MAM
India’s Gen Z emerges as $1.3 trillion consumer force by 2030: Report
Young consumers reshape beauty, fashion, travel and fitness markets
MUMBAI: India’s Gen Z is fast emerging as the country’s most influential consumer force, poised to reshape spending patterns across industries from beauty and fashion to travel and fitness. By 2030, the generation is expected to account for about 27 per cent of India’s population and command nearly $1.3 trillion in consumption, according to a report by Redseer Strategy Consultants.
Often described as the reverse generation, Gen Z wields influence well beyond its own wallets. Their digital fluency and cultural awareness increasingly shape what households buy, making them informal decision makers within families and a critical audience for brands hoping to stay relevant.
Born into a world of smartphones and constant internet access, Gen Z grew up navigating online spaces as naturally as the physical world. The Covid-19 pandemic only accelerated this shift, pushing much of their education, social life and discovery online. As a result, they are more comfortable with digital platforms and social communities than older generations.
Now entering the workforce, older members of the cohort are beginning to spend in ways that reflect identity and individuality. Peer circles often influence their choices more than traditional advertising, while values such as inclusivity, authenticity and self expression play a significant role in how they select products and brands.
Beauty and personal care is one sector where their impact is already visible. By 2030, Gen Z is expected to command a nearly $19 billion share of India’s beauty and personal care market. Many young consumers are moving away from legacy routines, building personalised regimens instead. One in two Gen Z women spends more than 20 per cent of disposable income on beauty products, while the average number of products used has doubled.
Beauty habits are also becoming increasingly gender neutral. Interest in men’s skincare has surged, with searches for “men’s skincare routine” rising by around 850 per cent in the past five years. The men’s grooming category has expanded rapidly, with the number of brands in the space quadrupling over the last decade.
Fashion is another area where Gen Z’s influence is unmistakable. By the end of the decade, the cohort is expected to drive about half of India’s fashion market across apparel, footwear and accessories. Their style choices are closely tied to social media trends and pop culture, including global influences such as K-pop and early 2000s aesthetics.
Yet despite their appetite for trends, Gen Z shoppers remain price conscious. Fast fashion items priced below Rs 1,000 dominate their wardrobes, and their average online purchase price is roughly half that of millennials. For many, comfort is just as important as style, with casual and semi formal clothing becoming the preferred workplace attire.
Health and fitness are also central to the generation’s lifestyle. Nearly half of Gen Z consumers report exercising daily, while about a third spend at least 20 per cent of their income on fitness and sports related activities. The growing popularity of sports such as pickleball, futsal and badminton has spurred demand for new sporting venues and communities across urban India.
Nutrition trends reflect a similar shift. Around 80 per cent of Gen Z consider protein intake essential, and interest in alternative protein sources is rising. Quick commerce platforms have responded by expanding their range of protein supplements sharply in recent years. By 2030, the generation is expected to drive about $40 billion in spending on fitness and sports.
Travel, too, is being reimagined through a Gen Z lens. The cohort could command more than 45 per cent of India’s travel and tourism market by 2030, growing at nearly twice the pace of the broader industry. Social media plays a powerful role in shaping travel choices, with many young travellers favouring experiences such as camping, hiking and group activities over conventional sightseeing.
Accommodation preferences are shifting accordingly. Hostels, apartments and other unconventional stays are gaining traction as budget conscious travellers seek unique and social experiences. Demand for such options has grown sharply in recent years as more young Indians travel solo or in small groups.
Online communities also play a major role in how Gen Z socialises. Mobile gaming has become a key space for connection, particularly among young men. About 70 per cent of Gen Z boys play mobile games, collectively accounting for a significant share of India’s growing new media market.
Interestingly, while gaming fosters digital communities, dating apps have not seen the same enthusiasm. Fewer than one in three Gen Z users actively use online dating or matrimony platforms, often viewing them as less authentic ways to build relationships.
For brands, the message is clear. Gen Z consumers respond strongly to identity driven messaging, authenticity and peer validation. More than half say they prefer products that reflect who they are, while many discover brands through digital creators and social media content.
That means marketing strategies are evolving. Brands are shifting from aspirational messaging towards identity affirmation, emphasising personal expression, community and cultural relevance. Creator collaborations, product personalisation and accessible pricing paired with strong product performance are increasingly becoming the formula for winning over this cohort.
As Gen Z settles into its spending years, the brands that connect with them now may gain one of the most durable competitive advantages of the decade.
Brands
Estée Lauder to shed 10,000 jobs as new boss bets on digital shift
The cosmetics giant raises its profit outlook but stays silent on a possible merger with Spain’s Puig, as job cuts deepen and a three-year sales slump weighs on the turnaround
NEW YORK: Stéphane de La Faverie is not done cutting. Estée Lauder announced on Friday that it plans to eliminate as many as 3,000 additional jobs, taking its total redundancy programme to as many as 10,000 roles, up from a previous target of 7,000 announced a year ago. The company, which owns La Mer, The Ordinary, Tom Ford, and Aveda, employs roughly 57,000 people worldwide. The mathematics of what is now being contemplated is stark.
The fresh round of cuts is expected to generate a further $200 million in savings, bringing the total annual savings from the programme to as much as $1.2 billion before taxes. That money, De La Faverie has made clear, will be ploughed back into the turnaround.
A CEO in a hurry
De La Faverie, who took the helm in January 2025, inherited a company that had endured three consecutive years of annual sales declines. His response has been to move fast and cut deep. A significant portion of the latest redundancies reflects his push to reduce headcount at US department stores, long a cornerstone of Estée Lauder’s distribution model but now a channel in structural decline. In their place, he is accelerating the shift toward faster-growing online platforms, including Amazon.com and TikTok Shop, a pivot that is reshaping not just where Estée Lauder sells but how it thinks about its customers.
The numbers are moving in the right direction
Despite the pain, there are signs the medicine is working. Estée Lauder raised its profit outlook for the remainder of the fiscal year, guiding for adjusted earnings per share in the range of $2.35 to $2.45, above analyst estimates and a notable step up from the $2.05 to $2.25 range it had guided for in February. Organic net sales growth is expected to come in at 3 per cent, the company said, at the high end of the range it set out in February.
The share price tells a mixed story. After De La Faverie took charge, the stock surged nearly 60 per cent, buoyed by investor optimism that a longtime company insider could finally arrest the decline. But 2026 has been rougher: the shares have fallen 27 per cent this year, weighed down by disappointing February results and the overhang of unresolved merger talks with Spanish beauty giant Puig Brands SA. The company gave no additional details about those discussions on Friday, leaving the market to guess.
Silence on Puig
The proposed tie-up with Puig remains the most consequential unknown hanging over Estée Lauder. A deal with the Barcelona-based group, which owns brands including Carolina Herrera and Rabanne, would reshape the global luxury beauty landscape. But with nothing new to say and a turnaround still very much in progress, De La Faverie is asking investors to trust the process.
Three years of sales declines, 10,000 job cuts, and a merger that may or may not happen. At Estée Lauder, the overhaul has barely started.
