Gen Z to drive $1.3 trn consumption by 2030: Report

New Delhi: Gen Z is set to become a dominant force in India’s consumer economy, commanding nearly USD 1.3 trillion in spending by 2030, according to a report by Redseer Strategy Consultants.

The report, titled “Gen Z: Defining Trends, Influencing Spends,” said the generation, born between 1997 and 2012, will account for about 27 per cent of India’s population by the end of the decade, significantly influencing consumption patterns.

Gen Z consumers prioritise inclusivity, self-expression and authenticity, while showing a strong preference for aesthetics and new experiences. These preferences are reflected in their spending behaviour across sectors such as beauty, fashion and fitness.

The report noted that Gen Z will account for nearly USD 19 billion of India’s beauty and personal care (BPC) market by 2030. One in two Gen Z women spends more than 20 per cent of disposable income on BPC products. Their product usage has also increased significantly, with separate routines for skin, hair and body care. Searches for “men’s skincare routine” have surged 850 per cent over the past five years, highlighting the rise of male grooming and cosmetology. Gen Z is also expected to drive nearly half of India’s fashion market by 2030. Fast-fashion products priced below Rs 1,000 remain popular, although the average spend per purchase is lower compared to millennials.

Fitness is another key focus area, with around one-third of Gen Z spending at least 20 per cent of their income on sports and fitness.