Middle class is evolving, not shrinking

The middle class isn't shrinking, it's fragmenting into multiple consumer personas.

- 

rally equipped to navigate this shift. For example, in beauty and personal care, the market leader's share dropped from 25% in 2014 to 20% in 2024, while the number of brands exceeding ₹100 crore in revenue surged from under 100 to over 100. By 2030, we anticipate further fragmentation, with 200-250 brands surpassing the ₹100-crore mark. Similar trends are unfolding in food and fashion, fueling increased M&A activity.

How is Gen Z reshaping consumption patterns?

Gen Z already contributes 25% of middle-class consumption, projected to rise to 50-60% by 2030. Key categories witnessing the most significant shifts include beauty and personal care, fashion, travel, sports, and fitness. Unlike previous generations, Gen Z isn't loyal to legacy brands, creating space for agile new entrants that align with their evolving preferences.

What major shifts are emerging in consumer spending?