India’s creator economy eyes $1 trillion in influenced spend by 2030: BCG

New Delhi: According to the latest report from Boston Consulting Group (BCG), India is home to nearly 2 to 2.5 million monetised content creators—defined as those with over 1,000 followers—who now influence more than 30% of all consumers and shape approximately $350-400 billion in annual spending.

By 2030, BCG projects this creator-influenced spend will surpass $1 trillion, unlocking more than $100 billion in direct economic value for the ecosystem, including platforms, brands, and the creators themselves.

From niche trend to mass movement

What was once seen as a Gen Z metro phenomenon has now firmly entered the mainstream. Creator content is no longer confined to Instagram Reels or YouTube Shorts—it is shaping decisions across fashion, finance, beauty, health, and even home décor in Tier 2 and Tier 3 towns.

BCG’s consumer study across 1,900+ users found that more than 60% of consumers are now exposed to creator-driven content, and over 30% attribute their purchase decisions to these influencers. The impact is particularly strong among Gen Z and millennials, but even older age groups are increasingly influenced by creators. This pan-demographic penetration marks a significant shift from earlier assumptions about the audience for influencer marketing.

Importantly, this influence is gender-neutral and geography-agnostic: over 65% of women and 63% of men reported exposure to creator content, and towns outside metros now show as much, if not more, influence than urban centres.

The power of platforms and short-form video

BCG identifies short-form video (SFV) as the primary growth engine for the creator economy. Platforms like Instagram, YouTube Shorts, Moj, and ShareChat are dominating the consumption of creator-led content. Comedy, fashion, movies, daily soaps, and beauty remain the most consumed genres, while niche topics like finance, health, and spirituality are gaining ground.

Interestingly, platforms like ShareChat and Moj report that nearly 80% of their creators and 75% of their user base come from Tier 2 and 3 cities, highlighting the deepening penetration of regional content and vernacular creators.

Time spent on creator-driven platforms is steadily increasing. In FY24, nearly 80% of users’ content time was spent on such platforms, a shift from only 70-75% in FY23. The trend reflects a broader transformation in consumer behaviour, with a preference for relatable, informative, and entertaining content coming from creators over traditional advertisements or mass media.

Brands bet big—but want better ROI

The creator economy is no longer an experimental line item in brand budgets—it’s a full-fledged marketing channel. Around 70% of brands surveyed by BCG plan to increase their influencer budgets by 1.5–3x over the next 2–3 years. Already, brands investing in influencer marketing are allocating 10–20% of their total marketing budgets to creator-led campaigns.

Fashion, beauty, and food and beverages are currently the most mature categories in influencer engagement. But newer sectors like financial services, health, and home décor are catching up quickly, though they still face a trust gap with consumers.

Despite the enthusiasm, brands remain wary of certain pitfalls. The top concerns are fake followers, unreliable ROI measurement, and brand safety. Nearly 74% of brands highlighted fake engagement as a key concern, while 40% cited difficulty in tracking measurable outcomes. Target group misalignment and reputation risks were also flagged as significant barriers.

To mitigate these concerns, brands are shifting their focus from vanity metrics like follower count to more meaningful indicators like audience fit, engagement rates, and content quality.

The six faces of influence: Creator archetypes

BCG’s report outlines six distinct archetypes of monetised creators in India, ranging from high-reach mega influencers to deeply engaged micro voices. These include:

• The Influence Icons (1M+ followers): High-reach creators used for awareness and buzz.
  
  
• The Trend Setters (500K–1M): Ideal for trust-building and long-term loyalty.
  
  
• The Disseminators (100–500K): Used for quick idea dissemination.
  
  
• The Trust Ambassadors (10K–50K): Low-reach, high-influence creators perfect for niche audiences.
  
  
• The Niche Creators (50K–100K): Experts in specific domains.
  
  
• The Inquisitors: Highly engaging creators who spark conversations and curiosity.
  
  

Surprisingly, only 8–10% of India’s creators currently monetise their content effectively, with the vast majority earning less than Rs 18,000 a month, signalling a huge monetisation gap that needs closing if the $100 billion opportunity is to be realised.

Monetisation models: Time to diversify

Ad sales and brand sponsorships still dominate the revenue streams for Indian creators, accounting for nearly 90% of monetisation in FY24. However, this over-dependence is both a risk and a limitation.

BCG highlights the immense potential in under-penetrated models like:

• Virtual Gifting: Particularly popular on platforms like Moj and ShareChat, where audiences tip creators during live sessions. Microtransactions (Rs 10–100) are powering creator earnings in Tier 2 and Tier 3 markets.
  
  
• Live Commerce: Still nascent in India but already a $700 billion industry in China. Platforms like Amazon Live and Myntra’s M-Live are testing waters.
  
  
• Subscription models: Low uptake in India due to price sensitivity, but growing interest among Gen Z and affluent digital-first users may soon change that.
  
  

Generative AI is also emerging as a game-changer, streamlining content production, enabling faster campaign rollouts, and reducing production costs. Platforms and creators adopting AI for planning, scripting, and editing are expected to scale faster.

The Road ahead: Reimagining roles and strategies

As India’s creator economy enters its next growth phase, BCG calls for a strategic mindset shift from all stakeholders.

For brands, this means:

• Co-creating content with influencers
  
  
• Offering creative freedom within brand guardrails
  
  
• Rapid outcome testing and campaign agility
  
  
• Building specialised teams to manage influencer portfolios
  
  

For platforms, the focus must shift to:

• Improving discoverability and monetisation support
  
  
• Facilitating creator education and tools
  
  
• Investing in infrastructure for live commerce and micro-payments
  
  

For creators, the roadmap includes:

• Upskilling in storytelling, analytics, and commerce
  
  
• Diversifying income through live, subscription, and affiliate channels
  
  
• Embracing authenticity as a long-term brand strategy
  
  

Ultimately, the creator economy is not just reshaping marketing—it is redefining consumer culture, regional storytelling, and digital entrepreneurship.

A $1 trillion influence future

The report closes on a bullish note: if India’s digital ecosystem sustains its current momentum, powered by Gen Z, tech adoption, and regional creator growth, the country will not just catch up to global creator economies, it will lead them.

BCG estimates that by 2030:

• India’s consumption expenditure will double to $4 trillion.
  
  
• Creator-influenced spend will triple to $1–1.2 trillion.
  
  
• The total size of the creator economy will reach $100–125 billion, a 5x jump from current levels.
  
  

But unlocking this potential hinges on one collective imperative: trust. Trust in creators, in content quality, and in the platforms that host them.

Commenting on the findings, Vipin Gupta, Managing Director and Partner, BCG said, India's creator economy has the potential to significantly influence consumer spending, with creator-led spending set to account for 25–30% of India’s total consumer spend by 2030. What began as a Gen Z and metro-focused phenomenon is now resonating across age groups and smaller cities, unlocking new avenues of influence and engagement. Categories like fashion, beauty, and entertainment are leading the charge, while emerging monetization models—such as live commerce and virtual gifting—are redefining how creators and brands drive value together. Creator marketing is increasingly becoming a cornerstone of brands' marketing strategy, with budgets towards creator-led marketing expected to increase 1.5 to 3 times over the next 2–3 years. To fully leverage this potential, brands must trust creator-led outcomes, streamline decision-making, embrace agile content strategies, and invest in long-term creator partnerships."

Nimisha Jain, Senior Partner at BCG, aptly summarised, “Creators are no longer just marketers; they’re trusted advisors, cultural bridges, and micro-entrepreneurs. India’s future economy will be co-authored by them.”