Indian consumers are set to spend more on experiences such as travel, hotels, restaurants and cultural activities than on physical goods by 2030, according to a report by real estate consultancy CBRE. The shift, driven largely by younger generations, marks a fundamental change in household expenditure patterns across the country.
Experiential spending growth outpaces goods
The report projects that household expenditure on physical goods will grow at a compound annual growth rate (CAGR) of 9.1 per cent between 2025 and 2030. In comparison, broader experiential spending – covering recreational and cultural activities, dining out, travel and accommodation – is expected to expand at a faster CAGR of 10.3 per cent during the same period.
“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,” the report stated.
Hotel accommodation leads the surge
Among experiential categories, hotel accommodation stands out as the fastest-growing segment. Spending on hotels is forecast to grow at a CAGR of 10.6 per cent between 2025 and 2030, outpacing other leisure-related expenditures.
The report attributes this to pent-up demand following the COVID-19 pandemic, which significantly accelerated the shift toward experiences. Since 2022, consumers have continued to prioritise travel, hospitality and leisure activities as they make up for lost time.
Generation Z drives the shift
CBRE highlighted Generation Z – individuals born between 1997 and 2012 – as the key demographic driving this transformation. As the largest age group in the Asia Pacific region, Gen Z’s increasing financial independence is expected to fuel faster spending growth compared to 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-oriented spaces that host activities such as wine tastings, acoustic performances and local cultural events.
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 outperform broader market
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.
