Consumer sentiment: A balance between optimism and concerns

The Mid-Year Consumer Outlook report finds that 36% of consumers in Asia Pacific feel financially stable, a notable contrast to the 27% who report feeling worse off. However, factors such as rising food prices, economic downturn, and increasing utility costs remain as top concerns for consumers, indicating a need for brands and retailers to adapt their strategies to meet evolving consumer needs.

Navigating the economic divide: A changing landscape

The MYCO report also sheds light on the increasing divide in consumer financial security within the region. An encouraging 33% of respondents indicate they are thriving or unimpacted financially, a rise from 25% in mid-year of 2023. Meanwhile, the portion of consumers identifying as struggling decreased from 41% to 31%. This shift reflects a broader trend toward financial resilience.

Intentional spending is reflected in 2025 share of wallet

As consumers adopt a more purpose-driven mindset, their spending priorities are changing. While dining-out and entertainment budgets are being trimmed, there is a sustained interest in home-based entertainment and educational investments. This new focus presents a unique opportunity for brands in the consumer packaged goods (CPG) and tech and durables (T&D) spaces to cater to these changing financial habits.

Consumers are prioritizing essentials such as fresh produce, health products, fresh meat, dairy products, home essentials (i.e. kitchen and bathroom products), and personal and beauty care items.

Asia Pacific shoppers embrace AI-powered shopping

The integration of artificial intelligence (AI) to the shopping behaviors of consumers is becoming evident. The MYCO report indicates that half of the surveyed shoppers In Asia Pacific are open to utilizing AI to enhance their shopping experience, and 49% welcome AI-driven recommendations. This trend underscores the importance for brands to invest in AI technologies that streamline shopping processes and optimize consumer engagement.

Social media is the new marketplace

Social media is playing an increasingly crucial role in shaping consumer discovery and purchasing decisions. According to the MYCO report, 60% of consumers are influenced by social media in product discovery, with 59% more likely to search for products after seeing them online. Innovative shopping features like livestreams and shoppable pins are gaining traction, indicating that brands must leverage social media platforms to connect with their audience effectively.

Evolving concept of value

As consumer confidence improves, the definition of “discount” has expanded beyond price. Today’s consumers in Asia Pacific are seeking value propositions that incorporate health benefits, sustainability, natural ingredients, and affordability.

Emerging trends to watch

A holistic approach to health and wellness is gaining momentum among Asia Pacific consumers. Key trends to watch include:

1. Stress management: With 57% of consumers seeking products to manage stress, there is a rising demand for wellness solutions spanning supplements, beverages, and tech wearables. According to GfK Market Intelligence sales tracking, electrodermal activity is the fastest growing segment and is growing +62%. Health wearables will further accelerate shifts towards healthier purchasing.
2. GLP-1 medications: GLP-1 medications are poised to drive new spending in categories like conscious snacking, fiber and protein, digestive health, supplements, and vitamins. In tech and durables, wearable devices and smart wellness technology are expected to see increased demand. Moreover, GLP-1 medications could influence lifestyle factors such as productivity, longevity, mental health, fertility, and menopausal weight management. According to the MYCO report, 34% of APAC consumers say they are likely to use a medication or drug to support their weight loss.
3. Gut health: Increasing awareness of gut health and its connection to overall well-being is leading consumers to seek products that support digestive health.
4. Protein demand: The market for protein-rich products continues to expand as consumers recognize their importance for health and nutrition.