New Delhi, Oct 16 (IANS): India is a young nation with 377 million Gen Z population and they will be the biggest contributor to the country’s consumption growth, driving $1.8 trillion worth of direct spend by 2035, a report showed on Wednesday.
In 2025, Gen Z’s direct spends will amount to $250 billion as by then, every 2nd Gen Z will be earning, according to the report by Snap Inc, partnered with Boston Consulting Group (BCG).
Their collective spending power has reached $860 billion, surging to $2 trillion by 2035. Gen Z buys as many times as millennials and is 1.5 times more likely to research their purchases.
“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. As a platform that serves the Gen Z audience, we look forward to working with brands and businesses to harness this growth potential,” said Pulkit Trivedi, Managing Director, India, Snap Inc.
About 45 per cent of businesses recognise Gen Z’s potential, but only 15 per cent take action to actively address them indicating a huge opportunity.
With 90 per cent of its daily active users aged 13-34, Snapchat is the undisputed voice of young people in India.
“Gen Z is already driving 43 per cent of India’s consumer spending. Their influence is not limited to select categories – it cuts across categories ranging from fashion, eating out, to automobiles and consumer durables,” said Nimisha Jain, Senior Partner and Managing Director at BCG India.
This dynamic cohort is impacting significant spending across categories such as 50 per cent of total spending on footwear, 48 per cent on dining, 48 per cent on out-of-home entertainment, and 47 per cent on fashion and lifestyle, said the report.
The way the spending is distributed shows that currently, out of Gen Z’s total spending power of $860 billion, approximately $200 billion comes from direct spending — money they earn and spend themselves — while $660 billion comes from influenced spending, which includes purchases influenced by their recommendations or preferences.
“By 2035, these figures are expected to change dramatically, with direct spending projected to reach $1.8 trillion, implying that every second rupee of consumer spend in 2035, will be driven by Gen Z,” the report noted.