of consumer choices, according toMastercard‘s inaugural Conscious Consumer Report. While affordability, longevity and brand trust remain primary. . .
Shifting personal priorities are reshaping the next generation of consumer choices, according toMastercard‘s inaugural Conscious Consumer Report. While affordability, longevity and brand trust remain primary drivers of purchasing decisions, consumers are still seeking options that align with their personal values. Spending behavior from the Mastercard Economics Institute, one of the data sources that Mastercard drew from for this report, confirms thatsecondhandshopping growth is outpacing retail overall by a wide margin. Notable growth in therentaleconomy is also reported. Secondhand shopping is growing over three times faster than traditional retail for clothing stores in the top 20 circular shopping economies. And circular behaviors, such as resale,rental, repair, and reuse are no longer niche — they are becoming normal, according to the report. Younger generations are driving this opportunity. The report found that Gen Z and Millennials are more than four times more likely (30 percent) than Boomers (7 percent) to say they rent products instead of buying new ones. Across different circular models, younger generations, and especially in emerging markets, are fueling this growth. The study found that thecircular economyis winning where it’s frictionless, trusted and economically rational. According to the report, today’s consumers are optimizing for value — product affordability, quality and longevity, while seeking options that allow them to live according to their values. Durability and trust rival cost as a top consideration, especially among younger generations, signaling a shift from “cheap and disposable” to “affordable, lasting and rooted in transparency. ”Among the factors that influence purchase decisions: 63 percent consider how much it costs, 52 percent consider how long it will last, and 45 percent consider how much they trust the brand. Sustainabilitycues such as materials, environmental impact and resale potential are more influential among younger buyers, reinforcing a shift toward long-life and low-waste consumption. Some 25 percent consider how it impacts the environment, 22 percent think about where it’s coming from, i. e. , local or international, and 20 percent consider whether it was made ethically or without harming people. With so many people are feeling strongly affected by the rising costs of living, it’s clear that perceived high cost is a key barrier to conscious consumption and sustainable lifestyles. When asked about the barriers to improving their lifestyle to be healthier and more sustainable, 50 percent said making changes is too expensive, but 54 percent said they choose brands or products that align with their values, even if they cost more. In contrast, 46 percent said they choose the lower price, even if it means compromising on their values (i. e. ,sustainability, ethical sourcing, supporting small business). In the U. S. , Gen X and Boomers skew toward choosing the lower price over brands that align with their values. While in countries like France, India and China, all generations choose brands that align with their values over lower prices. According to the Mastercard report, the categories in which values win out over price are health and wellness products (61 percent), electronics (59 percent), and personal care and beauty items (59 percent). The categories in which price wins out are entertainment, i. e. , streaming services (53 percent), household items (52 percent) and travel (51 percent). The report found that 61 percent of consumers under age 30 said they prefer to spend their money on environmentally-friendly products rather than reduce the number of products they buy, indicating an expanding growth opportunity for businesses. While other healthy and sustainable behaviors remain somewhat stable, consumers report that buying used items is notably increasing over time. Gen Z, Millennials and emerging markets (China, India, Indonesia) are leading the way. Some 43 percent of Gen Z, 41 percent of Millennials, 39 percent of Gen X and 27 percent of Boomers said they look for secondhand or used items more often than before. In France, this rose to 57 percent of Gen Z and 52 percent of Millennials. For upcoming holidays and special occasions, some 20 percent of customers surveyed in Mastercard’s Financial Sentiment Survey — a data source that also contributed to the report — said they plan to seek out secondhand finds, slightly less than those who said they plan to buy the latest in-demand products of the season (22 percent). Consumers say the cost of secondhand is more cost-based than values-based right now. In the top 20 circular shopping economies, secondhand clothing sales increased 28 percent year-over-year in 2025 compared to 8 percent growth in clothing stores. The Mastercard Economics Institute has seen a notable shift in the U. S. toward secondhand options in specific sectors, including sporting gear. Secondhand sports sales outpaced growth of the total sporting goods category in 2025, ending the year with 17. 6 percent growth year-over-year, up from 10. 3 percent in 2024. Around the world, younger generations are normalizing access over ownership. The Mastercard Economics Institute reported that 2025 saw very strong spending growth in the U. S. on clothing rentals, up 17. 6 percent year-over-year. Across markets, consumers consistently expressed interest in reuse and recycling, yet participation increases most when solutions are embedded directly into shopping, payment and return experiences. This shift is giving rise to a new generation of circular infrastructure designed not to ask consumers to “do more,” but to make more conscious choices by the default. Recycling, avoiding food waste and avoiding products with plastic packaging are thought to be the most impactful on protecting the natural environment.