Just like their predecessors, generation Z, is revolutionizing the market, dictating new business models and what becomes “cringe” or not, in addition to valuing the concept of sustainability.

In recent months we have witnessed some debates that were born on the internet and ended up gaining strength outside the networks. An example of this is the discussion between millennials and generation Z about evaluating whether a certain action or taste is classified as “cringe”. For example, eating breakfast or liking Harry Potter makes you “cringe” for generation Z. But what is the relationship between all this and sustainability?

The answer is simple, in fact it is the evolution of the perception of the millennial generation that began a process of change with no return. Generation Z brings a new perspective to investments, to their consumption and brand choices, which directly impacts the path that brands and their businesses are putting into practice today.

Generation Z, according to a survey carried out by First Insight, surpass their predecessors in using sustainability as a factor of choice when consuming a product. Furthermore, 73% of respondents are willing to pay a 10% higher price for sustainable products.

This generation, which today represents 51 million individuals in Brazil, it has not yet reached the mass labor market, however, they not only have 93% influence on the purchasing power of the domestic market, but they are also supporters of causes and purposes.

It is a generation that, like its predecessors, the millennials, brought a revolution to the market and a trend to brands. They dictate new business models and what becomes “cringe” or not and value the concept of sustainability, selecting brands based on the authenticity of their environmental actions, their social responsibility, transparency and ethics.

With each generation, sustainability becomes a criterion for choosing when purchasing, but I say even more so in future forms of business. This can be seen in the vegan food market. In the United States, generation Z represents 1/4 of the population in the vegetarianism and veganism market, according to research carried out by British bank Barclays. In Brazil, according to the IBOPE, in 2020, even though the country is the 5th largest meat consumer, 47% of Brazilians reduced their meat consumption in the last year. Not only due to the increase in the price of meat, but mainly due to the growing awareness of the search for more sustainable, healthy and cruelty-free solutions against animals.

This profile is observed worldwide, in accordance with the forecast of the Allied Market Research a growth of 8.4% in the last 3 years and a mark of 3.1 billion dollars in sales of vegan products in 2017, according to a study carried out by Plant Based Foods Association and The Good Food Institute.  

It can be seen that, without a shadow of a doubt, generation Z and the next generations are and will be dictators of new consumption habits, trends and creators of new markets and businesses. Following this scenario, companies and investors around the world are adapting their businesses to meet the demands of new consumers. So, I ask, what has your organization done to embark on this wave and not become “cringe” by not addressing purpose or sustainability in your product?

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