McKinsey & Company's February report underscores the influence of socially conscious consumers on the marketplace:

Younger demographics prioritize social and environmental causes, reflecting their purchasing behavior.
Brands are adapting by incorporating social and environmental themes into their offerings. A study reveals that 90% of Gen Z consumers believe companies should address such issues.
This demographic wields significant spending power, with approximately $350 billion in the US alone.
Concerns about social and environmental issues extend beyond younger consumers, with one-third of global consumers altering their purchasing decisions over the past three years.
Some companies are making purpose a focal point of their strategies, exemplified by the growth of B Corporations, which prioritize societal and environmental impacts.
Consumers expect authenticity and consistency from brands, particularly regarding their stance on social issues. While expressing beliefs may attract younger demographics, inconsistency can erode trust.
Despite potential controversy, authenticity fosters loyalty among consumers, which is crucial for long-term success.

According to a study by McKinsey, the influence of Gen Z (those born 1995-2010) is expanding. They are the first generation of true digital natives and make up 20% of the population.

There are 4 core Gen Z behaviors, all anchored in one element: this generation’s search for truth:

They value individual expression and avoid labels.
They mobilize themselves for a variety of causes.
They believe in the efficacy of dialogue to solve conflicts and improve the world.
They make decisions and relate to institutions in a highly analytical and pragmatic way.

Businesses must rethink how they deliver value to the consumer, rebalance scale and mass production against personalization, and—more than ever—practice what they preach when they address marketing issues and work ethics.

Source: McKinsey & Company