In a trade hall packed with natural food startups and plant-based hopefuls, the mushroom drinks were among the first to sell out. Odyssey’s lion’s mane “cold brew” disappeared before lunch. Popadelics’ truffle-dusted shiitake chips were gone by midday. And when the Natural Products Expo West wrapped for the year, trend watchers were left with one clear takeaway: mushrooms have stepped into the spotlight.

What was once a fringe ingredient, used mainly in traditional medicine or tucked inside a risotto, is now breaking into every aisle of the supermarket. In the past year, US retail sales of foods and drinks featuring “super mushrooms” hit 642 million dollars, rising nearly 20 per cent according to SPINS, a retail data provider specialising in natural and wellness products. Mushroom-based teas and ready-to-drink coffees surged 250 percent. Even kombucha brands have started adding lion’s mane and chaga, with that segment growing 71 percent year-on-year.

For many shoppers, the appeal is simple. These products promise benefits like focus and energy without the sugar highs or stimulant crashes. Once limited to wellness circles, mushrooms are now part of the grocery routine. They’re showing up in coffee replacements, snack packs, and evening wind-down drinks. What started as a fringe supplement is becoming a habit.

From Folk Remedy to Modern Shelf

Long before they appeared in energy drinks and snack aisles, mushrooms were prized in ancient medicine. Reishi was known as the “mushroom of immortality” in China. In Siberia, chaga was brewed to withstand winter. Even Ötzi the Iceman carried medicinal fungi over 5,000 years ago.

These weren’t culinary choices. They were tools for stamina, clarity, and resilience. Today’s mushroom boom draws from those roots—but trades folklore for sleek packaging and science-backed positioning.

Lion’s mane is now sold for memory. Cordyceps for stamina. Reishi for sleep. Some of the science is still emerging. Yet global momentum is clear. In one year, functional mushroom supplements brought in over 396 million dollars in the US alone, according to the Nutrition Business Journal.

What was once foraged is now formulated. Mushrooms are no longer a footnote in wellness. They’re becoming fixtures in grocery carts and morning routines.

The Brands Leading the Charge

Momentum in the mushroom category is not driven by a single breakout product but by a wave of innovation across beverages, snacks, supplements, and alternative proteins. This is not a health food aisle phenomenon. It is happening at scale, across national chains and direct-to-consumer platforms, with products designed to meet shoppers where they are.

In Finland, Four Sigmatic was among the first to position mushrooms as an everyday wellness tool. The company, founded by a group of foragers and biohackers, built an early following through niche communities. Today, its products are carried in over 7,000 stores across the United States, including Target, Whole Foods, Sprouts, and Walmart. Sales have surpassed 200 million dollars. Its lion’s mane coffee sachets, reishi hot cacao blends, and adaptogenic protein powders are no longer sold on novelty. They are merchandised on functionality, with new packaging focused on outcomes like “Think,” “Calm,” and “Defend.”

Odyssey Elixir, based in Los Angeles, has taken a more caffeinated path. The company produces sparkling beverages infused with lion’s mane and cordyceps, positioned as a clean energy alternative for younger consumers who are moving away from sugary sodas and synthetic ingredients. In 2023, Odyssey sold nearly 10 million cans and secured 6.3 million dollars in venture funding. Retail presence expanded rapidly, reaching over 6,000 stores, including CVS, 7-Eleven, and Publix. The brand’s founder, Scott Frohman, recalls early rejections from buyers. When Publix passed on the pitch, it was data from competitors that changed their minds and brought the brand onto shelves a few months later.

Mushroom-Revolution-in-Grocery

Across categories, these brands are responding to a spectrum of consumer priorities—mental focus, stress relief, indulgent snacking, and sustainable protein. Mushrooms provide a format flexible enough to meet all of them, whether brewed, blended, or jerky-dried.

In the snack aisle, Popadelics has turned shiitake mushrooms into a conversation starter. The brand launched through lifestyle marketing, placing its products in fashion boutiques and music festivals before entering grocery retail. By mid-2023, it had secured national distribution through Whole Foods. Some flavours remain backordered, a reflection of both novelty appeal and genuine demand.

Further up the supply chain, companies like Meati Foods are taking a different approach. Instead of using mushroom fruiting bodies, Meati grows mycelium, the root-like structure of fungi, as a base for alternative meat. Its steaks and cutlets are now sold in more than 7,000 stores. With more than 350 million dollars in investment and a 100,000-square-foot production facility in Colorado, the company is positioned as a contender in the race to scale sustainable protein.

These brands are not riding a single trend. They are building around a spectrum of consumer priorities, from mental focus and stress relief to indulgence and sustainable protein. Mushrooms offer a versatile base. Whether brewed, blended, baked, or dried into jerky, they are being used to create products that feel both innovative and familiar, crafted for mass retail and everyday use.

Science or Speculation

The popularity of functional mushrooms has grown faster than the body of evidence behind them. For every shopper who adds lion’s mane to their coffee for focus or chaga to a smoothie for immunity, there is still a lingering question of whether the benefits hold up under scientific scrutiny.

Research has made some progress. Lion’s mane has shown promise in small clinical studies related to cognitive support and nerve regeneration. One 2020 trial in Japan found that daily supplementation improved mild cognitive impairment among older adults. Other mushrooms have drawn interest for their immune-modulating compounds, particularly beta-glucans. In Japan, lentinan from shiitake and PSK from turkey tail are already used as adjuvant cancer therapies. These applications, however, remain outside the scope of conventional Western diets.

Moku

Image credit: Moku

In the United States, regulators have taken a cautious approach. The Food and Drug Administration has issued warning letters to brands making disease-related claims. Terms like “supports immunity” or “promotes mental clarity” are generally permitted. Anything more specific invites enforcement. This became clear in late 2024, when the agency declared Amanita muscaria, the hallucinogenic mushroom often found in “legal trip” candies and microdose gummies, as not generally recognised as safe. That designation removed the product from the food market, highlighting how quickly the line can shift between innovation and violation.

While most functional mushroom brands operate within approved boundaries, the category still lacks standardisation. There is little consistency in how extracts are processed, how doses are measured, or how active compounds are verified. This variability makes it difficult for researchers to compare outcomes, and for consumers to understand what they are buying. Experts like Dr. Julie Daoust, Chief Science Officer at M2 Ingredients, say that the future of the category will depend on clarity. “Modern wellness consumers are becoming increasingly educated,” she notes. “They want simplified products that are supported by data.”

Until more robust trials are conducted, much of the appeal will rest on experience and belief. That does not necessarily diminish the impact. In many cases, consumers are not expecting mushrooms to treat illness. They are reaching for products that feel better in the body and align with broader shifts toward clean energy, natural focus, and proactive health. For now, mushrooms sit in that quiet space between proven and promising, sold not as cure-alls, but as tools for daily performance.

submit-a-market-research-brief

Who Is Buying and Why

Functional mushrooms are no longer confined to fringe wellness circles. Today, their customer base spans from college students searching for natural focus to middle-aged parents replacing energy drinks with lion’s mane coffee. What connects them is not a demographic profile, but a shared appetite for clean-label function and the idea that food should do more than fill.

A national survey by the Nutrition Business Journal in 2024 found that 37 percent of Americans use foods or beverages enhanced with functional mushrooms. Another 27 percent report taking mushroom-based supplements. Usage is highest among Gen Z and millennials, but the interest cuts across age groups. These are not isolated early adopters. They are mainstream consumers with a growing awareness of terms like adaptogen and nootropic, many of them learning through TikTok reels or Amazon reviews rather than clinical trials.

Within that broader pool, motivations vary. Gen Z buyers are often looking for energy and focus. They are replacing sugar-heavy drinks with sparkling mushroom elixirs like Odyssey or swapping coffee for Four Sigmatic sachets that offer mental clarity without the caffeine crash. Amazon reported a 47 percent year-on-year increase in searches for adaptogens, a signal that functional terms are resonating with digital-native shoppers.

Millennials, meanwhile, are turning to mushrooms for stress support and immune resilience. The pandemic reshaped health priorities, and fungi-based products now offer a gentle, daily form of reinforcement. Reishi teas and chaga lattes are positioned as alternatives to wine or melatonin, especially for young parents navigating burnout. Familiar formats like snacks, broths, and chocolate blends continue to drive adoption.

