Top Consumer Buying Behaviour Trends in India for 2025
Harsh Gupta, Research Executive, Insights Square
Jan 15, 2025
Consumer buying behaviour in India is poised for a dynamic shift in 2025, shaped by generational differences, regional preferences, and age-specific priorities. At Market Xcel, we specialize in identifying such trends to help brands realign their business strategies, ensuring they remain competitive, relevant, and profitable in a rapidly evolving market. Based on recent studies, Market Xcel has summarised key insights and trends regarding the fast-changing consumer buying behavior in India.
Generational Insights: Crafting Strategies for Diverse Buyer Personas
Gen Z: The Social Commerce Powerhouse
As the youngest consumers with growing purchasing power, Gen Z dominates the social commerce landscape, with over 60% of this demographic engaging in online shopping. Their preferences are heavily influenced by sustainability, brand appeal, and immersive experiences. Platforms like Instagram, YouTube, and Facebook play a pivotal role in shaping their buying decisions, with social influencers and interactive content acting as key drivers. Impulse buying behaviour is common in this age group, often driven by social influencers and trendy products. Fast fashion, gadgets, and gaming-related products dominate their purchasing choices.
Gen Z shopping habits reflect how they prioritize product appeal, feel, and functionality over price, reflecting their inclination toward quality and experience. For brands, the key to capturing this audience lies in leveraging digital marketing strategies that incorporate gamification, influencer collaborations, and augmented reality (AR) experiences. Furthermore, eco-friendly products resonate strongly with this demographic, making sustainability a key aspect of product positioning.
Millennials: Balancing Price and Personalization
Millennials, often referred to as the backbone of the consumer market, hold substantial purchasing power. According to a study by Market Xcel, around 55% of millennial women prefer television as their primary source of information, while millennial men are equally active across digital and traditional platforms such as YouTube (25%), Instagram (20%), and television (25%).
Millennial buying behaviour is all about valuing rational decision-making, with equal consideration for price, functionality, and aesthetics when shopping online. To engage Millennials effectively, brands must prioritize personalization in marketing using advanced data analytics. Collaborations with quick delivery platforms and the introduction of exclusive memberships, discount bundles, and tailored offers can help cater to the price-conscious yet experience-driven Millennial audience.
Gen X: Merging Traditional Values with Modern Preferences
Gen X consumer trends demonstrate a unique blend of traditional values and modern expectations. While their online shopping behaviour remains relatively low, they place a high value on durability and reliability. The hybrid shopping trend—a mix of online and offline experiences—is particularly appealing to this group, as are health-conscious and high-quality products. They have one of the highest spending capacities, focusing on planned purchases of home appliances (30%), health products (25%), and educational needs (20%). This group values long-term benefits and reliability, making warranties, after-sales service, and bundled offers particularly appealing.
To attract middle-aged consumers, brands should emphasize the long-term value of their products and align offerings with wellness trends. Customized bundles targeting family-oriented needs can also drive engagement with this segment. Further, for Gen X consumers, brands should emphasize quality assurance, warranties, and exceptional after-sales service. Clean-label products and offerings of direct and indirect benefits, i.e., targeting health and wellness further enhance appeal. Digital adoption by Gen X and seamless integration of online and offline touchpoints, such as click-and-collect options, can also improve engagement with this demographic.
Boomers: Slow but Steady Digital Adoption
Boomers, though lagging in online adoption, represent an important consumer segment. Approximately 10-15% of this generation consistently shops online, often prioritizing ease of use and regional product preferences. Older adults tend to rely on trusted and conventional brands, often prioritizing healthy products and ease of use. Detailed product information and user-friendly digital platforms are essential for engaging this demographic. Regionally inspired and culturally significant products can further enhance appeal.
Brands aiming to engage this demographic should focus on creating user-friendly websites and mobile applications while emphasizing familiarity and trust. Offering regionally inspired products and maintaining consistent customer service are key strategies for success.
Regional Insights: Navigating India’s Diverse Markets
Metro Cities Shopping: A Digital Revolution
Metro cities such as Delhi, Mumbai, and Bangalore are leading the digital shopping revolution, with 70% of urban households preferring online shopping for categories like fashion, grooming essentials, home décor, and small appliances. and tech-driven shopping innovations, including AR/VR tools, are gaining rapid traction in these urban hubs.
Brands targeting metro consumers should adopt AR/VR technology for virtual product trials and highlight green initiatives in branding and packaging. Collaborations with platforms offering real-time inventory and rapid delivery can further strengthen consumer trust and loyalty in these regions.
Upcoming Metro Cities: Value-Driven and Health-Conscious Consumers
In cities such as Ahmedabad and Pune, 55% of online shoppers are shifting towards value-driven and health-conscious products. Personalization, affordability, and wellness are the key drivers of this trend. Competitive pricing strategies, cashback offers, and loyalty programs can attract these consumers, while the introduction of regionally tailored wellness products can further enhance market share.
Other Cities and Rural Areas: Building Trust in Emerging Markets
E-commerce penetration in other cities and rural areas is increasing steadily, driven by growing trust in peer reviews and influencer endorsements. Tier 2 city consumer insights are aspirational yet price-sensitive, prioritizing affordability and usability.
Brands can effectively engage this market by fostering trust through customer feedback, social proof, and transparent communication. High-quality and affordable product demand, combined with educational campaigns about online shopping benefits, can help overcome barriers to adoption.
Takeaways for the Brands
Segmented Marketing Strategies
Understanding and addressing the diverse needs of different consumer segments is crucial for success. Market research plays a pivotal role in identifying business needs and consumer preferences, enabling brands to craft targeted marketing strategies and customized product offerings. By aligning campaigns with values such as brand appeal, affordability, sustainability, and personalization, brands can achieve a stronger impact. More so, by targeting a specific audience for a specific product, brands can convey their value proposition in a better manner.
Enhancing Omnichannel Presence
Bridging offline vs online shopping experiences is essential for ensuring consistency and convenience across touchpoints. An effective omnichannel strategy can help brands deliver seamless experiences, from virtual product trials to in-store pickup options.
Building Trust and Authenticity
Value-conscious consumers resonate with brands that demonstrate transparency in pricing, sourcing, and communication. Authentic storytelling and clear branding can foster long-term trust and loyalty.
Health and Wellness Focus
The growth of the wellness product market presents significant opportunities for brands. Clean-label foods, health-monitoring devices, and stress-relief products are particularly appealing across age groups and regions. By prioritizing wellness in product development and marketing, brands can capture a larger share of the market.
Leveraging Technology and Sustainability in Consumer Behaviour
Technological advancements such as AR/VR shopping experiences, AI-driven personalization, and gamified shopping experiences can revolutionize consumer engagement. Additionally, highlighting sustainability initiatives in product design, packaging, and sourcing can strengthen brand appeal among eco-conscious consumers.
The Indian consumer landscape for 2025 is vibrant, diverse, and full of opportunities. Brands that adapt to these evolving trends with agility and foresight will not only thrive but also establish deeper connections with their audiences. By understanding generational, regional, and age-specific preferences, businesses can unlock immense potential in this dynamic market