Why Gen Z Is Driving Food and Beverage Brands to Become More Sustainable

25 10 2023

Image: Food Industry Executive

By Barak Bar-Cohen, Founder and CEO of Sojo Industries via Food Industry Executive • Reposted: October 25, 2023

What are key motivators behind Gen Z’s support for more sustainable food and beverage products? 

Gen Z is facing challenges that generations before them did not. 

As Gen Z consumers enter the workforce, they’re encountering very different circumstances than their parents and grandparents. For example, they grew up seeing the impact of climate change and a global pandemic firsthand, and for many, this led to sustainability becoming a greater priority. In 2023, Gen Z consumers face new challenges such as inflation, higher costs of living, and the impact of social media, all of which are driving this generation to make value-driven spending decisions. 

It’s not surprising then that Gen Z is using their newfound purchasing power in an environmentally and financially responsible fashion. With the world they’re growing up in, every purchase counts towards preserving the planet and saving dollars toward the basic living necessities. 

And what’s even better: brands and manufacturers are paying attention. Today, there are more options for Gen Z consumers to “shop their values” and ways for consumers to call out brands that are not prioritizing sustainability. This can further motivate Gen Z to demand food and beverage companies to adopt more climate-responsible practices in their supply chains. 

How do food and beverage manufacturing processes impact the environment? 

The manufacturing stage of the food and beverage supply chain can have profound impacts on the environment. For example, the reliance on nonrenewable energy sources to power heating, cooling, refrigeration, and other energy-intensive activities can increase carbon emissions. 

Likewise, this step of the process often generates a significant amount of waste from packaging materials to processing byproducts. Excessive packaging, especially with non-recyclable or non-biodegradable materials, can further exacerbate this issue, leading to increased waste generation and pollution. 

Without adequate disposal, food and beverage manufacturers may turn to landfilling or incineration — processes with harmful environmental effects. In fact, landfills often produce a natural byproduct that is composed of methane and carbon dioxide, both potent greenhouse gasses (GHG) that accelerate the climate crisis. 

Considering the ways manufacturing impacts the environment, it’s important that food and beverage brands make climate-responsible decisions to reduce their environmental footprint. 

What are some potential barriers that food and beverage companies face to achieve sustainability? 

Large food and beverage companies mostly control their own supply chains, from ingredient sourcing to manufacturing to warehousing to distribution. However, most of the emerging brands do not. 

This makes it difficult for the majority of newer brands to influence something they do not control. For example, if manufacturers rely on fossil fuels to power their warehouses, this will contribute to a product’s overall carbon footprint, and brands have little say in these decisions. So, they’ll face challenges in adopting sustainable practices throughout the supply chain. 

On the other hand, for larger brands that manage their own supply chains, sustainable practices are still not widely accepted due to legacy systems and financial return models that value a healthy ROI during challenging economic times, regardless of the environmental costs. But if brands fail to invest in the future, they’ll miss out on impressing a growing customer base: Gen Z and Gen Alpha customers who expect brands to offer sustainable food and beverage products. 

A part of the challenges for both newer and legacy brands is the fact that food and beverage supply chains are highly fragmented. Brands work with multiple suppliers, manufacturers, and distributors from production to retail. This makes it difficult to track and trace the environmental impact of products while assessing for quality control and food safety. Often, food and beverage products travel significant distances, making it even more challenging for brands to lower their environmental footprint. 

What strategies can food and beverage manufacturers employ to increase sustainable practices in their operations?

More than a strategy, companies must make an actionable commitment to climate-responsible decisions in every aspect of their business. 

When the choice is between non-recyclable plastic or packaging made from 100% recycled materials, businesses can choose to walk the talk by utilizing eco-friendly materials and finding savings elsewhere to justify the decision. Companies can also choose to work with vendors that are actively prioritizing sustainability in their operations, which can help the company reduce its carbon footprint. For food and beverage companies across manufacturing and the supply chain, sustainability must be put into practice across all processes, from ingredient sourcing to packaging to distribution, if companies truly want to be seen as green brands. 

Company leaders can also put this into practice by showcasing their own sustainable choices and supporting employees to choose more sustainable options in their everyday lives. For example, companies could encourage employees to practice green lifestyles by installing free charging stations at the office for electric vehicles or providing recycling bins and a pickup program. People often view these as extra steps or more expensive options, but it can make a big difference when everyone does their part. 

How can technology assist in improving sustainability efforts in food and beverage manufacturing?