The older end of the market is growing too. Interest in cognitive health and natural anti-inflammatory solutions is drawing Gen X and Boomers into the category. Many are less influenced by brand aesthetics and more persuaded by mainstream media coverage or endorsements from integrative doctors. When Lifeway Foods, best known for kefir, launched a mushroom beverage line in 2024, it was positioned for this segment with a focus on wellness benefits rather than trendy packaging.

These consumer groups are distinct, but the unifying thread is trust. People want to feel that what they are buying is real, purposeful, and rooted in something beyond marketing. That is part of why mushrooms, with their history in traditional medicine and visible whole-food forms, are outpacing some of the synthetic functional trends of the past decade.

The traction isn’t lost on grocers and investors. NielsenIQ reports that mushroom-containing grocery products generated over 3.4 billion dollars in US sales last year. Performance-focused segments led the charge, with sports-oriented mushroom products growing more than 30 percent. For a category that only recently stepped out of the supplement aisle, these numbers point to long-term viability—and a new kind of strategic relevance across the food and beverage industry.

As the category matures, consumer expectations are rising. Shoppers are examining ingredient sourcing, evaluating dosage, and learning to read labels more precisely. What began as a novelty has become part of the weekly grocery routine. Mushrooms are no longer just ingredients. They signal something deeper, carrying emotional meaning and delivering real benefits like focus, calm, or stamina.

supply-chain-traceability-food-trend

The Retail Shift and Supply Chain Pressure

The popularity of mushroom-based products has not just reshaped consumer preferences. It has also forced retailers and suppliers to rethink how they categorize, source, and scale a once-afterthought food group.

In grocery stores across the United States, mushrooms have expanded beyond the produce section and supplement aisle. Retailers are building wellness-focused sets, grouping lion’s mane coffees, reishi teas, and chaga powders alongside probiotics and adaptogens. At Whole Foods, end caps now feature mushroom snacks next to CBD seltzers. Target, Walmart, CVS, and even 7-Eleven have integrated mushroom drinks into mainstream shelving. The placement is not just trend-based. It reflects strong sales and consumer pull.

This retail expansion is creating real pressure upstream. Demand for mushroom ingredients now exceeds what many producers can deliver. Lion’s mane, sought for its effects on focus and memory, grows slowly and resists easy cultivation. Cordyceps requires tightly controlled light and temperature conditions. Chaga, most commonly wild-harvested from birch trees in cold climates, can take years to reach maturity. For suppliers, this creates a bottleneck.

Image credit: Popadelics

Some companies are responding with vertical integration and tech-enabled growing systems. MyForest Foods operates a mycelium farm in New York and recently expanded to Canada, using fermentation and climate control to grow slabs of mushroom root for its alt-protein products. Meati Foods has built one of the largest mycelium production facilities in North America, capable of delivering the volume required for mass grocery distribution. These are not small experiments. Meati has received more than 350 million dollars in investment, and MyForest is scaling its AirMycelium platform to meet growing demand from CPG partners.

Yet even these systems are feeling strain. Popadelics, the mushroom chip brand now stocked in Whole Foods nationwide, has announced product backorders due to sourcing limits. As the category grows, more brands are competing for a limited supply of high-quality extracts. The result is a market where product development timelines are stretching, and price volatility is beginning to emerge.

Retailers are staying committed. Sales justify the shelf space, and consumers continue to respond to new formats and claims. But behind the merchandising, the category is in flux. Mushrooms are no longer confined to niche shelves. As they scale into commodity status, they bring new challenges in pricing, sourcing, and traceability.

Odyssey-Elixir

Image credit Odyssey Elixir

The Fungi Future in CPG

Once a wellness niche, mushrooms have become one of the most dynamic shifts in packaged food. They tap into a rare combination: performance, familiarity, and freshness of format. As this momentum builds, the question is no longer whether functional mushrooms will remain relevant, but how far they might spread.

Across grocery aisles, mushrooms now carry the kind of meaning once reserved for probiotics or protein powders. These products are more than just ingredients. They’ve become symbols of focus, energy, and resilience. That shift moves them from fad to fixture. And mushrooms are showing signs of exactly that shift—embedded in daily routines, no longer riding novelty alone.

That shift has implications for how brands develop products and tell stories. Mushroom ingredients are already moving into formats far beyond coffee and jerky. Companies are testing fortified cereals, protein bars, and baby snacks. Lifeway Foods launched a mushroom-enhanced kefir line aimed at immune support. Alt-protein brands like Meati and MyForest are pitching fungi not as meat substitutes, but as a standalone category with its own identity. Even koji, a culinary mould used in fermented foods, is being reimagined as a flavour-forward ingredient for sauces, vegan charcuterie, and marinades.

This diversification reflects a deeper change in consumer behaviour. Shoppers are no longer driven solely by the desire for less – less sugar, meat, or caffeine. They are also seeking more. More utility, more focus, more resilience built into the rituals of daily life. Mushrooms, with their blend of medicinal history and modern formatting, speak to that shift. They align with a cultural moment focused on performance without pills and natural function without sacrifice.

What comes next is likely a wave of acquisitions and standardisation. Large CPG companies are watching closely. Some, like Danone and Constellation Brands, have already invested in adjacent wellness categories. Others are expected to move soon. As the category scales, we will see greater pressure for consistency, potency, and proof. That will mean clearer labelling, stronger supply chain traceability, and, inevitably, more clinical research. It may also mean a shakeout, as the market distinguishes between products that deliver and those that simply follow.

The fundamentals remain strong. This is a category built on tangible ingredients, measurable interest, and repeatable consumer habits. It has grown quietly, through everyday formats like coffee and snacks, not through Instagram hype. That subtle momentum may be its biggest strength. Functional mushrooms are not trying to disrupt. They are trying to last.

In a marketplace flooded with fleeting claims, mushrooms are offering something different: daily utility, steady results, and emotional resonance. They are not promising transformation. They are becoming habit. For CPG giants and startup founders alike, the question is no longer if mushrooms will lead. It is whether the rest of the aisle is ready to follow.

Understand What Today’s Consumers Really Want

From flavour innovation to functional benefits, consumer expectations are shifting fast. Our research helps CPG and food and beverage brands uncover the insights behind purchase decisions—so you can create products that resonate and endure. Kadence International is your partner in making smarter, evidence-based moves in a changing market.  Submit a brief to start your project.

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.

Every second, a huge amount of content competes for our attention—news feeds refresh, notifications alert us, and videos play automatically before we can skip them. People aren’t just scrolling through; they’re avoiding, filtering, and tuning out. This overload of information has made our attention very valuable. Recent studies indicate the average human attention span has dwindled to approximately 8 seconds, a significant drop from 12 seconds in 2000. 

The implications for brands are staggering. A compelling campaign isn’t enough. A perfectly crafted message can still vanish if it fails to break through in the milliseconds it takes for a consumer to swipe away. There was a time when audiences were captive, and brand interactions were deliberate. That world no longer exists.

Market research is undergoing a major shift to decode real engagement. The industry is moving beyond self-reported preferences to track subconscious reactions, micro-movements, and real-time behavioural data. The goal? To measure not just what consumers say they notice but what captures their focus and drives action.

The Science of Attention – How Consumers Engage Today

Attention is multifaceted – layered, fragmented, and perpetually shifting. Consumers don’t merely watch, listen, or read; they skim, multitask, and filter. What seizes their focus momentarily may not register in memory, while seemingly trivial details might linger.

Researchers categorise attention into distinct types, each influencing brand engagement strategies:

  • Sustained Attention: The gold standard – deep, uninterrupted focus. Rare in today’s digital world, but invaluable. Think long-form podcasts, binge-worthy series, or an immersive gaming experience.
  • Selective Attention: The ability to filter out noise and focus on what matters. Algorithms fuel this, curating feeds so that only the most relevant content makes it through.
  • Divided Attention: The consumer is in multitasking mode, scrolling Instagram while half-listening to a podcast or watching TV with their phone in their hands.
  • Captive vs. Voluntary Attention: Some interactions are forced like unskippable ads. Others are earned like the type TikTok users actively seek out.

