In our earlier article, we revealed the extent to which consumers in various APAC markets feel inflation has shrunk their disposable income, as well as worry that their purchasing power will be significantly diminished in the coming months.
But which categories of consumer goods are most likely to see a fall in demand should inflationary pressures continue?
In the second of our two-part regional study on the cost-of-living crisis in APAC, we uncover how likely consumers are to cut back their spending on various product categories if prices rise over the coming months.
Latest YouGov Surveys research across major APAC markets reveal that a clear majority of regional consumers are likely to pare down their purchases of alcoholic drinks and toys, puzzles, games and books in the next 12 months – should prices continue to inflate at the same rate – but less than half are likely to reduce their existing expenditure on clothes and apparel, personal care and beauty products, food and non-alcoholic beverages, and household supplies and toiletries.
What’s the consumer spending outlook for alcoholic drinks in APAC?
Our data also shows that seven in ten of the region’s consumers (23%) are likely to reduce or eliminate their expenditure on alcoholic drinks in the next 12 months, should the existing rate of price inflation continue.
What’s the consumer spending outlook for toys, games and books in APAC?
Our data also shows that almost three in five of the region’s consumers (59%) are likely to reduce spending on toys, puzzles, games and books in the next 12 months, should the existing rate of price inflation continue.
A generational analysis reveals that older consumers are significantly more likely than younger consumers to cut back spending on toys, puzzles, games and books should prices rise at the same rate.
More than three-quarters (78%) of Baby Boomers and two-thirds (65%) of Gen X are likely to reduce or not spend on toys, puzzles, games and books, compared to just over half of Gen Z (53%) and Millennial (54%) consumers.
What’s the consumer spending outlook for clothes/shoes/accessories in APAC?
Our data also shows that over two in five of the region’s consumers (44%) are likely to reduce spending on clothes, shoes and other accessories in the next 12 months, should the existing rate of price inflation continue.
An age-based trend can once again be observed, with around three in five (61%) of Baby Boomers and over half of Gen X (52%) likely to cut their purchases of garments and apparel, compared to around two in five of Millennials (45%) and Gen Z (39%).
What’s the consumer spending outlook for personal care / beauty products in APAC?
Our data also shows that 38% of the region’s consumers are likely to reduce spending on personal care and beauty products in the next 12 months, should the existing rate of price inflation continue.
What’s the consumer spending outlook for food and beverages in APAC?
Our data also shows that over a quarter of the region’s consumers (28%) are likely to reduce spending on food/beverages in the next 12 months, should the existing rate of price inflation continue.
Baby Boomers are significantly more likely than other generations to cut back their F&B expenditure should prices rise at the current rate, with more than a third indicating so (35%). In contrast, Millennials are less likely that other generations to do so (25%).
Older consumers are likewise more likely to cut back spending on this category, with over half of Baby Boomers (53%) and over two in five Gen X (43%) indicating this, compared to around just a third of Millennials (35%) and Gen Z (31%).
What’s the consumer spending outlook for toiletries/household supplies in APAC?
Our data also shows that close to a quarter of the region’s consumers (28%) are likely to reduce spending on toiletries/household supplies in the next 12 months, should the existing rate of price inflation continue.
Older consumers are slightly more likely to cut back spending on this category: with 27% of Baby Boomer and Gen X consumers indicating this, compared to 22% of Millennial and Gen Z consumers.
This article is part of our two-part study of the cost-of-living crisis in APAC. Explore the full series below:
➤Part 1 – How worried are consumers of inflation eroding their spending power?
➤Part 2 – What products are consumers most likely to cut back spending on?
Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. The data is based on surveys of adults aged 18+ years in 17 markets with sample sizes varying between 510 and 2,044 for each market. All surveys were conducted online during November 2023. Data from each market uses a nationally representative sample apart from Mexico and India, which use urban representative samples, and Indonesia and Hong Kong, which use online representative samples. Learn more about YouGov Surveys: Serviced.
Cover photo by BlessedSelections
