India’s youngest consumers are no longer influencing household purchases — they are reshaping industries. From skincare and confectionery to travel gear, gaming and digital fashion, brands are redesigning products, communication strategies and customer experiences to cater to Gen Z and Gen Alpha, two generations whose purchasing power and cultural influence continue to grow at an unprecedented pace.
Born after 2012, Gen Alpha already accounts for more than a quarter of India’s population. Unlike previous generations, they have grown up immersed in digital ecosystems, interacting with algorithms, social media trends, gaming platforms and creator economies from an early age. Gen Z, born between 1997 and 2012, is also emerging as one of the most influential consumer groups globally, forcing brands to rethink traditional approaches to engagement.
According to the latest Rukam Capital’s ‘Gen Alpha Decoded’ report, 73% of Gen Alpha consumers own smartphones, while 60% have access to laptops, highlighting the extent to which technology shapes their daily lives. The report estimates that Gen Alpha can influence up to 80% of household purchase decisions.
“They are digitally fluent, shaped by algorithms, micro-trends and early ethics around sustainability and inclusivity,” says Archana Jahagirdar, founder and managing partner of venture capital firm Rukam Capital.
As per Boston Consulting Group and Snapchat parent Snap’s collective report titled, ‘The $2 trillion opportunity: How Gen Z is shaping the new India’, globally, more than 377 million young consumers influence nearly $860 billion in spending decisions, a figure expected to rise to $1.8 trillion by 2035.
For brands, this means moving beyond conventional advertising and embracing a new playbook built around authenticity, self-expression, community participation and digital-first engagement.
Recently, New York fashion house Coach launched &Coach, a new Gen Z-focused content series to reimagine luxury storytelling through prominent Gen Z creators — musicians, athletes, filmmakers, fashion people, and activists — including as Charli XCX, Malala Yousafzai, Paige Bueckers, Toni Breidinger, PinkPantheress, Avantika, Iga Swiatek, and KiiiKiii. The platform launches across TikTok, Instagram, and YouTube with content produced in partnership with the brand’s talent roster and community contributors.
The beauty and personal care sector is witnessing perhaps the most dramatic transformation. Flipkart’s beauty and personal care category has grown 50% YoY, with Gen Z now driving nearly 60% of all beauty purchases on the platform. Fuelling this momentum are shoppers from Tier 2 and Tier 3 cities, with two in three beauty searches on Flipkart originating from non-metro cities such as Cuttack, Bardhaman, Gorakhpur, Kottayam, Guntur, Jamnagar and Sangli, among several others, shaping the country’s beauty trends and purchase decisions.
Historically, teenagers and younger consumers often used products formulated for adults. Today, brands are creating dedicated product lines specifically designed for younger skin, concerns and lifestyles. Bengaluru-based Tuco Kids offers skincare products tailored for children aged 3-15 years, while Tikitoro, a personal care brand, segments its range between children and teens. Mumbai-based D2C startup Sammmm focuses exclusively on teen skincare and cosmetics. “The beauty industry has ignored Gen Z and Gen Alpha for years, with younger consumers often using products formulated for older people,” says Rishi Seth, co-founder of Sammmm.
The company’s products were developed after conversations with more than 30,000 teenagers, and include hybrid beauty offerings such as blush balms, mascara-serum combinations, acne patches and microneedle innovations designed specifically for adolescent skin.
“Teens aren’t just our audience, they’re our collaborators. They care about ingredients, routines and results, but this is also a generation that is deeply value-driven. They expect the brands they patronise to be ethical, inclusive and culturally resonant,” Seth adds.
According to Deloitte, India’s Gen Z population — estimated at nearly 220 million — could accounts for around 45% of online spending by 2030. During the same period, an additional 150 million new shoppers are expected to enter India’s digital economy.
“Gen Z and Gen Alpha are not simply buying brands, they are creating their identities through them,” says Praveen Govindu, partner at Deloitte India. “This cohort expects offerings that are personalised, experience-led and purpose-driven, while remaining anchored in a sharp price-value equation.”
Govindu notes that brands are increasingly relying on creator collaborations, limited-edition product drops and rapid innovation cycles to maintain relevance among consumers whose preferences and attention spans evolve quickly.
The impact extends well beyond beauty and beverages. FMCG companies are embracing youth culture through gaming, anime, K-pop and AI-powered experiences.
Gaming platform Roblox has evolved into far more than an entertainment destination. It now functions as a social, creative and commercial ecosystem where younger users play, learn, collaborate and express themselves through digital avatars. Recognising the growing importance of age-appropriate experiences, Roblox introduced Roblox Kids for users aged 5-8 and Roblox Select for users aged 9-15 recently, with enhanced parental controls and content moderation features. The platform is also becoming a powerful channel for digital commerce and identity-building.
“Every generation builds identity differently. Millennials did it through Instagram. Gen Z and Gen Alpha are doing it inside virtual worlds like Roblox, Fortnite, Zepeto and Minecraft,” says Salone Sehgal, founder & managing partner at Lumikai, an interactive media and gaming VC fund. Citing a Roblox study, Sehgal notes that 84% of Gen Z users say trying on a brand digitally makes them more likely to purchase it in the real world.
“I didn’t study Gen Z and Gen Alpha — I am one,” says 19-year-old Arjun Goel, co-founder and CEO of Meta Fashion, a phygital fashion startup that creates virtual apparel for gaming platforms such as Roblox, Fortnite, and ZEPETO. “I grew up treating my Roblox avatar as seriously as my real wardrobe. Identity isn’t something that stops at the physical. Consumer behaviour isn’t emerging, it’s already spent,” adds Goel.