The shift is clear: brands aren’t just competing against competitors. They’re up against the entire digital ecosystem: social media, streaming platforms, instant messaging, and news alerts. 

The challenge for market research is no longer just understanding consumer preferences but tracking real, unconscious engagement in a landscape designed to distract.

Rethinking Engagement Beyond Traditional Metrics

Traditional market research remains essential as it provides critical insights into consumer sentiment, preferences, and decision-making. However, in a world where attention is increasingly fragmented, the industry is evolving to complement established methods with new, real-time behavioural tracking.

Self-reported data, surveys, and focus groups still offer valuable context, helping brands understand why consumers think and feel a certain way. But what people say they engage with doesn’t always reflect their actual behaviour. Attention is often subconscious, shaped by instinct rather than intent.

New approaches bridge this gap by capturing real-time consumer engagement:

  • Eye-tracking and facial coding: Brands analyze where people’s eyes linger and how their expressions shift during ad exposure.
  • Biometric response analysis: Sensors detect physiological reactions like heart rate spikes and micro-expressions to measure subconscious attention.
  • AI-powered engagement tracking: Algorithms process scrolling behaviour, click patterns, and swipe speeds to assess content effectiveness.

This evolution isn’t about replacing traditional research; it’s about enhancing it. By integrating behavioural tracking with established methodologies, brands gain a full-spectrum view of consumer attention from stated preferences to real-world interactions.

How Brands Are Measuring Attention in Real Time

Leading brands no longer rely solely on traditional engagement metrics. They are leveraging behavioural data and AI-driven insights to track real consumer attention. These brands aren’t guessing what captures attention – they’re measuring it in real-time.  By analyzing subconscious reactions and micro-engagement patterns, they ensure content isn’t just seen but retains focus.

  • Netflix: AI-Driven A/B Testing on Thumbnails
    Netflix continuously experiments with different cover images for the same show to determine which visuals drive the most engagement. Through AI-powered A/B testing, the platform assesses user behaviour, tracking which thumbnails attract clicks and sustain interest. This data-driven approach maximises viewer retention, ensuring the most compelling artwork is displayed for each user based on browsing history and preferences.
  • Nike: Eye-Tracking for Ad Optimisation
    Nike employs eye-tracking technology to study how consumers visually engage with video advertisements. Research reveals that high-energy action shots hold attention longer than static branding moments. By embedding logos and brand elements within dynamic sequences, Nike ensures its messaging remains visible even in a distracted viewing environment.

Strategies for Brands to Capture and Sustain Attention

Thriving in the attention economy requires more than visibility; it’s about maintaining focus long enough to inspire action. With audiences filtering content at unprecedented speeds, brands must employ intelligent, research-backed strategies to ensure meaningful and lasting engagement.

  • Hyper-Personalisation- Tailoring Content to Individual Preferences
    Consumers have little patience for generic messaging. AI-driven platforms like Amazon utilise machine learning to analyze purchase history and browsing behaviour, delivering personalised product recommendations that align with individual user interests. This level of customisation enhances customer satisfaction and drives sales by presenting relevant items to shoppers.
  • The Strategic Deployment of Short-Form vs. Long-Form Content
    Platforms such as TikTok and Instagram Reels demonstrate that concise, bite-sized content excels at capturing initial attention. Conversely, long-form content, like in-depth articles or documentaries, can cultivate deep engagement when audiences are genuinely interested. The key lies in discerning when and where audiences are most receptive to each format, a determination made possible through advanced market research techniques, including passive data collection and behavioural tracking.
  • Attention-Optimised Creative – Pre-Launch Testing
    Every moment of content is valuable. With consumers filtering content at lightning speed, brands must ensure their messaging lands effectively before launching full-scale campaigns. Mars Inc. uses AI to evaluate how effective ads will be before they are launched, making sure important branding matches what the audience pays attention to.

Pre-launch attention testing, powered by neuromarketing and AI, is becoming a standard practice for brands aiming to maximise impact. 

Case Study: How Mars Inc. Uses AI to Optimise Ad Effectiveness

Image Credit: Media Week

Background

As one of the world’s largest confectionery companies, Mars Inc. operates in a highly competitive industry where brand recall directly influences purchase decisions. Traditional ad testing methods provided valuable insights, but Mars recognised the need for a more precise, predictive approach to ensure its advertisements resonated before launch.

Approach

Mars developed Agile Creative Expertise (ACE), an AI-powered ad-testing tool designed to measure consumer attention, engagement, and emotional response in real-time. Unlike conventional research methods, ACE integrates biometric and behavioural analytics to refine ad content before it reaches audiences. The system leverages:

  • Eye-tracking technology to pinpoint where viewers focus their attention.
  • Facial coding analysis to measure emotional engagement with ad elements.
  • Machine learning models to predict, with 85% accuracy, whether an ad will drive sales.

By deploying these tools during the creative process, Mars ensures every ad is optimised for maximum impact, reducing wasted ad spend and enhancing message retention.

Outcome

Mars has successfully transformed its ad optimisation process by combining AI-driven insights with behavioural research. The results include:

  • More effective storytelling and branding placement, ensuring key messages are absorbed.
  • Improved return on ad spend (ROAS) by prioritising only the most impactful ad creatives.
  • Reduced reliance on post-campaign analysis, as ad effectiveness is determined before launch.

By integrating AI-powered pre-launch testing, Mars has redefined how brands measure and optimise consumer attention, setting a new benchmark for data-driven advertising.

plant-based-trends-in-agriculture

The Future of Market Research in the Attention Economy

As consumer behaviour evolves, so must the methods used to understand it. The next frontier of market research goes beyond measuring what captures attention. It will predict why and how attention shifts in real time, helping brands stay ahead of fleeting engagement trends.

  • Beyond Clicks and Views – Deeper Engagement Metrics
    Traditional engagement metrics like click-through rates and impressions offer a surface-level view of attention. The future lies in measuring dwell time, gaze duration, and interaction depth – metrics that reveal not just whether the content was seen but whether it made an impact.
  • AI and Predictive Attention Modeling
    AI-driven research tools will forecast attention patterns based on historical and real-time behavioural data. Based on predictive analytics, brands can test content effectiveness before it launches, optimising design, messaging, and placement.
  • Ethical Considerations and Balancing Personalisation with Privacy
    Transparency and ethical research practices will be critical as brands collect more granular engagement data. Consumers are increasingly aware of how their data is used, and regulatory shifts, such as stricter data protection laws, will shape how attention-based analytics are implemented. Striking the right balance between hyper-personalisation and privacy will define the next era of market research.

Attention is no longer optional; it’s the foundation of effective marketing. Consumers are overwhelmed with choices, and their focus is fragmented across multiple screens, platforms, and moments. Brands that assume visibility equals engagement are missing the bigger picture. Being seen isn’t the same as being remembered.

Brands that invest in cutting-edge research methodologies will not only capture fleeting focus but convert attention into lasting engagement and brand loyalty in an economy where attention is the most valuable currency.

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 fastest way to read the economy might be through a grocery receipt.

In the United States, a staple as simple as frozen pizza has become a financial strategy, signalling how households manage cost, comfort, and consistency.

And the US isn’t alone. Across markets, pantry staples are doubling as economic sensors. In the UK, a jump in baked bean and private-label ready meal sales mirrors cost-of-living anxiety. In Japan, instant noodles remain resilient despite price hikes, especially premium options. In China, frozen dumplings are no longer seasonal but weekday staples. Each reflects how consumers behave when their budgets are under pressure.

For brands, these patterns aren’t background noise. They’re forecasting tools. The staples consumers cling to during disruption are often early indicators of more profound shifts in sentiment and strategy.

The psychology behind food choices

When financial stress sets in, consumers don’t just look for cheaper options; they look for control. Food becomes a tool to reclaim routine, reduce effort, and preserve small pleasures. In inflationary periods, what matters isn’t just price. It’s perceived value.

Today’s shoppers are making what behavioural economists call satisfying decisions: good-enough choices that balance budget, emotion, and effort. That explains the rise of “premiumised basics.” In Japan, consumers choose upscale instant ramen precisely because inflation makes dining out less accessible, and these products offer the comfort and experience of a restaurant meal at home. A frozen pizza or store-brand ready meal isn’t just a shortcut; it’s a psychological release valve.

