{"id":241191,"date":"2024-08-29T05:15:00","date_gmt":"2024-08-28T22:15:00","guid":{"rendered":"https:\/\/www.ttrweekly.com\/site\/?p=241191"},"modified":"2024-08-29T05:48:51","modified_gmt":"2024-08-28T22:48:51","slug":"thais-tighten-belt-as-living-costs-rise","status":"publish","type":"post","link":"https:\/\/www.ttrweekly.com\/site\/2024\/08\/thais-tighten-belt-as-living-costs-rise\/","title":{"rendered":"Thais tighten belt as living costs rise"},"content":{"rendered":"\n<p>BANGKOK, 29 August 2024: Nearly half (47%) of all Thai consumers believe saving money is their top priority this year, according to Euromonitor International\u2019s &#8216;Voice of the Consumer: Lifestyles Survey 2024&#8217;.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The latest Euromonitor International study released in June 2024 suggests that 73% of Thai consumers are concerned about the increased cost of everyday items in 2024.&nbsp;<\/p>\n\n\n\n<p>A growing selectivity in spending is reflected in how Thai consumers intend to change their lifestyle habits. Euromonitor\u2019s &#8216;Voice of the Consumer: Lifestyles Survey 2024&#8217; found that 41% of Thai consumers intend to visit discount stores, while 29% intend to purchase private label or store-brand goods, up from 25% in 2023.&nbsp;<\/p>\n\n\n\n<p>Amidst Thailand&#8217;s high cost of living and rising unit prices, consumption expenditure on food and non-alcoholic drinks remains the country\u2019s largest category at USD79 billion. This category is expected to accelerate food and beverage consumption at a 4% compound annual growth rate (CAGR).&nbsp;&nbsp;<\/p>\n\n\n\n<p>Speaking on New Opportunities in 2025 for the food and beverage industries: Thailand and Beyond, at Informa Markets\u2019 22 August 2024 Business Breakfast in Bangkok, Nathanael Lim, Insights Manager at Euromonitor International, stated that over a quarter (26%) of Thai consumers&#8217; consumption expenditures come from food and non-alcoholic beverages.&nbsp;<\/p>\n\n\n\n<p>Alongside this, Lim highlighted three emerging trends and innovations in food and beverage set to be seen in 2025; Pursuit of value, wellness, and use of Generative AI.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>In pursuit of value&nbsp;<\/strong><\/p>\n\n\n\n<p>With a notable concern about the cost of everyday items spending, Euromonitor\u2019s Voice of the Consumer: Lifestyles Survey 2024 found that 47% of Thai respondents identified saving money as their top priority.&nbsp;<\/p>\n\n\n\n<p>\u201cThis underscores the notable pursuit of value by consumers, reflecting how consumers have become selective in their spending, aiming to live well for less,\u201d said Lim. \u201cIn turn, Southeast Asian brands have begun to respond by adopting strategies such as offering loyalty rewards and value promotions to appeal to consumers.\u201d&nbsp;&nbsp;<\/p>\n\n\n\n<p>For instance, Indonesian Specialist coffee shop, Kopi Kenangan\u2019s small store format, Satu Kenangan, sells local coffee from price points starting as low as USD0.70 per cup. This has allowed the brand to reach and appeal to consumers in rural areas in Indonesia by demonstrating value proposition and affordability.&nbsp;<\/p>\n\n\n\n<p><strong>Wellness and healthy F&amp;B<\/strong><\/p>\n\n\n\n<p>Consumers are also seeking products and services with credible value-added positioning. Euromonitor\u2019s study found that 36% of Thai respondents are willing to pay more for health and nutritional properties in food and beverages.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Reflecting on demands for wellbeing, Lim addressed the potential for growth in packaged food and beverages in the space of \u2018immune support\u2019. The market\u2019s retail value sales in Thailand reached USD151 million in 2023 and are expected to grow at a CAGR of 8.6% from 2023 to 2028.&nbsp;<\/p>\n\n\n\n<p>Lim also highlighted that brands have been launching innovations to boost immunity and promote mental and emotional well-being.&nbsp;&nbsp;<\/p>\n\n\n\n<p>\u201cUnderstanding the customer\u2019s wellness goal is a key. Proactively educating customers with verified claims and adopting simple and functional solutions will help food and drink businesses address the holistic wellbeing that Thai consumers wish to see from businesses.\u201d&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>Use of Gen AI&nbsp;<\/strong><\/p>\n\n\n\n<p>As one of Southeast Asia&#8217;s most digitally advanced markets, the emergence of Generative AI (Gen AI) has created numerous opportunities for food and beverage brands in Thailand to enhance the consumer experience and provide convenience.&nbsp;&nbsp;<\/p>\n\n\n\n<p>\u201cUtilising Gen AI helps brands gain a competitive edge in innovation and enhances consumer experiences,\u201d added Lim. \u201c40% of Thai consumers found a benefit of Gen AI in their daily shopping experience.\u201d&nbsp;&nbsp;<\/p>\n\n\n\n<p>Lim noted: \u201cConsumers in Thailand now look for value beyond affordable prices and seek value-added product propositions. Coupled with the growing use of Gen AI to guide purchase decisions and the increased focus on wellness, it is evident that consumers&#8217; habits and priorities are evolving.&nbsp;<\/p>\n\n\n\n<p>\u201cBy identifying and understanding these emerging consumer trends, food and beverage companies will be better positioned to implement effective strategies and win consumers in 2025 and beyond.\u201d<\/p>\n\n\n\n<p><em>About Euromonitor International\u00a0<\/em><br><a href=\"https:\/\/www.euromonitor.com\/\">Euromonitor International<\/a> is the world\u2019s leading provider of global business intelligence, market analysis and consumer insights. From local to global and tactical to strategic, our research solutions support decisions on how, where and when to grow your business. With offices worldwide, analysts in over 100 countries, the latest data science techniques and market research on every key trend and driver, we help you make sense of global markets.\u00a0<\/p>\n\n\n\n<p><em>(Source: Euromonitor International)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>BANGKOK, 29 August 2024: Nearly half (47%) of all Thai consumers believe saving money is their top priority this year, according to Euromonitor International\u2019s &#8216;Voice of the Consumer: Lifestyles Survey 2024&#8217;.&nbsp;&nbsp; The latest Euromonitor International study released in June 2024 suggests that 73% of Thai consumers are concerned about the increased cost of everyday items [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":241219,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,1581],"tags":[],"class_list":{"0":"post-241191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-thailand","8":"category-trends"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Thais tighten belt as living costs rise - TTR Weekly<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ttrweekly.com\/site\/2024\/08\/thais-tighten-belt-as-living-costs-rise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Thais tighten belt as living costs rise - TTR Weekly\" \/>\n<meta property=\"og:description\" content=\"BANGKOK, 29 August 2024: Nearly half (47%) of all Thai consumers believe saving money is their top priority this year, according to Euromonitor International\u2019s &#8216;Voice of the Consumer: Lifestyles Survey 2024&#8217;.&nbsp;&nbsp; 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