Technology is one of the most prominent drivers for businesses that want to improve their sustainability efforts. In many scenarios, automation and robotics reduce the reliance on people, which can save energy, but also significant resources and waste produced by humans. Software platforms can help businesses be more sustainable by optimizing routes and analyzing weather patterns to better plan and implement more efficient manufacturing practices, which reduces wasted resources.  

Real-time, data-driven insights produced by artificial intelligence are also redefining sustainability efforts for food and beverage decision-makers. This valuable data is not only helping businesses improve their own operations but also benefiting consumers by enabling businesses to forecast projections and meet the environmental expectations of buyers. 

How could the changing preferences of Gen Z impact future practices and innovations within the food and beverage industry?

The preferences of younger generations, including Gen Z, are permeating the food and beverage industry. With their increased focus on healthy options, products accommodating probiotic, plant-based, and organic preferences have already made their way into food and drink innovations. 

Drink categories, including non-alcoholic beverages, have emerged as major areas of growth in 2023 driven by Gen Z being the most sober generation.

Younger generations are certainly influencing the market, but as a result, we even see older consumers changing their buying habits – and sustainability is one of these areas. While Gen Z is adopting sustainable behaviors more than any other age group, their actions are driving other age groups like Millennials to make more sustainable decisions. Whether it is a decision rooted in health, sustainability, price, or quality, consumers are influencing food and beverage brands to make innovative changes. By accommodating these preferences, companies can not only gain the trust of younger generations but continue to improve their bottom lines in close alignment with the market.

Barak Bar-Cohen is the Founder and CEO of Sojo Industries, an industrial automation company that utilizes robotics, mobility, and modularity to deliver efficient packaging and assembly solutions to the food and beverage industry. To see the original post, follow this link: https://foodindustryexecutive.com/2023/10/why-gen-z-is-driving-food-and-beverage-brands-to-become-more-sustainable/


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Categories : Climate Change, corporate social responsibility, DEI, ESG, green marketing, reputation management, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

Brands Would Do Well to Join the ‘Resale Revolution’

22 08 2023

Image: floorfound.com

Younger consumers are pushing resale into mainstream retail; and it’s changing how brands, platforms and other services that support commerce support and strategize around it. By Geoff Nudelman via Sustainable Brands • Reposted: August 22, 2023

We’re experiencing a “resale revolution;” and it’s fundamentally changing the way many of us in the US shop, according to the 2023 Reuse Report by global ecommerce marketplace Mercari.

According to the report, the US secondhand market is expected to reach $325 billion by 2031. What’s even more striking are the ways in which resale is slowly but surely becoming an integral part of the broader retail landscape; according to the report, Mercari has had more than 50 million downloads and gets 350,000 new listings every day in the US alone.

“Well over half of people surveyed for the report said buying secondhand is a lifestyle choice; and there’s a definite bias to younger consumers,” Neil Saunders, managing director ofGlobalData (which worked with Mercari to compile the report), told Sustainable Brands®.

From July 2022 – July 2023, the report notes almost 82 percent of US consumers purchased a secondhand item — 89 percent of millennials and 83 percent of Gen Z shopped resale. That shows the tilt towards resale is there with younger shoppers in ways that are erasing any prior, dated stigmas or stereotypes of buying used.

Falling right in line with the broader trend of climate-driven purchasing behaviors by younger consumers, the report stated that well above 20 percent of Millennial and Gen Z buyers placed “reducing environmental impact” as a factor in choosing to buy something secondhand. Those numbers also track on the opposite side — as younger consumers are also looking for more ways to extend the life of unused items through resale.

“We’ve seen a notable shift in the conversation around resale within the retail industry; and it’s clear that resale will play an important role in the wider industry’s move towards a more circular economy,” Visa chief sustainability officer Douglas Sabo told SB.

Embracing the powerful potential of resale

The shift is so notable that retail-adjacent players such as Visa are reshaping portions of their business as more shoppers turn to recommerce.

For Visa, this innovation comes in the form of initiatives such as its recently launched Recommerce Behavioral Insights Lab — which is facilitating several real-world experiments to better understand how to integrate circular practices into everyday retail.

According to Sabo, resale businesses are still working on that consumer connection — with only 23 percent of UK-based small businesses, for example, offering a resale option.

For a company such as eBay — arguably a resale pioneer long before it was ever a burgeoning trend — it requires a redefinition of what the platform could be for a new generation of buyers and sellers.

“Our platform has transformed into a hub for recommerce in many categories, driven by the sustainability-conscious preferences of younger generations like Gen Z,” says Renee Morin, the online auction company’s chief sustainability officer.

