In an era marked by economic instability and inflationary pressures, Thai consumers are reshaping their spending habits, driven by a need for both security and fulfillment. A recent survey from UOB Thailand reveals a distinct shift: more Thais are redirecting funds to essential items, while younger consumers increasingly prioritize experiences such as travel, dining, and entertainment.
UOB Thailand, in collaboration with Boston Consulting Group, highlights the strategic moves among Thai consumers. Yuttachai Teyarachakul, UOB Thailand’s Head of Personal Financial Services, underscores the critical need for financial preparedness. Inflation, rising living costs, and diminishing savings loom over consumers, propelling them toward prudent choices. Over 40% of Thais, especially from Gen Z and Gen Y, have begun slashing non-essential expenses, exploring supplementary income streams, and aggressively pursuing discounts.
But it’s not all austerity. In fact, experiential spending is flourishing among younger generations who view experiences as investments in personal well-being and social capital. More than 40% have ramped up spending on experiences, with dining, travel, and entertainment dominating expenditure categories. Visa Thailand’s data backs this trend, showing a 9% reduction in luxury spending yet a notable 3% rise in experiential investments among UOB Thailand Visa cardholders. Dining and travel, particularly within ASEAN, remain the core avenues for leisure spending, reflecting a regional inclination among Thai travelers.
Remarkably, while younger Thais indulge in experiences, they are not neglecting financial security. Over half have established emergency funds covering several months’ worth of expenses. UOB data reveals a surge in deposit accounts, with Gen Z and Gen Y leading the charge. Investment rates among younger consumers have skyrocketed, with Gen Z investors doubling year-over-year. International investments are gaining traction, revealing a generation keen on building robust, diversified financial portfolios.
The balance Thai consumers strike between expenditure on experiences and investments marks a pivotal evolution. As UOB Thailand affirms, these trends exemplify a conscious, future-oriented generation intent on achieving desired lifestyles while ensuring long-term financial stability.
