Indian consumer spending on experiences to outpace goods by 2030: Report

A CBRE report indicates Indian consumer spending on experiences like travel and hotels will grow faster (10.3% CAGR) than on goods (9.1% CAGR) from 2025-2030, a trend driven by younger generations, particularly Gen Z.

Experience Spending to Outpace Goods

Spending by Indian consumers on experiences such as recreational and cultural activities, restaurants, hotels and travel is expected to grow faster than spending on physical goods between 2025 and 2030, according to a report by CBRE. The report said changing consumer preferences, particularly among younger generations, are driving a shift towards experience-led spending across the country.

According to the report, household expenditure on physical goods is projected to grow at a compound annual growth rate (CAGR) of 9.1 per cent between 2025 and 2030. In comparison, broader experiential spending is expected to expand at a faster CAGR of 10.3 per cent during the same period. It stated, "Growth in spending on experiences outpaces purchases of physical goods..... This trend is here to stay, with Asia Pacific spending on experience (+7.3 per cent CAGR) projected to be faster than that for physical goods (+6.5 per cent CAGR) over the next five years".

Among various categories, spending on hotel accommodation is forecast to grow at an even stronger pace of 10.6 per cent CAGR, making it one of the fastest-growing segments of consumer expenditure in India.

Pandemic and Gen Z Drive Shift

The report noted that the trend towards experiences was significantly accelerated by the COVID-19 pandemic. It said pent-up demand and a desire among consumers to make up for lost time have continued to support higher spending on travel, hospitality and leisure activities since 2022.

The Rise of the Gen Z Consumer

CBRE highlighted that Generation Z is emerging as a key driver of this shift. The report stated that Gen Z, comprising individuals born between 1997 and 2012, currently represents the largest demographic group across the Asia Pacific region. As more members of this generation attain financial independence, their spending is expected to increase faster than any other living generation.

According to the report, Gen Z consumers increasingly seek personalised and experience-driven offerings. Their travel preferences include curated design environments, personalised services, and community-orientated spaces that host activities such as wine tastings, acoustic performances and local cultural events.

The report added that wellness integration and seamless technology are also becoming essential expectations among younger travellers. Features such as self-check-in systems and smart-room automation are increasingly viewed as standard requirements rather than differentiating factors.

Lifestyle Hotels Lead Market Growth

The report noted that lifestyle hotels have significantly outpaced the broader hotel industry in terms of growth. Between 2015 and 2025, overall hotel supply across the Asia Pacific region expanded at a CAGR of 5 per cent, while lifestyle hotels recorded a much stronger growth rate of 19 per cent during the same period.

Looking ahead, CBRE expects the supply of lifestyle hotels to continue growing at a CAGR of 10 per cent through 2030, compared with a projected 2 per cent growth rate for the broader hotel market. (ANI)

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