With a median age of just under 32 years, Malaysia is a nation of youth. Millennials and Gen Z—30.5% of the population—are not just envisioning change but driving it. Yet, rising living costs, unaffordable housing, and healthcare disparities stand in their way, threatening to stall their aspirations.

Our collaborative study with Vero Advocacy reveals over 70% of Malaysian youth are optimistic about their future and confident that their quality of life will improve within five years. Yet, they remain deeply concerned about the rising costs of living, the scarcity of affordable housing, and the challenges within the healthcare system. Addressing these critical issues will require focused, youth-centered policies that align with their unique needs and priorities.

Two areas are paramount for Malaysian youth: affordable housing and accessible healthcare. By leveraging data-driven insights and global comparisons, we can critically assess these challenges and identify effective solutions to empower the younger generations of Malaysia.

Understanding Malaysia’s Youth Demographics

Millennials: Stability Seekers

Millennials, making up 25% of Malaysia’s population, prioritize financial stability and homeownership while juggling career and family demands.

  • Employment: Millennials are predominantly employed in finance, technology, and public administration. They value job security and upskilling to adapt to automation.
  • Housing: Homeownership remains a key aspiration, though high property costs delay purchases.
  • Digital Engagement: Active on Facebook and LinkedIn, leveraging these platforms for networking and advocacy.

Gen Z: Innovators and Advocates

Gen Z, which accounts for 29% of the population, focuses on flexibility, mental health, and meaningful engagement in work and life.

  • Employment: Many explore the gig economy, startups, and creative industries, favoring flexibility over traditional career paths.
  • Housing: Gen Z prioritizes renting, reflecting their preference for mobility and reduced financial commitment.
  • Digital Engagement: As digital natives, they dominate platforms like TikTok and Instagram, using them to advocate for climate action, mental health, and social equity.
CategoryMillennialsGen Z
EmploymentStable mid-career rolesPreference for gig work and flexibility
HousingOwnership-drivenRenting-focused
Digital PresenceBalanced use of traditional platformsThrives on emerging platforms

Bridging the Gap Between Aspiration and Reality with Affordable Housing

Housing represents independence and stability for Malaysia’s youth, but only 38% are satisfied with its affordability. Rising prices and inadequate rental options highlight the need for systemic reforms.

Key Challenges

  1. Urban Housing Costs: Cities like Kuala Lumpur and Penang face skyrocketing property prices, pushing homeownership out of reach for many young Malaysians.
  2. Neglect of Renters: Current policies disproportionately emphasize homeownership, leaving renters—especially Gen Z—without sufficient support.
  3. Urban Accessibility: Affordable housing projects are often located on city outskirts, far from employment hubs and public transport, increasing commuting costs.

Case Study: Japan’s Compact Urban Housing Model

Japan’s compact urban housing model offers lessons for Malaysia. By concentrating on housing near transit hubs, Japan curbs urban sprawl, reduces costs, and improves accessibility.

Compact City Initiatives in Japan

Japanese cities have adopted the “compact city” model, concentrating urban functions and residential areas around transportation hubs. This approach aims to curb urban expansion, enhance accessibility, and promote sustainable living. For instance, Sapporo’s Location Normalization Plan (LNP) seeks to concentrate urban functions in the city center, especially around transportation hubs, to induce residential development in these areas.

Benefits of the Compact City Model

The compact city model offers several advantages:

  • Affordability: By concentrating development, infrastructure costs are reduced, leading to more affordable housing options.
  • Accessibility: Proximity to transportation hubs ensures residents have easy access to public transit, reducing reliance on private vehicles.
  • Community Engagement: Densely populated areas foster a sense of community and provide better access to amenities and services.

Case Study: Toyama City

Toyama City is a notable example of successful compact city planning. Facing a declining and aging population, the city implemented a strategy to renovate public transportation and concentrate urban functions around transit hubs. This approach has revitalized the city center, improved public transport usage, and enhanced the quality of life for residents.

Implications for Malaysia

Malaysia can draw lessons from Japan’s experience by:

  • Integrating Housing and Transit: Developing housing projects near public transportation to improve accessibility and reduce commuting times.
  • Promoting Mixed-Use Development: Encouraging developments that combine residential, commercial, and recreational spaces to create vibrant communities.
  • Implementing Policy Reforms: Adopting policies that support urban densification and the efficient use of land resources.

Current Policies and Gaps in Malaysia’s Housing Policy

Malaysia has implemented programs like:

  • MyHome Program: Subsidies for first-time homebuyers.
  • PR1MA Scheme: Affordable housing for young professionals.
  • Stamp Duty Exemptions: Reduces upfront property purchase costs.

While these initiatives have eased financial pressures for some, they often neglect rental markets and middle-income youth.

Recommendations

  1. Expand Rent Control: Implement regulations to cap rental prices in high-demand urban areas.
  2. Public-Private Partnerships: Collaborate with developers to build mixed-income housing near urban centers.
  3. Incentivize Urban Planning: Prioritize integrated housing projects near public transport and employment hubs.
  4. Diversify Housing Support: Offer subsidies for renters and buyers, catering to generational differences in housing needs.

Accessible Healthcare: Balancing Cost and Quality

Only 63% of Malaysian youth are satisfied with healthcare, citing high costs, inequities, and limited mental health support as key barriers.

Key Challenges

  1. Cost Barriers: Private healthcare is prohibitively expensive, while public facilities face resource constraints and long wait times.
  2. Mental Health Stigma: Gen Z prioritizes mental health, yet accessible counseling and awareness programs remain scarce.
  3. Urban-Rural Divide: Rural areas experience significant disparities in healthcare access due to limited infrastructure.

Case Study: Australia’s Mental Health Reforms

Australia’s Better Access Initiative is a government program designed to improve the treatment and management of mental health conditions by providing subsidized services through Medicare. This initiative allows individuals to access mental health professionals, including psychologists, social workers, and occupational therapists, with the support of Medicare rebates.

Key Features of the Better Access Initiative:

  • Integration with Primary Care: General Practitioners (GPs) play a central role by assessing patients, developing Mental Health Treatment Plans, and facilitating referrals to appropriate mental health professionals.
  • Subsidized Services: Eligible individuals can receive Medicare rebates for specified psychological services, making mental health care more affordable and accessible.
  • Focus on Accessibility: The initiative aims to ensure that individuals, regardless of location, have access to mental health services, addressing disparities in service availability.

Impact and Considerations:

Since its inception, the Better Access Initiative has significantly increased the utilization of mental health services in Australia, indicating improved accessibility. However, challenges such as the adequacy of session limits and equitable access across different populations have been identified, prompting ongoing evaluations and discussions for improvement.

Implications for Malaysia:

Malaysia can draw valuable lessons from Australia’s experience by:

  • Integrating Mental Health into Primary Care: Empowering General Physicians to assess and manage mental health conditions can enhance early detection and intervention.
  • Providing Subsidized Services: Implementing subsidy programs can reduce financial barriers, encouraging more individuals to seek mental health support.
  • Ensuring Accessibility: Developing strategies to make mental health services available across urban and rural areas can address service disparities.

By adopting similar approaches, Malaysia can work toward a more inclusive and effective mental health care system, reducing stigma and improving overall well-being.

Current Policies and Gaps  in Healthcare 

Programs like MySalam and PeKa B40 provide critical illness coverage and health screenings for low-income groups. However, middle-income youth often lack sufficient support, particularly for specialized care and mental health.

Recommendations

  • Expand Mental Health Services:
    • Increase funding for public mental health facilities and professionals.
    • Integrate free counseling services in schools, universities, and workplaces.
  • Telemedicine for Rural Areas: Develop mobile clinics and telemedicine platforms to bridge urban-rural disparities.
  • Subsidize Specialized Care: Provide targeted subsidies for chronic and mental health treatments.
  • Normalize Mental Health: Launch nationwide campaigns to reduce stigma and encourage early intervention.

Youth Optimism as a Catalyst for Progress

Despite these challenges, Malaysian youth remain optimistic. Their vision of a future rooted in equity, sustainability, and innovation is a powerful driver for national progress.

Key Priorities for Policymakers

  1. Foster Collaboration: Engage youth through advisory councils, digital platforms, and leadership programs.
  2. Address Inequities: Allocate resources equitably to bridge urban-rural divides in housing and healthcare.
  3. Sustainability as a Core Value: Incentivize green initiatives and integrate environmental priorities into youth policies.

Final Thoughts

Malaysia’s Millennials and Gen Z are not just dreamers—they are doers. Their demands for affordable housing, accessible healthcare, and sustainability reflect a vision for a fairer, more inclusive society. Policymakers must act decisively, embracing youth-driven governance to unlock the full potential of these generations.

Download the Full Report

Gain deeper insights into how Millennials and Gen Z in Malaysia and Southeast Asia are reshaping policies and driving progress. Click here to download the full report featuring actionable data and recommendations for policymakers.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

With over 40% of Vietnam‘s population under 30, the youth represent one of the country’s greatest assets for innovation and economic growth. Millennials and Gen Z in Vietnam are not just inheritors of the country’s future—they are active architects of a society valuing sustainability, education, and equitable opportunities. However, systemic barriers, such as limited access to quality education and urban-rural economic disparities, challenge their aspirations.

Our collaborative study with Vero Advocacy highlights two critical areas for Vietnam’s youth: education reform and sustainability-driven entrepreneurship. These issues represent challenges and opportunities, offering a roadmap for stakeholders to invest in Vietnam’s youth and unlock its potential.

Demographic Spotlight: Who Are Vietnam’s Youth?

Millennials (26–41) and Gen Z (10–25) are redefining Vietnam’s cultural, economic, and environmental future.

Millennials: Vietnam’s Stabilizing Force

  • Population Impact: Millennials dominate the workforce, particularly in sectors like technology, finance, and education.
  • Education and Career Priorities: Many are tertiary-educated and value job stability and career growth. However, they often face challenges adapting to the fast-evolving digital economy.
  • Housing Aspirations: Ownership remains a priority for this group, reflecting their desire for stability and long-term security.

Gen Z: The Trailblazers of Change

  • Employment Trends: Gen Z embraces flexibility, creativity, and purpose-driven work, gravitating toward freelancing, entrepreneurship, and social impact roles.
  • Digital Natives: They dominate platforms like TikTok, Instagram, and YouTube, using them not just for self-expression but also for activism and advocacy.
  • Focus on Sustainability: Gen Z in Vietnam is leading the charge for green initiatives, from waste management campaigns to sustainable consumer choices.

Education Reform: Bridging Quality and Accessibility

Education is the cornerstone of Vietnam’s future, but challenges like urban-rural divides, outdated curricula, and inadequate vocational training block progress.

Key Challenges

  • Urban-Rural Disparities:
    • Urban areas like Hanoi and Ho Chi Minh City dominate educational resources, while rural regions lack infrastructure and teacher quality.
    • According to our study, over 45% of rural youth cite limited access to STEM education as a barrier to entering high-demand sectors.
  • Outdated Curricula:
    • Vietnam’s education system remains heavily focused on rote learning, leaving graduates ill-equipped for problem-solving and innovation in the modern economy.
  • Lack of Vocational Training:
    • High-growth industries like renewable energy and technology face talent shortages due to insufficient vocational and technical education.

Example: Vietnam’s “Teach For Vietnam” Program

Teach For Vietnam, inspired by the global Teach For All network, places skilled professionals in underserved areas to improve education and foster student leadership.

Achievements:

  • It has reduced dropout rates and improved STEM education access by impacting over 10,000 students across Quang Nam and Tay Ninh provinces.
  • The program trains local teachers in innovative teaching methods, aligning classroom instruction with the demands of a digital economy.

Broader Implications:
This program demonstrates how grassroots initiatives can close education gaps, particularly in rural regions, setting a foundation for national replication.