Aggregated across millions of carts, these choices offer powerful signals. Brands that can spot the patterns early and build for them gain an edge.

Frozen pizza and the power of low-effort indulgence

In the US, frozen pizza has moved from the edge of the freezer to the centre of the meal plan. Sales reached $7.0 billion in 2024, reflecting growing demand for foods that balance indulgence and utility.

The pandemic normalised at-home dining, and inflation extended the habit. Frozen pizza delivers more than calories: it’s familiar, flexible, and low-friction. It substitutes for takeout, satisfies a group, and feels like a treat without requiring cooking skills. Consumers aren’t just trading down; they’re trading differently.

That shift has created space for brands like Screamin’ Sicilian and California Pizza Kitchen to position frozen products as restaurant-quality. Clear packaging, upscale branding, and perceived authenticity all signal that compromise isn’t necessary.

Sample-Size-Calculator

UK shoppers trade brands for value

Baked beans have long been a UK staple, but recent sales data tells a deeper story.

In 2023, total baked bean sales rose 2.5%, but Heinz saw a 5.1% decline. Private labels surged, with Euroshopper and others gaining share. The shift is primarily driven by price sensitivity. As grocery bills rise, shoppers increasingly trade down to store-brand or value-tier options that offer similar taste and portion sizes at significantly lower prices. Loyalty to the category remains, but brand allegiance weakens when meaningful differentiation doesn’t match premium pricing.

The same is playing out in chilled ready meals. Tesco and Sainsbury’s expanded their value lines, and consumers responded. These aren’t subpar options as packaging, taste, and positioning have all improved. The new trade-down doesn’t feel like a sacrifice.

Japan’s affordable upgrades

According to The Guardian, the price of instant ramen increased 20% over the past two years, but consumption remained high. 

In Japan, inflation hasn’t dented demand for instant noodles. Nissin raised prices, yet consumption held steady. More surprising: it’s the premium SKUs that are growing fastest.

Consumers are seeking quality within constrained budgets. The appeal isn’t just cost; it’s comfort and cultural continuity. A bowl of gourmet-style ramen at home replaces an expensive lunch out. The transaction becomes emotional as much as practical.

China’s modernised tradition

Frozen dumplings have become a year-round staple in Chinese households. Once reserved for holidays or family occasions, they’re now an everyday solution for time-strapped urban consumers. In 2024, the market reached $6.86 billion, with younger buyers, balancing long hours and shrinking leisure time, driving much of the demand.

This isn’t convenience displacing tradition; it’s adapting to new consumption habits. Frozen dumplings retain cultural relevance while offering speed, consistency, and modern formats.

grocery-shopper-persona-types

India and the Philippines: Time-saving staples under strain

According to Future Market Insights, the ready-to-mix food market in India reached $440 million in 2023 and is projected to grow to $1.75 billion by 2033. Snacks and mixes form a dual growth engine, as consumers manage rising costs and time poverty.

These products aren’t replacing traditional meals; they’re reshaping them. Dosa batter and spice blends offer cultural authenticity without daily prep. Convenience without compromise is becoming a national default.

In the Philippines, canned sardines serve as both sustenance and security. With inflation averaging 6.1% in 2023 and over 20 tropical storms a year, demand for shelf-stable protein spikes in response to economic and environmental stress. Mega Global, which holds a 30% market share, invested over USD 1.7 million to expand capacity by 20%, betting on continued category growth. The company’s investment in expanded capacity is a bet that pantry-stable proteins will remain a default safety net.

Micro-trends as macro signals

The grocery aisle is a real-time indicator of consumer mood. It reveals where people are willing to compromise and where they won’t. In every market, different staples are rising for the same underlying reasons: they feel safe, smart, and familiar.

CountryFood SignalBehavior Cue
USAFrozen PizzaIndulgent efficiency
UKBaked Beans, Ready MealsBrand elasticity
JapanInstant NoodlesAffordable premiumization
ChinaFrozen DumplingsCultural speed
IndiaMixes & SnacksTime-cost optimization
PhilippinesCanned SardinesResilience stockpiling

That’s not just retail behaviour. It’s brand insight. When inflation hits, when trust dips, when time disappears, the categories that survive aren’t the trendiest – they’re the ones that deliver.

The lesson for brands is clear: resilience lives in the ordinary. When the economic cycle turns again, the brands that stay in the basket will stay in the conversation.

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.

Once dismissed as retail relics, physical storefronts are making a surprising comeback – this time, powered by digital-first brands. From pop-ups to permanent flagships, online-native companies are opening brick-and-mortar locations not out of necessity but by design.

Amazon Style offers shoppers curated fashion based on browsing history. Warby Parker’s clean, minimalist stores blend seamlessly into upscale neighbourhoods, offering eye exams alongside Instagrammable interiors. In Bangkok, Pomelo Fashion invites customers to try on app-selected items in sleek fitting rooms before completing purchases from their phones.

It’s a reversal that reflects more than a retail pivot. While digital advertising remains cheaper in terms of pure reach, online CPMs average between $3 and $10, compared to $22 or more for traditional media, customer acquisition online is becoming less efficient. As competition intensifies and privacy changes limit ad targeting, many direct-to-consumer brands see digital acquisition costs climb, sometimes exceeding average order values. In this landscape, storefronts are emerging as strategic complements: part showroom, part service centre, part brand theatre. For these brands, it’s not just about footfall. It’s about reducing digital dependency and building loyalty through real-world engagement.

Why Physical Retail Now

For years, e-commerce promised a frictionless future – one-click checkouts, fast shipping, and endless inventory. But as digital storefronts multiplied, so did the challenges: skyrocketing customer acquisition costs, rising return rates, and a sea of sameness. Today, even the most digitally fluent brands are discovering that a website alone can’t deliver emotional connection or tactile trust.

Physical stores are filling the gap. A well‑designed storefront gives customers something the digital shelf can’t: the ability to touch, try, and experience. According to the U.S. Census Bureau, e‑commerce accounted for 15.3 % of total U.S. retail sales in 2023—a share that continues to rise quarter by quarter. While physical stores still drive the bulk of retail activity, the steady growth of online shopping, especially during major events like Black Friday, signals a lasting shift in consumer behaviour.

Still, not all categories follow the same trajectory. Furniture and home‑furnishing purchases increasingly migrate online; nearly 31 % of home furnishing sales occurred digitally in 2023. Consumer electronics remains split, with value and convenience driving online growth, but big‑ticket purchases often favour in‑store confidence. And goods like plants, outdoor supplies, garden products, and decorative home items, where touch, size, and immediacy matter, have stubbornly resisted complete digital takeover. Big‑box outlets continue to dominate these segments, with traditional furniture and outdoor‑living stores capturing the lion’s share of consumer spending.

In other words, the price tag and physicality of the item strongly influence where consumers choose to shop. You can order a lamp or phone online, but the comfort of a store still wins when it comes to the feel of a sofa, the freshness of a plant, or the scale of a patio set.

But these new retail spaces aren’t built for volume. They’re designed for impact. Brands are leaning into high-touch service, curated displays, and neighbourhood-specific assortments. Instead of acting as isolated outposts, these stores function as real-world extensions of the brand, driving online traffic, deepening engagement, and turning one-time buyers into repeat customers.

The playbook is shifting: Stores aren’t just about sales – they’re about staying top of mind in a distracted, digital-first world.

Pomelo Fashion’s Omnichannel Evolution

Pomelo-fashions-store

Founded in 2013 by David Jou and Casey Liang, Pomelo Fashion has emerged as a leading omnichannel fashion brand in Southeast Asia. Initially operating solely online, the company has expanded its presence with physical stores in Thailand, Singapore, Indonesia, and Malaysia.

Central to Pomelo’s strategy is its “Tap.Try.Buy” service, which allows customers to order items online, try them on at a designated store, and pay only for what they choose to keep. This approach enhances the shopping experience by integrating the convenience of online browsing with the assurance of in-store fitting. ​

In May 2025, LeadIQ reported that Pomelo Fashion achieved $750 million in annual revenue, marking a substantial leap from the $38 million recorded in 2022

Pomelo’s expansion efforts have included entering new markets, such as Cambodia, where it partnered with Zando Group to establish a retail presence. Additionally, the company has focused on enhancing supply chain efficiency by implementing unified inventory systems and streamlining return processes.

