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NIQ Releases 2024 Consumer Outlook Survey
- Writing language: Korean
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Base country: All countries
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- Economy
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Summarized by durumis AI
- The NIQ 2024 Consumer Outlook survey found that domestic consumers are feeling the economic downturn more severely than consumers in the Asia-Pacific region.
- Domestic consumers in particular had lower expectations for economic growth than consumers in the Asia-Pacific region, and expressed greater concern over rising food prices and the economic downturn.
- However, domestic consumers responded that they would maintain their spending on essential goods and healthcare products, suggesting that essential spending will continue despite the economic downturn.
Korean consumers are increasingly feeling the impact of the economic downturn, but they are maintaining their spending on essential goods and healthcare products.
Only 13% of domestic consumers responded that the economy has improved, significantly lower than the Asia-Pacific average of 38%.
Korean consumers' perception of the economic downturn is higher than the Asia-Pacific average.
In NIQ Korea's 'NIQ 2024 Consumer Outlook Survey', when asked about the change in economic conditions compared to last year, 39% of Korean consumers responded that it had 'worsened'. Only 13% said it had 'improved'. This contrasts with the Asia-Pacific average, where 30% said it had 'worsened' and 38% said it had 'improved'.
This survey, which aimed to assess changes in perceived economic conditions and consumer spending forecasts for each country, was conducted by NIQ Korea over two months, from December 2023 to January, involving over 5,400 consumers across seven countries in the Asia-Pacific region (Korea, Australia, China, India, Indonesia, Singapore, and Thailand). When asked about their overall outlook for 2024, 52% of consumers in the Asia-Pacific region said they expect the economic situation to improve compared to the previous year. However, only 24% of Korean consumers were optimistic about economic growth. In Korea, the highest percentage of responses (44%) indicated that the economic situation 'will remain the same this year as last year'.
There were also differences between Korean consumers and the overall Asia-Pacific consumer group when asked to identify specific areas of concern for 2024. Both the Asia-Pacific average (33%) and Korea (37%) identified 'rising food prices (1st place)' and 'economic recession (2nd place)' as the most concerning factors. However, Korean consumers ranked concerns about global risks such as inter-state wars and conflicts lower than 'wellness and personal happiness (5th place, 14%)' and 'employment stability (6th place, 13%)', demonstrating their greater sensitivity to individual daily life issues.
When it comes to planned spending changes across categories for this year compared to last year, both Asia-Pacific consumers and Korean consumers responded that they would 'cut back on dining out and increase household spending and savings'. However, the number of categories where respondents said they would maintain or increase spending was 9 out of 22 in the Asia-Pacific market, while in Korea, it was limited to 3 categories (essentials, savings/investments, healthcare). This indicates that the contraction of consumer spending due to the economic downturn is more pronounced in Korea.
"Korean consumers, who are highly aware of the economic downturn, are exhibiting a more conservative spending pattern compared to the Asia-Pacific average," said Kim Na-young, Managing Director of NIQ Korea. "However, they responded that they will maintain their spending levels for essential goods and healthcare items. Companies should closely monitor these key changes in consumer purchasing behavior, which are evolving in response to economic downturn perceptions, and seek opportunities hidden within the crisis."
Website: https://nielseniq.com/global/en/
Contact
NIQ Public Relations
KPR
Kim Su-bin
02-3426-2281
