73% of Gen Z are willing to pay more for sustainable products — and we're here for it
- Nicole Braganza
- Mar 20
- 6 min read
Updated: 1 day ago
Written by Nicole Braganza
"No cap, sustainable businesses are giving main character energy right now."
If you don’t speak the lingo of Gen Z, "no cap" essentially means "I'm not exaggerating" or "this is the honest truth." Eco-conscious companies are taking center stage in the business world and cultural conversation.
The data backs up their perspective — a whopping 73% of Gen Z consumers are ready to "skrimp" (save up) to spend extra on products that are better for the planet.
For business owners across America, this shift represents both a challenge and an opportunity. Investing in sustainability (via sustainable products for example) means adapting your operations. You may possibly need to deal with higher upfront costs. On the other hand, it opens doors to a growing customer base that's willing to pay more for what they believe in and greater profitability in the long run.
Research from Harvard Business School found that companies with strong sustainability practices outperform their counterparts in terms of stock performance.
Let's explore what drives this generation’s attitudes and preferences and how your business can succeed by meeting their eco-expectations.
Who are these green-loving Gen Z customers?
Born between 1997 and 2012, Gen Z has never known a world without climate change conversations at the dinner table. Unlike their parents or grandparents, they've grown up watching content about plastic-filled oceans and hearing about rising global temperatures since elementary school.
In an interview with Yale Environment 360, Britt Wray, a postdoctoral fellow at Stanford University’s Center for Innovation in Global HealthWray explains how climate anxiety is greatest for Gen Z.
This generation has been bombarded with news of climate disasters on social media. They feel betrayed, she says, by government inaction and dismayed when told they are overreacting to what they see as an existential threat.
“I’m from an outdoorsy family and we’ve seen the landscape around us changing for the negative as fast as within four or five years,” says Victoria Muharsky, a 24-year-old ESG Specialist with Green Builder Media who lives in Grand Junction, Colorado. “We’ve always gone to the Acadia National Park in Maine, and we’ve seen the leaves change color more quickly in recent years. That’s a catalyst for a lot of people in my generation. First there’s a personal impact, and then they want to advocate for change.”
Sustainability is important to 19-year-old Trinity Gbla. Having grown up experiencing wildfires and extreme heat near her home in Southern California, Gbla said these past few years have highlighted climate change as an increasingly pressing issue.
According to a recent Deloitte survey, climate change/protecting the environment was the No. 1 concern for Gen Z, followed closely by unemployment and health care/disease prevention.
While boomers prioritize convenience (plastic straws, anyone?) and millennials try to balance being eco-friendly with practicality, Gen Z is putting their money exactly where their values are.
Research shows that sustainable products are growing 2.7 times faster than their conventional counterparts. And guess who's driving that growth? You got it — Gen Z.
Gen Z has zero patience for fakery
Here's where things get really interesting. Gen Z doesn't just care about sustainability; they're equipped to fact-check your claims in real time from their smartphones.
What makes Gen Z truly different is they'll Google your eco-claims while standing in your restaurant. If you're talking the sustainability talk but still using plastic when bamboo disposable utensils exist, they'll call you out — and not just to your face, but to their entire TikTok following.
Remember the 2022 Starbucks reusable cup program controversy?
When Gen Z discovered that the company's heavily marketed reusable cup initiative actually represented less than 1% of beverages sold, they mobilized on platforms like TikTok and Instagram.
The hashtag #StarbucksGreenwashing generated over 7 million views, with young consumers sharing videos of themselves bringing their own cups or choosing local cafés with legitimate sustainable practices. It translated to measurable financial impact, with the company reporting a temporary 5% drop in Gen Z patronage during the peak of the controversy.
Sustainable businesses that are crushing it with Gen Z
These forward-thinking businesses are effectively connecting with Gen Z and earning their trust and loyalty through meaningful sustainability practices.
Sweetgreen
Sweetgreen has built their whole vibe around sustainability, from local sourcing to earth-friendly packaging. This fast-casual salad chain uses compostable bowls and utensils, and prominently communicates their carbon footprint reduction strategies.