By seamlessly blending online and offline experiences, Pomelo Fashion continues to adapt to the evolving retail landscape, aiming to meet the diverse preferences of its customer base.

market-research-brief

Why online brands are opening stores

For digital-first companies, opening a physical store isn’t about replicating traditional retail – it’s about amplifying what already works. With online customer acquisition costs climbing and attention spans shrinking, many brands view stores as a channel for deeper engagement rather than just sales.

Stores offer what websites can’t: human connection, hands-on product trials, and immediate service. They create environments where discovery feels organic and tactile, and shoppers can linger, ask questions, and build trust. That trust often carries over into digital behaviour. According to Warby Parker’s most recent earnings report, customers who engage with online and retail touchpoints tend to have higher lifetime value.

For brands like Pomelo, stores also provide critical feedback loops. Each in-person interaction offers insights into fit, preferences, and regional trends – data that helps refine everything from product design to inventory allocation. Physical locations are no longer separate from e-commerce platforms – they’re extensions of them, working in sync to personalise the experience and drive loyalty.

The result is a more resilient retail model, one that spans screens and sidewalks.

The evolving role of the website

While physical spaces gain momentum, the brand website remains the nerve centre of the modern retail ecosystem. But its role is shifting – from being the sole point of sale to becoming a connective platform that bridges discovery, transaction, and service.

Today’s websites aren’t just digital catalogues. They power appointments for in-store try-ons, host loyalty programs, manage returns, and sync with physical inventory in real-time. At Pomelo, the app and website are critical to the “Tap.Try.Buy” model, allowing customers to browse, reserve, and purchase without friction. Warby Parker’s platform does the same, letting users schedule eye exams, browse local store stock, or complete an in-store purchase online.

For brands blending offline and online, the website is no longer the endpoint – it’s the interface. It carries the brand’s identity, handles the logistics, and learns from each customer interaction. As stores become more experiential, the website does the heavy lifting behind the scenes, ensuring a seamless handoff between channels.

The digital shelf might not be enough on its own anymore, but it’s more important than ever in making the entire system work.

online-shopping-consumer-trends-report

What shopping will look like in 2050

If you walk into a store in 2050, you might not walk out with a bag. Instead, your personalised selections – curated by AI, informed by biometric data, and filtered through your sustainability preferences – could arrive at your door within hours, if not minutes.

Retail futurists envision spaces that act less like inventory warehouses and more like interactive brand labs. Physical stores may shrink in size but grow in sophistication, equipped with augmented reality mirrors, smart shelves, and real-time language translation for global shoppers. Facial recognition could trigger dynamic pricing based on loyalty status or previous purchases if consumers opt in.

Sustainability will likely shape store formats, too. Modular, low-waste layouts, carbon-neutral delivery options, and locally sourced assortments could become table stakes. Data from online and in-store behaviour will sync seamlessly, creating a “phygital” loop where discovery, trial, and purchase span both worlds.

But some things won’t change. Shoppers will still crave connection, story, and the confidence that comes from seeing and touching a product before committing. The brands that win in 2050 may look futuristic – but at their core, they’ll understand something timeless: trust is built person-to-person, even when powered by pixels.

Retail’s Quiet Reinvention

What began as a tactical move to lower return rates or offer fitting rooms has turned into something more fundamental: a rethinking of what retail means. Digital-first brands aren’t just entering physical spaces; they’re redesigning them on their terms.

These aren’t legacy department stores or big-box chains. They’re focused, frictionless, and hyper-intentional. Every square foot has a purpose, whether to host an eye exam, facilitate same-day pickup, or serve as a live feedback loop for product development.

The quiet reinvention underway isn’t about going back – it’s about moving forward with the tools, data, and expectations of a new era. The lines between online and offline are no longer blurred. They’re gone entirely.

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.

Consumer sentiment in the US took a sharp downturn in the first quarter of 2025, signalling growing anxiety about the economy as inflation fears and geopolitical tensions weigh heavily on households.

The University of Michigan’s consumer-sentiment index dropped to 50.8 in April, down from 57 in March, marking the lowest since June 2022. Inflation expectations surged to a 44-year high of 6.7%, deepening concerns about a potential recession. As fears of stagnant economic growth and rising costs persist, US households are not only deferring big-ticket purchases but are also shifting their spending habits. A 2024 survey by McKinsey found that 57% of consumers plan to postpone purchases of cars, electronics, and home appliances due to economic uncertainty. This behaviour reflects a broader shift in consumer priorities, where many opt to save for security rather than indulge in discretionary purchases.

In addition, more consumers are actively reconsidering their brand choices. According to Ipsos, one in four Americans have boycotted a brand in the past year over political or ethical reasons, signalling a more value-driven approach to spending. This trend underscores a more selective approach, with households prioritising purchases that align with personal values and long-term needs.

The Shift in Spending Behaviour Globally

Globally, households are tightening their belts in response to growing financial uncertainty. Consumer confidence has dropped significantly in the US and Europe, as evidenced by rising savings rates. In the US, savings deposits increased by 5.4% in 2024, according to major US banks, while credit card usage declined. Meanwhile, Europe’s savings rate surged to 13.5% in Q4 2024, up from 10.7% in 2023, indicating that consumers are prioritising savings over spending.

Retail sectors are feeling the impact of this shift. High-ticket purchases, such as luxury goods and cars, are down across key markets as consumers focus on essentials and future security. Reports from the European Central Bank show a marked decline in discretionary spending, echoing similar trends in the US.

While this cautious approach stems from immediate financial strain and long-term economic uncertainty, the shift is expected to shape the global economy in the coming months. Companies that can adapt – offering products aligned with consumer values, health, and sustainability – will be well-positioned to thrive in this evolving market.

Case Study: Frasers Group’s Strategic Store Closures Amid Economic Uncertainty

Image credit: X

Background:
Frasers Group, a major UK retailer owning brands like Sports Direct and House of Fraser, has faced challenges due to declining consumer confidence and increased operational costs. In response, the company has closed several stores, including its flagship, House of Fraser in Bath, which had been operating for over 200 years.

Actions Taken:
Frasers Group has been consolidating its physical retail presence, focusing on high-performing locations and expanding its online offerings. The company has also been investing in its luxury segment, with CEO Michael Murray expressing confidence in a rebound in demand for premium goods.

Outcome:
While facing short-term challenges, Frasers Group aims to strengthen its market position by streamlining operations and capitalising on the anticipated recovery in luxury retail.​

Research-brief

The Impact on Financial Institutions and Retailers

As consumer behaviour shifts toward savings and caution, financial institutions and retailers feel the effects. Banks have reported an uptick in deposits, while credit card usage has decreased, signalling a change in how consumers manage their finances in uncertain times.

In the US, savings rates have steadily increased over recent years as consumers prioritise financial security. The Federal Reserve’s 2024 Financial Stability Report shows that household savings rates have remained elevated, with a marked preference for more liquid assets. This shift in consumer behaviour is attributed to ongoing economic uncertainties and the rising cost of living. Meanwhile, credit card debt, though still growing, has been growing at a slower pace compared to the previous year, with the Federal Reserve noting in its 2024 Report on Household Debt and Credit that credit card balances increased by 6.4% in 2023, slower than previous years’ growth. This suggests consumers are becoming more cautious with discretionary spending, opting to save more and use credit less.

Retailers are adjusting to these changing dynamics. For many brands, especially those in luxury and non-essential goods markets, the slowdown in spending has forced a reevaluation of strategies. High-end brands, which have long relied on the discretionary spending of affluent consumers, are facing challenges as more shoppers scale back on big-ticket purchases. 

On the other hand, retailers in the wellness, health, and essential goods sectors benefit from this shift. A January 2024 McKinsey & Company report highlights that 56% of Gen Z consumers in the US consider fitness and wellness a “very high priority,” reflecting a continued commitment to spending on health-related products and services. McKinsey estimates that the global wellness market, valued at over $1.8 trillion, continues to grow at 5-10% annually, with significant demand for wellness products in emerging markets.

