The collective spending power of Gen Z in India estimated at USD 860 billion, constitutes to about 43% of the country's total consumption and is expected to reach USD 2 trillion by 2035, according to Snap Inc.'s latest report on Gen Z.

Titled, 'The USD 2 trillion opportunity: How Gen Z is shaping the new India,' the report was released in partnership with Boston Consulting Group (BCG).

Key highlights from the report:

• Out of the USD 860 billion, Gen Z spends approximately USD 200 billion on direct spending, while USD 660 billion is influenced spending.
• The direct spending of Gen Z will amount to USD 250 billion in 2025 and is expected to jump to USD 1.8 trillion by 2035.
• When compared to millennials, Gen Z is 1.5 times more likely to research their purchases.
• On average, 70% of Gen Z rely on their inner circle for guidance and love sharing updates.
• With a strong preference for visual content, nearly 80% of Gen Z rely on images, GIFs, and immersive visuals to express themselves.
• 45% of businesses recognise Gen Z’s potential, but only 15% have leveraged these insights.

Pulkit Trivedi, managing director, India, Snap Inc., said, “India is a young nation with a 377 million Gen Z population which will shape the future of India's growth in the next two decades. Gen Z will be the biggest contributor to India's consumption growth driving USD 1.8 trillion worth of direct spend by the year 2035. In partnership with the Boston Consulting Group we are excited to share deep insights on the economic potential, values and shopping behaviour of Gen Z in India. As a platform that serves the Gen Z audience, we look forward to working with brands and businesses to harness this growth potential.”

Nimisha Jain, senior partner and managing director, BCG India, "Our research evaluated the substantial impact of Gen Z on consumption in India. Gen Z is already driving 43% of India’s consumer spending. Their influence is not limited to select categories – it cuts across categories ranging from fashion, eating out, to automobiles and consumer durables. It is important for marketers to take note that this generation is driven by unique values and beliefs and therefore has distinctive purchase behaviours, however, we noticed that only 15% of brands we spoke to are actively taking steps to tap into this opportunity. For businesses, understanding and authentically engaging with Gen Z isn't just good to have; it's necessary for winning today and will be imperative for survival tomorrow.”