Gen Z presents a $2 trillion economic opportunity by 2035: Report

A report by BCG and Snapchat highlights the preferences, values, beliefs and behaviours of India's largest demographic segment, and the market opportunity it offers

By Samidha Jain Forbes India Staff

Published: Oct 17, 2024 02:57:37 PM IST

Updated: Oct 17, 2024 06:07:01 PM IST

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Gen Z-ers actively socialise with their inner circle while shopping. This is to discuss options, share visuals, and take opinions. Image: Shutterstock

India is home to 377 million Gen Z-ers, the largest cohort as per generation in the country. That’s more Gen Z-ers than the entire population of the US! As the largest generation, Gen Z is significantly reshaping consumer trends. Their distinct values and behaviours are transforming brand engagement and retail spending. While many marketers recognise this shift, their strategies tend to be reactive rather than proactive.

A report titled ‘How Gen Z is shaping the new India’, released by Boston Consulting Group (BCG) in collaboration with Snapchat on October 16, highlights how Gen Z is shaping the Indian economy and presents a $2 trillion economic opportunity by 2035.

The report includes Gen Z (born between 1997 and 2017), their parents, and millennials (born between 1981-1996), with insights from more than 3,000 respondents in metros, tier 1 to 3 cities, and is supplemented by perspectives from 30 chief marketing officers and brand managers. According to the report, one in four Gen Z-ers is already a part of the workforce and Gen Z fuels $860 billion in consumer spending, which is expected to rise to $2 trillion by 2035.

Also read: Climate change one of the top concerns for Gen-Zs and millennials in India: Report

What are Gen Z’s beliefs and values?

The report reveals that two-thirds of Gen Z-ers are optimistic about the future: 59 percent feel confident about their financial stability, 75 percent are positive about their physical and mental health, and 62 percent appreciate the social and cultural climate in India. This generation values its close-knit “inner circle” of friends and family, with about 70 percent deeply committed to sharing every detail of their lives, from shopping to streaming. Gen Z views change as a growth opportunity, with over 70 percent eager to embrace new styles, technology, and experiences. Additionally, nearly 80 percent prefer visual communication, using images, GIFs, stickers, and immersive lenses to express themselves.

Also read: What is Gen Z looking for in 2024?

How does Gen Z behave?

Gen Z-ers are committed to their beliefs, being 1.6 times more likely than millennials to take action on causes they care about. They also prioritise mental health, showing 1.5 times more concern than millennials. Contrary to common perceptions, Gen Z shops as often as millennials, but invests 1.5 times more effort in researching their purchases. From expert opinions to product reviews and creator content, Gen Z does a thorough investigation in order to make informed spending decisions.

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