Despite the emergence of rival platforms such as Mercari, eBay remains a go-to, global marketplace for verified and authenticated goods through various self-run programs — especially with small appliances and electronics, which stand to have a greater positive environmental impact the longer they’re kept in service and out of the trash.

“Growth in eBay Refurbished GMV (gross merchandise volume) accelerated during Q1 2023, posting double-digit year-over-year growth with the addition of new categories — including computing and video game peripherals — as well as more brands and OEMs in existing categories,” Morin adds.

Apparel has the most potential and movement

One of the more interesting findings to come out of Mercari’s Reuse Report was the growth in male-identifying buyers exploring resale. 90 percent of male-identified consumers surveyed said they plan to purchase at least one secondhand item in the next year — and that’s supported by a 14.5 percent year-over-year growth in the “menswear” category on Mercari. Clearly, men’s-focused clothing is growing; and men are looking for more access to expensive items (sneakers, watches, etc) through verified resale channels. (GlobalData expects the “menswear” category to grow by 152 percent by 2031, according to the report. This is second only to “footwear,” which arguably could be partially incorporated into the “menswear” category, but remains separate for Mercari’s purposes.)

Over the last three years, apparel has easily been the largest growth category for recommerce — driven by streetwear, luxury and outdoor apparel brands alike looking to tap into new channels with current and new buyers. Whether by letting current customers buy and sell old pieces or offering a company’s own deadstock, flawed items or limited finds, apparel appears to be the most agile area for resale.

Recommerce is sure to continue evolving as consumers continue to explore it. Any entity with a stake in retail should adopt new messaging and offer more education to grow the segment, which is already making impact both in terms of the environment and the corporate bottom line: As Recurate asserted in its inaugural Resale Report, recommerce will be key for brands to unlock the next level of growth, engagement and consumer loyalty.

To see the original post, follow this link: https://sustainablebrands.com/read/defining-the-next-economy/mercari-brands-join-resale-revolution


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Three Things Companies Should Consider When Targeting Gen Z

29 04 2023

Photo: Getty Images

By David Herpers, Forbes Councils Member via forbes.com • Reposted: April 29, 2023

As Generation Z begins to harness its buying power and make significant financial decisions, competition for its attention grows. For companies hoping to capture this generation’s business, it’s important to understand the way they view their finances and how they engage with a brand. While Gen Z’s relationship with money and brands is similar to that of its older siblings, millennials, it’s certainly not the same. Let’s look at how Gen Z approaches finances and consumer brands.

Money Habits

As with the members of any younger generation, we tend to expect Gen Z to have irresponsible spending habits and not to be the biggest savers. Studies show this isn’t the case.

Gen Z tends to spend less and save more than the other generations, contributing an average of $867 in savings per month, almost doubling what the average American saves each month ($462). One may find themselves asking, is Gen Z more fiscally responsible than the rest of us?

The answer is yes and no. One main factor leading to the high monthly average of savings is many Gen Zers still live at home. According to a 2022 study by Credit Karma, Gen Z is setting records for the number of people living with their parents following high school education. With costs of living at an all-time high, most Gen Zers are making the decision to stay home in the best interest of their short- and long-term financial security.

That said, there’s still a large portion of Gen Z that chooses to spend over saving. However, those that fall into the spending category are still taking a cautious approach. Over 68% of Gen Zers use a budgeting tool of some sort to manage their finances. Of those surveyed, 43% say they prefer the old-fashioned pen-and-paper method, while 38%, respectively, say they use online budgeting tools.

Brand Enthusiasm

Gen Zers’ cautious nature isn’t exclusive to their housing and higher costs. It extends to their relationships with brands as well. When looking at the relationship between Gen Z and brands, a recent IBM study measured brand loyalty (repeated purchases) and brand enthusiasm (active engagement between brands and customers).

According to the IBM study, Gen Z is more likely to display brand enthusiasm over brand loyalty. Known as the “generation of researchers,” this is likely due to Gen Z’s habit of turning to online platforms for reviews before making even small purchases.

Rather than committing to a brand they are familiar with, Gen Zers will evaluate all options, taking into consideration customer and influencer reviews, social media presence and value alignment. When they find a brand that checks all their boxes, they are eager to share and engage with it. But keep in mind, should the brand harm the relationship in some way, Gen Zers quickly move to purchase from a competitor.

An advantage of appealing to brand enthusiasm, as noted by IBM, is that it creates opportunities to gain insight into customers’ attitudes and purchasing habits in relation to a brand. Companies get to have conversations with customers about what they want rather than guessing. And we already have insight into what Gen Z customers crave.

