Study finds shift in Thai consumers’ spending patterns

Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).

Conducted in collaboration with Boston Consulting Group, the ACSS 2024 offers insights into changing consumer spending patterns in Southeast Asia, including Thailand.

It revealed that more than two in five Thai consumers (42%) are increasing their spending on essentials, while younger Thais are shifting towards experiential spending.

Inflation remains the leading concern among Thai consumers, with 64% of respondents identifying it as a priority. Some 60% said higher household expenses are a concern, while 58% pointed to a decline in savings.

About half of the respondents indicated they are cutting back on non-essential expenditures, while 45% are seeking additional sources of income and 44% have begun looking for discounts and special offers while shopping.

Despite the challenging economic environment, Thai consumers are prioritizing experiences. More than 40% of respondents reported increased spending on experiences such as travel, fine dining, concerts and festivals over the past year.

This trend is particularly notable among Gen Z consumers (born between 1997 and 2012) with 56% and Gen Y (born between 1981 and 1996) with 45%.

International travel continued to be a significant component of experiential spending. According to the ACSS 2024, 58% of Thai consumers took overseas trips within Southeast Asia in the past year, with popular destinations including Singapore, Vietnam and Malaysia.

Despite the increase in experiential spending, the survey found Thai consumers are also demonstrating a strong commitment to saving.

Some 57% of Thai respondents reported maintaining emergency funds that cover at least three months' worth of expenses, surpassing the regional average of 54%.

Younger generations are prioritising wealth preservation through savings and investments to a greater degree than their older counterparts.

UOB Thailand recorded a 52% year-on-year increase in deposit accounts held by Gen Z customers in the first half of 2024, while the number of deposit accounts held by Gen Y customers rose 27% during the same period.

The number of Gen Z investors more than doubled for the period, soaring by 129%, while Gen Y investors grew by 23%.

Direct offshore investments by UOB Thailand's Gen Z and Gen Y investors collectively increased by 10%, with foreign investments through Thai-registered funds rising 14%, according to the study.