Essential consumer products to grow despite lower purchasing power
Despite the decline in purchasing power, essential goods are still expected to grow in 2024, analysts say, pointing out that consumers still need to eat and use these goods, even if they have less money to spend.
According to a recent survey by the Thai Chamber of Commerce, purchasing power is expected to decline by 1.5% in 2024, mainly as a result of rising interest rates, inflation, and the hangover effect of the pandemic.
Essential goods expected to grow in 2024 include food and beverages; personal care products; household products; and medicines, which consumers will continue to buy even if it means cutting back on other spending.
In order to appeal to consumers with declining purchasing power, businesses that sell essential goods will need to focus on offering value for money whether through discounts, promotions or loyalty programmes.
They can also focus on developing new products and services that meet the needs of consumers with changing lifestyles. For example, they could develop healthier food options, or more affordable personal care products.
However, global geopolitical factors, sustainability issues, and supply chain concerns might impact the economy, demanding stronger internal capabilities in Thailand, with analysts pointing out that strengthening Thailand's agricultural potential would open opportunities beyond tourism to stimulate increased investments in the country.
Consumer purchasing power is expected to rise in 2025 as various businesses fully recover, including restaurants, factories, and entertainment venues like clubs and bars. The expansion of modern retail malls makes consumer product accessibility much easier.
Essential products last year continued to grow significantly, and the market trend for such goods this year is expected to be positive, according to recent survey by the Thai Chamber of Commerce.
