Redseer report highlights growing economic power of Gen Z in India
India’s Generation Z is expected to emerge as a major economic force in the coming years, driving nearly $1.3 trillion in consumer spending by 2030, according to a report by Redseer Strategy Consultants.
The report, titled “Gen Z: Defining Trends, Influencing Spends,” says people born between 1997 and 2012 will make up 27 per cent of India’s population by 2030, significantly reshaping the country’s consumer landscape.
According to the study, Gen Z consumers increasingly prioritise experiences, aesthetics, sustainability and digital convenience, while also valuing inclusivity, authenticity and self-expression.
“This generation shuns labels and focuses on personal identity and discovery. Their spending behaviour reflects a preference for aesthetics and new experiences,” the report noted.
Beauty and personal care gains momentum
Gen Z’s influence is particularly visible in the beauty and personal care (BPC) sector. By 2030, the demographic is projected to contribute nearly $19 billion to India’s BPC market.
The report found that one in two Gen Z women spends more than 20 per cent of their disposable income on beauty and personal care products. Their routines have become increasingly specialised, with separate products for skin, hair and body care.
Gen Z consumers are also more likely to focus on solutions rather than specific ingredients, leading to lower brand loyalty as they experiment with products suited to their needs.
Rise of gender-neutral beauty trends
Beauty trends among Gen Z are also becoming increasingly gender-neutral. More young men are adopting skincare and grooming routines.
Online interest in male grooming has surged significantly, with searches for “men’s skincare routine” increasing by about 850 per cent over the past five years, according to the report.
The study also points to the growth of men’s cosmetology and makeup, with Gen Z men increasingly opting for acne concealment, cosmetic fillers, hair removal and brow grooming.
Gen Z to dominate fashion spending
Gen Z is also expected to play a crucial role in India’s fashion industry, which includes apparel, footwear and accessories.
The report estimates that by 2030, Gen Z will drive nearly half of the country’s fashion market.
Fast-fashion products priced below ₹1,000 remain especially popular among young shoppers. While Gen Z has become the largest user group on major fashion e-commerce platforms in India, their average spending per purchase remains about half that of millennials, reflecting more frequent but lower-value purchases.
Experts say the spending behaviour of Gen Z is likely to reshape India’s retail landscape, pushing brands to focus more on digital engagement, affordability and trend-driven products.
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