Why Younger Generation Demands Sustainable Businesses?

Consumer behavior today is deeply rooted in personal values, and sustainability is on the top of the list. Studies show that younger generations, especially Millennials and Generation Z, are willing to pay more for products aligning with their values. Consumer brands and retailers need to take this into consideration and act accordingly in order to be considered sustainable businesses. If not done in an authentic and truthful way, conscious consumers will raise a red flag and shop elsewhere.

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^{Why Values Decide Which Brands and Products Win?}

When it comes to shopping, it’s not about finding the lowest price anymore. It’s about finding brands and products that reflect values and identity. Younger generations, including Generation Z (born between 1997 and 2012) and Millennials (born between 1981 and 1996), are the most likely to make purchase decisions based on values and principles that are personal, social, and environmental. In a study conducted by First Insight, it’s shown that Gen Z is most willing to spend more on sustainable products. Gen Z are now starting to enter the consumer market and they are estimated to account for 40% of luxury purchases by 2035.

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Imagine walking into a store, holding two nearly identical products—one bearing a label that promises sustainability and the other without. Which would you choose? For younger generations, the answer is clear: they overwhelmingly favor brands that align with their values.

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It’s not just about products anymore; it’s about principles. Generation Z (born between 1997 and 2012) and Millennials (born between 1981 and 1996) are redefining the marketplace, turning shopping into a statement of personal identity and social responsibility.

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A recent article from Facebook IQ regarding sustainability trends, confirms the results of the previous studies discussed. It also shows that younger consumers (aged 18-34) drive the shift in significance of environmental issues. Compared to older generations, Gen Z and Millennials are 1.5x more likely to pay a premium for sustainable products. As a result, the global sustainability market is expected to grow by 24% annually in the next seven years. This is increasing the pressure on retailers and businesses to adapt to the needs of young consumers.

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But why are these values so important? It goes beyond preference—it’s about purpose. For Gen Z, climate change isn’t a distant threat; it’s a lived reality. They’ve grown up with images of plastic-choked oceans, raging wildfires, and extreme weather events. Shopping, for them, is an extension of activism. Each purchase becomes a vote for the kind of world they want to live in.

Consider the Rosita Brewery, a Catalan craft beer brand that partnered with Plastiks to recover one kilo of plastic for every beer bottle sold. It’s not just about the beer anymore; it’s about the story behind each sip. Rosita’s customers aren’t just drinking—they’re actively contributing to plastic recovery projects worldwide​.

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This shift in consumer behavior is backed by hard numbers. According to Facebook IQ, Gen Z and Millennials are 1.5 times more likely than older generations to pay a premium for sustainable products. And it’s not just talk—the global sustainability market is projected to grow by 24% annually over the next seven years, reflecting the skyrocketing demand for eco-conscious goods​.

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Brands that ignore this trend do so at their peril. It’s no longer enough to offer quality products at competitive prices. Younger consumers are asking, What does this brand stand for? Is it aligned with my values? If the answers fall short, they’ll swiftly move on to a competitor that walks the talk.

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Sustainability isn’t a selling point anymore; it’s the baseline expectation. Companies that embrace this reality, like Danone Spain, which partnered with Plastiks to trace and recover 2,000 tons of PET plastic annually, are not only winning customers but also future-proofing their businesses​.

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So, the question for brands today isn’t Can we afford to prioritize sustainability? It’s Can we afford not to?

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^{Why Sustainability Matters to Gen Z?}

Unlike previous generations, Gen Z views sustainability as more than an add-on. It’s woven into their identity and lifestyle. A 2023 study by First Insight found that 73% of Gen Z consumers are willing to pay more for sustainable products, compared to just 50% of Baby Boomers​. For them, shopping is an extension of activism—every purchase becomes a vote for the kind of world they want to live in.

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But this mindset extends beyond personal shopping habits. 77% of Gen Z job seekers actively seek out employers that prioritize sustainability, according to a LinkedIn Workplace Learning Report. If a company’s environmental efforts fall short, it's not just customers they lose—it’s future talent as well​.

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This value-driven approach is transforming markets. According to Facebook IQ, Gen Z and Millennials are 1.5 times more likely than older generations to pay a premium for sustainable products. This shift has fueled the growth of the global sustainability market, projected to expand by 24% annually over the next seven years​.

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Take the fashion industry as an example. ThredUp’s 2024 Resale Report revealed that the secondhand fashion market—driven largely by Gen Z consumers—is expected to grow three times faster than traditional retail by 2028. Why? Because thrifting aligns with their eco-conscious values while offering affordability and individuality.

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^{Beyond Shopping: Activism Through Spending}

For Gen Z, sustainability extends beyond what they buy—it’s about holding brands accountable. Movements like #WhoMadeMyClothes and #BoycottFastFashion have gained traction as young consumers demand transparency from brands.

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Plastic recovery initiatives are another example of consumer-led activism. Brands like Rosita Brewery partnered with Plastiks to ensure that every beer bottle sold funds the recovery of one kilo of plastic waste. This not only reduces environmental harm but also creates an emotional connection with customers who want to see their purchases drive real impact​.

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^{Companies need to practice as they preach}

In order to attract and keep younger generations as costumers, consumer brands and retailers need to take action to meet the needs of their target market and be transparent in their communication.

While many brands are transitioning to a more sustainable business model, some efforts are not truly rooted in sustainable practices. Sustainability-targeted marketing has become increasingly prevalent as companies try to appeal to the Gen Z audience, but their claims are not always true.  

This practice of branding a company as environmentally friendly without adopting legitimate sustainable operations is called greenwashing, and it makes shopping for sustainable products difficult. Choosing ethical and environmentally friendly products requires a lot of thought and education, as the messaging might differ from the actual processes and products.  

