Generation Z is well known for their upbringing in a digital world, and as they are reaching adulthood they are tending to be more conscious about what they consume – and therefore are influencing the products and values that businesses create. With growing concerns of global warming and environmental degradation in younger people, sustainability is something that they highly value in products.
Recent studies have reflected the increasing trends in sustainability for Gen Z. A 2015 Nielsen report found that 73% of millennials are willing to pay for sustainable products as compared to only 55% of the global population. Gen Z appears to be following the trend of the previous generation, with a Forbes study finding that 62% of Gen Z consumers prefer to shop with sustainable brands. Likewise, a NYU study found that 50% of the growth of consumer packaged goods from 2013-2018 came from sustainably packaged products, which make up only 17% of the market. Previously, businesses treated sustainability as a fad or assumed consumers wouldn’t actually pay the higher price for a more ethical product, but Gen Z has been proving them wrong.
This news is encouraging for those who care about the environment, as well as businesses looking for ways to engage a younger market. Sustainability clearly sells, and Gen Z is on track to become the largest generation of consumers this year with a potential buying power of $44 billion. Therefore, businesses that incorporate sustainable products will better be able to channel this new market and generate more revenue. Even better, by switching to products with a lower ecological footprint, these businesses will be reducing large amounts of harmful emissions, waste, and pollution, and will make the world a better, cleaner place for Gen Z and following generations.
Author: Marta Rohner | LinkedIn