India’s Gen Z, born between 1997 and 2012, has become a major force in the consumer market. This generation is changing how Indians spend, save, and invest. Unlike older generations, Gen Z prefers experiences, premium products, and digital financial options. Earlier generations focused heavily on fixed deposits, real estate, and gold investments. However, Gen Z follows a “You Only Live Once” mindset. They prefer premium experiences, skincare products, lightweight jewellery, and entry-level luxury cars like BMW.
At the same time, this generation has not ignored savings. Instead, Gen Z has moved towards mutual fund SIPs, digital gold, and micro-investing platforms.
Gen Z Drives A Massive Consumption Shift
A joint report by Boston Consulting Group and Snap Inc. highlights Gen Z’s growing influence. India has 377 million Gen Z individuals who contribute 43% of the country’s total consumption spending.
The report estimates India’s consumption spending at around $860 billion. Therefore, Gen Z influences nearly $370 billion of this amount.
Moreover, BCG expects Gen Z spending to cross $2 trillion by 2035. This figure could represent almost half of India’s projected $3.9 trillion consumption market.
However, the key change lies in their spending style. They influence brands, choose apps, purchase vehicles, and select lifestyle products differently.
Young Consumers Reshape Spending And Investment
According to BCG-Snap research, India’s Gen Z population exceeds the total population of the United States. Currently, only one out of four Gen Z individuals earns independently.
However, employment among this group may reach 36% by 2030. Additionally, it may rise to 47% by 2035.
Currently, much of Gen Z’s spending power comes from family support. Around $660 billion of the $860 billion consumption influence remains dependent spending.
By 2035, this pattern may change significantly. Around 93% of Gen Z spending could come from their own income.
Where Is Gen Z Spending Money?
Kotak Mutual Fund estimates India has around 400 million Gen Z individuals. This group represents nearly 28% of the country’s population.
Furthermore, more than half of Indians may belong to Gen Z or Gen Alpha categories by 2029. The report also expects over 40% of families to enter the upper-middle-class category.
Meanwhile, household spending patterns are also changing. According to the Ministry of Statistics and Programme Implementation’s Household Consumption Expenditure Survey 2023-24, non-food spending among urban families reached 60.32%.
Earlier, this figure stood at 57.38% during 2011-12. Transport spending increased from 6.52% to 8.46%. Durable goods spending also rose from 5.60% to 6.87%.
Luxury, Beauty And Lifestyle Become Key Categories
Gen Z’s impact appears clearly across lifestyle categories. According to BCG-Snap, almost half of spending on footwear, dining, entertainment, travel, OTT subscriptions, and fashion comes from Gen Z buyers.
However, beauty contributes 44% of Gen Z’s total spending. Redseer expects India’s beauty and personal care market to reach $40 billion by 2030.
Quick commerce currently holds around 15% of online beauty sales. This share may rise to nearly 40% by 2030.
Additionally, Gen Z and Gen Alpha could contribute half of total beauty spending by 2030.
Young Indians Enter Investments Earlier
India’s investment landscape is becoming younger. RBI data shared by India Brand Equity Foundation shows a major rise.
Investors below 30 years held a 22.6% share in March 2019. By July 2025, this increased to 38.9%.
Consequently, the average investor age reduced from 38 years to 33 years. Millennials and Gen Z together hold around 48% of India’s mutual fund assets.
Kotak Securities CEO Sripal Shah said young investors prefer DIY approaches. They also show higher risk-taking ability and faster decision-making.
Additionally, TransUnion CIBIL reported that Gen Z represented 41% of first-time credit users in 2024.
Jewellery And Skincare Markets Get A Youthful Makeover
Gen Z is changing jewellery preferences with lighter and daily-wear designs. Kotak Mutual Fund research highlights this shift. BlueStone benefited from this trend by focusing on design-oriented jewellery. Its revenue market share increased from 17.7% in FY19 to 24.6% in FY25. The lifestyle jewellery segment may grow 16-18% annually until 2029. This growth could exceed wedding jewellery expansion. Similarly, skincare brands are focusing on ingredients, formulation, effectiveness, and verified information.
According to Anand Ramnathan, 74% customers check ingredient labels. Around 44% consumers paid more for better formulations during the last six months.
However, most customers limit extra spending to 10% or less
