Consumption 2030: Tracking the Big Shifts Ahead

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India’s consumption landscape is rapidly evolving, powered by three major trends: the rise of Gen Z, surging premiumisation, and the transformation brought by quick commerce.

Gen Z: The Largest and Most Influential Generation

At 377 million, Gen Z is the biggest generation in India’s history. Already, Gen Z makes up 25% of India’s workforce, projected to rise to 36% by 2030 and 47% by 2035.

Gen Z’s economic clout is striking:

  • They currently drive $860 billion in consumption spends, representing 43% of total spend in India.
  • By 2030, Gen Z-driven spends are forecast to reach $1.4 trillion (46% of total), and by 2035, $2.0 trillion (50% of total).
  • Gen Z’s influence is set to grow even further with rapid increases in workforce participation, shaping what, how, and why India buys.

Premiumisation: India Is Trading Up

Premiumisation is reshaping India’s consumption habits across multiple categories. In the whisky segment alone:

  • The proportion of consumers choosing “Premium” and “Luxury” segments has grown steadily.
  • In CY15, popular and prestige whiskies dominated (91% share), but by CY28e, premium and luxury are projected to make up 66% of the market.
  • Growth rates tell the story: Over CY15-23, luxury grew 9% and premium 10%, versus -1% for popular segments. From CY23-28e, luxury is expected to grow 12%, outpacing all others.

Indians are clearly trading up as rising incomes and aspirations shift purchases towards higher quality, prestige, and luxury options.

 Quick Commerce: Speed, Convenience, and New Category Mix

Quick commerce is dramatically altering shopping behavior and category penetration:

– On platforms like Blinkit, the mix of non-food categories is rising rapidly—from 8% in FY22 to a projected 40% in FY25E.

– Electronics remain underpenetrated on quick commerce platforms compared to established e- commerce giants:

  • Blinkit: Electronics = 12%, Non-electronics = 88%
  • Zepto: 8% electronics
  • Instamart: 10% electronics
  • Amazon/Flipkart: Electronics reach 24% and 40% respectively.

As the platform mix diversifies and speed becomes the norm, consumers are increasingly using quick commerce for a wider range of needs, beyond just groceries.

The Future

With Gen Z’s growing participation and influence, an appetite for premium goods, and rapid adoption of quick commerce, the brands and platforms that innovate with these trends will define the next era of consumer experience in India.

Source: BCG, Equirus, I-Sec

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