60% of Gen Z spend more this festive season, on their own terms

India’s online festive sales are projected to cross ₹1.5 lakh crore this year. The bigger story is not only the money; it is the consumer reshaping the season. A new Gen Z consumer report shows 60% of young shoppers spend more during major festivals, but they are spending with new intent and new expectations.

The wider festive economy is scaling quickly. An estimated ₹900 crore is expected to flow into festive creator marketing, with around 7,200 brands activating campaigns and 2–2.5 lakh seasonal and gig jobs being created. That surge is riding on 7.8% GDP growth.

Tradition is being remixed, not rejected

The festive basket is expanding beyond the familiar rituals. Fashion and food, sweets and beverages each account for 49% of festive spending. Family is still central: 74% buy gifts for parents and family, 61% for friends, 39% for partners and 31% for younger relatives. But 29% also buy gifts for themselves, and 47% plan to buy healthy snacks during the season. Gen Z is not leaving tradition behind; it is adding self-expression, wellness and personal rewards to the celebration.

The motivations have changed

What pushes people to overspend is rarely just the price. Family expectations lead at 34%, followed by discounts at 29%, emotional connection at 28% and self-gifting at 25%. This is a key insight for marketers: festive purchasing is social and emotional before it is transactional. A brand that only competes on deals misses the deeper occasion.

Discovery is now fragmented

Gen Z shoppers do not follow a single path. For gift inspiration, 41% turn to online search, 39% use their own judgement, and 34% ask friends and family. AI is entering the journey too: 25% use AI to suggest gift ideas, slightly ahead of marketplace recommendations at 21%. Most importantly, these shoppers trust their own research more than a creator or platform recommendation. They validate, compare and look for proof before buying.

What to do about it

The opportunity for brands is not just to capture a festive spike. It is to build behaviours that outlast the season:

• Modernise familiar categories while keeping their cultural meaning.
• Make wellness feel like celebration, not restriction.
• Build discoverability across search, social, marketplace and AI.
• Treat self-gifting as a real occasion, tied to personal milestones.

That shift from discounting to occasion design is how seasonal demand becomes repeat loyalty after the celebrations end.

Source: Afaqs!