Global Inspiration: Germany’s Dual Education Model

Germany’s dual education system combines classroom learning with hands-on apprenticeships, producing a highly skilled workforce.

Key Features:

  • Apprenticeships in High-Demand Sectors: Over 50% of German students participate in apprenticeship programs, gaining skills in engineering, renewable energy, and IT.
  • Industry Partnerships: Companies co-design curricula to ensure graduates are job-ready, reducing skills mismatches.

Implications for Vietnam:
Vietnam can integrate vocational training into secondary education, tailoring programs to local industries like textile manufacturing, tourism, and tech startups.

Sustainability-Driven Entrepreneurship: A Green Future for Vietnam

Vietnam’s youth are not just sustainability consumers—they are change creators. Millennials and Gen Z are at the forefront of sustainability-driven entrepreneurship, turning climate challenges into business opportunities.

Key Trends in Green Entrepreneurship

  1. Eco-Friendly Enterprises:
    • Youth-led startups in sustainable fashion, organic farming, and renewable energy are gaining traction.
    • According to our report, 62% of Gen Z in Vietnam prefer working for companies that align with their environmental values.
  2. Circular Economy Innovation:
    • Young entrepreneurs are adopting circular business models, from waste-to-energy projects to plastic-free consumer goods.
  3. Digital Platforms for Advocacy:
    • Social media platforms enable youth entrepreneurs to amplify their sustainable initiatives and reach broader markets.

Example: Hanoi’s “Plastic Action” Initiative

In Hanoi, Plastic Action, a youth-led grassroots movement, partners with local businesses to combat plastic waste.

Key Activities:

  • Community Engagement: Organizes monthly clean-ups in urban neighborhoods and rural areas, collecting over 20 tons of plastic waste annually.
  • Education Campaigns: Collaborates with schools to teach students about sustainable waste management practices.
  • Eco-Friendly Alternatives: Works with local vendors to introduce biodegradable packaging, reducing single-use plastics.

Impact:
The initiative has raised awareness and created economic opportunities for youth entrepreneurs to produce eco-friendly alternatives.

Global Inspiration: Sweden’s E-Skills for All Program

Sweden’s national initiative equips young entrepreneurs with digital skills to scale their green businesses online.

Key Features:

  • Universal Broadband Access: Sweden has invested heavily in rural connectivity, ensuring equitable access to digital tools.
  • Entrepreneurial Support: The program provides free training in e-commerce, sustainability practices, and business management, enabling youth to scale green initiatives.

Implications for Vietnam:
Vietnam could adopt similar strategies to expand rural broadband infrastructure and provide localized training for sustainable business practices.

The Brand Opportunity

For brands operating in Vietnam, the youth-driven focus on education and sustainability presents a golden opportunity:

  • Align with Purpose-Driven Values: Support youth-led green initiatives and education reforms to build long-term brand loyalty.
  • Invest in Local Talent: Create localized training programs and employment pathways, particularly in underserved regions.
  • Amplify Authentic Voices: Collaborate with youth influencers and entrepreneurs to engage audiences and drive meaningful change.

Final Thoughts

Vietnam’s Millennials and Gen Z are the architects of a brighter, greener future. Addressing systemic barriers in education and fostering sustainability-driven entrepreneurship are not just strategies for progress—they are imperatives for building a resilient economy.

Policymakers and brands must collaborate to empower Vietnam’s youth, leveraging their energy, innovation, and values to create a society rooted in equity and sustainability. Together, they can transform challenges into opportunities, ensuring Vietnam’s next generation leads with purpose and impact.

Download the Full Report

Gain deeper insights into how Vietnam’s youth are reshaping the future of education and sustainability. Download our collaborative report with Vero Advocacy for actionable strategies tailored to Millennials and Gen Z in Southeast Asia. Click here to learn more.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Millennials and Gen Z, who comprise over half of Indonesia’s population, are leading cultural, economic, and digital transformations in the world’s fourth-largest nation. Yet, significant challenges remain on the path to realizing their potential.

Employment challenges—marked by a persistent skills mismatch and regional inequities—and the struggle for affordable housing remain key barriers. Despite these, Indonesia’s youth continue to innovate, leveraging platforms like TikTok and Instagram to carve out new opportunities through social commerce.

In our collaborative study with Vero Advocacy, we delved into many critical areas, and the two most impactful areas turned out to be employment challenges and social commerce trends. Let’s explore actionable strategies for policymakers and brands to empower this vibrant demographic while unlocking Indonesia’s economic potential.

Demographic Spotlight: Indonesia’s Youth

Millennials (26–41) and Gen Z (10–25) represent over half of Indonesia’s 280 million people. These groups influence societal and economic trends, blending tradition with global modernity.

Millennials: Anchors of the Workforce

  • Employment and Education: As established professionals, Millennials dominate manufacturing, public administration, and services. Many hold tertiary degrees but face challenges adapting to automation and technological advancements.
  • Housing Aspirations: They view homeownership as a marker of success but often struggle with affordability in urban centers.

Gen Z: Digital and Entrepreneurial Pioneers

  • Employment Trends: Gen Z favors flexible, purpose-driven roles, gravitating toward freelancing, digital marketing, and entrepreneurship.
  • Social Media Dominance: Platforms like TikTok and Instagram are integral to their self-expression and income-generation efforts, particularly through social commerce.

Employment Challenges: Bridging Skills and Opportunities

For Indonesia’s youth, employment is more than just a livelihood—it’s a pathway to stability, self-expression, and long-term progress. However, systemic barriers such as skills mismatches, urban-rural employment disparities, and limited entry-level opportunities continue to hinder their professional growth. Addressing these challenges is not just critical for empowering youth but also pivotal for Indonesia’s socio-economic future.

Key Challenges in Employment 

Skills Mismatch
Indonesia’s education system emphasizes theory over practice, leaving many graduates ill-prepared for job market demands. High-growth sectors like technology and renewable energy struggle with talent shortages due to insufficient vocational training. Over 60% of youth report a skills mismatch, fueling underemployment.

Urban-Rural Employment Divide
Job opportunities remain heavily concentrated in urban hubs like Jakarta, Surabaya, and Bandung, leaving rural youth with limited prospects. Many are forced to migrate to cities, often ending up in low-paying informal jobs that fail to provide long-term stability. This urban-rural divide exacerbates economic inequality and hinders rural regions’ ability to retain talent and foster economic growth.

Youth Unemployment
Despite Indonesia’s projected GDP growth of 5% in 2024, youth unemployment remains high. The report highlights that 88% of Gen Z and 89% of Millennials in Indonesia identify employment as a critical issue. Insufficient entry-level roles, inadequate mentorship programs, and limited internship pathways compound this problem.

Opportunities in Regional Hubs

To address the urban-rural employment divide in Indonesia, brands can play a pivotal role in decentralizing job opportunities by leveraging Indonesia’s emerging regional hubs. Cities like Yogyakarta, Medan, and Makassar offer untapped potential for expanding economic activities and creating localized employment opportunities.

Leveraging Regional Hubs

  • E-commerce Fulfillment Centers: Brands like Shopee and Tokopedia can establish logistics hubs in secondary cities to decentralize operations while tapping into local talent pools.
  • Tech and Creative Industries: Regional hubs are ideal for developing support centers for tech startups, creative agencies, and digital content production, providing flexible roles suited for Gen Z’s career aspirations.
  • Government Collaborations: Brands can partner with local governments and universities to co-develop skill-building programs tailored to regional economic needs.

Example: Yogyakarta as a Regional Model
Yogyakarta, often called the cultural heart of Java, is a city where tradition and innovation coexist. It is famous for its historic temples and vibrant arts scene and is home to leading universities and a thriving creative industry. This unique blend has made Yogyakarta a beacon for young talent, offering opportunities that extend beyond its cultural roots. By embracing digital innovation and cultural entrepreneurship, the city has attracted significant public and private investment, proving that regional hubs can play a pivotal role in youth employment. Yogyakarta’s approach to integrating education, skill-building, and job creation is an inspiring model for other regions in Indonesia.

Notable Initiatives by Indonesia’s Government 

The Indonesian government has taken significant steps to address these employment challenges through programs like Prakerja, a vocational training and financial aid initiative that equips participants with skills in digital marketing, entrepreneurship, and technical trades. Since its inception, over 16 million Indonesians have benefitted from Prakerja, showcasing its potential to bridge the skills gap.

Recommendations for Brands in Indonesia

Brands operating in Indonesia have a unique opportunity to play an active role in solving employment challenges by:

  • Investing in Skill Development: Partner with universities and vocational schools to co-design industry-relevant curricula and certifications. Focus on high-demand fields like renewable energy, digital marketing, and software development.
  • Expanding Regional Opportunities: Establish offices or satellite operations in secondary cities to reduce urban migration pressures and create local economic opportunities. Offer remote and hybrid work options to engage rural youth.
  • Supporting Youth Entry into the Workforce: Create structured internship programs and mentorship initiatives to help young professionals transition from education to full-time roles.

The Brand Opportunity

Addressing employment challenges isn’t just a policy imperative—it’s a strategic opportunity for brands to position themselves as champions of youth empowerment. By leveraging regional hubs, investing in skill-building, and creating pathways for employment, brands can foster loyalty and contribute meaningfully to Indonesia’s socio-economic growth.

The Rise of Social Commerce in Indonesia

Indonesia is Southeast Asia’s largest social commerce market, with platforms like TikTok, Instagram, and Shopee playing transformative roles in youth employment and entrepreneurship.

Key Stats and Trends in Social Commerce in Indonesia 

  • Digital Adoption: Over 50% of Indonesian youth use TikTok and Instagram not just for entertainment but as business platforms to sell products and services.
  • Social Commerce Revenue: Social commerce contributes nearly $8 billion annually to Indonesia’s economy, with youth driving this trend.
  • Inclusivity: Platforms enable rural entrepreneurs, particularly women and youth, to reach broader markets, bridging urban-rural gaps.

Example: TikTok Shop Indonesia

  • Launched in 2021, TikTok Shop empowers small businesses and youth entrepreneurs by integrating shopping features into the platform.
  • Success Stories: Thousands of young Indonesians use TikTok to promote and sell handmade crafts, fashion, and beauty products, earning sustainable incomes from their digital storefronts.

Global Inspiration: Sweden’s Digital Inclusion Policies

Sweden’s focus on equitable digital infrastructure offers valuable lessons for Indonesia:

  • Universal Broadband Access: Investments ensure rural areas have high-speed internet, fostering inclusivity in digital commerce.
  • E-Skills for All Program: This program targets young entrepreneurs, equipping them with digital skills to scale businesses online. Indonesia could adopt similar strategies to enhance rural connectivity and expand social commerce opportunities for underserved communities.

Recommendations for Policymakers in Indonesia

  • Bridge the Skills Gap:
    • Expand vocational training programs in high-demand sectors like e-commerce, renewable energy, and tech.
    • Establish regional centers of excellence to reduce dependency on urban hubs.
  • Foster Digital Inclusion:
    • Invest in rural broadband infrastructure to enable wider participation in social commerce.
    • Launch initiatives to combat misinformation and promote responsible digital use.
  • Support Social Commerce:
    • Offer tax incentives and grants for youth-led businesses operating on social platforms.
    • Collaborate with private companies to create scalable training programs for digital entrepreneurs.
genz-consumer-behavior-report

Recommendations for Brands in Indonesia

  1. Engage in Skill Development:
    • Partner with vocational institutions to design industry-specific certification programs.
    • Offer structured internships that provide hands-on digital marketing and e-commerce experience.
  2. Invest in Social Commerce Integration:
    • Build immersive shopping experiences on TikTok and Instagram, tapping into Gen Z’s entrepreneurial spirit.
    • Highlight sustainability in product offerings, aligning with youth values.
  3. Create Purpose-Driven Campaigns:
    • Collaborate with youth influencers to amplify brand initiatives tied to employment and digital empowerment.
    • Use social commerce campaigns to promote locally-made products, fostering community growth.