Greenwashing is not a new concept, but younger generations are not going to swallow the sugarcoated message. Gen Z has made it clear that protecting the environment and combating climate change are a priority for them, not only as consumers but also as employees and even as shareholders and voters.

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^{Transparency is key}  

Transparency is the best way to differentiate between a truly green company and one that is only putting out a nice, green message. When a brand only has a green label or eco-slogan, but doesn’t have the information to back it up, that’s often the biggest giveaway that the company is not truly green.

It’s the companies that make it clear to consumers, what actions they are taking and publish clear reports about sourcing, manufacturing and direct environmental impact, who will win the hearts of conscious consumers – and ultimately contribute good to our planet.

Tip! If you’re doing your research on sustainable businesses, a smart first step to check if the companies are legitimate with their actions is by searching for their Sustainability and ESG (Environmental Social Governance) Reports, to back up a decision.

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^{Beyond Shopping: Activism Through Plastic Recovery}

For Gen Z, sustainability extends beyond what they buy—it’s about holding brands accountable for their environmental impact. Increasingly, young consumers expect companies to not only reduce plastic use but also contribute to removing plastic already polluting the environment. This has led to a surge in plastic waste management and recovery initiatives, with major brands and sports clubs leading the way.

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^{Football Clubs Championing Plastic Recovery}

Football clubs, with their global fanbases, have emerged as unexpected yet powerful advocates for sustainability. FC Barcelona, one of the world’s most recognized clubs, partnered with Plastiks to recover 1 million kilograms of plastic over three years. Through their digital collectibles, fans can contribute to plastic recovery efforts worldwide, with 80% of the proceeds directly funding environmental projects​. Every collectible purchased represents a verifiable amount of plastic removed from the environment, turning fandom into climate action.

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Similarly, Bayer 04 Leverkusen launched a sustainability initiative that combines sports with environmental responsibility. By partnering with Plastiks, the club ensures that its merchandise sales fund plastic recovery projects. Fans are not only supporting their team but also contributing to a cleaner planet.

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^{Big Brands Turning Plastic Recovery Into Brand Loyalty}

It’s not just football clubs stepping up. Global brands are recognizing that plastic recovery resonates with eco-conscious consumers. Danone Spain, for instance, collaborates with Plastiks to trace and recover 2,000 tons of PET plastic annually through its ReNueva project​. This initiative ensures that plastic used in packaging is not only recycled but also offset by equivalent recovery efforts, providing consumers with peace of mind.

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Fashion brands are also joining the movement. Adidas, known for its commitment to sustainability, partners with organizations like Parley for the Oceans to turn recovered plastic into high-performance sportswear. Each product comes with the assurance that ocean-bound plastic has been intercepted and repurposed into something valuable.

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For brands, plastic recovery initiatives are more than environmental goodwill—they’re a business strategy. According to Nielsen, 81% of global consumers believe companies should actively help improve the environment​. When brands like Rosita Brewery commit to recovering one kilo of plastic for every beer bottle sold, they’re not just selling a product—they’re offering customers a way to make a positive impact​.

Ultimately, plastic recovery is about more than cleaning up waste. It’s about building trust, demonstrating accountability, and proving that sustainability claims aren’t just marketing fluff. For Gen Z, that's non-negotiable. Brands that embrace verified plastic recovery—like Barcelona, Bayer, Danone, and Adidas—aren’t just winning customers; they’re earning loyalty and future-proofing their business.

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^{How to take action in a verifiable way?}

In order to become a more sustainable business, companies must reshape how they produce and market their products, as well as how they are being responsible for their disposal at the end of the value chain and consumption cycle. Regardless of the industry in which a business operates, the best way to start is to tackle global problems. One such problem being plastic pollution.

There are two simple ways that your business can reduce its plastic usage and become more sustainable:

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Internally

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By reducing the unnecessary production of plastic in the company's products and operations, recycling, reusing, and developing alternatives.  

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ESG sustainability rends and strategies and sustainability programs can be operated by the company itself. This journey is crucial for companies to become more sustainable and stay relevant in the future. It requires time, effort, money, and most of the time, a deep transformation of the company’s business model. But it is a necessity in order to attract young customers and future talent.

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Externally

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By supporting the recovery of plastic waste in regions of the world that lack infrastructure, as this waste ends up in the environment and in the oceans that we all share. Plastiks offers an external solution, allowing companies to take immediate and verified actions against plastic pollution, with instant visibility of the positive impact of their actions.  

^{Partner with Plastiks for Verified Plastic Recovery‍}

If Gen Z is the future and sustainability is the path forward, your business can't afford to stand still. The brands that will thrive tomorrow are the ones taking verifiable action today—and plastic recovery is one of the most impactful ways to start.

Plastiks empowers your business to lead with authenticity by offering two powerful solutions:

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1. Digital Certificates: Showcase your commitment to plastic recovery with Plastic Recovery Guarantees (PRGs)——blockchain-based digital certificates that verify the removal of plastic from the environment. Each certificate represents real-world impact and provides compliance advantages, helping your business meet the requirements of environmental regulations, including the EU anti-greenwashing directive. This transparency builds trust with conscious consumers and ensures your sustainability claims stand up to scrutiny.
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2. Plastic Credits and Roadmaps: Go beyond one-time contributions with Plastic Credits, tied to structured sustainability roadmaps. These projects ensure that every credit purchased supports long-term environmental and social outcomes, transforming your brand’s sustainability efforts into measurable, verifiable change.

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Gen Z doesn’t just buy products—they buy into brands that reflect their values. With Plastiks, you can confidently show your audience that your business is part of the solution, not the problem.

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If you’re ready to future-proof your brand, book a meeting with one of our advisors and discover how Plastiks can help you achieve your sustainability goals. Let’s Talk and build a better world together.