Consumer sentiment across the Asia–Pacific (APAC) region is as varied as the economies themselves. Our latest research reveals a mix of optimism and caution, with spending behaviors reflecting both resilience and adaptation to economic pressures. India leads the region in discretionary spending, with consumers splurging across categories such as dining, travel, and electronics. In contrast, South Korean consumers are pulling back, particularly in travel, as they navigate economic headwinds. Meanwhile, Japanese consumers are adjusting to inflation levels not seen since the 1990s and sentiment remains subdued.
The following charts highlight key insights from our latest APAC consumer survey, showcasing how diverse economic conditions and consumer priorities are shaping spending habits across the region. We cover Australia, China, Japan, South Korea, and India.
South Korea: Cautious amid challenges
South Korean consumers are pulling back on travel spending, reflecting a broader trend of cautious consumption. Across various travel categories—including flights, accommodation, and short-term rentals—spending intent has declined notably compared to the previous quarter. This marks a shift from last year, when travel spending was on the rise. The decline comes even as consumer pessimism has eased slightly in recent months, suggesting that other factors, such as economic uncertainty, may be influencing spending behavior.
While inflation in South Korea remains stable at 2.1 percent, the economy is facing headwinds that are contributing to a more cautious outlook.1 GDP has seen slight declines both year-over-year and quarter-over-quarter, and the Bank of Korea is expected to lower its 2025 growth forecast in response to these challenges.2 These economic pressures may be prompting many consumers to reassess their spending priorities, focus more on essentials, and scale back on discretionary purchases.
Tariffs are also weighing on South Korean consumers. In this survey, 26 percent of respondents identified tariffs as one of their top concerns. Notably, 43 percent of consumers have actively sought out information about tariffs—one of the highest percentages globally. While relatively few (6 percent) have already changed their spending habits in response, 40 percent indicated they expect to make adjustments soon. Among these changes, 67 percent of South Korean consumers plan to cut back on nonessential goods, signaling a shift toward more frugal and deliberate spending behaviors.
The consumer landscape across APAC reflects a complex interplay of economic pressures, cultural nuances, and shifting priorities. While markets like India showcase robust spending across discretionary categories, others, such as South Korea, highlight a more cautious approach as consumers navigate economic headwinds. Across the region, factors like tariffs, inflation, and evolving spending habits continue to shape consumer behavior in unique ways.
As businesses look to engage with APAC consumers, staying attuned to these diverse trends and adapting to local market dynamics will be key. For more insights and updates on the state of the APAC consumer, visit our ConsumerWise page or contact us for additional information.