Final Thoughts

Indonesia’s Millennials and Gen Z are redefining progress through digital innovation and entrepreneurial grit. While challenges like employment gaps and housing inequities persist, the rise of social commerce offers a powerful pathway for youth empowerment.

To foster national growth, policymakers and brands must invest in Indonesia’s youth and align with their aspirations. Bridging gaps and fostering collaboration can transform the nation’s demographic advantage into lasting progress. Download the Full Report

Discover more insights into how Indonesia’s youth are shaping the nation’s future. Download our collaborative report with Vero Advocacy for actionable strategies to empower Millennials and Gen Z. Click here to learn more.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Thailand’s millennials and Gen Z stand at the forefront of transformative change. Together, they constitute nearly half the population and redefine the nation’s priorities in employment, education, housing, and environmental sustainability. Their voices, once whispers, now resonate as catalysts for action and reform.

Despite their optimism—more than 85% expect a better quality of life within five years. However, systemic challenges temper this enthusiasm. Rising living costs, unaffordable housing, and job market mismatches jeopardize their aspirations. Policymakers face a pressing challenge: How can governance evolve to meet the ambitions of a generation poised to drive progress?

Reimagining Governance for Youth Priorities

Thailand’s governance system, a constitutional monarchy, shapes how policies are crafted and implemented. National strategies fall under the purview of the Parliament and Prime Minister, while local governance manages essential services such as housing and education. However, this centralized approach often limits grassroots engagement, a challenge as millennials and Gen Z push for greater inclusivity in decision-making.

These younger generations are leveraging digital platforms like TikTok and Facebook to amplify their demands for transparency, sustainability, and equity. This shift presents both a challenge and an opportunity for Thailand’s leadership: the challenge of responding to an informed and vocal demographic and the opportunity to harness their energy for nation-building.

Trust remains a key issue.

According to our recent research in collaboration with Vero Advocacy, about half of Thais trust the government to act in the public’s best interest and feel safe expressing their opinions on youth policies. Gen Zs demonstrate greater trust in the government compared to Millennials.

Policies such as the 15-year free education initiative and the One Family One Soft Power program signal responsiveness, but gaps remain in addressing youth priorities comprehensively. Bridging this divide requires a governance model that values youth participation and collaboration, ensuring policies reflect their evolving needs.

Demographic Insights: The Generational Divide

United in their influence, Thai millennials and Gen Z diverge in needs and aspirations, creating distinct challenges for policymakers.

Millennials (Ages 26–41): Stability Seekers

  • Population Size: 15.4 million (23% of the country’s population)
  • Employment: Primarily employed in stable, mid-career roles across industries like manufacturing, technology, and finance. They prioritize job security and upskilling opportunities.
  • Housing Preferences: Driven by a desire for homeownership as a marker of financial stability. Rising urban property costs, however, often delay these goals.
  • Digital Engagement: Active on platforms like Facebook and Line for professional networking and advocacy.

Gen Z (Ages 10–25): Digital Innovators

  • Population Size: 13.4 million (20% of Thailand’s population)
  • Employment: Entering the workforce with a preference for gig economy roles, startups, and creative industries. Flexibility and purpose are key drivers.
  • Housing Preferences: Favor renting for its adaptability and alignment with urban mobility needs.
  • Digital Engagement: Dominates TikTok and Instagram, using these platforms for self-expression, activism, and innovation.
CategorymillennialsGen Z
Primary ConcernsHousing affordability, job securityMental health, flexible work
HousingOwnership-focusedFlexibility-driven, prefer renting
Digital PresenceBalanced use of older platformsHighly active on emerging platforms

Shifting Priorities and Socioeconomic Influences of Thai’s Young Population

Thailand’s economic landscape profoundly shapes the priorities of these generations. millennials, having experienced economic instability, lean toward stability and long-term financial planning. Gen Z, however, emerges in a world of rapid digital transformation, emphasizing adaptability and innovation in their career and lifestyle choices.

Both groups share a common concern for affordable housing and quality education, but they diverge in how they approach these challenges. millennials, who often take on family responsibilities, advocate for government policies that support ownership and economic security. Gen Z, on the other hand, leverages their digital fluency to challenge norms and demand forward-looking solutions, such as accessible education that aligns with technological trends.

Implications for Policymakers

These demographic insights highlight the urgent need for tailored policies that address the unique needs of each generation. millennials need housing support and upskilling programs, while Gen Z needs flexible education models and digital-first career opportunities.

Key Policy Concerns of Thai Youth

1. Employment and Economic Opportunities

  • Our Study Findings: Over 68% of millennials and 72% of Gen Z highlight job creation as a critical government responsibility. While millennials prioritize career stability, Gen Z seeks flexibility and creative outlets.
  • Government Response: The One Family One Soft Power program has created millions of jobs in cultural industries and free reskilling courses for high-growth sectors like tourism and digital marketing.
  • Recommendations: Policymakers must address skills mismatches by integrating vocational training with industry needs, particularly in the tech and green sectors.

2. Affordable and Quality Education

  • Our Study Findings: Rising tuition costs and outdated curricula hinder over 54% of millennials and 60% of Gen Z from accessing the education they need.
  • Government Response: The 15-year free education policy has improved enrollment rates, particularly in rural areas, narrowing the education gap.
  • Recommendations: Modernize curricula to emphasize STEM and digital literacy and expand access to international exchange programs to equip students for global opportunities.

3. Housing Affordability

  • Our Study Findings: While 53% of youth express satisfaction with current housing policies, high urban property costs remain a significant barrier for millennials, while Gen Z prefers affordable rental options.
  • Government Response: Tax incentives and reduced transfer fees aim to ease financial burdens for homebuyers.
  • Recommendations: Strengthen public-private partnerships to expand affordable housing and prioritize developments near employment hubs.

4. Environmental Sustainability

  • Our Study Findings: Our study also found over 70% of Thai youth demand stronger environmental policies, including waste management and renewable energy initiatives.
  • Government Response: The Green Growth Strategy addresses climate challenges but lacks youth engagement.
  • Recommendations: Foster youth-led initiatives and provide incentives for green entrepreneurship to empower the next generation of sustainability advocates.

5. Mental Health and Healthcare

  • Our Study Findings: More than six in four millennials and Gen Z identify mental health as a key concern, citing cost and stigma as major barriers.
  • Government Response: Subsidized mental health services and community programs have improved accessibility.
  • Recommendations: Expand funding for mental health initiatives and launch nationwide campaigns to normalize conversations around mental well-being.

Collaborative Governance

Thailand’s youth are not bystanders; they are architects of the nation’s evolving future. They demand transparency, inclusivity, and meaningful engagement with policymakers in government.

Policymakers must:

  1. Strengthen Vocational Training: Align programs with emerging industries to address job market mismatches.
  2. Modernize Education: Focus on STEM, digital literacy, and global exposure opportunities.
  3. Promote Affordable Housing: Expand urban planning initiatives integrating housing with essential services.
  4. Champion Environmental Policies: Support youth-led sustainability efforts and green innovation.
  5. Invest in Mental Health: Increase accessibility and reduce stigma through targeted programs.

A Future Defined by Youth In Thailand

Thailand’s millennials and Gen Z are charting a bold vision for the future—one rooted in opportunity, equity, and sustainability. Their collective voice is a roadmap for progress, challenging policymakers to rethink traditional approaches and embrace youth-centered governance.

The journey ahead requires collaboration. By aligning policies with the aspirations of these generations and fostering genuine partnerships, Thailand can build a nation that reflects the values and ambitions of its future leaders. Download the Full Report
Gain deeper insights into how millennials and Gen Z across Southeast Asia, including Thailand, influence public policy and shape the future. Click here to download the full report and explore actionable data and recommendations.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

What if your data isn’t just incomplete—it’s fundamentally flawed?

Unseen biases in research can distort insights, mislead strategies, and undermine the trust that brands rely on for growth. Sampling bias—an error where certain groups in a population are over or underrepresented—remains among the most critical challenges for researchers and brands today.

From flawed customer surveys to biased machine learning models, the consequences of sampling bias have rippled across industries, sometimes with dire outcomes. With advanced analytics, artificial intelligence, and global markets, ensuring data accuracy is not just a statistical concern—it’s a strategic imperative.

Understanding and eliminating sampling bias isn’t just about accuracy—it’s about securing a strategic advantage in an increasingly data-driven world. By confronting this hidden threat head-on, brands can unlock more authentic insights, foster deeper trust with their audiences, and confidently navigate the future.

Decoding Sampling Bias

What Is Sampling Bias?

Sampling bias occurs when research samples fail to accurately reflect the population, resulting in skewed and unreliable insights. It is a silent disruptor capable of undermining the validity of insights and, consequently, the decisions that rely on them.

For example, if a national survey on digital behavior excludes rural respondents, the results might inaccurately reflect trends applicable only to urban populations, leaving brands blind to untapped opportunities.

Types of Sampling Bias

  1. Selection Bias
    Selection bias arises when the selection of individuals, groups, or data for analysis isn’t properly randomized, affecting the validity of statistical outcomes. For example, if a tech company surveys only users who log in frequently to assess overall user satisfaction, it may overlook insights from less active users who could provide valuable feedback on barriers to engagement.
  2. Survivorship Bias
    This bias occurs when analyses focus exclusively on subjects that have passed through a selection process, ignoring those that didn’t. A classic illustration is evaluating the performance of high-performing stocks without considering the companies that went bankrupt. This can lead to overly optimistic assessments and misinform investment strategies.
  3. Undercoverage Bias
    Undercoverage happens when some members of the population are inadequately represented in the sample. For instance, conducting a health survey that primarily includes urban residents may miss health issues prevalent in rural areas, leading to incomplete public health policies.
  4. Non-response Bias
    Non-response bias emerges when individuals who do not participate in a study differ significantly from those who do. If a significant portion of a selected sample fails to respond—and their non-participation is related to the study variables—the results can be misleading. For example, satisfied customers might be more inclined to complete a satisfaction survey, skewing results positively and masking underlying issues.

Historical Sampling Misstep: Literary Digest Fiasco (1936)

The infamous 1936 Literary Digest poll wrongly predicted Alf Landon would defeat Franklin Roosevelt, showcasing the perils of sampling bias.

The magazine surveyed 2.4 million respondents but disproportionately targeted wealthier individuals via automobile registrations and telephone directories. The outcome? A completely inaccurate prediction that destroyed the magazine’s credibility and underscored the dangers of sampling bias.

In today’s context, similar missteps can occur when businesses rely on data collected from non-representative samples. For example:

  • Online Reviews: Companies that base product decisions solely on online reviews may miss insights from a broader customer base, as reviews often represent the extremes of satisfaction and dissatisfaction.
  • Social Media Analytics: Brands that gauge public opinion based only on social media engagement may overlook demographic groups less active on these platforms, leading to skewed perceptions of brand sentiment.

The Modern Manifestation of Sampling Bias

Bias in Big Data and AI

Big data, often seen as a biased solution, can instead obscure and amplify sampling errors. These datasets often disproportionately represent the digitally active, omitting significant offline populations. Similarly, data sourced from platforms like social media skews toward younger, urban demographics, leaving out rural or older consumers.

For instance, social media platforms generate enormous amounts of user data daily. However, these users represent a subset of the global population—typically skewed towards certain age groups, socioeconomic statuses, and cultural backgrounds. Consequently, analyses based on social media data may overlook the behaviors and preferences of underrepresented groups.

AI’s Double-Edged Role

AI models trained on biased data perpetuate and even amplify these biases. For instance, facial recognition software has repeatedly misidentified individuals from minority ethnic groups due to unbalanced training datasets. Such cases highlight the real-world consequences of sampling bias in modern technologies.

