Gen Z's spending expected to reach $1.8 trillion by 2035: Snap+BCG report

Snap Inc. has partnered with Boston Consulting Group (BCG) to develop a report on Gen Z titled "The $2 Trillion Opportunity: How Gen Z is Shaping the New India". 

This research offers new perspectives into Indian Gen Z’s distinctive spending power across multiple categories, that no other report has explored in the past. The report also delves into uncovering unique insights into how they engage, influence, shop, and spend—shaping the future of India's economy. 

A Powerhouse Driving Nearly Half of India’s Total Consumption

Gen Z isn't just influencing the market; they're redefining it. Their collective spending power reaches an impressive $860 billion, constituting 43% of the country’s total consumption. This dynamic cohort is impacting significant spending across categories such as 50% of total spending on footwear, 48% on dining, 48% on out-of-home entertainment, and 47% on fashion and lifestyle. They are poised to play an increasingly vital role with their spending power projected to reach an astounding $2 trillion by 2035.

Gen Z's Direct Spending Power to Reach $1.8 trillion by 2035

One in four Gen Z is already part of the workforce, meaning this generation wields a total spending power of $860 billion. However, 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. 

On average, 70% of Gen Z Rely On Their Inner Circle For Guidance and Love Sharing Updates

Often misunderstood as a detached cohort, Gen Z is deeply rooted in authenticity and meaningful connections. About 70% consider their inner circle— composed of close friends and family—their primary guides - actively sharing details of their day, major concerns in their life and seeking guidance on key choices such as what/where to buy, what content to watch among others. 8 of 10 Gen Zers take inputs from their close friends on what/where to buy in shopping. 

With a strong preference for visual content, nearly 80% of Gen Z rely on images, GIFs, and immersive visuals to express themselves and connect with their circle. This group cares deeply about demonstrating their authenticity to those they love, and prefer to express themselves through visual sharing. This strong bond highlights their desire for connection and the importance they place on seeking input from those they trust. 

77% of Gen Z's Desire For Immersive Visual Is Driving Trends Like 'Shopcialising’

Gen Z care more about immersive visuals than the generation before them, with 77% of this cohort find using augmented reality and interactive visuals more engaging, demonstrating a greater need for brands to create immersive content. They’re all about “shopcialising” — sharing shopping experiences with their inner circle via photos or video calls. This “phygital” blend of online and offline shopping is so seamless that one out of two  Gen Z are likely on the phone checking wish lists or creator pages online while in-store - far surpassing the 32% of millennials. 

When it comes to brands, this youth generation is all about trends, not traditional loyalty. They’re 1.7 times more likely to choose trending styles when shopping over brands,  with 72% of Gen Z shoppers turning to creators’ social channels as their go-to for shopping inspiration. 

45% of Businesses Recognise Gen Z’s Potential, But Only 15% Take Action

Despite the undeniable influence of Gen Z in India, there exists a significant disconnect between recognition and action. While 45% of businesses acknowledge Gen Z's potential, only 15% have actively leveraged these insights—a gap that presents brands with a prime opportunity to forge deeper connections with the generation shaping India's consumer future.