In a country that is still growing, each generation will surpass the previous one in size. This is the case in India, where members of Generation Z are already making up almost 40 percent of the population at 377 million. In line with economic progress, the generation is also expected to exceed previous ones in spending power and will make up as much as 46 percent of Indian consumer spending - the equivalent of $1.8 trillion dollars - by 2035. This is according to a report by Boston Consulting Group and Snapchat.
Right now, as many Gen Z Indians are still coming of age, their spending only made up $200 billion, or 10 percent, of the country's consumer market. However, in the country's multi-generational households, the report estimates that $860 billion in consumer spending is already driven by Gen Z household members. The strongest categories for Gen Z and Gen Z-influenced spending were identified by the report as eating out and ordering in as well as fashion, travel, online video streaming and out-of-home entertainment.
The report also found that Gen Z values trends more than established brands are are willing to give new and innovative products a try. 72 percent of Gen Z Indians also said that they looked to creators and influencers for shopping inspiration (compared to 49 percent of Millennials). However, a survey among Indian brands showed that only a few had started to target the Gen Z market.