Consequences for Brands

  • Misinformed Strategies: Flawed insights lead to poor decisions.
    Example: Launching a product based solely on urban consumer data may alienate rural markets.
  • Eroded Consumer Trust: Perceived exclusion can harm brand perception.
    Example: Biased AI chatbots giving inaccurate responses to minority users.
  • Regulatory Risks: Legal scrutiny for discrimination or biased practices.
    Example: Discriminatory credit scoring algorithms resulting in lawsuits.

Spotting the Unseen: Identifying Sampling Bias

Diagnostic Techniques

Unveiling sampling bias requires a meticulous approach, combining statistical methods with keen analytical insight. Here are key techniques to detect bias within your data:

  • Descriptive Statistics and Visualization
    • Distribution Analysis: Examine means, medians, and modes across different segments. Significant deviations can indicate overrepresentation or underrepresentation.
    • Histograms and Density Plots: Visual tools like histograms can reveal uneven distributions, highlighting potential biases in sample composition.
    • Heat Maps and Scatter Plots: These can expose correlations and clusters that suggest sampling anomalies.
  • Comparative Assessments
    • Benchmarking Against Population Data: Compare your sample demographics to known population statistics (e.g., census data) to spot disparities.
    • Cross-Tabulation: Analyze how different variables interact, which can uncover hidden biases affecting subgroups within your data.
  • Statistical Tests for Bias Detection
    • Chi-Square Goodness-of-Fit Test: Assesses whether the observed sample distribution differs significantly from the expected distribution.
    • Kolmogorov-Smirnov Test: Evaluates the equality of continuous, one-dimensional probability distributions, useful for detecting differences between sample and population distributions.
    • T-Tests and ANOVA: Determine if there are statistically significant differences between group means that could indicate sampling issues.
  • Response Rate Analysis
    • Non-Response Bias Evaluation: Analyze patterns in non-responses to identify if certain groups are less likely to participate, which can skew results.
    • Follow-Up Surveys: Conduct additional outreach to non-respondents to assess if their inclusion alters the data landscape.

Leveraging Technology

Advanced technologies offer powerful tools to uncover and understand sampling bias:

  • Artificial Intelligence and Machine Learning
    • Bias Detection Algorithms: AI models can scan datasets to identify patterns that suggest bias, such as underrepresented demographics or anomalies in data distribution.
    • Predictive Analytics: Machine learning can predict potential biases based on historical data, allowing proactive adjustments to sampling strategies.
  • Data Analytics Platforms
    • Automated Data Profiling: Platforms like SAS or SPSS can automatically profile data, highlighting inconsistencies and irregularities that may indicate bias.
    • Interactive Dashboards: Tools like Tableau or Power BI facilitate dynamic exploration of data, making it easier to spot biases through visual patterns.
  • Blockchain for Data Integrity
    • Transparent Data Trails: Blockchain technology ensures data provenance, allowing researchers to trace the origin and handling of data, which aids in identifying points where bias may have been introduced.
    • Decentralized Data Verification: Enables multiple stakeholders to validate data authenticity and integrity collaboratively.
  • Natural Language Processing (NLP)
    • Textual Data Analysis: NLP can analyze open-ended responses in surveys to detect sentiment and patterns that may not be evident through quantitative methods, uncovering subtle biases.

The Human Element

Despite technological advancements, human insight remains indispensable in identifying and addressing sampling bias:

  • Diverse Research Teams
    • Multidisciplinary Perspectives: Teams with varied backgrounds bring unique viewpoints, increasing the likelihood of detecting biases that homogeneous teams might miss.
    • Inclusive Decision-Making: Diversity fosters an environment where questioning assumptions is encouraged, leading to more rigorous research designs.
  • Stakeholder Engagement
    • Community Consultations: Engaging with representatives from different segments of the population can reveal concerns and biases not apparent in the data alone.
    • Participant Feedback: Soliciting feedback from study participants can highlight issues in the sampling process, such as questions that may be culturally insensitive or confusing.
  • Ethical Oversight and Training
    • Institutional Review Boards (IRBs): Ethical committees can review research proposals to ensure sampling methods are fair and unbiased.
    • Continuous Education: Regular training on ethical research practices and unconscious bias helps researchers remain vigilant against introducing bias.
  • Pilot Studies
    • Testing Sampling Methods: Conducting pilot studies allows researchers to test and refine their sampling strategies, identifying potential biases before full-scale implementation.
    • Iterative Feedback Loops: Use findings from pilot studies to adjust methodologies, ensuring that the final research design minimizes bias.

Strategies for Mitigating Sampling Bias

Designing Better Sampling Methods

  1. Stratified Sampling: Divide the population into subgroups and sample proportionally.
  2. Multi-Stage Sampling: Combine random sampling with targeted techniques for large, diverse populations.
  3. Follow-Up Surveys: Re-engage non-respondents to reduce non-response bias.

Data Diversification

  • Collect data from multiple sources, including qualitative and quantitative methods.
  • Incorporate underrepresented demographics through targeted outreach efforts.

Ethical Practices

  • Transparency: Clearly communicate sampling methods and limitations.
  • Cultural Sensitivity: Design research tools that account for regional and cultural differences.
  • Participant Empowerment: Ensure informed consent and address privacy concerns.

Future Innovations in Bias Mitigation

Emerging Technologies

  • Synthetic Data: Artificially generated datasets fill gaps left by incomplete samples.
  • Quantum Computing: Processes massive datasets to uncover intricate patterns of bias.

AI and Machine Learning Advancements

  • Fairness-Aware Algorithms: Identify and adjust for detected biases.
  • Explainable AI (XAI): Makes AI decision-making transparent and accountable.

Several companies and organizations are exploring synthetic data generation to improve AI models while protecting patient privacy. For example:

  • NVIDIA collaborated with King’s College London on the London Medical Imaging & AI Centre for Value-Based Healthcare to develop synthetic brain images for AI research, aiming to improve diagnostic tools without compromising patient data.
  • MIT’s Laboratory for Computational Physiology has worked on projects generating synthetic healthcare data to augment real datasets, helping to train more robust AI models.
  • Syntegra, a company specializing in healthcare synthetic data, has partnered with various organizations to create realistic synthetic datasets to improve AI algorithms, though specific global healthcare providers are not publicly named.

Strategic Implications od Sampling Bias for Brands

Why It Matters

Unbiased research isn’t just ethical—it’s profitable. Brands that address sampling bias position themselves as inclusive, trustworthy, and responsive.

  • Enhanced Decision-Making: Reliable data leads to effective strategies.
  • Improved Brand Loyalty: Inclusive practices resonate with diverse audiences.
  • Risk Mitigation: Compliance with ethical and legal standards avoids costly errors.

Actionable Steps for Brands

  • Invest in Advanced Tools: Use AI-driven solutions to identify and correct biases.
  • Build Diverse Teams: Encourage collaboration across varied backgrounds.
  • Adopt Transparent Practices: Regularly audit methodologies and communicate findings.

Final Thoughts

Sampling bias remains a silent but pervasive threat, capable of unraveling even the most sophisticated research efforts. By adopting proactive strategies, leveraging cutting-edge technologies, and fostering a culture of transparency, brands can ensure their data accurately reflects the populations they serve.

By addressing bias, brands build trust, loyalty, and a foundation for sustained competitive advantage. It’s time to act—embrace the tools and practices that drive unbiased research and take your brand to the next level.

Ready to ensure your research integrity? Start today by committing to unbiased practices and building the future of ethical, data-driven decision-making.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

India’s urban transformation is accelerating, with brands eyeing a burgeoning consumer market poised for dramatic growth. By 2030, 600 million Indians—40% of the population—are expected to live in urban areas, marking one of the fastest urbanization rates globally. This shift is not just altering the country’s physical skyline but fundamentally reshaping consumer behaviors, preferences, and market dynamics.

Urban India’s evolving consumer preferences increasingly lean toward premium, health-centric, and sustainable products. Rising incomes and lifestyle changes push urban consumers to prioritize convenience, quality, and value alignment in purchasing decisions. For brands aiming to capture this growing consumer base, understanding the nuanced patterns of urban consumption is crucial for future success.

Cities will be central to India’s economic future

India’s urbanization is sparking a consumer revolution, reshaping purchasing power and market dynamics. From sprawling megacities to tier-2 hubs, urban India offers critical growth battlegrounds for brands. Urban consumers increasingly demand products that match their changing lifestyles—convenient, high-quality, and sustainable products. 

According to the Deloitte-FICCI report, there is a significant shift toward value-based consumption, with urban buyers favoring health-centric options and brands that align with their values, such as sustainability and ethical sourcing. 

Brands must adapt to these changes by reimagining product offerings, emphasizing premium quality, convenience, and sustainability. Understanding the desires of the urban consumer—regional flavors or health-conscious products—is essential for building a meaningful connection in these evolving markets.

Quick Commerce Boom in India

Quick commerce is revolutionizing urban India’s FMCG and retail sectors, driven by rising demand for speed and convenience. Data reveals over one-third of urban consumers favor quick commerce for groceries, beverages, and urgent essentials.  

The rise of quick commerce also supports the trend of impulse buying among urban consumers. The ability to deliver items quickly has significantly influenced buying behaviors, creating an important channel for brands wanting to engage with this fast-paced urban market.

Case Study: Blinkit’s Rapid Expansion in India’s Quick Commerce Sector

Image Source; Product Monk

Background 

Blinkit, formerly known as Grofers, is a prominent player in India’s quick commerce industry. It specializes in ultra-fast delivery of groceries and daily essentials. In 2022, Zomato acquired Blinkit for $568 million, marking a significant consolidation in the quick commerce space.

Approach

To meet the growing demand for rapid deliveries, Blinkit established a network of dark stores—small fulfillment centers strategically located within urban areas. This setup allowed Blinkit to offer 10-20 minute deliveries, fulfilling urban India’s demand for speed and convenience. The company also leveraged data analytics to optimize inventory management and predict consumer demand patterns, ensuring high availability of products.

Outcome

Blinkit’s focus on speed and convenience led to a significant increase in customer loyalty among urban consumers. In 2024, Blinkit held a 46% market share in India’s ₹23,000 crore quick commerce industry, making it the leader in this sector. The company’s revenue surpassed ₹2,300 crore, highlighting its successful adaptation to the evolving preferences of urban consumers.

Affluent vs. Less Affluent Divergence 

A critical trend in urban India is the divergence in purchasing behaviors between affluent and less affluent households. Affluent urban consumers increasingly opt for premium products and larger pack sizes, reflecting their growing spending capacity and desire for enhanced quality. This shift is particularly evident in sectors like FMCG, where increased disposable incomes drive a preference for branded and premium goods.

Conversely, less affluent Urban households opt for smaller pack sizes or unbranded alternatives to manage their budgets. This divergence has created a two-speed market where brands must adopt distinct strategies to cater to both segments. Premium brands like Nestlé target affluent consumers by emphasizing health and quality, while value-driven brands expand their offerings to capture the price-sensitive segment. Brands must recognize these disparities and develop tailored approaches—investing in premiumization while maintaining affordability for budget-conscious consumers.

Case Study: BigBasket’s Success with Private Labels

Image Credit: Oyelabs

Background

BigBasket, India’s leading online grocery platform, has effectively used private labels to cater to urban demand for quality and affordability.

Approach

BigBasket developed private label products, such as “Fresho” and “BB Royal,” offering quality similar to branded goods at a 25-40% lower price point. These products appeal to urban middle-class consumers seeking value for money.

Outcome

This strategy contributed significantly to BigBasket’s growth, with private labels accounting for approximately 35% of its overall sales. The focus on quality and affordability has helped BigBasket capture a loyal customer base in urban areas, where price sensitivity remains crucial.

The Shift Toward Health and Sustainability

Urban consumers in India increasingly prioritize health and sustainability in purchasing decisions, creating fresh opportunities for brands to align with these preferences.

