Who is Generation Z?

Merriam-Webster defines Gen Z as follows: “People born in the late 1990s and early 2000s. Generally, members of Gen Z are tech-savvy, pragmatic, open-minded, individualistic but also socially responsible.”

The usual cut-off for Gen Z is 1996 - 2012. This means the world they were born into is very different even from their predecessors, the Millennials.

Here are some Gen Z characteristics:

• They grew up with technology such as smartphones and the internet

• Social media, constant connectivity and on-demand entertainment have always been part of their lives

• They were raised during the Great Recession

• They have been coming of age in a global pandemic

• They are more socially minded than previous generations

• They have grown up seeing the disastrous effects of the climate crisis

• They have been thinking about the fate of the world most of their lives

One famous example of Gen Z is Greta Thunberg, the Swedish teen activist. The Friday school strikes that spread around the world via social media happened because Thunberg staged strikes outside Sweden’s parliament in 2018. Then there is Malala Yousafzai, who inspired a feminist movement in the Middle East and was awarded the Nobel Peace Prize.

What are Gen Z’s opinions and values?

Gen Z is also known as the “TikTok generation”. Their values heavily influence their choices. But what exactly are their values?

• They put the health of the planet first

• They want to cut down on consumption

• They want to reduce their own carbon footprint

• They like supporting local, small businesses

• They like participating in the circular economy

• They like purchasing previously owned items as opposed to new ones

Food is Gen Z’s top spending priority, making up almost a quarter of their spending

The majority is looking for food that fits in with their values: organic, sustainable, and locally sourced produce

Social media offers an insight into just how important these topics are to Gen Zers. In October 2021, there were over 2 billion video views on content with the hashtag #NatureLover on TikTok over the year before. Climate-related conversations on TikTok had over 20 billion views globally during that same time. Equally, #sustainability has over 12 million posts on Instagram.

Here are some figures about Gen Z’s opinions

Almost 9 out of 10 Gen Zers are worried about the environment and the planet.

Around 7 out of 10 Gen Zers think the government should be more active in addressing issues.

9 out of 10 Gen Zers think companies must drive action on social and environmental issue.

In 2020, a third of Gen Zers took at least one of four actions (donating money, contacting an elected official, volunteering or attending a rally) to support the fight against climate change.

Almost half of Gen Zers are currently eating or are willing to try a plant-based diet.

More than 4 out of 10 vegans are 15-34 years old (Gen Z and Millennials) The climate crisis is a major concern for Gen Z: 76% consider it their biggest social priority. In an Amnesty International study it was identified as the top issue by 41% of respondents.

More than 6 out of 10 Gen Zers prefer to buy sustainable products.

More than 7 out of 10 Gen Zers are happy to pay more for sustainable products. This is more than any other generation before them.

This generation has been disproportionately affected by eco-anxiety. The largest ever survey of climate anxiety in 10 countries with over 10,000 young people revealed that being reminded daily of the severity of environmental issues has had a considerable impact on Gen Z’s mental health. As a result, many young people today feel like they have no future and that humanity is doomed. Having grown up seeing the terrible effects of climate change, Gen Zers are stumped as to why the older generations are so indifferent towards this topic.

Why should brands care about Gen Z’s values?

Gen Z is undoubtedly a group of people brands want on their side. The Bank of America predicts that Gen Z will be the “most disruptive generation ever” and will see their income surpass that of millennials by 2031. Gen Z’s economic power is the fastest growing across all generations. Projections say their income will increase fivefold by 2030 to over €34 trillion as they enter the workplace. They are set to surpass millennials’ income by 2031 and will make up over a quarter of the global income.

This means Gen Z has an immense influence on the success or failure of brands. And they put their money where their mouth is. They are one of the most likely consumer groups to make purchase decisions based on their values. If brands fail to show that they are doing meaningful work to help the planet instead of just greenwashing, they will lose a large chunk of potential profit. This is no idle threat. According to Deloitte almost half of Gen Zers stopped purchasing certain brands due to sustainability or ethics concerns.

What is more, due to social media, brands are under much more scrutiny than ever. If Gen Zers are unhappy with a brand, they start social media call-outs that can have unforeseen consequences such as resignations of senior personnel.

It is quite clear that sustainability should be top of mind for any retailer or brand that plans on staying successful in the near future.

What do retailers or brands need to do to appeal to Gen Z?

First and foremost, beware of greenwashing. Consumers, and Gen Z in particular, are very aware of fake sustainability-targeted marketing and greenwashing. Slapping buzzwords such as “sustainable” or “eco-friendly” onto your products or sharing a simple Earth Day graphic on Instagram won’t work with Gen Z consumers. So what will?

The key word is transparency.

What efforts are you putting into reducing CO2 emissions?

What are the working conditions along your supply chain?

Where are your ingredients from?

What is the environmental impact of your manufacturing process?

If you are donating money, which specific organisations you are donating to? How much and how often are you donating?

This kind of transparency convinces consumers that your green actions are more than just for show. It is also the best way to obtain consumers’ trust. Publishing statistics about your production process can earn their loyalty.

The Solution - Our Product Impact Assessment

If you decide that you do want to charge ahead with absolute transparency, you will definitely come across the idea of product impact assessments. They calculate the impact of your product on the environment. However, most of them are currently focused on one dimension, such as the CO2 footprint.

We at inoqo have the solution for how to share all your production- and consumption-related data. Our Product Impact Assessment analyses the impact of your product across eight dimensions, including climate, animal welfare, regionality and social. Once we have assessed your products and gone through an optimisation phase with you, you can communicate your products’ impact with our impact labels. This is exactly the kind of transparency Gen Z consumers crave.

Have we piqued your interest? Then simply get in touch with us at hello@inoqo.com. We are looking forward to hearing from you!