Generation Z is set to play an increasingly influential role in India’s consumer economy, with the cohort projected to account for 27% of the country’s population and command nearly US $1.3 trillion in consumption by 2030, according to a report by Redseer Strategy Consultants.
The report, titled “Gen Z: Defining Trends, Influencing Spends,” examines how consumers born between 1997 and 2012 are reshaping market trends through their preference for experiences, sustainability and digital convenience.
According to the study, the demographic is expected to occupy a larger share of the population over the coming years and significantly influence consumption patterns. The report noted that the generation tends to reject traditional labels and instead places greater emphasis on inclusivity, self-expression and authenticity. It also observed that during this phase of self-discovery, Gen Z consumers increasingly prioritise aesthetics and new experiences, factors that are reflected in their purchasing behaviour.
The analysis found that Gen Z consumers tend to prioritise product solutions rather than specific ingredients or brand reputations. As a result, the report indicated that brand loyalty among this group is relatively lower, with many consumers experimenting with products that better align with their personal needs.
The report highlighted the growing influence of Gen Z on the fashion sector, projecting that the cohort could drive around half of India’s fashion market — including apparel, footwear and accessories — by 2030. Fast fashion items priced below Rs. 1,000 (US $11) remain particularly popular among the group.
Despite emerging as the largest user segment on major fashion e-commerce platforms in India, the study found that the average spending per purchase by Gen Z consumers is roughly half that of millennials, indicating more price-sensitive purchasing behaviour.
Fitness and wellness are also emerging as key spending priorities for the cohort. The report noted that roughly one-third of Gen Z consumers allocate at least 20% of their income towards fitness and sports-related activities.
This shift has contributed to rapid growth in the athleisure segment, with sales of such products doubling year-on-year. Affordable sportswear available through online marketplaces has played a significant role in driving this trend, with six of the ten top-selling sports footwear brands priced in the Rs. 500 (US $5.41) to Rs. 1,000 (US $11) range.
