India’s vibrant festive season, long synonymous with indulgence, gifting, and grand celebrations, is witnessing a remarkable evolution. A new report titled “Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections” by early-stage venture capital firm Rukam Capital unveils how consumer choices are being redefined by values of wellness, authenticity, and purpose.
Drawing insights from over 5,000 respondents across 18 states, the study facilitated by YouGov captures a pivotal transformation in how Indians approach the festive season, no longer driven solely by impulse or tradition, but by mindfulness, identity, and connection.
This transformation is particularly evident in India’s festive retail economy, which is projected to grow by 23% and reach an estimated value of USD 125–150 billion in 2025. Furthered by GST 2.0 reforms, the festive boom is not limited to metros but is rapidly spreading across smaller towns as well, giving brands a richer cultural and emotional canvas to engage with today’s evolving consumers.
Commenting on the insights, Archana Jahagirdar, Founder and Managing Partner, Rukam Capital, said, “The Indian consumers are no longer passive participants in shaping trends, the market is evolving and is being pillared through affordability, aspirations and a digital sophistication. India is telling us that it is not just about what a brand sells, but how it makes them feel connected, understood, and valued. This shift is forcing even the most traditional categories to reinvent themselves beyond just seasonal triggers, whether that’s through healthier alternatives, transparent communication, or community-driven engagement. For founders, it’s a reminder that building loyalty in India now goes far beyond discounts; it’s about creating meaning in everyday consumption.”
Key Festive Insights:
1. Rise of the Homegrown
Festive shopping is increasingly becoming an expression of national and community pride.
Local Love: Over half of Indian consumers now prefer homegrown or small business brands, drawn to their relatable stories and authentic value.
Purposeful Purchases: In Tier 1 cities, 61% of shoppers actively choose Indian brands, while 59% align spending with social or environmental causes, marking a decisive shift from consumerism to conscious capitalism.
43% of the respondents shared that they like to shop from new start-ups during festive season
2. Wellness Revolution: When Celebration Meets Self-Care
Festive tables across India are being reshaped by the health-conscious consumer. The report finds that indulgence is taking on a new form rooted in balance, not excess.
Healthy Snacking Leads: Over 53% of Millennials and 47% of Gen Z plan to purchase healthy snacks this season, signaling a clear shift from traditional treats.
Sugar-Free Goes Mainstream: A striking 73% of younger consumers now prefer sugar-free or substitute-based sweets, redefining the meaning of festive indulgence.
Cultural Wellness: Nearly one in three respondents says they seek festive products that blend heritage with health, underscoring a growing demand for traditional products with modern, guilt-free appeal.
3. Digital Dominance: UPI Reigns Supreme
India’s digital revolution is powering its festive shopping frenzy, turning payments into a key enabler of convenience and connection.
UPI Tops the Charts: Nearly 2 in 5 shoppers rely on UPI for festive purchases, making it the most preferred mode of payment this year, followed by Credit/Debit Cards and other payment modes.
Tier Trends: Tier 3 cities show the highest UPI usage (42%), while Tier 1 consumers demonstrate financial maturity by balancing UPI (36%) with credit cards (24%) to maximize rewards and cashback.
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