India's Gen Z—currently estimated at 377 million individuals—is at the heart of the country’s rapidly evolving consumer landscape. This generation, born between the late 1990s and early 2010s, is shaping how brands across sectors operate, ushering in new trends, preferences, and behaviors. With their unique approach to spending, a preference for authenticity, and a desire for immersive experiences, Gen Z is set to play a pivotal role in India’s economic growth.

Gen Z’s Economic Power

As of 2023, Gen Z contributes a remarkable 43 percent of India’s total consumption, translating to $860 billion. This figure is projected to grow to a staggering $2 trillion by 2035, making Gen Z a key driver of India’s consumption economy. Pulkit Trivedi, Managing Director, India at Snap Inc., highlighted the importance of this demographic, stating, "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."

As more members of this generation enter the workforce—by 2025, one in two will be employed—their disposable income will increase, fueling demand across categories such as fashion, food, technology, entertainment, and more. Brands that fail to engage with Gen Z effectively will risk missing out on a major revenue stream.

Key Characteristics of Gen Z Consumption

Gen Z is markedly different from previous generations in terms of how they interact with brands and products. They prioritize values such as authenticity, transparency, inclusivity, and personalization. Here are some key characteristics that define their consumption habits:

• Research-Driven Decisions: Gen Z is 1.5 times more likely than Millennials to research their purchases before committing. They seek detailed information about the products they buy, favoring brands that provide clear, honest communication.
• Social Influence: This generation relies heavily on social influence when making purchasing decisions. Approximately 70 percent of Gen Z consult their friends and family before buying a product. Social media plays a central role in this process, with platforms like Instagram, Snapchat, and YouTube being primary channels for discovering new trends and products.
• Shopcializing: Shopping is no longer a solitary activity. Gen Z has introduced the concept of "shopcializing," where they share their shopping experiences with their social circle in real-time through photos, video calls, or social media posts. This has encouraged brands to create interactive, shareable shopping experiences that cater to this behavior.
• Purpose-Driven Purchasing: Gen Z is highly aware of social and environmental issues. They gravitate towards brands that align with their values, such as sustainability, ethical production, and social justice. This generation is willing to pay more for products that reflect these principles, making it essential for brands to embrace purpose-driven marketing.

Nimisha Jain, Senior Partner and Managing Director at BCG India, summarized, "Gen Z is already driving 43 percent of India’s consumer spending. Their influence cuts across various categories. However, only 15 percent of brands are actively tapping into this opportunity."

Case Study in Relevance

One sector that has rapidly adapted to Gen Z’s tastes is the food industry. With the rise of global food trends and the increasing popularity of international cuisines, food brands are creating innovative products that combine global flavors with local preferences.

• The Korean-Indian Fusion

One such example is MasterChow, a ready-to-cook Asian cuisine brand that has gained popularity among young Indian consumers. MasterChow recently launched KChow, a line of Korean-inspired noodles with an Indian twist, targeting the 15-25 age group. The product taps into the rising influence of K-culture in India, driven by the popularity of K-Pop, K-dramas, and K-food.

Vidur Kataria, Founder & Director of MasterChow, explained the brand’s strategy, "KChow is set to address the rising consumer demand for ethnic flavors, offering a product that combines the best of both worlds—authentic Korean ingredients balanced with Indian spices. Our team, including chefs from Korea, has worked tirelessly to create flavors that resonate with the Indian palate while staying true to Korean culinary traditions."

• Reinventing a Legacy

Keventers, a century-old brand known for its milkshakes, has also adapted to cater to the evolving tastes of Gen Z. The company recently introduced a new range of 100 percent vegetarian waffles in six flavors, including Classic Honey Butter, Lotus Biscoff, and Kit Kat Crunch. These waffles are designed to appeal to young consumers who crave indulgent, on-the-go snacks.