For financial institutions, the challenge lies in balancing the growing demand for savings accounts and low-risk investments with the need to provide consumer credit options. As fewer people rely on credit cards, many banks are exploring alternative forms of credit, such as buy now, pay later (BNPL) services, which allow consumers to make purchases without accumulating high-interest debt. While BNPL services have gained popularity, there are concerns about their long-term sustainability and the potential for increased consumer debt.

Ultimately, the growing trend toward saving and cautious spending drives significant shifts in the financial services and retail sectors. Companies that can adapt to these changes – offering value, flexibility, and products aligned with consumers’ evolving needs – will be well-positioned to thrive in the coming months.

How Brands are Adapting Strategies in Response to Consumer Behaviour Shifts

In response to the evolving consumer market, companies are implementing various strategies to align with changing preferences and economic conditions:​

  • Enhanced Digital Engagement: Retailers use digital platforms to offer personalised shopping experiences. This includes leveraging data analytics to understand consumer behaviour and tailoring marketing efforts accordingly.​
  • Flexible Pricing and Promotions: Companies are introducing flexible pricing models and targeted promotions to address price sensitivity. This approach aims to maintain customer loyalty while accommodating budget-conscious consumers.​
  • Product Innovation and Diversification: Brands diversify their offerings to meet consumers’ evolving demands. This includes introducing new product lines that align with current trends, such as wellness-focused or sustainable products.​
fast-food-sustainability-trends

The Road Ahead: Implications for Economic Growth

The trend toward saving and cautious spending presents a complex economic landscape. While rising savings rates provide financial security for households, the slowdown in consumer spending could stall short-term economic growth. In Q1 2024, real personal consumption expenditures (PCE) grew just 1.3%, down sharply from 3.4% in Q4 2023. This slowdown reflects persistent inflationary pressures.

As discretionary spending contracts, sectors dependent on non-essential purchases, such as luxury goods and travel, face significant challenges. Bain & Company reports that global luxury market growth slowed to 3% in 2024, a stark decline from double-digit growth in previous years.

However, wellness, health products, and essential goods continue to see strong demand, driven by consumer interest in well-being and sustainability.

As consumer caution impacts overall economic activity, particularly in markets reliant on consumption-driven growth, policymakers and brands must adapt. Encouraging spending on wellness and essential goods, while promoting savings, could help stabilise growth. Companies that strategically align with these consumer priorities—through innovation, targeted marketing, and flexible pricing – will be better positioned to thrive despite economic uncertainty.

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.

Cash is disappearing from daily life across Southeast Asia. In 2019, nearly half of all transactions in Asia were made in cash. By 2027, that figure is expected to fall to just 14 percent, according to the Bank for International Settlements. Mobile wallets—once a convenience—are now overtaking physical currency as the region’s default mode of payment.

This isn’t just a shift in how people pay. It’s a full-blown rewrite of Southeast Asia’s consumer economy. From Bangkok to Manila, behaviour, access, and mobility are being shaped by QR codes, app-driven incentives, and an ecosystem of competing fintech platforms racing to own the checkout moment.

The scale of adoption is staggering. In the Philippines, over 90 million people—around 80 percent of the population—use GCash or Maya, according to Bangko Sentral ng Pilipinas. In Indonesia, QRIS transactions surged to 2.7 billion in 2024, up 66 percent from the year prior, based on data from Bank Indonesia.

Thailand logged more than 16 billion PromptPay transactions in 2023, cementing it as the country’s most common payment method. In Singapore, the SGQR system now supports over 30 digital payment schemes, allowing users to scan a single code and choose their preferred app—no cash, no card, no friction.

Unlike China and India, where single players dominate, Southeast Asia is shaping a multi-platform economy. Consumers aren’t just going digital; they’re actively choosing between wallets based on rewards, speed, and the ecosystem of services attached to each app.

The Regional Play

A landmark pact between five ASEAN countries is turning mobile payments into a regional system. Indonesia, Malaysia, Singapore, Thailand, and the Philippines have linked their QR code schemes, enabling cross-border wallet use. A Filipino tourist in Bangkok can pay with GCash. A Thai traveller in Singapore can use PromptPay. No currency exchange. No new app. Just scan and go.

This isn’t just symbolic cooperation. It’s a practical leap toward regional commerce at digital speed. Consumers already expect to scan and pay anywhere. Now, the infrastructure is catching up.

More than 100 million tourists visited ASEAN countries in 2024. Many of them already live cashless at home—and now expect the same abroad. For small businesses, cross-border payments mean a wider market without new infrastructure. A QR sticker and a smartphone are all it takes.

Policymakers see this as just the beginning. Cross-border wallet use could soon expand to remittances, regional e-commerce, and subscription billing. Southeast Asia is quietly building the infrastructure to support a truly interoperable digital economy.

submit-research-brief

Platform Power and Wallet Wars

Beneath all this infrastructure is a more urgent contest—one for daily dominance. Wallets are no longer just payment tools. They are retail ecosystems, vying for attention, behaviour, and loyalty.

In Indonesia, ShopeePay, OVO, and Dana are locked in a three-way race, each tying payments to e-commerce, food delivery, and retail perks. In the Philippines, GCash leads with over 90 million users, while Maya carves out a younger audience through crypto, banking, and cashback. GrabPay holds ground in Singapore and Malaysia by weaving payments into transport and everyday services.

These wallets don’t just process payments. They offer credit, savings, loyalty points, insurance, and instant promotions. Consumers now choose where to shop based on who gives the better deal—not who’s closest or cheapest.

Brands are adapting fast. Retailers are building in-wallet offers and flash deals to stay top of mind. Banks are co-branding products to remain visible inside apps. In this economy, platform presence can matter more than price point.

Wallet ecosystems aren’t just changing how people pay—they’re changing how people choose. As competition heats up, the most powerful wallets are becoming retail platforms in their own right, collapsing the gap between promotion and purchase.

How Brands Are Winning in the Wallet Economy

Jollibee x GCash: Scaling Speed and Spend with QR Exclusives

Jollibee has turned mobile wallets into more than just payment tools. In early 2024, the Filipino fast-food giant piloted QR-only express counters in busy Metro Manila stores—accepting GCash exclusively for walk-up orders.

The results were immediate. Checkout times fell by 30 percent on average, with lunchtime throughput increasing by nearly 20 percent in the busiest branches. But the real advantage was behavioural. GCash-linked promotions—including “buy one, get one” bundles for specific meal sets—drove higher ticket sizes and repeat visits. Jollibee reported a 12 percent lift in average order value among wallet users compared to traditional cash or card buyers during the campaign window.

Beyond volume, the partnership gave Jollibee something more valuable: clear usage patterns. It tracked conversion by time of day, adjusted promotions instantly, and mapped how wallet users shop differently. The model offers lessons beyond fast food. QSR chains across the region are now experimenting with QR-linked incentives to boost order volume and loyalty.

Unilever Vietnam x ZaloPay: Closing the Loop on Sampling and Segmentation

Unilever Vietnam used mobile wallets for more than sales—it used them to test, learn, and refine. In a 2024 pilot with ZaloPay, the brand launched a digital sampling campaign for its new “urban essentials” personal care line targeting Gen Z professionals.

Consumers claimed samples directly through the ZaloPay app, but redemption came with a short quiz and opt-in to Unilever’s official account. In just three weeks, over 150,000 users participated. Of those, 17 percent converted to purchase. More importantly, the campaign delivered real data: which products got tried, how long users waited, and who came back to buy.

Traditional sampling often delivers little feedback and a lot of waste. This campaign flipped the script. For FMCG brands, it’s a path forward—less sampling waste, more segment-level insight, and faster market-readiness. It wasn’t just about targeting—it was about validating what a new segment actually wanted.

Wallets as Retail Real Estate

In Southeast Asia’s evolving consumer economy, mobile wallets are becoming the new shelf. They are visible, contextual, and central to purchase decisions. No longer just the endpoint, they’re shaping what happens before the sale is even made.

