The ASEAN market, consisting of nearly 700 million people,is 8% of the world’s1 total population. Combined income per capita in the region for the past 6 years has been rising and reached an average of US$5,391 as of 2022. Singapore has the highest GDP per capita at over US$82,794 followed by Brunei at US$37,445.2
Active Consumers
ASEAN has contributed 60% of its current Gross Domestic Product (GDP) to domestic consumption, which is expected to increase to $4 trillion and become the fourth largest economy in the world.3 According to the International Monetary Fund (IMF), five ASEAN countries – Indonesia, Malaysia, the Philippines, Thailand, and Singapore – will experience the largest increases in future consumption, with growth rates of 4.5% and 4.6% in 2024 and 2025, respectively, given the strengthening economies observed at the end of 2023.4
“ASEAN is poised to become a dramatic consumption opportunity, driven by four mega-forces: strong demographic trends; rising income levels; geopolitical shifts increasing foreign investment; and digital advances opening new consumer markets.“
Praneeth Yendamuri, Partner, Bain & Company5
Growing Middle Class
ASEAN countries have a growing number of middle income families who beef up demands for wide range of products, such as electronics, mobile phones and gadgets, cars, and services related to education, health, and leisure.
The region has made significant progress in reducing poverty rate. Proportion of Population below the National Poverty Line in ASEAN decreased from around 15 in 2013 to 13 percent in 2021 on average.
- https://www.worldometers.info/world-population/#google_vignette
- https://www.aseanstats.org/wp-content/uploads/2023/12/ASYB-2023-v1.pdf
- https://www.bain.com/insights/future-of-consumption-in-fast-growing-markets-asean-2030/#
- https://asiafundmanagers.com/int/asean-the-fastest-expanding-consumer-market-in-the-world/
- https://www.weforum.org/agenda/2020/06/8-ways-asean-consumer-habits-will-change-by-2030-shaped-by-covid19-tech-and-more/
