Report: Half of Indonesians feel the economic strain as younger shoppers pull back

A new regional consumer study has confirmed what many Indonesians have already sensed: the belt is tightening. According to the latest APAC Consumer Mindset Report from dentsu, around half (51%) of Indonesians now say they’re experiencing an economic downturn - higher than in China (44%) and Thailand or Australia (36% each).

Despite this, fewer Indonesians (34%) believe the country is in full-blown recession, suggesting a lingering hope of recovery or simply delayed acknowledgment. In contrast, a striking 55% of Thais and Australians say they are already in recession.

The quarterly survey, fielded in May 2025 across Australia, China, Indonesia, and Thailand, paints a picture of shifting consumer priorities driven by economic stress. It reveals that while overall sentiment across the region is subdued, the cracks are showing most clearly among the young.

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Across the region, Gen Zs are navigating a growing gap between aspiration and affordability. “Despite overall stability in personal financial confidence, Gen Zs report growing discomfort in managing day-to-day expenses,” the report stated. “Millennials continue to show relative optimism, but a generational divide is emerging - with Gen Z navigating a complex mix of financial stress and cautious hope.”

Discretionary spending is giving way to value-driven choices, with the sharpest pullback seen in categories such as luxury and out-of-home dining.

But in this climate of restraint, one sector remains resilient: wellness. Consumers are scaling back on indulgence, yet continue to spend on health, exercise, supplements, and self-care - treating these as non-negotiable. However, although spending on essentials and wellness has held up better than other areas, signs of strain are beginning to emerge. The report describes this as “a broader shift in consumer priorities and purchasing power.”

Value - not just low price, but perceived worth - is now paramount. Shoppers are actively hunting for deals on groceries and household essentials, and private-label brands are gaining ground. In the food service sector, the shift is also visible, with many trading down or reducing frequency when dining out.

“Promote value and savings without sacrificing quality to maintain brand loyalty,” the report advised. Emotional resonance also matters: brands that acknowledge and ease economic anxiety are likely to see stronger connections with audiences. The report also recommends that marketers tailor campaigns to financially vulnerable segments.

Overall, the economic outlook among APAC consumers has worsened, with declining confidence in a near-term recovery - 45% of respondents anticipate a downturn, while 35% believe their country is already in recession.

The APAC Consumer Mindset Report, part of the dentsu Consumer Navigator Series, was conducted between 7 and 17 May 2025, surveying 700 respondents aged 18 and above in each of the four markets.

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