The Experience Economy Takes Hold
Across India, particularly among Millennials and Gen Z, a clear trend has emerged: a preference for spending on experiences rather than possessions. Reports from the first half of 2026 show that expenditure on categories like travel, hospitality, and leisure
is projected to outpace spending on physical goods over the next five years. This move towards an 'experience economy' signifies a deeper change in consumer values, where creating memories is seen as a more valuable investment than acquiring material items. This isn't just a fleeting trend; it reflects a structural shift in how young consumers define a quality life. This generation, which accounts for a massive portion of the nation's consumer spending, is increasingly driven by a desire for personal growth, social connection, and unique life stories.
Wanderlust Fuels Unprecedented Travel Spending
Travel has become one of the most powerful drivers of discretionary spending for young Indians. A recent report analysing millions of UPI transactions found that travel was among the strongest spending categories in the first half of 2026. This wanderlust is not confined to major metro areas. In fact, Tier 2 and Tier 3 cities like Madurai, Faridabad, and Surat have seen average travel spending more than double, highlighting a nationwide appetite for exploration. The convenience of digital payments has made booking trips easier than ever, encouraging everything from weekend getaways and workcations to ambitious international journeys. This demographic increasingly views travel not as a luxury, but as an essential part of their lifestyle.
Dining, Entertainment, and Wellness as Priorities
Beyond travel, young consumers are dedicating significant portions of their income to social and personal experiences. The cinema, for example, remains a preferred out-of-home entertainment choice despite the rise of streaming platforms, with movie ticket spending showing resilient growth in 2026. Live events, including concerts, comedy shows, and festivals, are also a major draw, with brands finding that audiences have higher purchase intent after engaging with them in these immersive environments. At the same time, the beauty and wellness category has remained a high priority, with steady spending throughout the year. This includes not just cosmetics but also fitness classes, wellness retreats, and other activities focused on self-improvement, which are now framed as essential experiences.
The 'Why' Behind the Spending Shift
Several factors are fuelling this pivot to experiences. Social media platforms like Instagram and YouTube play a huge role in discovery, making unique experiences like curated dining, travel, and live events highly aspirational. The post-pandemic mindset has also accelerated this trend, with a renewed desire to make up for lost time and connect with the world in meaningful ways. For Gen Z and millennials, who came of age in a digital-first world, experiences provide the unique, shareable moments that are valued currency online and offline. This generation shuns traditional labels and instead prioritises authenticity, self-expression, and creating a life rich with stories—and their spending habits are a direct reflection of these values.
