Dentsu Survey Reveals APAC Consumer Sentiment Dips as Gen Zs Feel the Pinch

​​Dentsu’s APAC Consumer Q2 2025 Survey has shown consumer sentiment falling amid rising recession fears, with younger and older generations feeling the brunt.

Economic outlook amongst APAC consumers has dimmed with less confidence that recovery is near - 45% of respondents expect a downturn and 35% believe that it is in recession. This is largely reflected in Thailand, followed by Australia and Indonesia; and while consumers in China remain optimistic (54%), this share has dropped by 11% over Q1.

Despite overall stability in personal financial confidence, gen zs report growing discomfort in managing day-to-day expenses. As households cut back on discretionary spending and seek value in essentials, wellness remains a non-negotiable priority. 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.

Amid financial strain, APAC consumers are scaling back discretionary spending, while bargain hunting essential goods and services as priorities. According to the report, non-essential categories such as luxury items and out-of-home dining are seeing the sharpest pullback. While spending on monthly essentials and wellness remains more resilient, even these segments are beginning to feel the squeeze — signaling a broader shift in consumer priorities and purchasing power as economic uncertainty deepens.

In this climate, value has become a key driver of consumer choice. Shoppers are actively bargain-hunting for groceries and household necessities, prompting greater competition among mass-market retailers and private-label brands. Trade-down behavior is also reshaping the food service sector, with consumers reducing frequency or opting for lower-cost alternatives when dining out. Yet amid this belt-tightening, one area remains notably resilient: health and wellness, with spending on exercise, supplements, and self-care holding steady.

For brands, this suggests opportunity lies not only in affordability and utility, but in offering value-aligned experiences that support well-being without compromising on cost. The report recommends marketers to:

• Promote value and savings without sacrificing quality to maintain brand loyalty;
• Leverage emotional branding to address economic anxiety;
• Target financially struggling segments with tailored campaigns.

Part of the Dentsu Consumer Navigator Series, the APAC Consumer Mindset Q2 2025 report was fielded during 7 May 2025 – 17 May 2025 in Australia, China, Indonesia and Thailand across 700 respondents aged 18+ in each of the countries surveyed.

Download the report here.