India’s Gen Z, now 377 million, is not just another youth group. With their collective spending already hitting $860 billion, this generation is taking charge of India’s consumer market, as pet Snap Inc. and Boston Consulting Group (BCG) report which mapped out this growing influence titled ‘The $2 Trillion Opportunity: How Gen Z is Shaping the New India.’ The findings? Gen Z’s impact is here and will only grow stronger, pushing consumer spending to $2 trillion by 2035.
Today, Gen Z accounts for 43% of the country’s total consumer spending, affecting purchases across multiple categories, including fashion, dining, and entertainment. This generation isn’t merely passive—one in four is already in the workforce, earning and spending independently. But perhaps even more crucially, they are influencing household decisions in ways that go far beyond their direct purchases. Of the $860 billion they drive, $660 billion comes from spending that their choices influence. By 2035, direct spending is expected to reach $1.8 trillion, with every second rupee spent in India guided by Gen Z.
“Our research evaluated the substantial impact of Gen Z on consumption in India. Gen Z is already driving 43% of India’s consumer spending. Their influence is not limited to select categories – it cuts across categories ranging from fashion, eating out, to automobiles and consumer durables. It is important for marketers to take note that this generation is driven by unique values and beliefs and therefore have distinctive purchase behaviors, however we noticed that only 15% of brands we spoke to are actively taking steps to tap into this opportunity. For businesses, understanding and authentically engaging with Gen Z isn’t just good to have; it’s necessary for winning today and will be imperative for survival tomorrow,” Nimisha Jain, Senior Partner and Managing Director, BCG India, said.
Unlike the image of disconnected digital natives, Gen Z values their ‘inner circle’– a trusted group of friends and family—for advice on everything from shopping to entertainment. The report shows that 70% of them share updates and rely on this circle for decisions. This isn’t just a personal habit, it extends into how they shop. Shopping has become a group activity for Gen Z, who are likely to send snaps or video call friends while making in-store decisions. One in two Gen Z shoppers checks their phone while shopping, integrating online inputs into their offline experiences.
What sets them apart from previous generations is their relationship with brands. Gen Z doesn’t care as much about brand loyalty—they’re chasing trends. They are 1.7 times more likely to go for what’s trending than sticking with any particular brand. Moreover, 72% of Gen Z turns to social creators for inspiration, making influencer channels their go-to for shopping guidance.
Despite the undeniable shift, businesses have been slow to act. The Snap-BCG report notes that while 45% of companies acknowledge Gen Z’s potential, only 15% are actively addressing them. This gap offers an open field for brands willing to adapt. To connect with Gen Z, businesses will need to innovate quickly, create engaging, visual shopping experiences, and integrate online and offline channels.
Gen Z is reshaping India’s consumer market in real time. Brands that fail to recognize this shift may be left behind, while those that engage with these new consumers stand to gain from the $2 trillion that will soon define the future of India’s economy.
“India is a young nation with a 377 million Gen Z population which will shape the future of India’s growth in the next two decades. Gen Z will be the biggest contributor to India’s consumption growth driving $ 1.8 trillion worth of direct spend by the year 2035. In partnership with the Boston Consulting Group we are excited to share deep insights on the economic potential, values and shopping behaviour of Gen Z in India. As a platform that serves the Gen Z audience, we look forward to working with brands and businesses to harness this growth potential,” Pulkit Trivedi, Managing Director, India, Snap Inc., said.