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regular-article-logo Sunday, 15 March 2026

Gen Z to make Up 27% of India’s population, drive $1.3 trillion consumption by 2030: Report

One in two Gen Z women spends more than 20 per cent of her disposable income on BPC products

Our Web Desk & PTI Published 15.03.26, 07:09 PM
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India’s Gen Z, people born between 1997 and 2012, is set to become a major force in the country’s consumer economy.

By 2030, this group will make up 27 per cent of India’s population and command USD 1.3 trillion in consumption, according to a report by Redseer Strategy Consultants.

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The report, titled “Gen Z: Defining Trends, Influencing Spends,” examines how the generation is shaping spending patterns across sectors such as beauty, fashion, fitness and food.

"Gen Z will occupy a greater share of the population, and command USD 1.3 trillion in consumption by 2030. This generation shuns labels, valuing inclusivity, self-expression and authenticity. Through this phase of self-discovery, they prioritise aesthetics and new experiences -- all of which reflect in their behaviour as consumers," the report noted.

One of the strongest trends is visible in the beauty and personal care (BPC) sector. Gen Z’s interest in skincare, grooming and personal style is pushing demand in this segment.

By 2030, the group is expected to account for nearly USD 19 billion of India’s BPC market. Spending patterns show how central this category has become.

One in two Gen Z women spends more than 20 per cent of her disposable income on BPC products. The number of products used by this group has doubled, with separate routines for skin, hair and body care.

The report also points out that their product choices focus more on solutions than on specific ingredients. As a result, brand loyalty is lower, with many trying different products depending on their needs.

Beauty trends among Gen Z are also becoming gender-neutral. More young men are adopting skincare and grooming routines. Searches for “men’s skincare routine” have increased by 850 per cent in the past five years.

Men’s cosmetology and makeup are also gaining traction, with many opting for acne concealment, fillers, hair removal and brow work. Fashion is another sector where Gen Z’s influence is expected to grow.

By 2030, the group is projected to drive half of India’s fashion market, covering apparel, footwear and accessories. Fast fashion remains the preferred choice, especially items priced below Rs 1,000.

Although Gen Z is the largest user group on major fashion e-commerce platforms in India, their average spend per purchase is about half that of millennials, the report said.

Fitness is also high on their list of priorities. One-third of Gen Z spends at least 20 per cent of their income on fitness and sports. Athleisure sales have doubled year-on-year, supported by affordable sportswear on online marketplaces.

Six out of ten top-selling sports footwear brands are priced between Rs 500 and Rs 1,000. Food choices are also shifting. The report notes growing interest in alternative protein sources among young consumers who exercise regularly.

Around 40 per cent of them prefer such options. Demand for protein supplements is also rising. Listings of these products on quick commerce platforms grew 230 per cent between 2024 and 2025.

"By 2030, Gen Z will drive USD 40 billion in fitness and sports consumption,” Redseer stated.

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