Report: How Gen Z’s $1.3 Trillion Spending Power Will Reshape Beauty, Fashion, And Fitness By 2030

Gen Z is set to become as one of the most influential consumer groups by the end of the decade, with its collective spending projected to reach $1.3 trillion by 2030, according to a report by Redseer Strategy Consultants. Defined as those born between 1997 and 2012, this cohort is expected to make up nearly 27 per cent of the population by 2030, as per the report, titled Gen Z: Defining Trends, Influencing Spends. Their growing economic presence may significantly influence sectors such as beauty, personal care, fashion, fitness and digital commerce.

The report highlights that Gen Z consumers place a strong focus on experiences, aesthetics, inclusivity and seamless digital convenience when making purchases. These evolving preferences are prompting brands to rethink product development, marketing strategies and customer engagement.

Rise In Beauty and Personal Care Spending

In beauty and personal care, spending is expected to surge, with Gen Z contributing close to $19 billion to the category by 2030 with their consumption patterns. The data reflects a strong focus on grooming and self-expression, particularly among young women, many of whom allocate over 20 per cent of their disposable income to these products. Additionally, usage patterns are becoming more elaborate, with individuals adopting various routines across skincare, haircare and body care. Rather than sticking to specific brands or ingredients, Gen Z shoppers tend to seek targeted solutions, resulting in lower brand loyalty and a greater willingness to experiment.

The report also mentions a growing interest in grooming among young men, with increased adoption of skincare and cosmetic practices such as acne coverage, hair removal and brow grooming. This shift is evident in online behaviour as well, with searches for “men’s skincare routine” rising by approximately 850 per cent over the past five years.

Fashion That Fits Budget

In fashion, Gen Z is expected to drive nearly half of the market across apparel, footwear and accessories by 2030. However, despite their strong presence on e-commerce platforms, their per-transaction spending remains lower than that of millennials, roughly half on average.

Affordability plays a key role in purchase decisions, with fast fashion items priced under Rs 1,000 continuing to see strong demand. At the same time, Gen Z remain highly influenced by digital trends and emerging styles.

Focus On Fitness

Gen Z is projected to spend close to $40 billion on sports and fitness by 2030. It underscores the scale of opportunity for brands catering to this health-conscious and digitally driven generation. Around one-third of this group reportedly spends at least 20 per cent of their income on sports and fitness activities. Due to this, the athleisure segment has seen rapid growth, with sales doubling in the past year, supported by affordable pricing and the expansion of online marketplaces. Notably, a majority of sports footwear options are priced between Rs 500 and Rs 1,000, aligning with Gen Z’s value-conscious mindset.

Dietary choices are evolving as well, with nearly 40 per cent of regularly active Gen Z individuals incorporating alternative protein sources into their diets. Due to this, demand for protein supplements is also rising, with product listings on quick commerce platforms increasing by about 230 per cent between 2024 and 2025.