India’s Gen Z Set to Drive $1.3 Trillion Spending by 2030, Fitness & Sports to Hit $40 Billion

India’s Gen Z is driving a thriving and exponentially growing consumer economy. A report projects that by 2030, Genwill be almost 27 percent of India’s population, driving US dollars 1.3 trillion in consumer spending, of which US dollars 40 billion will be for fitness and sports. A media report quoting a report by Redseer Strategy Consultants titled "Gen Z: Defining Trends, Influencing Spends" talks about trends and spends by those born between 1997 and 2012. They demonstrate prioritizing value-driven choices. Also, a lot of the spend is driven by digital commerce. Further, the report says Gen Z, quoted, ‘shuns labels, valuing inclusivity, self-expression, and authenticity.' Through this phase of self-discovery, they prioritize aesthetics and new experiences—all of which are reflected in their behavior as consumers. Gen Z engagement with the beauty and personal care (BPC) sector is driven by aesthetics. By 2030, Gen Z will command nearly a US$19 billion share of India's BPC market.

Some notable report outcomes: One in two Gen Z women spend more than 20 percent of their disposable income on BPC products. The number of products has doubled, with separate routines for skin, hair, and body care. Product choices prioritize solutions over specific ingredients, leading to reduced brand loyalty, and they pick products tailored to better suit their needs. Gen Z young men’s interest in makeup and personal care regimes is rising dramatically, with digital searches for men's skincare routines up 850 percent in the past five years. Gen Z young men are increasingly taking to cosmetology and makeup to enhance their appearance through acne concealment, fillers, hair removal, and brow work. Gen Z is also driving half of the fashion (apparel, footwear, and accessories) industry by 2030. Fast fashion products below Rs 1,000 are preferred. 

Gen Z is now the biggest user group on major fashion e-commerce sites in India, with an average spend per purchase at roughly half of that of the older millennials. A third of Gen Z are spending 20 percent or more of their income on fitness and sports. Athleisure sales are doubling year-on-year, as seen from online affordable sportswear and a spend on six out of ten top-selling sports footwear items priced between Rs 500 and 1,000. Healthy eating trends are evident in the demand for alternative proteins by 40 percent of Gen Z following a regimen of regular exercise. Protein supplements available on quick commerce are up 230 percent in the last year.