The Thai Shopper Trends 2024 report by NIQ reveals a significant shift in Thai consumer behavior as they grapple with the rising cost of living, particularly the escalating costs of utilities and food. This financial strain has led to a reported decline in the financial well-being of 48% of Thai households over the past year.
NIQ’s data indicates that as of January 2024, 30% of Thai consumers were worried about the increasing cost of food, up from 27% in July 2023. Concerns about rising utility costs also reached 32% in January 2024, surpassing worries about economic recession (30%) and rising interest rates (11%).
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Adapting Behaviors to Cope
The NIQ report highlights three key strategies Thai consumers are adopting to manage the increased cost of living:
Reducing Non-Essential Spending: 58% of consumers are cutting back on non-essential purchases and focusing on necessities.
Decreasing Purchase Quantities: 32% of consumers are buying smaller quantities of goods to control spending.
Shopping During Sales: 31% of consumers are actively seeking discounts and promotions to get better deals.
Quality Over Price, But Price Still Matters
While price has become a more significant factor for consumers, quality remains a top priority. 90% of Thai consumers still prioritize quality over price, indicating that they seek value and are not solely focused on the cheapest options.
Moreover, 78% of Thai consumers express a willingness to pay more for convenience, especially for products or services that save time. This reflects the fast-paced lifestyle of modern consumers.
Thai consumers remain open to new products and brands, with 89% indicating a willingness to try new offerings.However, brand loyalty has significantly declined, with only 19% of consumers in 2023 remaining loyal to the same brands compared to previous years. This suggests a greater willingness to switch to more cost-effective alternatives.
Opportunities for Businesses
Businesses, particularly in the fast-moving consumer goods (FMCG) sector, need to adapt to these evolving consumer behaviors. Prioritizing quality products at reasonable prices, offering promotions and discounts, and expanding online sales channels are crucial strategies to attract and retain customers in this challenging economic climate.
Key Product Categories
NIQ identifies three product categories that Thai consumers prioritize:
Shampoo and conditioner
Laundry detergent and fabric softener
Staple foods like rice, flour, pasta, cooking oil, and seasonings
The shifting consumer behavior in Thailand in 2024 is a direct response to the challenging economic landscape,particularly the rising cost of living. Thai consumers are adapting by cutting back on non-essential spending, reducing purchase quantities, and seeking discounts. However, they continue to prioritize product quality and are willing to pay more for convenience. Businesses must proactively respond to these changes to effectively meet consumer needs and thrive in this evolving market.
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