Millennials’ values

Sustainability has been a key subtheme of the “Millennialsʼ values” Supertrend since launch. Take food choices: while vegans remain a small minority in developed countries, Generation Y and Z are more likely to adopt a plant-based or vegetarian diet due to concerns about the environment and health. This cohortʼs evolving food preferences are influencing broader society, driving sales of meat and dairy alternatives. Now even well-known fast-food chains are testing plant-based meat and hamburgers on their menus. Millennials are also taking the lead in other areas, including subscriptionbased services.

Sustainable business and investments

Responsible consumers square the circle

Sustainability is fast becoming a priority for companies, driven by Gen Y’s and Z’s climate change concerns and increasing spending power. While some shoppers still give little thought to the environment, the ranks of the responsible consumer are growing. When making purchases such as food or clothing, these consumers seek to minimize their environmental footprint, including through recycling. They do not want their bottles of shampoo ending up in the ocean. Posts containing the words recycling or “plastic-free” are trending on social media.

Companies are responding with innovative solutions, albeit on a limited scale for now. A leading sporting goods company, for example, sells shoes made from plastic trash from the ocean. Many apparel companies have introduced sustainable collections, including ethically sourced and recycled materials. The food, beverage and consumer care industries aim to use more recycled plastics in their packaging, and to use more packaging materials that can be recycled. Consumer goods companies are working with retailers to collect goods such as shoes, apparel, or soap bottles after their use, while waste management companies are developing machines to collect such items for recycling. Resale and rental platforms that extend the life of apparel, including designer dresses and purses, are being launched.

These many small steps are leading to the development of a larger circular economy in which companies design goods in a way that every part has value and can be recycled or reused. This stands in stark contrast to the current “take-make-waste” linear economy, as described by the Ellen MacArthur Foundation, a charity that is working with businesses, governments and academics to accelerate the transition to a circular economy that would reduce waste and carbon dioxide emissions. It is an immense challenge. The world burns or sends the equivalent of one garbage truck of textiles to a landfill every second, while the production and use of goods and food account for 45% of greenhouse gas emissions, according to the Ellen MacArthur Foundation. While the consumer goods sector is among the first to embark on this revolution, other industries including mining and construction will need to follow.

Digital natives

Subscriptions rule

Besides closely monitoring their social media accounts, the daily habits of Gen Y and Gen Z include listening to music, streaming videos and gaming. Most of these activities are subscriptionbased, reflecting a long-term shift in consumer behavior toward subscription-based content, products and services.

Fun, health and leisure

Growing potential for plant protein

Millennials are mindful of greenhouse gas emissions and the impact they have on our planet. As health is another priority for this group, healthy and sustainable food is on the rise.

Critics are increasingly targeting meat as an issue for both the environment and human health. Meat production is responsible for 58% of food-related greenhouse gas emissions (see chart on the next page). Separately, the World Health Organization has classified processed meat as carcinogenic to humans, while a 2020 study published in the Jama Internal Medicine journal found that the consumption of processed meat, unprocessed red meat and poultry was “significantly” associated with cardiovascular disease.