Born between 1997 and 2012, Generation Z is the world’s largest generation cohort, accounting for one third of the global population. In Australia, 4.6 million Gen Z make up around 20% of inhabitants. With the fastest growing disposable income of all generations, brands cannot afford to ignore this post-Millennial generation; in fact, the future of our profits – and more importantly our planet – depends on them. 

You need them on your side!

In March this year, students in Australia converged on the prime minister’s official residence to demand action against climate change. Sustainability in all its forms is a topic close to the hearts of this young generation, in fact, our latest study* showed how 40% of Gen Z in Australia say that global warming and climate change keeps them up at night. 

Gen Z’s commitment to sustainability also shapes their purchasing intentions. In Australia, 63% say they are willing to pay more for brands that make a positive social impact and 57% for brands that operate sustainably. On top of that, 39% say they refuse to buy from non-sustainable brands.

For Gen Z, sustainability extends beyond environmental impact to include social issues and how companies treat people. In Australia, their main concerns include social inequality (37%), racism (35%) and the suppression and abuse of women (20%). These values also shape what they expect from brands: 68% say they value companies that care about their employees, while 59% believe brands should help people live better lives. For this generation, responsible business means making a positive difference for both people and the planet.

Support their mission

In an effort to shape a better future for themselves and others, Gen Z in Australia are willing to collaborate with brands. They feel it is acceptable for social-media sites and brands to use personal data to develop better products and services (46%) and service consumers better (42%). Meanwhile, 41% are willing to exchange some personal data for free services, discounts, or goodies. 

The role of brands is more versatile than ever: as life coaches, as drivers of change and innovation, and as a means for Gen Z to express themselves. More than ever, brands have to stand for something meaningful and put that into practice. Mental health app HeadSpace Australia recently launched the campaign ‘Take a Step’, aimed at supporting the mental health of Aboriginal and Torres Strait Islander youth.