India's Generation Z, comprising approximately 377 million individuals, is making waves in the consumer market. They account for a staggering 43% of the country's total consumer expenditure, translating to about ₹72.28 lakh crore (or $860 billion).
This demographic, representing only 26% of the population, is reshaping the landscape of consumer spending in unprecedented ways.
Direct and Influenced Spending
According to a Snap-BCG report, currently, Gen Z's direct spending stands at $200 billion, while they influence an additional $660 billion in household purchases. This means that their preferences significantly impact family buying decisions across various categories, from fashion to dining and entertainment. As they enter the workforce, their direct spending is projected to rise sharply.
Future Projections: A $2 Trillion Opportunity
Looking ahead, Gen Z's spending power is expected to reach an astonishing $2 trillion by 2035. This growth will be driven by an increasing number of individuals entering the job market, with projections indicating that every second Gen Z individual will be earning by 2025. By then, it is estimated that they will influence nearly every second rupee spent in India.
Brands Must Adapt or Fall Behind
Despite their significant economic influence, only 15% of brands have taken actionable steps to cater to Gen Z's unique values and preferences. This gap presents a substantial opportunity for businesses willing to innovate and adapt their strategies.
As Gen Z continues to shape consumer trends with their tech-savvy and experience-driven approach, brands that fail to engage this demographic risk being left behind.
In summary, Gen Z is not just a segment of the population; they are a transformative force in India’s economy. Their growing influence on consumer spending underscores the need for brands to rethink their marketing strategies to align with this dynamic generation.
