We are in Southeast Asia's golden age
The digital decade will bring unprecedented consumption growth to the region, reaching USD1T GMV by 2030.
Young and increasingly urbanised population, with working age to increase by 40 million by 2030. Income levels rising at 6- 8% annually, and 90 million people to move into cities.
Deal activity at record high at USD11.5 billion in first half of 2021 alone, 2x of 2020. Foreign direct investment to SEA reached USD155 billion in 2018, exceeding China by 1.2x and India by 3.7x.
By 2030, Southeast Asia will have 575 million internet users, 90% of them through mobile. Since the pandemic, internet penetration at 75%. 8 out of 10 internet users are digital consumers.
New consumption trends
Mass digital connectivity is accelerating the move to a consumer-centric economy.
Digital as the
ASEAN digital economy to reach USD360 billion and digital payments to surpass USD1 trillion by 2025.
Sustainability becomes commercial
Circular economy as a value driver. Reframing environmental and social threats as growth opportunities will be more than USD5 trillion by 2030 in Asia.
Social capital and content are king
44% of Southeast Asia's USD109 billion e-commerce market in 2020 was social media commerce. Spending is set to double by 2026.
Rise of health & wellness
Asia represents 40% of growth in global healthcare spending over the next decade. At USD240 billion, it will outpace North America by 2023.
Intersection of digital economy and Web 3.0
Transition to Web3.0 creating disruption opportunities. Metaverse as new operating system with personalisation and privacy as key themes.
Disrupted global supply chains driving just-in-time, zero inventory model to favour local production. More than 80% of Chinese and Indonesian consumers favour locally produced goods.
We want to invest in what's better for you
Covid-19 has moved the consumer value matrix beyond price, quality and convenience, towards more impactful consumption. (We're investing in better options, income, services, and distributions with tangible metrics to track each.) [Rapid digitalisation of once rural areas and the creation of new internet consumers are creating new investable areas and opportunities that cater to evolving consumption patterns.]
Societal needs: Silver Economy
By 2025, the silver economy in the APAC region is projected to be worth USD4.6 trillion. Smartphone penetration of >50 years is growing at 2.4x faster than the 18-34 years old segment.
Self-fulfilment needs: New middle class
Middle-class to include 67% of SEA population by 2030, with Indonesia's middle class making up 72% of in-country spending. These new consumers will likely make their first online purchase and luxury product, and are growing as a faster rate outside Tier 1 cities.
Psychological needs: Gen Z and millennials
By 2025, Gen Z will constitute 25% of ASEAN consumers, with USD143 billion spending power. 6+ hours spent daily online, and more influenced by video content. Consumption vision = identity, sustainability, access.
Basic needs: Emerging micro spenders
Digitalisation will lower costs to serve low-income populations, with new consumption models in 2 or 3 tier cities/rural areas. In 2030, traditional trade and MSMEs remain essential, offering services beyond retail and integrated with digital infrastructure.