Gen Z is now dominating the Indian consumer market. This new generation has become the country’s spending force. India’s 377 million Gen Zs, born between 1997 and 2012, are making a major contribution to the country’s consumer market. They spend about $860 billion or Rs 81 lakh crore in the market every year, which is 43% of the total consumer spending. This information has come to light from a joint report prepared by the Boston Consulting Group (BCG) and Snap Inc. It is estimated that by 2035, Gen Z will have a market spending of $2 trillion. BCG has estimated that the total spending by the countrymen in the market by that time could be $3.9 billion. That is, Gen Z’s contribution to the total retail spending will be half. The most important thing is what the new generation is spending the most on.
According to the report, they are spending more, especially in the footwear, dining out, travel, entertainment and OTT, fashion and beauty segments. This Gen Z accounts for half of the total spending in this market. According to the report, the number of Gen Z in India is more than the total population of the US. One in four Gen Z is employed. This share is expected to increase to 36% by 2030 and 47% by 2035. Accordingly, their spending will increase accordingly. In 2024, Gen Z’s retail spending is estimated to be $860 billion, and by 2035, it is estimated to increase to $2 trillion. Currently, Gen Z spends more on their parents’ money. Of this, $660 billion is spent and Gen Z spends $200 billion from their own income. By 2035, the Gen Z’s spending will be a large portion of their income.
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A study by Kotak Mutual Fund has revealed that Gen Z uses UPI and debit cards more for their daily expenses. The car market is more visible among them. BMW India President and CEO Hardeep Singh Brar says, “Nowadays, the demand for BMW is not only among corporate executives, doctors and businessmen, but also among young professionals, tech entrepreneurs and startup founders. This generation is spending more on luxury goods than just luxury cars.” Another report mentioned that Gen Z is highly active in the stock market.
