Gen Z currently drives 43% of India’s consumer spending, with their collective spending power reaching $860 billion
Bengaluru: With a population of 377 million, Gen Z’s (people born between 1997 and 2012) collective spending power has surged to $860 billion and is projected to reach approximately $2 trillion by 2035, according to a report by Boston Consulting Group (BSG).
Out of Gen Z’s total spending power of $860 approximately $200 billion comes from direct spending, while $660 billion comes from influenced spending, which includes purchases influenced by their recommendations or preferences.
Currently, one in four Gen Z individuals is already part of the workforce, and by 2025, every second Gen Z will be earning.
The report finds that 70% of Gen Z primarily rely on their inner circle—close friends and family—for guidance on decisions like what to buy. Additionally, eight in ten Gen Z people seek shopping recommendations specifically from their close friends regarding what and where to buy.
77% of this cohort find using augmented reality and interactive visuals more engaging, demonstrating a greater need for brands to create immersive content.
Gen Z shoppers are 1.7 times more likely to prioritize trending styles over brand names, with 72% looking to creators’ social channels as their primary source for shopping inspiration.
Moreover, the report highlights a gap between awareness and action: while 45% of businesses recognise Gen Z’s potential, only 15% have actively leveraged insights to engage this demographic.
“Gen Z is already driving 43% of India’s consumer spending,” said Nimisha Jain, managing director at BCG India. “Their influence is not limited to select categories – it cuts across categories ranging from fashion, eating out, to automobiles and consumer durables.”
“For businesses, understanding and authentically engaging with Gen Z is not just good to have; it is necessary for winning today and will be imperative for survival tomorrow,” she added.