Authenticity

While millennials may stray away from content that’s been highly edited and airbrushed and that poses perfect “promises,” Gen Z has taken it to the next level—by adeptly recognizing the differences between real and fake online content. As the first generation born into social media and becoming more tech-savvy than generations so far, Gen Z is quick to identify fantasy versus reality. According to IBM’s study of Gen Z’s relationships with brands, it’s clear this generation places a high value on a brand’s authenticity and prefers real content over staged content.

The concept of authenticity extends beyond advertising and product images for Gen Z; it includes the company’s impact. According to a 2019 Kearney study, 57% of Gen Z reports a brand’s social and environmental impacts are key factors in its purchasing decision. But a statement about a brand’s commitment isn’t enough to sway the generation of researchers. In fact, Gen Z will go out of its way to find—and even pay slightly more for—a product or service if it means the purchase aligns with its values.

As Gen Z’s influence on the market and society continues to grow, companies and brands can best position themselves for success by aligning with the values and habits of this generation. With a large number of consumers that can take the success of a brand into their own hands, keep in mind their financial concerns, engagement expectations and craving for authentic content, as these are likely essential to keep a brand afloat in the rise of this new generation.

David Herpers is the SVP of Digital Bank at Credit One Bank. His expertise includes wealth management, banking and product management.

To see the original post, follow this link: https://www.forbes.com/sites/forbesfinancecouncil/2023/04/28/three-things-companies-should-consider-when-targeting-gen-z/?sh=1c1847f71a5d


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Categories : Climate Change, corporate social responsibility, ESG, sustainability, sustainable branding, sustainable brands

Workforce engagement goes beyond the employment contract

15 04 2023

Photo: Forbes

By Tom Swallow from sustainabilitymag.com Reposted: April 15, 2023

With work-from-home and hybrid working being the major trends in the employment landscape. How can leaders navigate the struggle of employee engagement?

What is at the heart of every great organisation? Of course opportunities are created by financial means and a brand to bridge the gap between a business and its customers, but there is something just as crucial, if not more so, in the eyes of a sustainable, equitable business—employee satisfaction and engagement. 

Employee engagement being the end goal, satisfaction is the key to unlocking the full potential of the workforce, which is why it’s important to understand what makes them want to work hard and take ownership of their role, project, brand, or branch. 

However, it’s fair to say that the majority of employees are not satisfied at work. According to Gallup’s State of the Workplace report, 85% of staff are preparing to grab their pay check and head home. 

Particularly as the crisis of increased living costs looms over employees’ heads—to say they are the only ones—employee satisfaction, and ultimately retention, starts at the top. So, what can leaders do to engage with their teams and draw out their best qualities and highest work ethic. 

Position employees in future plans 

To encourage employees to take ownership of their jobs, give them the opportunity to do so. The lack of engagement in the workforce today is a result of high figures of labour turnover, which is subject to around 87% of employees not gaining much satisfaction from their roles. 

The employment trends are changing and more and more people consider the type of work they are doing and would even take a pay cut in return for more satisfaction within their role. In the Gen Z population, 71% would reduce their salaries for more meaningful work. 

This also goes hand-in-hand with employee wellbeing and many of the workforce have been given a taste for a more balanced working lifestyle following the coronavirus pandemic. In the remote-working era, we’re seeing more and more organisations adopting work-from-home or hybrid-working models, however, this is not to say employees shouldn’t check in with them in the process. Allowing employees to work from afar presents new challenges, such as loneliness and the inability to separate work from home life. 

The cost-of-living crisis exacerbates concerns as many employees are spending more time at home, which is increasing this further due to the increased use of home amenities for work. An easy way for employers to support them with this is by ensuring they have the knowledge of relevant work-from-home tax breaks and benefits that are available to them to cover some of the costs of working remotely. 

As a result, according to the Chief Scientist of Workplace and Wellbeing at Gallup, Jim Harter says that employee welfare can drive direct benefits to the organisation. 

Jim Harter, Chief Scientist of Workplace and Wellbeing, Gallup. Submitted photo

“When your employees’ wellbeing is thriving, your organisation directly benefits—they take fewer sick days, deliver higher performance, and have lower rates of burnout and turnover. But, when your employees’ wellbeing suffers, so does your organisation’s bottom line.” 

Being transparent about human resources matters that affect employees is one thing, but proactive behaviour to support them while working from home is a key factor in building a lasting relationship with them. The most resilient teams are able to be transparent with their colleagues and likewise encourage them to speak out to leadership if they are in a troubling situation or concerned for their wellbeing. 

To see the original post, follow this link: https://sustainabilitymag.com/diversity-and-inclusion-dandi/workforce-engagement-goes-beyond-the-employment-contract


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