Health Consciousness

Urban consumers are increasingly drawn to products that promote health and well-being, driven by greater awareness of lifestyle-related diseases and increased disposable income. Modern Indian consumers are willing to pay a premium for food and beverages that offer health benefits, such as probiotics, fortified snacks, and organic produce.

Brands are responding by expanding their health-focused products, emphasizing natural ingredients, reduced sugar content, and enhanced nutritional profiles. Tata Consumer Products, for instance, has launched a line of healthy snacks designed for urban consumers seeking convenience without compromising health. For brands, focusing on health-enhancing products offers an opportunity to build trust and loyalty among urban consumers who are increasingly selective about their consumption habits.

Sustainability as a Driver

Sustainability has become a major consideration for urban consumers, particularly among younger demographics who are environmentally conscious. Awareness of climate change, plastic pollution, and ethical sourcing has led consumers to seek brands that reflect their values and commitment to sustainability.

Brands like Hindustan Unilever have responded with initiatives such as eco-friendly packaging, ethically sourced ingredients, and clean-label products containing minimal artificial additives. Clean-label product launches in India are growing, highlighting the increasing demand for transparency. Brands prioritizing sustainability align with consumer values and position themselves for long-term success in an increasingly eco-conscious marketplace.

Future Trends to Watch in Urban Consumption

India’s urban consumer landscape is rapidly evolving, and brands must stay informed of emerging trends to stay competitive. Here are three key trends shaping urban consumption in the coming years:

Digital Transformation and Personalization
Urban consumers increasingly seek frictionless, personalized experiences through e-commerce, digital payment solutions, and connected devices. Brands must leverage data-driven insights, AI, and IoT technologies to provide tailored offerings and seamless interactions, ensuring they stay ahead of consumer expectations.

Growth of Premiumization
Urban India is experiencing a trend toward premium products driven by rising incomes and a desire for convenience and quality. Brands that offer high-quality, value-added products will attract urban consumers willing to pay more for premium experiences.

Government-Brand Collaboration
Strategic partnerships between the government and private sector are critical for sustaining growth in urban areas. Targeted reforms in urban infrastructure, ease of doing business, and fostering innovation are essential to support urban markets. Brands should explore proactive collaboration opportunities that align with urban development initiatives.

Final Thoughts

India’s urban future isn’t just a story of population growth—it’s a blueprint for the next wave of consumer evolution. In the coming decade, cities will define where we live and how we consume, connect, and prioritize values. Brands that ignore this transformation risk irrelevance; those that embrace it will help shape a new era of commerce.

The urban consumer is no longer content with basic offerings—they demand solutions that integrate convenience, sustainability, and personal relevance. As technology accelerates and values shift, brands can innovate in ways that don’t just serve consumers but anticipate their aspirations.

In a market as dynamic and layered as India, the path forward isn’t about following trends—it’s about defining them. The brands that succeed will see urbanization not as a challenge but as a canvas for reinvention.

Contact us to learn how we can help you navigate the complexities of India’s urban consumer market and develop strategies to capture this growing opportunity.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Search behavior is undergoing a seismic shift, and the implications for brands are profound. Artificial intelligence tools like ChatGPT and Bard are no longer just novelties—they are becoming the go-to for millions seeking instant, conversational answers. Simultaneously, platforms like TikTok and Instagram have emerged as primary search engines for younger generations, with nearly 40% of Gen Z preferring TikTok over Google when searching for everything from local restaurants to financial advice, according to a survey by eMarketer.

This transformation is forcing brands to rethink their strategies. The once-reliable pillars of SEO and search engine marketing (SEM) are being upended by AI-driven search models and algorithm-powered social media platforms that prioritize video content. In this new ecosystem, traditional keyword optimization may lose relevance as conversational AI tools favor well-structured, contextual content. Similarly, social media search trends signal a growing demand for visual-first strategies, where brands that fail to adapt risk losing visibility.

The consequences extend beyond digital marketing tactics. AI-driven local searches and social platforms’ discovery algorithms increasingly favor large companies with the resources to invest in cutting-edge content strategies and ad placements. Smaller businesses, already stretched thin, may struggle to compete in a landscape that rewards scale and technical sophistication.

As search engines cede ground to AI and social media, marketers are left grappling with a key question: Will this democratize access to information or entrench the dominance of tech giants and large brands? What is clear is that the evolution of search will define how consumers discover and engage with businesses in the years to come, and the strategies marketers deploy today will determine who thrives in this new digital reality.

The Rise of AI in Search

AI-powered tools like ChatGPT, Bard, and Bing AI are redefining how consumers approach online searches, moving away from the traditional keyword-based structure of platforms like Google. Instead of entering a few words and scanning links for relevance, users are turning to AI for detailed, conversational responses. This shift reflects a growing preference for precision and speed—factors that are reshaping digital marketing at its core.

According to a report by Gartner, conversational AI platforms are expected to influence 50% of all search interactions by 2026. These tools not only provide more direct answers but also offer personalized and context-aware suggestions based on user intent. For example, a search for “best eco-friendly cars under $30,000” on ChatGPT might generate a list of options with detailed comparisons, saving users the time required to comb through multiple websites.

This evolution poses significant challenges for traditional SEO strategies. The long-standing reliance on keywords and backlinks is giving way to content strategies designed to answer complex, multi-layered queries. Marketers are now prioritizing structured data, FAQ formats, and in-depth, evergreen content that conversational AI models can extract and summarize. 

“Optimizing for AI search engines means creating content that anticipates user intent and provides answers, not just traffic bait,” explains Lisa Myers, CEO of Verve Search.

Big companies are likely to gain an advantage in this transition. With larger budgets and teams, they can rapidly adapt to the demands of AI-optimized content. Enterprises like Amazon and Walmart have already begun leveraging schema markup and structured product data to align with AI search capabilities, ensuring their products remain visible across platforms. Meanwhile, smaller businesses may lack the resources or technical know-how to implement these changes effectively, leaving them at risk of reduced visibility.

One notable trend is the rising importance of domain authority and expertise. Conversational AI tools tend to favor content from trusted and credible sources, further entrenching the dominance of established brands. A recent analysis by SEMrush found that websites with robust, expert-driven content see higher inclusion rates in AI-generated results compared to those that rely on generic blog posts.

This transformation is a double-edged sword. While AI’s conversational approach enhances user experience, it may also widen the gap between market leaders and smaller players. For marketers, the stakes have never been higher. Adapting to the nuances of AI search requires not just content realignment but a fundamental shift in how brands think about discoverability in a digital age increasingly dominated by machine learning.

Social Media as Search Engines

For younger generations, TikTok and Instagram are no longer just platforms for entertainment—they are primary tools for finding information. A recent survey by Insider Intelligence revealed that 40% of Gen Z prefer TikTok over Google for searches related to restaurants, shopping, and lifestyle recommendations. Similarly, Instagram, with its vast array of reels and tagged posts, has become a hub for discovering trends, products, and local businesses. This shift marks a dramatic rethinking of how consumers seek and consume information.

The rise of video-first, algorithm-driven content is central to this trend. Social media platforms deliver search results tailored to user behavior, relying on sophisticated algorithms to prioritize content that aligns with individual interests. A search for “easy vegan recipes” on TikTok, for example, not only provides video tutorials but also user-generated reviews, tips, and hacks—all presented in under a minute. This bite-sized approach appeals to a generation accustomed to consuming information quickly and visually.

The implications are profound for media outlets and traditional information sources. Platforms like TikTok and Instagram are not merely complementing Google—they are competing for attention. News publishers and content creators are increasingly forced to tailor their stories into short, visually engaging formats to remain relevant. A study by Pew Research Center found that nearly 30% of U.S. adults now regularly get their news from Instagram, underscoring the platform’s growing influence as a source of information.

The impact on SEM and SEO strategies is equally transformative. Traditional keyword-based optimization is losing ground to visual search optimization. For marketers, this means a renewed focus on creating high-quality, engaging video content that aligns with social media algorithms. Videos with compelling hooks, captions, and tags are crucial for discoverability. Additionally, influencers and user-generated content play a vital role, with algorithmic preferences often favoring authentic, relatable material over professionally produced ads.

Brands that successfully adapt to these trends are seeing tangible benefits. Chipotle, for example, used TikTok to promote its menu with viral challenges and behind-the-scenes videos, generating millions of views and increased foot traffic. Smaller businesses, too, can gain visibility by leveraging platform-specific trends and hashtags, though the competitive landscape can be challenging.

For marketers, the rise of social media as a search engine offers opportunities and risks. On one hand, platforms like TikTok and Instagram provide direct access to highly engaged, niche audiences. On the other, they demand a more dynamic, resource-intensive content strategy to stay visible. As social media continues to redefine the search landscape, brands must adapt quickly or risk being eclipsed in the fast-moving world of algorithm-driven discovery.

The Impact on Local Searches

The integration of AI and social media into search is redefining how consumers discover local businesses. AI-powered tools like ChatGPT and Google Bard are capable of hyper-personalized recommendations, providing users with tailored suggestions for dining, shopping, and services based on their location, preferences, and prior behavior. Meanwhile, TikTok and Instagram are emerging as powerful tools for local discovery, with users increasingly turning to these platforms for everything from restaurant reviews to hidden gems in their neighborhoods.

This shift is driven by the immediacy and relatability these platforms offer. A quick search for “best coffee shops near me” on TikTok might yield dozens of short videos showcasing not just the menu but the ambiance, customer experiences, and even real-time pricing. Similarly, Instagram’s geotagged posts and story highlights make it easy for users to explore local businesses through authentic, visually engaging content. According to a recent survey by BrightLocal, 34% of consumers now rely on social media for local business recommendations, a number that continues to climb.

For small businesses, this evolution presents both opportunities and challenges. On one hand, platforms like TikTok and Instagram offer a level playing field where smaller brands can compete with larger corporations by leveraging creativity and authenticity. A small bakery, for example, can attract attention through visually appealing reels that highlight its products and customer stories. On the other hand, the dominance of AI-driven recommendations often favors larger companies with established digital footprints and resources to invest in advanced SEO and content strategies.

Hyper-personalization also comes with higher expectations for relevancy and responsiveness. AI tools prioritize businesses with detailed, accurate information online—such as updated hours, menus, and customer reviews. Companies that fail to maintain a robust digital presence risk being excluded from AI-curated results. In this environment, small businesses must prioritize local SEO, user-generated content, and active engagement on social platforms to remain competitive.

For large corporations, the integration of AI and social media into local search further solidifies their dominance. Chains with resources to optimize AI and social media strategies at scale can flood platforms with location-specific ads, promotions, and content, making it harder for smaller competitors to gain visibility. As consumers increasingly rely on personalized and social-driven local searches, the battle for relevance will hinge on agility, creativity, and a deep understanding of these evolving ecosystems.

Winners and Losers in the New Search Landscape

In the new world of AI-driven and social media-influenced search, big companies hold a clear advantage. Their extensive resources allow them to adopt cutting-edge AI tools, optimize social media strategies, and scale content creation with relative ease. Companies like McDonald’s, for instance, have leveraged AI to refine their customer targeting, using tools that analyze vast amounts of data to craft personalized ad campaigns across platforms. Similarly, brands like Nike dominate social media algorithms by producing high-quality, frequent, and visually compelling content bolstered by influencer partnerships and larger ad budgets.

These capabilities position large corporations to consistently appear at the top of AI-curated search results and dominate the social discovery algorithms that younger generations increasingly rely on. Their ability to invest in emerging technologies, such as machine learning for predictive analytics and video-first campaigns tailored to TikTok and Instagram, ensures they remain visible and relevant in the crowded digital marketplace.

Small businesses, however, face significant hurdles. Limited budgets and leaner teams make it challenging to invest in the tools and expertise necessary to compete with industry giants. According to a 2023 report by the Small Business Administration, 78% of small businesses cited the cost of technology as a primary barrier to digital transformation. For many, the financial burden of producing high-quality video content, optimizing for AI search, or running paid campaigns on platforms like TikTok and Instagram is simply out of reach.

