India's festive wallet: Family, discounts, and emotions drive festive overspending for Gen Z across states, finds report

A YouGov and Rukam Capital study of 4,002 Gen Z aged 18-29 found that festive shopping varies by region, and is shaped by family expectations, personal preferences and digital discovery. Here's a look...

Gen Z shoppers across India are balancing cultural traditions, family expectations, personal preferences and digital discovery, findings from a YouGov and Rukam Capital study showed.

The report, titled 'Gen Z: A Deep Dive into India's Most Influential Consumer Cohort' noted that that festive spending, shopping priorities, gifting choices and celebration styles are taking different shapes across the country.

It highlighted regional differences -- respondents in the North showed higher festive spending and family-led consumption gaining prominence, while those in the South showed preference for greater personalisation alongside tradition. In the East, stronger digital discovery and spontaneous shopping led the trends, while in the West respondents made more experience-oriented choices. Central India preferred value-conscious gifting with growing experimentation with AI-led discovery, it added.

India's festive wallet: How Gen Z shops -- Key highlights

According to the report, festivals continue to drive higher consumption among Gen Z, with 60% of respondents reporting increased spending during major festivals, including 25% who spend significantly more and 35% who spend somewhat more.

The trend is particularly pronounced in North India, with 65% of respondents in Delhi and Punjab reporting higher festive spending, followed by Rajasthan at 63%, part of Northwestern India

Festive shopping also combines planning with impulse purchases. Nationally, 4 in 10 (40%) described their festive spending as a mix of planned and spontaneous purchases, while 31% are mostly planned shoppers and 16% mostly spontaneous shoppers.

This mix of planning and spontaneity is particularly pronounced in Odisha (53%), followed by West Bengal (45%) and Karnataka (44%), highlighting the different ways young consumers approach their festive budgets.

Fashion, food and gifts define regional baskets

Nationally, fashion and food, sweets and beverages lead festive spending at 49% each, followed by gifting (36%), traditional or religious items (35%) and home décor (33%). However, state-level findings reveal distinct consumption priorities across markets.

Chhattisgarh stood out for fashion-led spending, at 61%, alongside food (45%), home décor (39%), gifting (37%) and traditional or religious items (35%).

In Bihar, food led festive spending at 59%, followed by fashion (51%), gifting (43%) and traditional or religious items (41%).

Punjab recorded strong spending on food (54%) and gifting (48%), followed by fashion (46%) and home décor (38%).

In southern markets, food accounted for 56% of festive spending in Telangana, followed by fashion (53%), traditional or religious items (44%) and gifting (39%).

Andhra Pradesh also saw food lead at 53%, followed by fashion (46%), traditional or religious items (45%) and home décor (36%).

West Bengal combines fashion spending (53%) with food (47%), gifting (32%) and electronics (30%), while dining out is also notable at 33%.

Delhi stood out for spending on traditional or religious items (43%), followed by gifting (42%) and experiences (29%).

Meanwhile, Kerala recorded notable travel spending at 31%, alongside food and fashion.

While Gujarat shows interest in travel (29%) and dining out (28%).

Gifting preferences, trends emerge across regions

Gifting remains central to the festive season, with parents and family members emerging as the leading gifting recipients nationally at 74%, followed by friends (61%), partners (39%) and younger relatives or children (31%). The categories consumers choose to gift, however, vary across given states.

Food, sweets and dry-fruit gifting was particularly prominent in Haryana (54%) and Delhi (49%).

Cash gifting led in Chhattisgarh (48%) and Madhya Pradesh (47%), while Gujarat also records a strong preference for cash gifts at 42%.

Personalised gifting was prominent in Andhra Pradesh (41%) and Odisha (40%), followed by West Bengal and Bihar at 33% each.

Gujarat also recorded a preference for personalized gifts at 36%.

Jewellery gifting is particularly relevant in Karnataka and Andhra Pradesh, at 38% each, while digital gifting records traction in Bihar and Andhra Pradesh, at 24% each.

"These differences suggest that festive gifting is not a uniform market, with local traditions and individual preferences influencing what consumers choose for family and friends," the report noted. It added that digital tools are becoming increasingly relevant to festive purchase decisions.

Nationally, online search (41%) has overtaken personal judgement (39%) as the leading source of gift ideas, while 25% of respondents already use AI to suggest gifts.

Family, discounts and emotions drive festive overspending

The report further noted that festive spending is shaped by more than product needs and prices. Across India, family expectations are the leading reason for overspending, cited by 34% of respondents, followed by discounts (29%), emotional connection (28%), treating oneself (25%), premium products (22%) and gifting obligations (19%).

"The findings highlight how family obligations, promotional offers, emotional associations and personal indulgence can influence festive budgets," it added.

Family expectations were the biggest spending trigger in Odisha (42%), followed by Uttar Pradesh and Madhya Pradesh at 37% each.

Discounts drove overspending most strongly in Chhattisgarh (37%), followed by Tamil Nadu and Telangana at 34% each.

Emotional connection was particularly influential in Telangana (35%) and Punjab (33%),

While Bihar recorded the highest reported influence of premium products on overspending at 31%.

Social expectations are strongest in Odisha (25%), followed by West Bengal and Bihar at 21% each.

Social media and creator trends had greatest reported impact in Jharkhand (21%), followed by Andhra Pradesh at 20%.

Meanwhile, the desire to treat oneself or self-gift is highest in Jharkhand (29%), followed by Uttar Pradesh and Rajasthan at 28% each.

The overall findings highlight that while Gen Z shares a common festive occasion, the motivations, preferences and behaviours shaping consumption vary across markets. Notably, the YouGov and Rukam Capital study involved 4,002 Gen Z respondents aged 18-29 across 18 states in India.