Who are the leading consumer segment in Southeast Asia?

Bain & Company said businesses should review their ambitions in the region.

Businesses in Southeast Asia should engage Gen Zs and single households as they are important consumer cohorts that will drive consumption growth, according to a report by Bain & Company.

The report found that Gen Zs or those born from 1997 to 2012 account for 23% of the region's population.

Gen Zs are found to prioritise individuality, authenticity, and identity compared to other generations. They are also highly engaged in the digital community, Bain said, adding that they message businesses around eight times a month, and 82% of them say they are part of an online community.

Meanwhile, the solo economy, led by older singles, young professionals, and young urban migrants is expected to increase by 20% by 2030, especially in the Philippines, Singapore, and Thailand.

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 Praneeth Yendamuri, Partner at Bain & Company, said the region has shown resilience amidst the global economic scenario but consumer sentiment in Southeast Asia is rebounding.

“To take the region to full potential, bold moves are required: relooking at your SEA ambition by prioritizing, sequencing and most importantly funding them,” Yendamuri said. 

“Companies should also form an obsession with local consumers and evolve operating models to be locally responsive - balancing the incumbent scale advantage and the disruptive insurgent mindset,” he added.