Wallets are now where discovery happens. Real-time promos, loyalty rewards, and flash deals make QR apps as influential as in-store signage. In Indonesia, ShopeePay’s “Deals Near Me” surfaces location-based offers that nudge shoppers toward one convenience store—or one coffee shop—over another.

UX Design is now strategy. What shows up on the payment screen—bundled meals, upsells, time-limited offers—can shift behaviour in seconds. In a recent survey, 62 percent of Southeast Asian wallet users said an in-app offer had changed their purchase decision in the past three months.

Brands are responding with wallet-native campaigns. In the Philippines, GCash partners with major retailers to launch app-exclusive bundles. In Vietnam, FMCG players are testing ZaloPay-only SKUs to gauge price sensitivity among mobile-first Gen Z consumers.

For marketers, this changes the playbook. Campaigns now live inside the moment—built into the wallet, not broadcast through media. And just like endcaps in a store, wallet placement is scarce, valuable, and judged by performance.

How Digital Wallets Are Closing the Financial Gap

While wallets compete for urban customers, they also unlock access for millions previously excluded from formal finance. The World Bank estimates that over 40 percent of adults in the Philippines, Indonesia, and Vietnam remain unbanked. Mobile wallets are changing that.

Street vendors, farmers, and gig workers are now building financial histories with every tap. In Indonesia, over 29 million small businesses use QRIS to accept payments. In the Philippines, GCash delivers welfare payouts, subsidies, and remittances, often to people who’ve never walked into a bank.

This shift is producing an entirely new class of consumers. They’re connected but overlooked—digitally fluent but invisible to most traditional marketing models. For researchers, the challenge now is to understand how financial access rewires habits and reshapes trust.

Wallet adoption may be booming across the region, but no two markets look alike. Some are dominated by one or two players. Others support overlapping apps, bank wallets, and homegrown fintechs. The variation speaks to different consumer needs and regulatory choices.

Comparing Wallet Ecosystems Across ASEAN

CountryDominant WalletsNotable FeaturesEstimated Adoption
IndonesiaDana, OVO, ShopeePayQRIS compliance, local cashback, offline ubiquity70–75%
PhilippinesGCash, MayaMicroloans, utility payments, crypto access80–85%
ThailandPromptPay, TrueMoneyLinked to national ID and digital welfare payouts90%+
SingaporeGrabPay, PayNow, DBS PayLahHigh QR interoperability, cross-border ready95%+
MalaysiaTouch ‘n Go, BoostToll road integration, state-backed incentives80%+

Sources: Central bank data, World Bank Global Findex (2024), platform reporting

What This Signals

The wallet boom in Southeast Asia is not a trend—it’s a system reset. It’s changing how value flows, how behaviour is tracked, and who gets included.

Consumers are gaining fast access to finance, but only through platforms that decide the terms. Governments see more. Banks lose ground. Retailers shift strategy. But the risks are real—ecosystem lock-in, data monopolies, and a widening gap for the disconnected.

Southeast Asia is building the prototype for a fully digital consumer economy. What works here won’t stay here. Markets with similar demographics will follow—some already are.

As wallets become embedded in daily life, they generate a stream of behavioural data that most traditional research methods cannot easily replicate. For brands and researchers alike, this shift is not just an operational upgrade—it is a structural advantage.

Who Gets Left Behind in a Wallet-Led Economy

Not everyone is tapping phones or using QR codes. Across Southeast Asia, millions still rely on cash, not by choice, but by necessity. As digital systems race ahead, they are leaving some consumers behind.

The elderly, rural communities, and informal workers without smartphones or stable internet still make up a large share of the population in countries like Indonesia, the Philippines, and Vietnam. For many, wallets remain either out of reach or out of trust.

Even in cities, resistance is growing. Consumers worry about data tracking, fraud, and hidden fees. In Thailand, a watchdog recently warned about wallet-based lenders targeting young users with high-interest loans disguised as pay-later perks.

Cash still offers something digital doesn’t—trust. In many traditional communities, handing over bills is easier, more familiar, and more accepted. As merchants go digital, cash users risk being pushed out of the transaction altogether.

Governments face a balancing act: modernise finance without deepening exclusion. Incentives for wallet use should not come at the cost of cash access, especially in rural or unbanked areas. For brands, the solution lies in hybrid systems that serve both digital adopters and cash loyalists.

The danger of a wallet-led economy is not that it moves too fast, but that it forgets who isn’t coming along. Progress will be measured not just in QR checkouts, but in how well the new economy includes the voices, habits, and limitations of every consumer.

types-of-financial-services-buyers

A View from the Future Consumer

Southeast Asia is not just adopting digital finance—it’s rewriting the rules. While Europe debates regulation and the U.S. sticks to cards, this region is designing a payment system that is mobile, fast, and increasingly borderless. Consumers aren’t waiting for banks to evolve. They’re building the next model themselves.

For brands, the implications are clear. The old playbook—national campaigns, static rewards, and linear funnels—no longer works. Today’s consumers jump across apps, currencies, and contexts without hesitation. The winners will meet them there, designing not for convenience, but for relevance at the point of payment. Pricing isn’t set in advance. It’s surfaced in the moment—shaped by wallet prompts, bundled rewards, or time-limited offers.

For researchers, this landscape offers something rare: behaviour in real time. Every wallet tap leaves a trackable decision—what was bought, where, when, and how the user was nudged. But knowing what happened is not the same as knowing why. That’s where research matters most. Ethnography, cultural fluency, and journey mapping are the tools that explain what dashboards alone can’t.

Research must move faster, go deeper, and sit closer to where decisions are made—in wallet ecosystems, in platform partnerships, and in the fast-evolving lives of Southeast Asian consumers.

Some brands are already blending behaviour data with on-the-ground insight. In Vietnam, a beverage company spotted rural sales spikes through wallet data. Field interviews revealed the link: payday loans disbursed on the same day each month. That single insight reshaped everything—from promo timing to pack size.

The next breakthroughs in understanding consumers won’t come from dashboards alone. They’ll come from pairing live data with lived experience—decoding what people do and why they do it. The future of research isn’t digital by default. It’s embedded, agile, and built inside the systems where decisions happen.

Consumer power is shifting from income to intuition—from how much people spend to how fluently they move through the ecosystems around them. Southeast Asia isn’t adapting. It’s leading.

Kadence International helps brands decode evolving consumer behaviour across Asia and beyond. To understand what drives tomorrow’s decisions, talk to our team.

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.

In 2023, more people moved to Charlotte, North Carolina than to New York City. Once known primarily as a banking hub, Charlotte is now among the fastest-growing metropolitan areas in the United States, with its population increasing by over 15% in the past decade. Its rising appeal is part of a larger pattern: a quiet but powerful migration away from megacities to what demographers call “secondary cities.”

This isn’t just an American phenomenon. Across global markets, from India to the UK to Southeast Asia, mid-sized cities are absorbing growth once concentrated in capital centres. In India, cities like Coimbatore and Ahmedabad are drawing IT investments and retail developments. In China, Chengdu has added more new retail space than many first-tier cities, and consumer spending in tier-2 urban areas is growing at a faster pace than in Beijing or Shanghai.

Affordability is a clear driver. As housing prices and costs of living continue to rise in the world’s biggest cities, residents and businesses are seeking out more livable alternatives. But what’s notable is that consumption isn’t declining as people move. In fact, recent data from McKinsey shows that residents of US secondary cities are just as likely to spend on premium goods and services as their peers in larger cities. The same is true in markets like Vietnam and Indonesia, where new urban enclaves are seeing surging demand for fast fashion, electronics, and beauty products.

This shift challenges a long-standing assumption: that consumer growth follows the gravitational pull of megacities. Instead, smaller urban centres are establishing themselves as independent engines of demand. They are not satellite economies or overflow markets—they’re increasingly self-sustaining hubs with distinct consumption patterns, retail ecosystems, and growth trajectories. Understanding these evolving dynamics isn’t just about tracking migration. It’s about recognising where the next wave of market opportunity is taking shape.

The Urban Migration Redrawing Consumer Behaviour

The reasons behind this urban realignment are pragmatic. In the United States, the average rent for a one-bedroom apartment in New York City now exceeds $3,000 a month. In contrast, cities like Raleigh or Nashville offer not only lower housing costs but also rising job opportunities and improved quality of life. Remote work has made this trade-off possible for millions. According to US Census data, more than 8.2 million people relocated across state lines in 2023, and the majority moved away from the country’s most expensive urban centres.

