Blitz Bureau
NEW DELHI: The pandemic altered more than daily routines in India — it reshaped how consumers, especially younger generations, think about money and priorities. As lockdowns eased, vaccination coverage expanded, and the economy reopened, spending patterns began to shift across urban and semi-urban markets.
Today, Indian businesses, startups, and investors are navigating a new reality: millennials and Gen Z are carefully balancing essential purchases — like groceries, healthcare, and home comforts — with experience-driven spending on travel, dining, wellness, and personal growth. Understanding this evolving mindset is crucial for brands, policymakers, and financial institutions aiming to connect with the next wave of India’s aspirational and digitally savvy consumers.
Changing consumer choices see shift from buying material goods
A key driver of this trend is the changing mindset of younger consumers. Millennials, many of whom entered adulthood during economic uncertainty, and Gen Z, shaped by social media and global crises, are prioritising personal growth, mental well-being, and lifestyle experiences over material accumulation.
Reports from consumer research firms show that over 60 per cent of millennials would rather spend on travel or learning opportunities than on luxury goods. Similarly, Gen Z consumers are more likely to allocate disposable income towards activities that enhance their social life, well-being, or personal development.
Yet, necessity spending hasn’t vanished. In fact, the pandemic underscored the importance of financial security, health, and home comforts. Subscriptions to streaming platforms, home fitness gear, organic foods, and personal care products have surged, reflecting a desire to invest in lifestyle improvements. Many are also funneling savings into emergency funds or insurance products, signaling a more cautious approach to financial planning.
What’s particularly interesting is the hybrid behaviour emerging from this cohort of consumers. A growing number of them are blending experiences with necessity-driven products. For instance, meal delivery services combine convenience with culinary exploration, while smart home devices enhance both comfort and lifestyle aesthetics. Even travel choices are evolving, with eco-friendly accommodations and wellness retreats gaining popularity — offering both relaxation and personal growth.
For businesses, this presents both opportunity and challenge. Brands that can integrate experience with utility are better positioned to capture consumer attention. A fitness subscription paired with virtual coaching, or a travel package with insurance and mental health support, taps into this nuanced approach. Personalisation, authenticity, and community-building are key elements in appealing to this audience.
However, affordability remains a barrier. Many millennials and Gen Z consumers are burdened with student debt, rising housing costs, or precarious employment. Businesses need to strike a balance between aspirational offerings and accessible pricing. Loyalty programmes, flexible payment plans, and curated experiences tailored to individual preferences can create deeper engagement.
As we move further into the post-pandemic era, consumer spending will likely continue to oscillate between experiences that enrich life and essentials that provide stability. Understanding this duality — and responding with empathy, innovation, and value — will define which brands thrive.
The experience economy is not a rejection of necessity; it’s an evolution. Younger consumers are no longer content with material goods alone. They seek purpose, connection, and well-being — and they are shaping markets in ways that demand both insight and adaptability.