Born between 1997 and 2012, Generation Z (Gen Z) represents a significant portion of the world population, comprising approximately one third of the global community. In Australia alone, 4.6 million Gen Z individuals contribute to roughly 20% of the country's residents. With a growing disposable income, this post-Millennial demographic holds considerable sway over market trends. For brands, engaging with Gen Z isn't just about maximizing profits; it's about securing the future of both economic success and environmental sustainability.
Conscious Consumption: Generation Z eco-activism
2023 saw a meaningful display of Generation Z's eco-activism as Australian students rallied at the prime minister's official residence, demanding urgent action on climate change. Sustainability resonates deeply with this generation, with our recent global sustainability study revealing that 40% of Australian Gen Z respondents lose sleep over concerns about global warming and climate shifts.
The commitment to activism extends to consumer behavior as well. A significant majority (63%) of Gen Z individuals in Australia are willing to pay a premium for products from brands that prioritize societal impact, while 57% actively seek out businesses committed to sustainable practices. Additionally, 39% of respondents refuse to support brands that neglect sustainability principles.
Beyond environmental concerns, Gen Z also prioritizes social issues such as inequality (37%), racism (35%), and gender equality (20%). They value brands that demonstrate care for their employees (68%) and actively contribute to improving people's lives (59%).
Brands as agents of change
Engagement with brands extends beyond mere transactions for Gen Z. They view data exchange as a fair trade-off for better products and services (46%) and improved consumer experiences (42%). Moreover, 41% are open to sharing personal data in exchange for complimentary services, discounts, or incentives.
Brands now serve multifaceted roles in Gen Z's lives: as mentors, catalysts for change, and platforms for self-expression. It's imperative for brands to embody meaningful values and translate them into actionable initiatives. For instance, the mental health app HeadSpace Australia recently launched the 'Take a Step' campaign, focusing on supporting the mental well-being of Aboriginal and Torres Strait Islander youth.
Insights into Generation Z's mindset
Download your free copy of our ‘Ready for the Zoomers’ report to learn more about this key generation and their expectations towards brands.
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