Gen Z To Drive $1.3 Trillion Consumption By 2030, Reshape Beauty, Fashion And Fitness Spending, Says Study

Gen Z is expected to be one of the most influential consumer groups by the end of the decade with the spending power of Gen Z estimated to reach $1.3 trillion by 2030, according to a report by Redseer Strategy Consultants.

The report, titled Gen Z: Defining Trends, Influencing Spends, said the cohort, which comprises people born between 1997 and 2012, will account for around 27 per cent of the population by 2030. Their growing economic presence is likely to see shifts in consumer markets, especially in sectors such as beauty and personal care, fashion, fitness and digital commerce.

According to the report, Gen Z consumers tend to prioritise experiences, aesthetics, inclusivity as well as digital convenience in their purchasing decisions. These preferences are influencing the way in which brands design products, position services and communicate with younger audiences.

Beauty And Personal Care Spending On The Rise

The report said that the beauty and personal care segments are expected to witness a big growth due to increased consumption by Gen Z. By 2030, this demographic will represent almost $19 billion of the beauty and personal care market.

The spending patterns within this category indicates the significance of grooming and self-expression by the young consumers. One in two women in the Gen Z cohort spend over 20 per cent of their disposable income on beauty and personal care products,” the report said.

The report added that the average number of products used by Gen Z consumers has been on the rise significantly in recent years. Many people now have their own routines for skin care, hair care and body care.

Product preferences are also changing. Rather than being interested in specific ingredients or well-established brands, Gen Z buyers are often more interested in finding solutions to specific issues, the report said. As a result, there is a relatively lower level of brand loyalty among Gen Z as they are often willing to try out different products to meet their needs.

The report said that an increasing number of young men are adopting skincare and grooming trends, and interest in cosmetic products, such as acne concealment, fillers and hair removal and brow grooming has also increased.

Online search trends also show this change, the report said. Searches for “men's skincare routine” have grown by around 850 per cent over the last five years, showing a growing curiosity and acceptance of skincare practices by male consumers.

Fashion Consumption Due To Affordability

Gen Z is also expected to play a major role in influencing the fashion industry. According to the report, this demographic will drive approximately half of the fashion market that includes apparel, footwear and accessories by 2030.

That said, Gen Z shoppers tend to spend less per purchase, when compared with older consumers, despite being a large presence on fashion e-commerce platforms. Their average transaction value is around half that of the millennials.

Cost is also an important factor in their purchase decisions. Fast fashion pieces under Rs 1,000 are still very much in the purchase basket of this generation due to its affordability. At the same time, Gen Z consumers are actively following emerging styles and trends on digital platforms, which affects their purchasing behaviour.

Fitness And Nutrition Becoming More Important

Health and fitness are also emerging areas of spending for Gen Z consumers. The report said that around one third of the cohort spend at least 20 per cent of their income on fitness and sports related activities.

The demand for athleisure products has also seen high growth. In this segment, sales have doubled in the past year. Online marketplaces have also supported the growth of this segment by providing affordable sportswear products.

Among the leading brands of sports footwear, six out of 10 are priced between Rs 500 and Rs 1,000, which is affordable to young consumers who are price conscious but keen to live active lifestyles.

Changing dietary habits are also contributing to the growth in nutrition related products. The report said about 40 per cent of regularly exercising Gen Z consumers prefer alternative protein sources as a part of their diet.

There has also been a rise in demand for protein supplements. Listings for such products on quick commerce platforms grew by about 230 per cent between 2024 and 2025, highlighting growing interest in balanced nutrition and fitness related consumption.

According to the report, Gen Z consumers are projected to spend almost $40 billion in sports and fitness related spending by 2030, indicating the magnitude of the opportunity for companies in this space.