• 36% of consumers surveyed feel better off financially compared to only 27% who feel financially worse. Rising food prices, economic downturn, and increasing utility bills remain top concerns.

• 50% of shoppers in Asia Pacific express willingness to use AI to expedite their shopping experience, while 49% say they would accept recommendations from AI.

• Social media is strongly influencing product discovery and driving direct purchases.

• Stress management, the rise and impact of GLP-1, gut health awareness, and the importance of protein are the next trends to watch as consumers seek a holistic approach to health and wellness.

NielsenIQ (NIQ), the world’s leading global consumer intelligence company, in its Mid-Year Consumer Outlook (MYCO) report reveals that Asia Pacific consumers are shifting from cautious spending to intentional consumption. The semi-annual study offers a comprehensive analysis of economic impacts, consumer attitudes, and purchasing decisions, providing a strategic roadmap for CPG and T&D manufacturers and retailers looking to win over consumers over the next 12–18 months and beyond.

“Asia Pacific consumers are demonstrating remarkable resilience and shifting towards intentional spending. This intentional spending mindset is evident in their increased focus on health, wellness, and sustainable choices,” said Craig Houliston, APAC Customer Success Above Market Consulting and Insights Leader, NIQ.

State of Mind of Consumers

The strength and determination of consumers in the region are evident, with 36% of consumers surveyed feeling better off financially compared to only 27% feeling financially worse.

Those who have negative sentiment about their finances attribute the cause of their worsening financial situation to rising cost of living expenses, followed by economic slowdown, job insecurity, and changes in health situation.

Despite varying financial sentiments, rising food prices, economic downturn, and increasing utility bills remain key concerns for consumers in the region over the next six months.

Evolving Economic Divide: More Secure, Fewer Struggling

NIQ’s segmentation on The Economic Divide has seen a continued shift towards the more financially secure end of the spectrum, where 33% of surveyed consumers are either unimpacted or thriving financially, compared to 25% from this time in 2023. At the other end of the spectrum, 31% identify as strugglers and rebounders, a decrease from 41% in the same period last year. The consumers who identify as cautious have the highest percentage at 36%, a slight increase from 35% in June 2023. The Economic Divide provides a key visual of how secure or insecure consumers feel economically, given any recent impact on their income or ability to save money.

Share of Wallet

The wallet intentions in 2025 reinforce the shift from a cautious to purpose-driven spending mindset.

Even though there’s rising sentiment on financial stability, APAC consumers claim that they will cut back on out-of-home dining and entertainment in the next 12 months. They also plan to spend less on alcoholic beverages, salon or grooming services, large domestic appliances, and snacks and confectionery.

While consumers are mindful of their spending, there remains a desire for leisure and lifestyle activities. Many are choosing to prioritize in-home entertainment and socializing as more financially responsible options.

Consumers have also indicated a desire to invest in education for themselves or family members, highlighting their focus on personal growth and long-term goals.

When asked about how they will manage their spending on grocery and household items in the next 12 months, respondents in Asia Pacific plan to prioritize fresh produce, health and wellness products, fresh meat, dairy products, home essentials (i.e., kitchen and bathroom products), and personal and beauty care items.

AI as a Consumption Driver

NIQ retail sales data reveal the need to stimulate volume growth to further unlock growth in the CPG industry. Seven out of 14 markets have positive volume growth, with India, the Philippines, and Malaysia growing faster year-on-year, and Australia and New Zealand returning to growth.

From the MYCO report, brands and retailers can glean drivers that can help stimulate consumption. Among them is the growing role of artificial intelligence (AI) in consumer shopping behavior. Half of the shoppers in Asia Pacific express willingness to use AI to expedite their shopping experience, while 49% say that they would accept recommendations from AI.

Social Media Drives Consumer Discovery and Purchase Behavior

Social commerce has surged in Asia Pacific, with consumers increasingly relying on social media for product discovery and purchase. In fact, 60% of consumers surveyed in the MYCO report said social media influences their product discovery, while 59% claimed that they are more likely to seek out products in-store or online after seeing them featured on social media platforms.

To get more information about products, 54% of consumers will search on social media before using a traditional search engine.

Livestream shopping and shoppable pins are also popular, with 46% and 45% of consumers, respectively, making purchases through these features.

While social media is the dominant platform, video games and online games are also gaining traction. Although direct purchases within these platforms are less common, they represent a niche market worth exploring.

Consumers also claim they are likely to spend more on a purchase because of in-app challenges, point systems, or rewards.

Redefining discount

With inflation easing and consumer confidence improving, the definition of “discount” has evolved. Consumers in Asia Pacific now seek value beyond just price.

• Affordable + New: When a product is new, consumers’ openness to try an innovation can often persuade a change in choice if the price is comparable or “still affordable”. In fact, 65% of surveyed consumers around APAC, are likely to switch or try a new brand because of its lower price.
• Affordable + Healthy: 49% of consumers are willing to switch to a cheaper medicinal alternative if it's perceived to be equally effective, demonstrating the growing importance of "affordable + healthy" options in healthcare decisions.
• Affordable + Sustainable: 75% would purchase a product that is energy efficient or has a low cost to run.
• Affordable + Homemade: 53% would use natural ingredients or food products as substitutes in their beauty care

“Discounts have evolved beyond mere price reductions. Consumers now demand value propositions that address their growing concerns about health, sustainability, and natural ingredients,” commented Houliston.

Trends to Watch

The focus on health and wellness among consumers in the Asia Pacific region takes a holistic turn with the influence of government legislation, social media, and advancements in AI.

• Stress Management: Stress Management: 57% of APAC consumers are seeking products and services to help manage stress and promote relaxation. These products can range from health supplements and food and beverages to tech wearables. According to GfK Market Intelligence sales tracking, electrodermal activity is the fastest growing segment and is growing +62%. Health wearables will further accelerate shifts towards healthier purchasing.
• Rise and Impact of GLP-1 Drugs: GLP-1 medications are poised to drive new spending in categories like conscious snacking, fiber and protein, digestive health, supplements, and vitamins. In tech and durables, wearable devices and smart wellness technology are expected to see increased demand. Moreover, GLP-1 medications could influence lifestyle factors such as productivity, longevity, mental health, fertility, and menopausal weight management. According to the MYCO report, 34% of APAC consumers say they are likely to use a medication or drug to support their weight loss.
• Gut Health Awareness: Consumers are becoming more aware of the connection between gut health and overall well-being, including brain health.
• Protein Power: The demand for protein-rich products is expected to continue growing as consumers recognize the importance of protein for overall health and nutrition.

About NIQ:

NielsenIQ (NIQ) is the world’s leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together the two industry leaders with unparalleled global reach. Today NIQ has operations in more than 95 countries covering 97% of GDP. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™.

For more information, please visit www.niq.com

About Mid-Year Consumer Outlook: Guide to 2025:

NIQ’s Mid-Year Consumer Outlook 2024 provides an analytic assessment of the state of consumers, based on a global footprint of consumer intelligence solutions and the feedback of over 17,000 online consumers in 23 countries, including countries in Asia Pacific: Australia, China, India, Indonesia, Singapore, South Korea, and Thailand. The goal: to better understand their current thinking about the economic environment, as well as what they're buying—and why. The survey was conducted between June and July 2024. To learn more, download the report today.

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