Report: Southeast Asia consumer confidence on track for rebound as value-seekers embrace new “needs”

SINGAPORE – Media OutReach – 10 October 2023 – Meta, Bain & Company, DSG Consumer Partners, launched its annual SYNC Southeast Asia report ‘Bold Moves: Leading Southeast Asia’s next wave of consumer growth’ today. The report revealed insights into the evolving landscape of Southeast Asian consumers and how this diversity presents significant opportunities for businesses in the region both in the near and long term.

A new hierarchy of needs vs wants emerges

39% of consumers we surveyed in Southeast Asia indicated a reduction in average spend in the past year, citing top concerns around economic stability (63%) and cost of living (58%). The largest drop in spend was observed in alcohol and electronics, while food, personal care and wellness categories remained resilient.

However, the report observed that despite reduced spending, consumers are reprioritising what they perceive to be needs vs wants. Previously cited luxuries like eating out every week, branded apparel, and latest gadgets have moved into what consumers perceive as new “needs”. Across income levels, social media was cited as the top essential category, and streaming emerged as a rising essential category.