Life in Thailand has always been a harmonious blend of tradition and modernity—a place where history dances with innovation. But these days, the Thai consumer is dancing to a brand-new beat, successfully navigating economic waltzes with a dexterity that would make even the most seasoned tango dancer envious. A recent deep dive into the realm of consumer trends through UOB’s ASEAN Consumer Sentiment Study (ACSS) 2024—drawing insights with a little help from the brilliant minds at Boston Consulting Group—sheds some light on how this delightful dance is unfolding across Thailand and neighboring ASEAN markets.
Picture this: over two in five Thai consumers (a considerable 42 percent of them!) are devoting more of their baht to essentials, amid an economic backdrop akin to an unpredictable, suspense-filled thriller movie. And yet, while many stay focused on life’s must-haves, a new plot twist sees younger Thais casting their gaze towards experiential spending. Imagine swapping a closet full of designer goodies for a passport brimming with adventure stamps—the vivid tapestry woven by today’s young Thai consumer. Experiential spending—embracing travel, savoring gourmet adventures, reveling at concerts, and being mesmerized by events and festivals—is no longer just a trend; it’s a lifestyle.
Mr. Yuttachai Teyarachakul, the savvy Head of Personal Financial Services at UOB Thailand, joined the narration, underscoring how essential adept financial planning has become amidst the swirling storm of inflation and household expenses—with savings dwindling more quickly than a cold soda on a sweltering day.
Amidst this economic storm, nearly two-thirds of the Thai consumer audience voiced inflation concerns (who isn’t, really?), with many reporting an increase in household costs, akin to an epic level of Whack-a-Mole where the pesky moles are expenses. The gripping tension doesn’t end there—reduced savings weave into the narrative as almost half of the respondents stepped back from the glittering temptations of non-essentials or embraced side hustles more energetically than Rocky before a big fight. Offers and discounts have become the trusty sidekicks in many shopping scenarios.
Turn the page, and a refreshing pivot emerges, even if the economic climate still ambles around uncertainty’s shadowy corners—Thais are steering their spending towards life’s sweet spots. There’s a spirited zest in travel and dining, with the Gen Z and Gen Y crowd leading with enthusiasm that would make the Energizer Bunny pause. Visa Thailand’s data backs this fervor, with a marked shift from luxury tastes to experiential indulgences, a realm where UOB Thailand cardholders plunge deep into the storytelling of dining, travel, and entertainment. In fact, entertainment saw a stunning 57 percent surge—proof that laughter and melodies hold unparalleled value.
And as the globetrotting continue, international travel plays the role of protagonist; with 58 percent of Thai voyagers exploring overseas within ASEAN, favoring th esprawling cityscapes or serene beaches of Singapore, Vietnam, and Malaysia. This isn’t just a whimsical wandering but a rhythmic exploration where each step aligns with Visa Thailand’s documented rise in cross-border spend—a testament to the Thai spirit of adventure.
But let’s not forget—the Thai narrative beautifully intertwines indulgence and prudence. Despite a pull towards lavish experiences, they’re doubling down on their savings game. A strong 57 percent keep an emergency fund lock and loaded, surpassing regional averages—with the stalwart younger generations setting the pace. Gen Z and Gen Y show resilience, expanding deposit accounts faster than TikTok trends, diving headlong into investments with a daring leap. Direct offshore investments and Thai-registered funds push boundaries in the vibrant financial dance floor.
As Mr. Yuttachai pensively adds, it’s beyond heartening to see young Thais marrying vibrant lifestyles with secure financial foundations. It’s that symbiotic balance, like a bouncer at the club of life, ensuring things don’t spin out of control. Yet, more chapters remain unwritten, particularly in health insurance—a call to action for sustained empowerment of the new wave of Thai dream-chasers.
Should you feel drawn to experience every magnificent detail from ACSS 2024, the full epos awaits your discovery at go.uob.com/acss2024-th. Dive in, and witness how the Thai consumer thrives, leading and living the vibrant novel called life.
I think it’s incredible how young Thais are prioritizing experiences over material goods. It shows maturity and a real sense of what life is all about.
Or maybe they’re just caught up in Instagram culture, chasing likes through travel photos rather than genuine life experiences.
That’s a bit cynical! Traveling can genuinely broaden horizons and isn’t just for social media.
I get that, Alex, but even if it starts that way, the memories they make have real value beyond social media.
We need to remember that not everyone can afford to make these lifestyle choices. The emphasis on experiences is a privilege in itself.
Absolutely. The narrative often overlooks those struggling just to meet their basic needs.
That’s true, but we also can’t downplay the clever financial strategies some employ to make this lifestyle possible.
I’m just amazed that saving is prioritized even when the temptation to spend is so high. It’s a good sign for the future.
True, but do you think this trend is sustainable long-term with all the economic pressures?
It’s hard to say. It depends on how the economy shapes up, but this mindset is encouraging.
You’ve got to spend money to live life to the fullest! Saving is important, but experiences are priceless.
Experiences are great but financial security can enable even more fulfilling experiences in the long run.
Fair point, but what if you save and never get to enjoy life? Balance is key.
Gen Z really is redefining what it means to live well. Less about materialistic lifestyles, more about growth and experiences.
I can’t help but think that so much focus on international travel is a bit irresponsible during this economic uncertainty.
Travel can be affordable. It’s about smart planning! It’s a form of investment in cultural education.
Some people do it at a fraction of the cost using points, miles, and budget travel hacks. It’s possible with some savvy!
Experiential spending over materialism is overhyped. People have always prioritized enjoyment; it’s just trendy to discuss it now.
What’s wrong with enjoying life and calling it out? Humans evolve, and so do our priorities.
Vacationing and leisure for mental health are essential but not always accessible to everyone. We need to address inequality here.
A solid emergency fund should always come first! Experiences sound great till you’re broke.
But living in fear of future ‘what ifs’ can hold you back from really experiencing life.
Interesting to see the push towards investing and financial literacy. That’s a good sign for future generations.
Financial literacy is key to enjoying both experiences and security. It’s about time this became mainstream!
This report makes me hopeful. If young people can balance fun and finances, maybe the world won’t be doomed after all.