The Rise of the Experience Economy
Instead of accumulating things, younger Indians are spending on doing things. This 'experience economy' is booming, with spending on travel, hospitality, dining, and live entertainment projected to grow faster than on physical goods. According to a report
by the Events and Entertainment Management Association (EEMA), India's experience economy is expected to nearly double from about $32.2 billion in 2024 to $59.2 billion by 2030. This surge is driven by everything from destination weddings and music festivals to local cultural events and weekend getaways. Gen Z and millennials are the primary force, viewing products not as possessions but as enablers for these experiences—the right apparel for a trip or the best gear for a concert. This generation is proving that a memorable moment is often worth more than a material object.
Investing in Personal Wellbeing
Another major spending category is the self. Wellness is no longer a luxury but a core part of the budget for many young Indians. This trend goes far beyond basic gym memberships, encompassing mental health support, nutritional coaching, high-end athleisure, and fitness tech. One-third of Gen Z is estimated to spend at least 20% of their income on fitness and sports. The spending is also becoming more nuanced, with a notable increase in expenditures on dieticians and health coaching. This is reflected in the corporate world as well, where wellness programs are becoming comprehensive, offering services from yoga sessions to mental health counseling, driven by rising employee health awareness. This focus on physical and mental health is seen as a long-term investment in their most valuable asset: themselves.
Digital Life and Digital Goods
For a generation that grew up online, it’s no surprise that a significant portion of their wallet share is dedicated to the digital world. This goes beyond just e-commerce. Subscriptions for streaming (OTT) platforms, spending within mobile games, and purchasing other digital goods and services now form a regular part of their consumption. Roughly half of every rupee spent on OTT subscriptions in India can be traced to a Gen Z buyer. The convenience of digital payments, especially UPI, has further accelerated this trend, making it seamless to pay for everything from online courses to in-app purchases. This digital-first lifestyle means that value is found not just in physical items, but in the access, content, and convenience that digital services provide.
A New Definition of Aspiration
This shift in spending doesn't mean young Indians are not interested in assets; it means their definition of what constitutes a valuable asset is changing. While previous generations prioritised physical goods as markers of success, today's youth are pouring money into upskilling through online courses, developing side hustles, and investing in financial instruments at a younger age. For instance, investors under 30 now account for a significant majority of new stock market registrations. They are also spending on fashion and beauty, but with a different mindset. Fast fashion, trendy aesthetics driven by social media, and a focus on personal expression guide their choices, often prioritising value and style over brand names alone. This pragmatic approach combines a desire for self-improvement with savvy financial planning, creating a new blueprint for a successful life.