Agastya Dalmia, CEO of Keventers, shared his insights on the brand’s evolution, "Keventers has always taken forward its 100-year-old legacy of innovation and making indulgence affordable for all. Taking into account the evolving indulgent preferences of Millennials and Gen Z, we have diversified our product portfolio to introduce an all-new waffles range, which is not only perfect for all seasons but is an on-the-go delicacy that always comes handy for those with a sweet tooth."

By offering affordable, trendy, and portable products, Keventers has successfully reinvented itself for the Gen Z consumer.

• Crafting a Coffee Experience

The coffee culture in India has seen tremendous growth in recent years, thanks largely to the influence of Gen Z. Barista Coffee, a popular café chain, has evolved from being just a place to grab coffee into a space for social interactions, work, and study sessions. Rajat Agrawal, CEO of Barista Coffee, observed, "Over the past few years, coffee has evolved from being a niche beverage to a lifestyle choice, driven by Millennials and Gen Z. This younger demographic craves not just a drink but an experience, which has contributed to the rise of café culture."

Barista has adapted to this demand by expanding its menu to include artisanal beverages and snacks, creating an immersive café experience that resonates with Gen Z’s desire for a more social, interactive environment.

The Digital-First Generation

In the world of fashion, Gen Z’s preference for self-expression, sustainability, and affordability has led to the rise of digital-first brands that cater specifically to this demographic.

• Fast Fashion for Gen Z

The Indian Garage Company (TIGC), founded in 2012, is a D2C brand that has grown into a 400-crore enterprise by tapping into Gen Z’s love for trendy, affordable fashion. Operating under a 'House of Brands' model, TIGC offers three distinct labels: TIGC (menswear), FreeHand (womenswear), and Hardsoda (plus-size menswear). The company uses technology to stay ahead of fashion trends and deliver products that resonate with its young audience.

As a digital-first brand, TIGC focuses on offering fashion that is accessible and in sync with the fast-moving trends favored by Gen Z. The brand has expanded its presence across e-commerce platforms and social media, where Gen Z is most likely to discover and engage with fashion content.

• Redefining Fashion for Gen Z Women

Urbanic, another popular brand among Gen Z, has taken a bold step by launching Savana, a brand specifically targeting Gen Z women. Rahul Dayama, Founding Partner of Urbanic, explained the rationale behind this move, "We recognized that our younger audience had unique needs and preferences that were distinct from those of our core Urbanic customers. Savana was born to cater specifically to the dynamic world of Gen Z fashion, while allowing Urbanic to evolve its own identity."

Savana is designed to align with the values of empowerment, inclusivity, and self-expression, which are central to Gen Z’s fashion choices. The brand’s digital-first approach and trend-driven styles resonate with the social media aesthetics that dominate Gen Z’s online presence.

Dayama further elaborated on Savana’s unique positioning, "Our styles are trend-driven pieces that resonate with social media aesthetics. Our digital-first approach aligns with Gen Z’s comfort in finding inspiration online, which is key for this digitally native consumer."

The Road Ahead for Brands

As the BCG-Snap Inc. report highlights, Gen Z’s spending power is expected to grow exponentially, with their influence driving significant consumption across various sectors. By 2035, Gen Z’s direct spending power is projected to reach $1.8 trillion, meaning that every second rupee spent in India will be driven by this generation.

However, despite their growing influence, only 15 percent of businesses actively address the Gen Z opportunity. This presents a significant gap that brands can capitalize on by rethinking their strategies to engage this demographic effectively.

Pulkit Trivedi, emphasizing the urgency for brands to tap into this potential, remarked, "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."

The Future of Consumerism

Gen Z is not just another consumer demographic; they are redefining the very fabric of India’s consumption landscape. Their values, preferences, and behaviors differ greatly from those of previous generations, and businesses must adapt to remain relevant in this fast-evolving market. Brands across sectors—from food to fashion to lifestyle—are already responding to this shift by offering products and experiences tailored to Gen Z’s desires for authenticity, inclusivity, and digital engagement.

As India moves toward becoming a $2 trillion Gen Z-driven consumption economy by 2035, the future is bright for businesses that are willing to innovate and connect with this generation on their terms.