Spending intention for Lunar New Year 2024 in Southeast Asia

As the year of the Dragon approaches, Southeast Asians will soon be kickstarting preparations for 2024’s Lunar New Year. In Milieu Insight’s latest regional report, we reveal how Southeast Asians plan to celebrate and spend during Lunar New Year 2024. We uncover their spending intentions on food, entertainment, beauty, and apparel as part of their preparations, as well as their perspectives on promotions and deals during the festive season. This study also analyzes the broader implications of these decisions on their personal economic outlooks as they step into the new year, providing a comprehensive understanding of the economic currents and consumer sentiments that characterize this joyous time of year.

Singaporeans, compared to other Southeast Asians, are more likely to spend Chinese New Year overseas

• In most Southeast Asian countries, majority of people are looking forward to celebrate Chinese New Year in the home countries
• Whereas in Singapore, 12% intend to spend the extended holiday overseas

A higher proportion of Vietnamese are inclined to increase their spending during Chinese New Year

• In Vietnam, 65% intend to spend more for the upcoming holiday season, while Singaporean shoppers (39%) are looking to be more conservative with their spending.
• 54% in Thailand and 48% in Malaysia have plans to spend more this upcoming holiday season.

Spending on fashion

• 53% of those who intend to spend on fashion are most likely to be shopping in physical stores. Meanwhile, 17% intend to do so via brands’ or fashion retailers’ websites/ apps and 28% on marketplace ecommerce platforms 
• Singapore shoppers are most likely to shop in-person (61%) versus other Southeast Asian countries

Spending on food products/services

The most common food products/services that Southeast Asian consumers will spend on for Chinese New Year are:

• Fresh fruits and vegetables (64%)
• Sweet snacks & Confectioneries (eg. biscuits, candies, chocolates) (56%)
• Non-alcoholic beverages (eg. milk, tea, soda) (51%)

Other regional differences:

• Vietnamese consumers tend to spend on food hampers (44% vs 33% regional average), alcoholic beverages (51% vs 39% regional average), and food catering services (42% vs 28% regional average)
• Most common food products/services that Thai consumers intend to spend on are fresh fruits and vegetables (76% vs 64% regional average) and ready-to-eat meals (67% vs 42% regional average)
• Singaporean consumers are more likely to spend on sweet snacks & confectioneries (63% vs 56% regional average), chips and crackers (50% vs 42% regional average) and frozen food (40% vs 37% regional average) 

Spending on personal care/beauty products/services

Consumers intend to spend on these personal care/beauty products/services:

• Hair cut/styling (75%)
• Facial treatments (53%)
• Body treatments (eg. waxing, toning) (32%)
• Nails (i.e manicure, pedicure, nail art) (30%)
• Eyelash curling/extension (17%)

Other regional differences:

• Vietnamese consumers are more likely to go for body treatments (46% vs 32% regional average)
• Thai consumers are more likely to go for nails services (34% vs 30% regional average)

Spending on entertainment/leisure activities

• The top activity that Southeast Asians intend to spend on is domestic travel/staycations (48%) - this is most common in Thailand (67%)
• Other activities that top the list are movie tickets (47%) and streaming services (32%)

Thais and Vietnamese feeling optimistic about their household financial situation

• 44% of Thailand respondents and 50% of Vietnamese respondents feel that their household financial situation will improve in the next 6 months
• Whereas 17% Malaysian respondents feel that it will improve in the next 6 months, while 2% Singaporean respondents feel that it will worsen in the next 6 months

Overall spending

52% of respondents expect that their overall spending for Lunar New Year this year is likely to be higher than the last. Despite the inflation, the intention to spend on each category remains largely similar to last year’s.

‍

Methodology

Based on Milieu Insight surveys with N=1,000 respondents each from Singapore, Thailand, Vietnam and Malaysia who intend to celebrate Lunar New Year in 2024. The survey was conducted via Milieu Insight’s online proprietary panel, and fieldwork was conducted in October 2023.

‍

Milieu Insight is one of the leading renowned survey software and market research companies, supporting businesses in their data-driven endeavors.