Gen Z in India spends $860 billion, expected to reach $2 trillion by 2035

Contrary to the stereotype of disconnected digital natives, Gen Z deeply values their "inner circle"—a close-knit group of friends and family—for advice on everything from shopping to entertainment. According to the Snap Inc. and Boston Consulting Group report, 70% of Gen Z shares updates and relies on this circle for decision-making. This extends into their shopping habits, where shopping becomes a social activity. Gen Z often sends snaps or video calls to friends to get input on in-store purchases, with half of them checking their phones while shopping, seamlessly blending online insights into their offline experiences.

“Our research evaluated the substantial impact of Gen Z on consumption in India. Gen Z is already driving 43% of India’s consumer spending. Their influence is not limited to select categories – it cuts across categories ranging from fashion and eating out to automobiles and consumer durables. It is important for marketers to take note that this generation is driven by unique values and beliefs and, therefore, has distinctive purchase behaviours. However, we noticed that only 15% of the brands we spoke to are actively taking steps to tap into this opportunity. For businesses, understanding and authentically engaging with Gen Z isn’t just good to have; it’s necessary for winning today and will be imperative for survival tomorrow,” quoted Nimisha Jain, Senior Partner and Managing Director, BCG India, said.

What truly differentiates Gen Z from previous generations is their relationship with brands. Brand loyalty is less important to them; instead, they are trend-driven. Gen Z is 1.7 times more likely to choose what's trending over sticking with a familiar brand. Additionally, 72% of them turn to social creators for inspiration, making influencer platforms key to their shopping decisions.

Despite this shift, businesses have been slow to adapt. While 45% of companies recognise Gen Z’s potential, only 15% are actively targeting them. This creates an opportunity for brands willing to innovate. To connect with Gen Z, companies need to offer engaging, visually driven shopping experiences and seamlessly integrate online and offline channels.

Gen Z is already reshaping India’s consumer market. Brands that fail to adapt risk being left behind, while those that align with these new consumers could capture a share of the $2 trillion that will soon define the future of India’s economy.

“India is a young nation with a 377 million Gen Z population, which will shape the future of India’s growth in the next two decades. Gen Z will be the biggest contributor to India’s consumption growth, driving $ 1.8 trillion worth of direct spend by the year 2035. In partnership with the Boston Consulting Group, we are excited to share deep insights into the economic potential, values, and shopping behaviour of Gen Z in India. As a platform that serves the Gen Z audience, we look forward to working with brands and businesses to harness this growth potential,” Pulkit Trivedi, Managing Director, India, Snap Inc., quoted.