Consumption patterns will change with the rapid emergence of single households in Southeast Asia, triggering new opportunities for retailers and marketers, according to Meta, which owns Facebook, WhatsApp and Instagram.
This increase is driven by older individuals mostly women, young professionals who delay marriage and parenthood; and young urban migrants, the social media company found from a recent survey with consulting firm Bain&Co.
By 2030, these single households in Thailand, Singapore and the Philippines will increase by about 20 per cent, according to the study on Southeast Asia’s consumer trends.
These consumer needs and consumption patterns will change across all sectors because these consumers have disposable income and are willing to spend to enhance their quality of life.
Media consumption, for example, will change with more time spent on online entertainment and following influencers and creators on social media.
Smaller and frequent purchases such as single-serving packaged meals and mini home electronics like coffee makers will also increase. This applies to goods and services like groceries and vacations as well.
This so-called “solo” economy, according to Dan Neary, Meta’s vice-president of Asia Pacific, will be a major trend that shape business from 2024.
Investments in artificial intelligence (AI) which already powers Meta’s social network and services, will continue in the coming year, he said in a webinar this week on the business outlook in 2024.
Currently, the technology is being used particularly in marketing and creative industries which are testing generative AI across their operations, from copywriting and creative ideation to driving deeper customer insights, he said.
Overall, AI has resulted in better outcome for marketers, he said. Advertisers have been able to reach more customers and respond to them faster with Meta’s AI-enabled tools. AI has automated operations such as customer targeting, designing new creatives and ad distribution.
Other upcoming trends in 2024 include the growth of the Gen Z group – those between 11 and 27 years old – who will make up a quarter of the Asia-Pacific population by 2025, the popularity of short form videos and the rise of business messaging.
These will open up opportunities for advertisers who can tap on these trends to grow their revenue, according to Meta.
Globally, the company says its usage has continued to rise. The number of people using Facebook, Instagram and WhatsApp daily is 3.14 billion active people, a growth of 7.2 per cent year-on-year.
Asia-Pacific is said to be a major growth driver because of the large population in the region and the high number of Facebook and messaging users.
