India's Gen Z to drive $1.3 trillion consumption by 2030
What's the story
India's Generation Z (Gen Z) is poised to transform the consumer market by 2030. A report by Redseer Strategy Consultants predicts that this demographic will account for 27% of the country's population and control a whopping $1.3 trillion in consumption power. The study highlights their focus on experiences, sustainability, and digital convenience as key drivers of change across various sectors including beauty, fashion, and fitness.
Market impact
Defining trends, influencing spends
The report, titled "Gen Z: Defining Trends, Influencing Spends," examines how this generation (born between 1997 and 2012) is shaping consumer behavior. It notes that "Gen Z will occupy a greater share of the population, and command $1.3 trillion in consumption by 2030." This demographic prioritizes inclusivity, self-expression, and authenticity over labels. Their focus on aesthetics and new experiences is reflected in their consumer behavior.
Market trends
Genderless beauty and personal care
Gen Z's focus on aesthetics is particularly visible in the beauty and personal care (BPC) industry. By 2030, they are expected to contribute nearly $19 billion to India's BPC market. Half of Gen Z women spend over 20% of their disposable income on BPC products. Their product choices prioritize solutions over specific ingredients, leading to less brand loyalty as they explore products that better meet their needs.
Market evolution
Genderless beauty and personal care
Beauty trends among Gen Z have become genderless, with more young men embracing makeup and personal care routines. Interest in men's skincare has skyrocketed, with searches for "men's skincare routine" increasing by 850% in the last five years. Men's cosmetology and makeup is an emerging space as more Gen Z men are using products for acne concealment, fillers, hair removal, brow work to enhance their appearance.
Market shift
Fashion and fitness consumption
Gen Z is also set to drive half of the fashion (apparel, footwear, accessories) industry by 2030. Fast fashion items under ₹1,000 are their preferred choice. Despite being the largest user group on major Indian fashion e-commerce sites, they spend about half as much per purchase compared to older cohorts (millennials). In terms of fitness and sports consumption too, Gen Z is expected to contribute $40 billion by 2030.