Gen Z Driving $2 Trillion Economic Opportunity in India by 2035, Report Says

A recent report has unveiled the significant impact Generation Z is having on the Indian economy, identifying a potential $2 trillion economic opportunity by the year 2035. The report, conducted by Boston Consulting Group (BCG) in collaboration with Snapchat, was released on October 16, 2024. It delves into the preferences, values, beliefs, and behaviors of India’s largest demographic segment – Generation Z, defined as those born between 1997 and 2017.

According to the report, India is home to approximately 377 million individuals in the Generation Z cohort, more than the total population of the United States. This demographic is notably influential in reshaping consumer trends across the nation. The study, which gathered insights from over 3,000 respondents in metropolitan areas and tier 1 to 3 cities, also included perspectives from 30 chief marketing officers and brand managers.

Generation Z currently contributes around $860 billion to consumer spending, a figure projected to rise to $2 trillion by 2035. With one in four Gen Z-ers already part of the workforce, their distinct values and consumption habits are transforming traditional brand engagement and retail strategies.

The report revealed that two-thirds of Generation Z individuals are optimistic about their future, with 59% expressing confidence in their financial stability and 75% feeling positive about their physical and mental health. Additionally, 62% of respondents appreciate the social and cultural climate in India. These young consumers place immense value on their “inner circle” of friends and family, with about 70% committed to sharing every aspect of their lives, from shopping decisions to streaming habits.

Furthermore, this generation views change as a promising growth opportunity. Over 70% of respondents are eager to embrace new styles, technology, and experiences. Visual communication is a significant component of their interactions, with nearly 80% favoring the use of images, GIFs, stickers, and immersive lenses to express themselves.

The report also highlights Generation Z’s commitment to their beliefs and causes. They are 1.6 times more likely than millennials to take action on issues that matter to them. Mental health is another area of concern, with Gen Z showing 1.5 times more attention to it compared to millennials.

In terms of consumer habits, Generation Z shops as frequently as millennials but invests more effort in researching purchases. They rely on expert opinions, product reviews, and creator content to make informed spending decisions, demonstrating their meticulous approach to shopping.

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