Despite these challenges, small businesses can carve out a competitive edge by focusing on authenticity, niche markets, and community engagement. Local boutiques, for example, can use social media to highlight their unique offerings, share customer stories, and foster genuine interactions with their audience. By prioritizing user-generated content and tapping into local influencers, they can amplify their reach without the need for massive ad budgets. Additionally, emphasizing their role within the community—through events, partnerships, or localized content—can help small businesses stand out in AI-curated searches and resonate with socially conscious consumers.

In this new search landscape, the ability to adapt is paramount. While big companies may dominate through scale, small businesses have the opportunity to thrive by doubling down on what makes them unique. As technology continues to reshape the digital ecosystem, success will belong to those who can navigate its complexities with creativity and agility.

The Future of Search and Discovery

As AI and social media redefine how information is found and consumed, traditional search engines face a critical crossroads. Google’s dominance is already being challenged by platforms like TikTok, which offer visually rich, user-generated content and algorithmic precision. If current trends persist, traditional search engines may need to pivot significantly to retain relevance, likely integrating more conversational AI and multimedia features to meet evolving user expectations.

Social media’s role as a search tool is set to deepen. Platforms like Instagram and TikTok are likely to refine their search capabilities further, incorporating more advanced filters, localized suggestions, and AI-driven insights to enhance the user experience. The growing popularity of shoppable content on these platforms also hints at a future where search, discovery, and purchasing are seamlessly intertwined.

AI innovations will further transform search by prioritizing personalization and intent. Emerging algorithms are expected to leverage contextual clues—such as location, past behavior, and even sentiment analysis—to deliver hyper-relevant results. For marketers, this means the era of generalized content is ending. Instead, success will demand nuanced, targeted strategies that align with the unique needs and preferences of individual users.

Future-proofing strategies require a multi-pronged approach. Marketers must diversify their efforts across traditional search engines and social platforms, ensuring visibility in both ecosystems. Investment in dynamic content—particularly video and conversational formats—is critical, as is a commitment to data-driven insights. Finally, brands must remain agile, adapting quickly to technological and behavioral changes in a world where the search landscape evolves at an unprecedented pace.

Navigating the New Search Reality

The shift in search behavior, driven by AI and social media, marks one of the most significant changes in digital marketing in decades. Traditional search engines are no longer the sole gateway to information, as platforms like TikTok and Instagram reshape how users discover, engage with, and act on content. These changes are creating new opportunities but also stark challenges for marketers and brands.

Staying ahead requires agility and a deep understanding of emerging trends. Success lies in embracing new technologies, tailoring content for AI-driven platforms, and creating visually engaging, authentic experiences for social media users. The future of search is being written now, and the brands that innovate today will define tomorrow’s digital landscape.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Western theories often fail to capture India’s intricate cultural and market dynamics. With its vast diversity and unique consumer demands, India requires localized strategies that balance cultural sensitivity with global scalability.

With over a billion people spanning countless regional, linguistic, and traditional boundaries, understanding Indian consumers demands a localized approach. Immersive consumer research, known as fieldwork, provides the precision and depth needed to decode these complexities, helping brands align authentically with local contexts.

McDonald’s broke new ground in India with the McAloo Tikki Burger, a vegetarian option tailored to the nation’s dietary preferences. This departure from its global menu tapped local tastes, cementing the brand’s foothold. Similarly, Daikin reengineered its air conditioners to endure India’s sweltering summers while addressing the rising demand for energy efficiency—a top priority for Indian households. These examples illustrate how brands leveraging fieldwork to inform localized strategies can achieve lasting success.

Fieldwork’s Role in Understanding Indian Consumers

Fieldwork delves deeper than observation, uncovering the motivations, habits, and emotions driving consumer behavior. Fieldwork provides brands with unparalleled insights in a country like India, where buying decisions often intertwine with tradition and familial structures. This approach bridges the gap between global strategies and local realities, revealing not just what consumers want but why they choose certain products.

For instance, India’s festival seasons—a cornerstone of its consumer economy—highlight how cultural rituals drive purchasing behaviors. Brands that align with gifting traditions during Diwali or tailor offerings for Makar Sankranti’s regional flavors often gain a decisive edge in their markets.

Understanding daily life in urban and rural settings can reveal important insights into consumption patterns. For instance, urban households often prioritize convenience to accommodate their busy schedules, while rural families tend to favor bulk purchases that align with seasonal income cycles.

Overcoming Challenges in Indian Fieldwork

ChallengeDescription
Linguistic DiversityIndia’s 22 official languages and hundreds of dialects demand skilled local interpreters for accurate data collection.
Urban-Rural DivideConsumer preferences shift dramatically; urban consumers lean toward global trends, while rural audiences value affordability and tradition.
Cultural SensitivitiesConducting research requires respect for customs, especially gender roles and privacy boundaries.
Building TrustEthical practices and genuine engagement are essential to foster trust in communities with skepticism toward external interactions.

When planned meticulously and conducted with cultural empathy, fieldwork enables brands to navigate these complexities effectively. Addressing these challenges requires anticipating practical barriers such as logistical constraints, regional infrastructure limitations, and participant accessibility.

Strategies for Effective Fieldwork in India

To truly harness the power of fieldwork in India, brands need a strategic, locally informed approach:

  • Partner with Local Experts: Regional collaborators bring invaluable cultural knowledge, ensuring relevant and authentic research.
  • Embrace Hybrid Methods: Combine traditional on-ground interactions with digital tools, such as mobile diaries, to capture diverse consumer perspectives.
  • Segment Regionally: Tailor research to India’s regional differences, such as contrasting culinary preferences between North and South India. For example, while mustard oil dominates cooking in the east, coconut oil is a staple in the south.
  • Prioritize Immersion: Researchers should engage deeply with communities—participating in local events or observing daily routines—to gain richer, more actionable insights.
  • Adapt Research to Socioeconomic Layers: Fieldwork should account for varying consumer priorities across income groups, from premium buyers in metros to budget-conscious rural shoppers.
  • Incorporate Behavioral Observations: Observing purchasing behaviors in markets or kirana stores (small neighborhood grocers) can reveal subtle preferences surveys might overlook.

Examples of Brands Acing Localization in India

Paper Boat’s Revival of Traditional Beverages: Fieldwork revealed an untapped nostalgia among Indian consumers for traditional drinks like aam panna and jaljeera. By reviving these flavors and packaging them in modern, convenient formats, Paper Boat struck a chord with urban millennials and rural buyers.

Image Credit: Paper Boat

Godrej’s Good Knight Fast Card: Rural consumers’ reliance on open-air living spaces inspired the creation of an affordable, portable mosquito repellent. Designed to meet specific regional needs, this innovation rapidly gained popularity in semi-urban and rural markets.

Image Credit: Indian Television

Cavinkare’s Sachet Revolution for Middle India: Cavinkare pioneered the shampoo sachet, priced at just Rs. 1, to address the dual challenges of price sensitivity and distribution in rural India. Rural consumers often prioritized affordability, and Cavinkare’s sachets met this need while being lightweight and easy to transport. This strategy not only made personal care accessible but overcame logistical hurdles by allowing distribution in small, remote shops. The innovation reshaped India’s FMCG sector, with multiple brands adopting the sachet model to cater to cost-sensitive markets.

Image Credit: The Print

Technology’s Impact on Fieldwork

Digital tools have transformed fieldwork, expanding its reach and efficiency:

  • Mobile Diaries: Consumers document their daily lives through apps, offering real-time insights into behaviors and preferences.
  • Social Listening: By analyzing conversations on digital platforms, brands identify emerging trends and pain points. For instance, social media chatter around eco-friendly packaging has spurred many brands to adopt sustainable practices.
  • AI-Driven Analysis: Advanced algorithms streamline the interpretation of qualitative data, unveiling patterns that might otherwise be missed. AI can help identify commonalities in regional tastes, enabling faster product localization.
  • Geospatial Analytics: Mapping consumer behaviors geographically helps brands focus their efforts where they’re needed most. This is particularly useful for understanding rural adoption rates versus urban saturation.

These technologies complement traditional methods, creating a holistic view of Indian consumer behavior.

The Road Ahead for Fieldwork in India

As India evolves, fieldwork must adapt to keep pace with shifting consumer dynamics. Key areas of focus include:

  • Sustainability Trends: With growing environmental awareness, brands must explore how eco-conscious values influence purchasing decisions. For example, consumers are increasingly opting for refillable products over single-use plastics.
  • Tier 2 and 3 Cities: These markets are experiencing rapid growth, presenting opportunities for tailored innovations. A surge in e-commerce adoption in these regions highlights the need for online-offline hybrid strategies.
  • Immersive Technologies: Tools like VR and AR could revolutionize consumer research, offering simulated environments to observe behaviors. Brands could test retail layouts or product placement virtually, reducing real-world trial costs.
  • Consumer-Centric Design: Indian consumers, particularly younger generations, expect brands to address their specific needs—from affordability to ethical sourcing. Fieldwork must pivot to include participatory design sessions where consumers co-create solutions with brands.

By staying agile and investing in culturally grounded strategies, brands can ensure continued success in India’s vibrant and complex market.

Partner with Experts for In-Depth Insights

At Kadence International, we specialize in delivering actionable insights through immersive research methods. Our expertise in Indian markets can help your brand connect authentically and effectively with diverse consumer segments. Learn how we can empower your growth in India and beyond.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

With over 30% of the Philippines‘ population under the age of 15 and a total population exceeding 113 million, the country is positioned as a global powerhouse. 

Forecasted to be among eight nations contributing to half of all global population growth by 2050, the Philippines’ youth are not just the face of tomorrow—they are the architects of today’s transformative changes. Millennials and Gen Z are steering conversations around economic resilience, social equity, and innovation, envisioning a nation that fosters equitable opportunities for all.

Yet, systemic barriers threaten to stifle their potential. Rising housing costs and employment challenges, such as skills mismatches and high youth unemployment—reported by 88% of Gen Z and 89% of millennials as critical issues in our study—present stark realities. Despite these hurdles, Filipino youth remain optimistic, leveraging digital platforms to amplify their voices, champion policy reforms, and reshape industries like business process outsourcing (BPO) 

and creative arts.

Drawing from our comprehensive study on Southeast Asian youth, conducted in collaboration with Vero Advocacy, Filipino youth have two pressing issues: affordable housing and employment opportunities. These challenges also represent opportunities for stakeholders to empower a generation central to the Philippines’ future.

Demographic Snapshot of Filipino Youth

Millennials: Guardians of Family-Centric Progress

  • Economic Context: Millennials in the Philippines often serve as financial pillars for their families, adhering to the deep-rooted cultural value of utang na loob (debt of gratitude). They prioritize stable employment to support not just themselves but also extended family members.
  • Career Aspirations: While many hold traditional jobs in healthcare, education, and government, there’s a growing migration trend to tech-driven industries due to the Philippines’ increasing role in the global BPO (Business Process Outsourcing) market.
  • Housing Dreams: Millennials aspire to homeownership but face challenges from soaring property prices, particularly in Metro Manila. Government programs like Pag-IBIG Fund housing loans offer some relief, yet urban sprawl often pushes them to suburban developments.

Gen Z: Trailblazers of Digital and Social Movements

  • Digital First-Movers: Gen Z Filipinos are not just consumers of digital content; they are creators, using platforms like TikTok to launch small businesses or raise awareness about social causes, from environmental sustainability to mental health.
  • Housing Preferences: Renting remains the preferred option for Gen Z, reflecting their desire for flexibility and reduced financial burdens. Co-living spaces, a growing trend in Metro Manila, appeal to their communal and budget-conscious lifestyle.
  • Gig Economy Pioneers: Many young Filipinos are pursuing freelance opportunities in content creation, graphic design, and virtual assistance, capitalizing on the global demand for remote workers.
CategoryMillennialsGen Z
Cultural ValuesFamily-centric, stability-drivenPurpose-driven, entrepreneurial
EmploymentTraditional sectors with a tech shiftGig economy and creative industries
HousingSuburban homeownership aspirationsCo-living and urban renting
Digital PresenceProfessional networking and advocacySocial entrepreneurship and activism

What does this mean for policymakers and brands?