But Sweetgreen understands that their consumers won’t just “Take their word for it”. Their app actually allows customers to track the environmental impact of their orders.
Co-founder Nathaniel Ru says, “We've always believed that the future of dining lies at the intersection of health, sustainability, and community. We wanted to create a movement, not just a restaurant.”
Just Salad
Just Salad's reusable bowl program is genius in its simplicity. Buy a reusable bowl, get discounts on future salads, and feel good about not contributing to landfill waste. Gen Z customers are eating it up (pun absolutely intended).
Imperfect Foods
Imperfect Foods’ business model reduces food waste by selling "imperfect" produce in minimal, recyclable packaging.
The brand sources directly from producers to rescue food rejected by retailers due to cosmetic flaws, surplus production, packaging changes, or short dates. They deliver these perfectly good items directly to consumers at roughly 30% below retail prices, reducing waste while creating value for both farmers and customers.
Do sustainable business practices actually pay off?
I know what you're thinking: "Sounds great, but can I afford this?"
According to business owners who've made the switch, the answer is a resounding yes. Besides, sustainability-focused businesses like Plastic Detox offer free samples of sustainable products so you can try before you buy.
Sabine Durand-Hayes, Global Consumer Markets Leader, PwC France, said “Consumers are increasingly feeling the squeeze of inflation and rising prices in essential goods such as groceries, however, in that context, they are prioritizing products that are sustainably produced and sourced. Even as consumers look to cheaper, generic options for essentials, they nevertheless cite a willingness to pay 9.7% more for sustainability. In the year ahead, companies must achieve a delicate balance between consumer affordability and environmental impact if they are to source and retain consumers.”
Making the switch: Practical steps to implement eco-friendly business practices
Make visible product changes first: Swap out the obvious plastics. Compostable paper cold cups and insulated hot cups, bamboo disposable utensils, and compostable trash bags send an immediate signal about your values.
Keep it real: Marketing expert Devon Riley warns, "Gen Z has a remarkable radar for insincerity. Don't just make changes—explain why they matter to you as a business owner."
Get your team on board: When your staff understands why you're making these changes, they become your best sustainability ambassadors.
Show local love: Gen Z cares about community impact, so highlight your connections with local suppliers and farmers.
The future of sustainable purchases
As Gen Z grows up and their spending power increases (they'll represent 27% of consumer spending by 2030!), their influence will only get stronger.
Gen Z is actively looking for sustainable product alternatives in their grocery cart, while holiday shopping or eating out. Adapting to Gen Z's sustainability expectations isn't just jumping on a trend; it's future-proofing your business in an industry where, increasingly, doing good and doing well go hand in hand.
Frequently asked questions
Does Gen Z care about the environment?
Gen Z does care significantly about environmental issues. Studies consistently show they prioritize sustainability in purchasing decisions and are willing to pay more for eco-friendly products. Their climate activism, both online and through organized movements, demonstrates genuine environmental concern beyond just trendy rhetoric.
Are people willing to pay more for sustainable products?
Yes, people are increasingly willing to pay more for sustainable products. This is especially true among younger consumers like Gen Z, with studies showing about 73% ready to save up specifically to spend extra on environmentally friendly options. They value authenticity in green initiatives, readily spot greenwashing, and use their purchasing power to support businesses that genuinely align with their environmental values.
How much more expensive are sustainable products?
Sustainable products typically cost 15-30% more than conventional alternatives, though prices vary widely by category. For restaurants, sustainable ingredients may increase food costs by 10-25%, while eco-friendly packaging can be 20-40% pricier. However, this investment often pays off through higher menu prices that eco-conscious customers willingly pay, increased customer loyalty, and reduced operational costs over time.
How to be a sustainable entrepreneur?
Start by identifying environmental problems your business can solve and integrate sustainability into your core model from the start. Choose eco-friendly materials and processes, establish measurable goals, and build transparent supply chains with like-minded partners. Communicate honestly about your sustainability efforts while focusing on innovations where environmental solutions create real business value.
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