Drink Asia March-April 2020 | Page 27

HOW YOUTH CULTURE IS TRANSFORMING THE DRINKS INDUSTRY S u s t a i n a b i l i t y, premiumisation, wellness, transparency and traceability – all these trends that have come to defi ne the shape of the consumer industries in recent years have in many ways been a reaction to a younger and increasingly conscious consumer base. That is not to say that older consumers are not coming along with the change, but the trends have really found their roots in millennials and Gen Z, and it is these consumers that are driving the change forwards. Consider the Extinction Rebellion, a climate protest largely driven by very young people, including children, which nevertheless forced a fresh public reckoning with environmental issues. With such change at the forefront of these consumer groups’ minds, it is not surprising that brands have looked to capitalise on the notion of ‘conscious’ capitalism. Perhaps most notable in the broad shift towards sustainable packaging and the clamour for products that provide healthy functionality, brands have taken note of a class of consumers that are conscious, connected, and willing to reward brands that align with their ethics. whole finding increasing purchase in the public conscience, it is becoming vital for manufacturers to develop sustainable packaging solutions and for retailers to take a stance against plastic. Environmental ethics drive consumer behaviour “The younger generation is calling for the packaging industry to rethink its relationship with flexible packaging, which most of the time isn’t even recyclable, let alone compostable,” says Merav Koren, VP of marketing at TIPA. “Our At the forefront of the minds of both consumers and industry alike are sustainability and the issues of plastic and waste. With environmental issues as a Drink Asia 27 This is pushing companies to not only reduce their waste and plastic usage but also to look into new areas such as compostable packaging. Although progress has been incremental, there is a sense that we are starting to reach a tipping point. March-April 2020 own research shows 49% of Gen Z and 50% of millennials in the UK believe retailers are responsible for reducing plastic waste to benefi t the environment. In addition, when considering the use of compostable packaging – which decomposes leaving zero trace in the environment – as opposed to recyclable packaging which ends up as plastic waste, 34% of Gen Z and 35% of millennials say they think compostable packaging is under-utilised by brands. “As such, there is no doubt that plastic has become a critical issue for young shoppers. This shift in attitude is forcing the industry to change its ways; packaging manufacturers are realising that they can no longer