  • Localized Insights: Focusing on unique Filipino cultural values like utang na loob and bayanihan (community spirit) roots the discussion in the Philippines’ specific context.
  • Emerging Trends: Highlighting trends like co-living spaces and the rise of the BPO sector adds contemporary relevance.
  • Brand Opportunities: These cultural and economic insights can guide brands to design solutions that resonate deeply with Filipino youth, such as flexible financial products or community-focused marketing campaigns.

Affordable Housing: Bridging Aspirations with Accessibility

For Filipino youth, housing is more than shelter; it represents stability, independence, and an investment in their future. However, rising property prices, a limited rental market, and urban congestion push housing aspirations further out of reach for millennials and Gen Z.

Challenges in Affordable Housing

Skyrocketing Urban Property Costs
In Metro Manila, property prices have surged by over 25% in the past five years, making homeownership unattainable for many millennials. Even with government programs like the Pag-IBIG Fund, which offers low-interest housing loans, affordable properties near economic centers remain scarce.

Rental Market Gaps
Gen Z, who predominantly prefer renting, have limited market options. Quality rental properties within city centers are either too expensive or lack amenities that appeal to young renters, such as high-speed internet or co-living arrangements.

Urban Sprawl and Accessibility
Affordable housing developments are often located far from employment hubs, increasing commute times and expenses for young professionals. This challenge disproportionately affects millennials, who prioritize stable family lives and access to essential services.

Example: Co-Living Spaces in Metro Manila

Image Courtesy: MyTown

The rise of co-living spaces like MyTown in Makati and Bonifacio Global City offers a glimpse into how housing solutions can cater to young professionals. These spaces provide affordable, fully-furnished accommodations with shared amenities like gyms and workspaces, targeting Gen Z’s preference for flexibility and millennials’ need for convenience. Their vision is to be the preferred accommodation provider for young professionals in the Philippines.

Impact: Since its launch, MyTown has won several awards and housed thousands of young professionals, enabling them to live closer to their workplaces while fostering a sense of community. 

Global Inspiration: Singapore’s Public-Private Housing Model

Singapore’s Housing & Development Board (HDB) offers a globally admired approach to affordable urban housing. Combining public funding with private sector efficiency, the model has provided Singaporeans with subsidized housing, ensuring accessibility and quality. As of 2022, around 90% of HDB residents owned their flats. To help married couples purchase their first HDB flat, HDB gives a housing grant to subsidize their purchase from the resale market and an additional grant for those who choose to live near their parents.

Key Features:

  • Subsidized Homeownership: First-time buyers receive grants covering a significant portion of housing costs, allowing them to afford properties in prime urban areas.
  • Integrated Communities: HDB developments include mixed-use spaces, such as retail outlets, parks, and schools, fostering a holistic living experience.
  • Innovation in Design: Recent initiatives include smart homes with energy-efficient technologies and urban farming solutions.

Implications for the Philippines: The Philippines can adopt a similar approach by integrating affordable housing projects with urban amenities and green infrastructure, particularly in high-demand areas like Metro Manila and Cebu.

Recommendations for Stakeholders

  • Incentivize Transit-Oriented Development (TOD): Encourage mixed-use developments near transportation hubs, which will reduce commute times and improve access to city centers.
  • Expand Rental Support Programs: Introduce subsidies or tax incentives for landlords offering affordable rental units tailored to youth needs.
  • Promote Co-Living Innovations: Partner with private developers to scale co-living solutions across Metro Manila and secondary cities.

Stable housing is more than a personal milestone for Filipino youth—it is a foundation for economic productivity. Without access to affordable, well-located housing, Millennials and Gen Z face increased commuting costs and reduced job opportunities, particularly in key growth sectors like technology and renewable energy. This interdependence highlights the need for housing and employment reforms to work hand in hand.

Employment Opportunities: Bridging Skills and Expanding Horizons

For Filipino youth, meaningful employment is more than a paycheck—it’s a means of achieving stability, self-fulfillment, and societal contribution. However, systemic barriers such as skills mismatches, limited entry-level opportunities, and urban-rural disparities continue to hinder their professional growth.

Employment Challenges

Skills Mismatch Despite the Philippines’ high literacy rate, many graduates lack the practical skills for high-growth sectors like technology and renewable energy. Our report highlights that over 60% of youth feel their education does not align with job market requirements, leading to underemployment.

Urban-Rural Employment Divide
Job opportunities remain concentrated in urban hubs like Metro Manila and Cebu City. Rural youth face limited career prospects, pushing many to migrate to cities, where they often accept informal or low-paying jobs.

Youth Unemployment
The report reveals that over 85% of Filipino millennials and Gen Z view unemployment as a critical issue. While the Philippines’ BPO sector provides opportunities, the demand for skilled talent continues to outpace supply.

Example: BPO Sector as a Game-Changer

The Philippines’ BPO sector employs over 1.4 million workers, with millennials and Gen Z dominating the workforce. Companies like Accenture Philippines and TaskUs have introduced upskilling programs focusing on digital literacy and AI-driven processes, enabling employees to transition into higher-paying roles.

Impact: These programs have increased employee retention rates and enhanced productivity, setting a benchmark for skills-focused employment models.

Global Inspiration: Canada’s Youth Employment Strategy (YES)

Canada’s Youth Employment Strategy (YES) provides targeted programs to help young people gain employment skills, transition into the workforce, and pursue entrepreneurship.

Key Features:

  • Skills Link Program: Designed for youth facing employment barriers, this initiative offers hands-on training, mentorship, and access to resources in high-demand sectors.
  • Career Focus Program: Provides internships and job placements aligned with emerging industries, such as technology and green energy.
  • Summer Work Experience Program: This program helps students gain valuable work experience during summer breaks, building practical skills early in their careers.

Implications for the Philippines: The Philippines could establish a similar framework by offering tailored employment programs for youth in secondary cities, focusing on key growth sectors like renewable energy, e-commerce, and digital content creation.

Recommendations for Stakeholders

  • Invest in Vocational Training: Partner with academic institutions to create programs aligned with high-growth tech and renewable energy sectors.
  • Promote Regional Hubs: Establish economic centers in secondary cities like Davao and Iloilo to decentralize job opportunities and reduce urban migration pressures.
  • Strengthen Internship Programs: Design structured pathways for students to transition seamlessly from education to employment.

Beyond traditional employment pathways, Filipino youth are leveraging digital platforms to create entrepreneurial ventures and drive social impact. These initiatives reflect a shift toward a more self-reliant and sustainability-focused future, where economic growth aligns with environmental and social equity.

Youth as Catalysts for Digital Transformation and Sustainability

Many Filipino youth have recently started using platforms like TikTok, Instagram, and Lazada to launch small businesses and advocate for sustainable practices.

Digital Transformation

Social Commerce Boom: Platforms like TikTok Shop have enabled young entrepreneurs to monetize their creativity, from selling handcrafted goods to offering online consultations.

Example: Manila’s Plastic-Free Market
The Plastic-Free Market initiative, driven by youth entrepreneurs, promotes zero-waste practices through eco-friendly products. Located in Quezon City, it collaborates with local vendors to replace single-use plastics with biodegradable alternatives.

Sustainability Initiatives

Filipino youth are at the forefront of climate advocacy, with initiatives like Youth for Climate Action Philippines, which organizes workshops and campaigns to educate communities on renewable energy and sustainable living.

Global Inspiration: Sweden’s E-Skills for All Program

Sweden’s national program equips young entrepreneurs with digital tools to scale their green businesses, emphasizing rural inclusivity and sustainability.

Recommendations for Brands

  • Support Digital Entrepreneurs: Launch workshops and grants for youth-led online businesses.
  • Promote Green Campaigns: Collaborate with eco-friendly initiatives to highlight sustainable practices.
  • Leverage Social Media Advocacy: Partner with influencers driving meaningful conversations around climate action and equity.

Final Thoughts: What Do the Youth Want?

Filipino youth envision a future of equity, innovation, and sustainability. They demand systemic reforms in housing and employment while championing digital transformation and green entrepreneurship.

Policymakers and brands must act decisively to address these priorities. By collaborating with youth to co-create solutions, they can turn challenges into opportunities and ensure a resilient, inclusive Philippines.

Read our full report for actionable insights tailored to empowering Filipino youth. [Click here to explore the full study.]

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The old ways of buying food won’t cut it anymore for today’s shoppers. With transparency, convenience, and personalization at the top of their needs, consumers drive a massive shift in how brands reach them. As traditional retailers scramble to keep up, DTC  food brands are seizing the moment, cutting out middlemen to deliver not just products but tailored experiences.

This trend shows no signs of slowing, with Salesforce reporting that 64% of shoppers now choose to buy directly from brand-owned channels. These platforms offer more than just a product—they provide authenticity, confidence in quality, and curated experiences that larger marketplaces simply can’t replicate.

Global e-commerce sales are projected to reach $6.3 trillion in 2024, rising from $5.8 trillion in 2023, underscoring the shift toward online purchasing. The food industry is emerging as a critical player in this shift as DTC brands redefine market dynamics and elevate consumer expectations worldwide.

An example of this success is US-based Thrive Market, a subscription-based online grocery service catering to ethically minded shoppers. With over 1.2 million subscribers, Thrive Market shows how DTC brands combine convenience with a commitment to sustainability. Their approach has set a new benchmark for how brands can align with consumer values while delivering a seamless shopping experience.

What Drives the Growth of DTC Food Brands?

Direct-to-consumer food brands have experienced exponential growth due to evolving consumer behaviors, technological advancements, and shifting market dynamics. While already gaining momentum, the pandemic accelerated the adoption of DTC food brands by driving more consumers toward online shopping and home delivery channels. 

Consumer-Centric Strategies

  • Personalization and Customization
    • Consumers can tailor their orders based on dietary needs (e.g., vegan, keto, gluten-free).
    • Brands offer curated subscription plans, meal kits, and customizable snack boxes.
  • Convenience and Accessibility
    • Online platforms make it easy for consumers to purchase products from the comfort of their homes.
    • Subscription models provide regular deliveries, ensuring consumers never run out of their favorite products.
  • Transparency and Trust
    • DTC brands emphasize ethical sourcing and clean ingredients.
    • Brands build trust through direct communication with consumers via social media and email.

Technology and Digital Platforms

The rise of e-commerce and digital tools has been instrumental in propelling DTC food brands.

TechnologyImpact
Social Media MarketingPlatforms like Instagram and TikTok enable brands to build a strong online presence.
Data AnalyticsTools help brands analyze consumer preferences and optimize product offerings.
Mobile AppsApps streamline ordering processes and enhance customer experiences.
AI-Powered PersonalizationChatbots and recommendation engines create tailored shopping experiences.

DTC Food Market Trends

Cultural and generational shifts are also fueling the DTC food trend.

  • Demand for Ethical and Sustainable Products
    • Younger consumers prioritize sustainability and ethical practices.
    • Brands offering eco-friendly packaging and fair-trade ingredients gain a competitive edge.
  • Shift Toward Health and Wellness
    • Consumers are more focused on health-conscious eating.
    • Functional foods, plant-based options, and immunity-boosting products are in demand.
  • Generational Influence
    • Millennials and Gen Z prefer digital-first interactions, resonating with DTC brands’ approach.
    • These generations value convenience, transparency, and brand storytelling.

