61% of Tier-I Consumers Opt for Homegrown Brands This Festive Season: Rukam Capital Study

India’s festive season, long known for its grandeur and generosity, is undergoing a significant shift. A new study titled “Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections” by early-stage venture capital firm Rukam Capital highlights how wellness, authenticity, and purpose are driving consumer choices this year.

The study, conducted by YouGov with over 5,000 respondents across 18 states, reveals that Indians are increasingly mindful and value-driven when it comes to festive spending. Rather than shopping based purely on impulse or tradition, consumers are now choosing brands that align with their identity and values.

India’s festive retail market is expected to grow by 23%, reaching an estimated $125-150 billion in 2025. Backed by GST 2.0 reforms, this growth is no longer limited to metropolitan cities but is also expanding across smaller towns — offering brands deeper cultural opportunities to connect with consumers.

Archana Jahagirdar, Founder and Managing Partner at Rukam Capital, said:

“Indian consumers are not just trend followers anymore. They seek brands that make them feel understood and valued. Loyalty today is built through connection and purpose, not discounts. This evolution is compelling even the most traditional categories to innovate from offering healthier alternatives to embracing transparency and community engagement.”

Key Festive Insights

1. Rise of the Homegrown

Festive shopping is increasingly tied to local pride and conscious choices.

• Local Love: Over half of Indian consumers prefer homegrown or small business brands.
• Purposeful Purchases: In Tier I cities, 61% of consumers actively choose Indian brands, while 59% align their spending with social or environmental causes.
• Start-up Support: 43% of respondents enjoy shopping from new start-ups during the festive season.

2. Wellness Takes Centre Stage

Health is redefining indulgence this festive season.

• Healthy Snacking: 53% of Millennials and 47% of Gen Z shoppers plan to buy healthy snacks.
• Sugar-Free Trend: 73% of young consumers prefer sugar-free or substitute-based sweets.
• Cultural Wellness: One in three shoppers seek festive products blending heritage with health — highlighting demand for traditional yet guilt-free treats.

3. Digital Dominance: UPI Leads the Way

India’s digital payment revolution continues to reshape festive shopping.

• UPI on Top: Nearly 40% of shoppers use UPI for purchases, making it the most preferred payment method.
• Tier Trends: Tier III cities show the highest UPI usage (42%), while Tier I consumers balance UPI (36%) with credit card payments (24%) for cashback and rewards.