Key Shift in Consumer Behavior

The latest analysis from Visa Consulting and Analytics (VCA) reveals a significant transformation in how India's affluent consumers spend their money. They are moving away from traditional ownership and prioritizing access to experiences, fueled by a growing wealthy population and wealth spreading beyond major cities.

Growing Affluent Population Drives New Spending Habits

Visa's report highlights that the number of Indians earning over ₹10 lakh annually has nearly doubled, reaching 130 lakh. This expansion is increasingly visible beyond metropolitan hubs like Mumbai, Delhi, and Bengaluru, with cities such as Ahmedabad, Surat, Jaipur, and Lucknow now showing similar sophisticated spending patterns. This broader geographic spread broadens the market for premium goods and services.

Travel and Dining Dominate Discretionary Budgets

For the Ultra Elite segment, travel now accounts for 58% of discretionary spending, significantly outpacing retail and luxury at 28%. Annual spending on dining remains strong at approximately ₹2 lakh, with 63% of elite consumers engaging in cross-border spending. The report notes that frequent premium dining (at least three times annually) and high-end retail purchases (quarterly) are common among this group.

The luxury goods market in India, valued at about USD 10.6 billion in 2025, is projected to grow to USD 18.8 billion by 2034, with a 6.17% compound annual growth rate. This growth is driven by rising disposable incomes and a strong interest in premium experiences over physical products.

Credit Cards Facilitate Premium Spending

Credit cards are essential tools for this premium lifestyle, facilitating spending in travel, dining, wellness, and luxury retail. More than half of affluent consumers use cards for elite memberships, and 70% express interest in exclusive product drops. American Express, for example, offers premium cards in India with travel and lifestyle benefits like airport lounge access and concierge services, directly catering to these consumer desires. Demand for such premium credit cards is rising with increased spending by high-net-worth individuals and economic growth.

Move Towards Integrated Lifestyle Services

Sushmit Nath, Head of Visa Consulting & Analytics for India and South Asia, described this trend as a fundamental shift. He stated that affluence is no longer temporary, and spending is increasingly driven by a desire for exclusivity and seamless access across various lifestyle areas. Affluent consumers are seeking integrated ecosystems that combine multiple services, rather than isolated products, with convenience and access being the main drivers of their choices. This points towards a rise in subscription models and bundled offerings for a holistic lifestyle.

Potential Risks and Competitive Landscape

Despite the strong spending power of the affluent segment, the report also identifies potential challenges. Increased reliance on credit cards for premium spending raises concerns about household debt levels and vulnerability to interest rate hikes, especially if income growth slows. While credit card issuance and spending have surged in India, assessing the sustainability of this credit-fueled consumption is key if economic conditions tighten. In terms of competition, Visa faces a dynamic market. Its P/E ratio of approximately 29.32 (as of April 2026) is higher than the Financial Services sector average of 13.32. Mastercard holds a strong position with a similar P/E ratio and significant presence in emerging markets. Furthermore, Visa could face disruptions from emerging technologies like blockchain and government-backed payment systems, and the shift towards 'access-led experiences' might require payment providers to adapt beyond traditional transaction models.

Outlook for Premium Consumer Brands

The Visa report suggests that future premium spending in India will increasingly be shaped by convenience, exclusivity, and integrated lifestyle services. As the affluent population grows and diversifies geographically, brands and financial institutions offering seamless, experience-driven solutions are best positioned. The analysis indicates that sustained affluence requires a long-term strategy for engaging this valuable consumer base.