February survey shows Thais cutting spending amid economic concerns

Hakuhodo Institute of Life and Living ASEAN (THAILAND) released its first survey of 2025 in February, following the New Year celebrations. The Happiness Index declined, aligning with a decrease in consumer spending for the month.

This downturn is driven by ongoing concerns over Thailand’s sluggish economy. Thais have become more cautious with their spending, tightening their budgets and saving for emergencies. Many are focusing on work without taking long breaks to rest and recharge.

However, despite economic struggles, the spirit of love remains strong. In the "Month of Love," gift purchases for loved ones continued to grow by +2%, in contrast to the overall spending trend, which declined by -1%.

This year, spending that reflects Thai identity continues to thrive. Thai fashion, known for its quality and design, remains popular, while traditional festivals and cultural celebrations remain significant for families. Even Thai music, particularly T-Pop, has gained strong support from the younger generation. As a result, Thai identity is no longer just a trend but a driving force that fuels both the economy and the spirit of the Thai people.

Arunroj Laochareonwong, Deputy Director of Strategic Planning at Hakuhodo Institute of Life and Living ASEAN (Thailand), shared two key recommendations for brands to align with current Thai consumer trends:

1. Do Good, Feel Close Campaign

Merit-making is an integral part of Thai life. Brands can meaningfully connect with Thai consumers through the Do Good, Feel Close campaign, which incorporates Virtual Merit experiences. This initiative allows fans to join exclusive live sessions with their favorite artists, who will perform and participate in merit-making activities together.

Participation in this campaign involves purchasing a special merit-making set, which includes flowers, prayer books produced by the brand, and a thank-you card from the artist. This approach not only strengthens fan engagement with the brand but also promotes charitable giving as a shared experience.

2. Heart & Heal: Nurture Your Heart, Care for Yourself

The self-love trend continues to resonate strongly among Thais, emphasizing the importance of self-care. Brands can foster engagement through the "Message to Me" initiative, which encourages individuals to write letters of encouragement to their future selves. This online platform allows users to compose heartfelt messages, which will be sent back to them after three or six months, serving as a source of inspiration and self-appreciation.

Urban Consumers Slow Spending, Increase Emergency Savings

Consumer spending demand has declined by -1% compared to February 2024. Urban consumers, particularly in Bangkok and the Central region, have reduced their spending by 4%, mainly due to the absence of year-end celebrations and ongoing concerns about job layoffs. As a result, office workers are prioritizing emergency savings and cutting back on expenses.

This cautious spending trend aligns with survey responses across all regions, where most consumers indicate a preference for saving for the future rather than spending in the present.

According to the survey, Thailand’s Happiness Index has dropped -1% compared to December 2024 due to various factors. However, Thais continue to seek small moments of joy, particularly through the rising "Thai Made" trend.

Thai fashion leads consumer spending, offering high-quality designs comparable to international brands at more affordable prices. The survey highlights how different generations engage with the Thai Made trend:

• Gen X: Fashion Knows No Age

Despite being the oldest group, Gen X spends the most on Thai fashion. They recognize its improved quality and see fashion as a form of self-expression, proving that age is just a number. For them, looking stylish is a statement of confidence and self-care.

• Gen Y: Festivals Are for Family

Gen Y goes all out during Thai festivals, viewing them as precious family bonding moments. Whether it's buying gifts for their children or parents or taking the whole family on a trip, festivals are cherished occasions for togetherness. Traditional celebrations, merit-making, and cultural events remain central to strengthening family ties.

• Gen Z: Music Brings Life to Colour

For Gen Z, music isn't just entertainment—it’s a passion. This generation plays a key role in driving the T-Pop industry forward, actively supporting their favourite artists through concerts, fan meets, and exclusive events. Their enthusiasm fuels the continuous growth of T-Pop, making them an indispensable force in the industry.

Punyavee Rungwilaicharoen, Senior Strategy Planner at Hakuhodo Institute of Life and Living ASEAN (Thailand), highlighted key insights from the survey that reflect the current concerns of Thai society—safety and justice. These issues remain at the forefront of public discourse, with violent crime cases ranking among the most talked-about topics.

This trend underscores public uncertainty about law enforcement, affecting confidence in institutions responsible for protecting rights and ensuring social trust. Additionally, the Thai public is closely following political and economic updates, reflecting growing concerns over government administration and governance in multiple dimensions.