Majority of Thai Consumers Willing to Pay More for Sustainable Products
PUBLISHED: 13 Sep 2024 at 06:37
According to a recent survey, a significant 54% of Thai consumers express concern over how macroeconomic instability is poised to affect the nation’s economic future.
This apprehension has prompted consumers to allocate more funds towards essential goods. Notably, social media has emerged as the preferred shopping channel, despite ongoing worries about personal data security.
The “Voice of the Consumer Survey 2024: Asia Pacific – Thailand Snapshot” highlights economic uncertainty as the paramount concern for Thai consumers, affecting their spending behaviors.
54% of respondents indicated that macroeconomic volatility would have a significant impact in the coming year, surpassing concerns related to inflation (53%) and cyber threats (41%).
The CEO of PwC Thailand noted that the current economic climate is shaping cautious consumer spending habits, with Thais focusing on value for money.
The survey, which engaged 504 Thai consumers from January to February 2024, revealed a shift in focus towards necessities over luxury items over the next six months, with 69% planning to increase grocery spending, 60% on health and beauty products, and 52% on electronics.
Furthermore, 40% of consumers indicated a willingness to switch from preferred brands to more affordable alternatives if perceived value is better. 51% remain comfortable spending on travel, home improvements (50%), as well as clothing and footwear (46%).
Rising Influence of Social Media
Thai consumers are among the highest global users of social media, with 73% having made purchases through these platforms, significantly above the Asia-Pacific average of 56% and the global average of 34%.
Reports indicate that Thailand has 63.2 million internet users who spend approximately eight hours daily online, with over 49 million on social media.
Despite engaging actively with social media shopping—whether discovering brands (82%) or buying influencer-endorsed products (62%)—consumers rated companies and social platforms as low in trust. Privacy and data sharing also garnered concerns from 77% of respondents.
Business leaders are urged to prioritize data security to foster consumer trust, as data protection emerges as a key issue for Thai consumers.
Increased Demand for Sustainable Products
In spite of economic uncertainties, Thai consumers are increasingly prioritizing sustainable choices.
An impressive 95% acknowledge the impact of climate change on their daily lives, leading to 58% opting for sustainable products and showing a readiness to pay an average of 11.7% more—outpacing global (9.7%) and Asia-Pacific (11%) averages.
The sustainability efforts that companies adopt will continue to shape purchasing decisions, with waste reduction and recycling impacting 45% of consumers, followed by eco-friendly packaging (37%) and beneficial effects on natural resource conservation (35%).
Additionally, 79% of consumers are interested in electric vehicles (EVs) or hybrid vehicles (HEVs) as a sustainable transport option.
Experts suggest that consumers are becoming increasingly conscious of climate-related issues, indicating a willingness to support eco-friendly products, which retailers must capitalize on by creating strategies that consider both consumer purchasing power and environmental impacts.
This includes harmonizing online and offline marketing approaches and leveraging emerging technologies to enhance customer engagement and sales, while also investing in cybersecurity to build trust and loyalty.