Key Benefits of the DTC Model

DTC food brands are redefining traditional business models, offering unique advantages that resonate with modern consumers. Their ability to streamline operations, connect directly with their audience, and deliver unique value propositions makes them formidable players in the modern food industry. These benefits not only set DTC brands apart but also enable them to thrive in a competitive marketplace.

Direct Consumer Relationships

  • Data-Driven Insights: By selling directly, brands gain invaluable data on consumer preferences and purchasing patterns, enabling real-time decision-making.
  • Personalized Marketing: With direct access to consumers, brands can create highly targeted marketing campaigns tailored to specific segments.
  • Agility in Product Development: Feedback loops are shorter, allowing brands to adapt and innovate quickly based on consumer input.

Efficient Supply Chain Management

  • Eliminating Intermediaries: By bypassing wholesalers and retailers, brands retain greater control over pricing and margins.
  • Improved Inventory Control: Real-time tracking systems help prevent overstocking or stockouts, optimizing supply chain efficiency.
  • Cost Savings: Reduced reliance on intermediaries translates to lower operational costs, which can be passed on as savings to consumers.
Traditional Supply ChainDTC Supply Chain
Involves multiple intermediariesDirect from brand to consumer
Higher costs due to markupsLower costs with no middlemen
Limited control over distributionFull control over distribution

Stronger Brand Loyalty

  • Community Building: DTC brands foster deeper connections through storytelling, transparency, and direct engagement on digital platforms.
  • Exclusive Offers: Loyalty programs and member-only benefits strengthen customer retention.

Enhanced Customer Experience: Personalized packaging, thank-you notes, and exclusive content create memorable interactions that drive repeat purchases.

How DTC Food Brands Leverage Packaging to Elevate the Consumer Experience

For food brands, product packaging is more than a container—it’s a pivotal touchpoint that bridges the physical and digital shopping experience. Thoughtfully designed packaging serves multiple roles: it protects the product, reinforces the brand’s identity, and enhances the customer’s unboxing experience. Innovative packaging can be the differentiator that keeps customers returning for more.

  1. Brand Storytelling
    • Packaging provides an opportunity to tell the brand’s story visually, from eco-friendly messaging to cultural nods.
    • Custom designs and premium materials create a memorable unboxing experience that resonates with customers.
  2. Sustainability
    • Environmentally conscious packaging is a priority for Millennial and Gen Z consumers.
    • Using recyclable, compostable, or reusable materials showcases a commitment to sustainability.
  3. Functionality and Protection
    • Durable packaging ensures products arrive intact, even after long shipping journeys.
    • Functional designs, like resealable bags or compact boxes, improve usability and convenience for consumers.
  4. Marketing and Retention
    • Unique designs encourage social sharing, effectively turning customers into brand advocates.
    • Personalized messages and custom inserts can boost customer loyalty.

Case Study: Daily Harvest – A Packaging Revolution in DTC

Image Courtesy: Daily Harvest

Overview
Daily Harvest, a subscription-based DTC food brand specializing in ready-to-blend smoothies and plant-based meals, has mastered the art of packaging to align with its health-conscious and eco-friendly ethos.

Packaging Strategies

  • Minimalist Design: Clean, modern designs reflect the brand’s fresh and healthy identity. Each package includes vibrant visuals of ingredients, emphasizing product transparency.
  • Eco-Friendly Materials: Daily Harvest uses 100% compostable and recyclable packaging, reducing its environmental impact while appealing to sustainability-conscious consumers.
  • Customer-Centric Functionality: The brand’s insulated delivery boxes ensure frozen meals and smoothies arrive in perfect condition, preserving quality during transit.
  • Personal Touches: Boxes often include inspirational messages and guides on how to best enjoy the meals, enhancing the unboxing experience.

Impact

  • Daily Harvest has seen a significant increase in social media engagement, with customers frequently sharing unboxing videos and photos of the aesthetically pleasing packaging.
  • Its eco-conscious packaging has bolstered customer loyalty, as many subscribers cite sustainability as a deciding factor in their purchase.

Emerging Trends in DTC Food Packaging

  • Smart Packaging
    • Technologies like QR codes and NFC tags allow consumers to scan packages for product details, sourcing information, and preparation tips.
  • Augmented Reality (AR) Integration
    • AR-enabled packaging creates immersive experiences, like virtual recipe tutorials or stories about the brand’s mission.
  • Personalization
    • Brands offer customizable packaging options, such as names printed on boxes or tailored product bundles.

DTC Brands That Have Disrupted Traditional Brands by Building Customer Connections

Case Study: Magic Spoon – Redefining Breakfast Cereals

Image Credit: The New York Times

Overview: Magic Spoon, founded in 2019, has disrupted the traditional cereal market by offering high-protein, low-carb, and zero-sugar cereals that cater to health-conscious consumers seeking nostalgic flavors.

DTC Strategies:

  • Product Innovation: Utilized alternative ingredients like monk fruit and allulose to create keto-friendly, grain-free cereals replicating classic flavors.
  • Influencer Marketing: Collaborated with mid-tier influencers (100,000–500,000 followers) on platforms like TikTok to authentically promote products, leading to higher engagement rates.
    Podcast Advertising: Invested in podcast ads, resulting in nearly 10% higher lifetime value (LTV) from podcast listeners than other channels.

Outcomes:

  • Rapid Growth: Achieved significant market penetration, prompting expansion into retail channels in 2022.
     
  • Brand Loyalty: Built a strong customer base by aligning with consumer trends toward nostalgia and health-conscious eating.
     

Case Study: Sakuraco – Bringing Japanese Tradition Worldwide

Image Credit: Sakuraco

Overview: Sakuraco offers monthly subscription boxes featuring authentic Japanese snacks, teas, and home goods, aiming to share Japan’s rich culinary traditions globally.

DTC Strategies:

  • Curated Experience: Each box contains 20 artisanal items sourced from local Japanese makers, accompanied by a cultural booklet to enhance the unboxing experience.
  • Thematic Packaging: Monthly themes, such as regional specialties, provide subscribers with a diverse and educational journey through Japan’s culinary landscape.
  • Affiliate Marketing: Launched an affiliate program in 2021 to increase brand awareness and drive revenue, partnering with creators to reach wider audiences.
     

Outcomes:

  • Global Reach: Successfully delivered Japanese cultural experiences to international subscribers, fostering an appreciation for traditional snacks and teas.
     

Customer Engagement: Enhanced customer loyalty through immersive cultural storytelling and high-quality, authentic products.

Challenges and Future Opportunities for DTC Food Brands

Key Challenges

  • Logistics and Delivery
    • Difficulty in maintaining a seamless delivery experience in regions with limited infrastructure.
    • Rising delivery costs impacting profit margins.
  • Market Saturation
    • Intensified competition among DTC brands, especially in popular segments like meal kits and snacks.
    • Consumer fatigue from overexposure to targeted ads.
  • Maintaining Quality and Trust
    • Scaling operations without compromising product quality or the personalized customer experience.
    • Ensuring transparency and authenticity amid growing consumer scrutiny.

Future Opportunities

  • Rural Market Penetration
    • Expanding beyond urban areas to tap into underserved rural markets using hybrid online-offline strategies.
  • Sustainability Innovations
    • Adopting eco-friendly packaging and sourcing practices to appeal to environmentally conscious consumers.
    • Leveraging partnerships with local farmers and producers.
  • Tech-Driven Growth
    • Exploring AI-powered predictive analytics for hyper-personalized marketing.
    • Expanding into augmented reality (AR) experiences for immersive product engagement.
  • Global Expansion
    • Adapting offerings to fit diverse cultural and regional preferences.
    • Collaborating with local influencers and creators to build trust in new markets.

Actionable Insights for DTC Food Brands

Direct-to-consumer food brands are uniquely positioned to capitalize on market trends and consumer preferences. However, they must adopt strategic approaches tailored to their target audience and operational strengths to sustain growth and remain competitive. Here are actionable recommendations for DTC food brands to thrive in an evolving market:
Leverage Data Analytics for Personalization

Why It Matters: Consumers expect tailored experiences that meet their unique preferences and dietary needs.

Action Steps:

  • Implement AI-driven analytics to segment consumers by behaviors, preferences, and purchase history.
  • Use these insights to create personalized marketing campaigns, such as customized meal plans or product recommendations.
  • Invest in dynamic pricing strategies that adapt to consumer demand in real time.

Prioritize Sustainability

Why It Matters: Environmental consciousness is a key factor in consumer decision-making, particularly among Millennials and Gen Z.

Action Steps:

  • Switch to biodegradable or reusable packaging materials to reduce your environmental footprint.
  • Build partnerships with local farmers and producers to support sustainable sourcing.
  • Communicate your sustainability initiatives clearly through product labeling and marketing campaigns.

Expand into Untapped Markets

Why It Matters: Emerging markets, especially rural areas, represent significant growth opportunities.

Action Steps:

  • Develop localized product offerings that cater to regional tastes and preferences.
  • Partner with local distributors and influencers to establish trust and awareness in new markets.
  • Use mobile-first strategies, as many rural consumers rely on smartphones for online purchases.

Strengthen Brand Storytelling

Why It Matters: Consumers connect with brands that have a compelling story and clear values.

Action Steps:

  • Share behind-the-scenes content about product creation, ethical sourcing, or community initiatives.
  • Highlight customer success stories and testimonials to build trust and engagement.
  • Use interactive platforms like live streaming to showcase your brand’s authenticity.

Embrace Emerging Technologies

Why It Matters: Technology can enhance consumer engagement and streamline operations.

Action Steps:

  • Implement AR/VR for immersive shopping experiences, such as virtual try-before-you-buy features.
  • Adopt blockchain for transparent supply chain tracking and product authenticity.
  • Use IoT devices for inventory management and real-time quality control.

Optimize Customer Retention Strategies

Why It Matters: Retaining customers is more cost-effective than acquiring new ones.

Action Steps:

  • Develop loyalty programs that reward repeat purchases with exclusive discounts or free products.
  • Offer subscription-based models with flexible plans to keep customers engaged over time.
  • Provide exceptional customer support via 24/7 chatbots and responsive service teams.

Foster Strategic Partnerships

Why It Matters: Collaborations can enhance brand reach and operational efficiency.

Action Steps:

  • Partner with complementary brands to co-create products or bundled offerings.
  • Collaborate with influencers and content creators to amplify your brand message.
  • Work with logistics providers to optimize delivery speed and reliability.

Measure and Iterate

Gather customer feedback to refine products and services.

Why It Matters: Continuous improvement is essential for long-term success.

Action Steps:

To evaluate performance, use key performance indicators (KPIs) like customer acquisition cost (CAC), lifetime value (LTV), and conversion rates.

Conduct regular A/B testing on marketing campaigns and website features.

Final Thoughts 

The rise of DTC food brands marks a transformative shift in the food industry, fueled by changing consumer preferences, digital innovation, and the demand for personalized experiences. Direct-to-consumer brands have redefined traditional business models by eliminating intermediaries and connecting directly with their audience, offering unique value propositions that resonate globally.

Key Takeaways

  • Adaptability Is Crucial: DTC brands that embrace emerging technologies, prioritize sustainability, and personalize their offerings are better positioned for long-term success.
  • Consumer-Centric Strategies Win: Meeting the evolving demands of health-conscious, ethically minded, and convenience-driven consumers is essential.
  • Innovation Drives Growth: From AI-powered personalization to immersive shopping experiences, leveraging technology will set brands apart in a crowded market.
  • Global Opportunities Abound: Expanding into untapped markets and adapting to local preferences can unlock significant growth potential.

As competition intensifies, the ability to innovate and adapt will determine which brands thrive in this dynamic landscape. DTC food brands must continually refine their strategies, invest in cutting-edge solutions, and stay attuned to consumer trends to remain relevant and competitive. Adopting a forward-thinking and consumer-first approach will be the key to sustained success for brands looking to navigate these challenges and capitalise on opportunities.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.