In the UK, London saw net domestic outflows in every quarter of 2023, as younger workers and families opted for cities like Birmingham and Manchester, where housing is more affordable and infrastructure investments have been accelerating. A similar pattern is unfolding across Europe and parts of Southeast Asia, driven by both economic necessity and post-pandemic lifestyle recalibrations.

China’s urban development offers a sharper example. For over a decade, the central government has actively promoted growth in tier-2 and tier-3 cities as a way to reduce overreliance on Beijing, Shanghai, and Shenzhen. Chengdu and Hangzhou have emerged as digital and cultural hubs in their own right, attracting tech startups, luxury retailers, and young professionals seeking lower living costs and less congestion. Between 2010 and 2020, Chengdu’s GDP more than doubled, and consumer spending rose in parallel.

India’s Smart Cities Mission, launched in 2015, is another case study in how policy can redirect population and spending patterns. The initiative, aimed at improving infrastructure and governance in 100 mid-sized cities, has already resulted in faster retail expansion in places like Indore and Bhubaneswar than in Mumbai or Delhi. According to the India Brand Equity Foundation, consumer electronics sales in tier-2 cities grew by 23% year-on-year in 2023, outpacing metropolitan areas.

What links these movements is not a retreat from consumption but a reshaping of it. Consumers in secondary cities aren’t pulling back; they’re reallocating their spending. Travel, home improvement, wellness, and personal tech are among the categories seeing strong growth. Rather than dining out five nights a week, they may invest in premium groceries or upgrade their living space. Rather than fast fashion hauls, they’re choosing higher-quality basics from emerging local brands.

The geography of consumer demand is no longer centred on a few megacity powerhouses. It’s diffusing across a wider map—one defined by affordability, connectivity, and rising expectations. This new distribution isn’t temporary. It reflects a deeper recalibration in how people want to live and what they choose to prioritise when they have more control over where they are.

submit-a-market-research-brief

Rising Cities to Watch Across Global Markets

The rebalancing of population isn’t just reshaping where people live—it’s altering the architecture of consumption. Cities that once played a secondary role in national economies are now driving demand across key categories, from beauty and electronics to groceries and home improvement. These are not temporary trends. They reflect long-term investments, shifting demographics, and the redistribution of growth across geographies.

In India, urban expansion is no longer confined to Delhi, Mumbai, or Bangalore. Mid-sized cities like Ahmedabad, Kochi, and Coimbatore are seeing a surge in both population and retail development. Ahmedabad, now part of India’s key freight and industrial corridor, is drawing major logistics and manufacturing investment, boosting both employment and disposable income. Kochi, a port city historically associated with trade, is evolving into a service economy with rising demand for consumer goods, even as its organised retail recovery lags behind some peers. In Tamil Nadu, Coimbatore’s industrial economy has been buoyed by its emergence as a textile and engineering hub, contributing to increased uptake of electronics, fast fashion, and D2C brands among its aspirational middle class.

In China, government-backed decentralisation has helped elevate cities like Chengdu, Wuhan, and Hangzhou into powerful regional markets. Chengdu’s GDP surpassed 2 trillion yuan in 2023, underpinned by thriving sectors such as tech services, gaming, and high-end dining. Wuhan, long known for its manufacturing base, is diversifying into optoelectronics and biotech, helping shift consumer demand toward health and wellness products. Meanwhile, Hangzhou—home to Alibaba and a growing number of innovation hubs—continues to drive premium consumption, particularly among younger professionals seeking upgraded personal care, fitness tech, and lifestyle products.

In Southeast Asia, a cluster of cities is quietly gaining ground. Da Nang, once considered peripheral to Hanoi and Ho Chi Minh City, has logged annual growth over 6% on the back of a booming service economy and increased tourism-linked retail. Surabaya, Indonesia’s second-largest city, saw retail sales top $100 billion in 2023, as more middle-income households gained access to modern trade and e-commerce. In the Philippines, Cebu posted a 6% increase in GDP last year, with infrastructure and tourism projects spurring demand for beauty, packaged food, and mobile tech.

In the US and UK, the shift away from megacities is most visible in cities like Charlotte and Austin, where population growth and GDP expansion have outpaced the national average. Charlotte has attracted a steady influx of residents and companies, with population now nearing 3 million and median retail prices having risen more than 50% over the last decade. Austin led US metro areas in GDP growth in 2023–24, thanks in part to its dual reputation as a tech and cultural capital. Across the Atlantic, Birmingham has attracted new retail entrants and commercial investment, while Bristol—one of the UK’s fastest-growing core cities—is seeing a younger demographic drive e-commerce and convenience spending trends.

What unites these cities is not their size, but their trajectory. They’re absorbing the momentum once monopolised by megacities, and in doing so, are becoming primary battlegrounds for brands competing across FMCG, luxury, and tech. Each reflects a different facet of a global shift toward distributed growth—one that rewards those who understand the nuances of local demand, not just national averages.

How Consumption Patterns Differ from Megacities

What’s emerging in these secondary cities isn’t just a new geography of growth—it’s a different style of consumption. While the megacities have long been the testing grounds for innovation, image-driven luxury, and niche categories, smaller urban markets are shaping demand through a blend of aspiration and pragmatism. Consumers in these cities are not necessarily spending less; they’re spending differently—guided by function, value, and a growing sense of local identity.

In these rising hubs, premiumization often takes on a more practical form. Rather than high-concept luxury or limited-edition drops, there’s stronger traction for what might be termed “everyday upgrades.” Products that offer quality, longevity, and status without signalling excess are gaining ground. In the US, for example, Uniqlo’s decision to expand into cities like Austin and Charlotte aligns with this mindset. The brand’s clean aesthetic, moderate price point, and reputation for functional basics resonate in markets where value is prized, but style isn’t overlooked. These are not anti-fashion cities—they simply reject the transience and markup that characterises fashion in New York or Los Angeles.

In China, L’Oréal has tailored its go-to-market strategies accordingly. The company segments its product lines and retail mix not just by income level, but by geography. In tier-1 cities, its high-end lines dominate marketing spend, while in tier-2 and tier-3 locations, there’s more emphasis on skincare basics with scientific credibility and accessible pricing. Offline retail formats also shift—with pop-up stores and mobile beauty trucks seeing greater success in secondary cities where e-commerce growth hasn’t yet plateaued, and where physical presence still builds trust.

One factor that consistently shapes behaviour in these markets is the multi-generational household. In many Indian and Southeast Asian cities, discretionary income is often pooled across family units. That influences purchasing decisions across categories—from appliances to packaged food—prompting brands to market not just to individuals, but to households as collective consumers. There’s also a preference for products that serve dual or extended purposes: tech gadgets that function across work and leisure, food brands that cater to both tradition and convenience, and beauty products positioned around self-care rather than indulgence.

There is, however, no uniform pattern. In the Philippines, the growth of Korean skincare brands in cities like Cebu is as much about digital influence as affordability. In Birmingham, the return of legacy department stores is tied to nostalgia and civic pride as much as retail demand. And in Chengdu, the rise of lifestyle cafés and boutique gyms reflects a younger population that wants access to the symbols of metropolitan living—without the daily grind of Beijing.

These cities are not diluted versions of their larger counterparts. They are developing their own consumer signatures, shaped by local infrastructure, employment patterns, and cultural nuance. For brands and strategists, the challenge lies in abandoning the notion of a one-size-fits-all urban consumer. The goal is no longer just market entry—it’s market fluency. And increasingly, fluency in these smaller, faster-growing cities may prove more valuable than reach in the capitals.

how-consumer-spending-varies-across-tier-1-and tier-2-cities

Implications for Brands

The changing face of urban demand calls for more than just expansion—it requires recalibration. As secondary cities gain economic influence, many of the assumptions that once shaped brand strategy are no longer reliable. Markets that were once considered peripheral now demand bespoke planning, grounded in the specifics of place rather than the generalities of national averages.

One immediate shift is the need for greater geographic precision in research. National surveys and tiered segmentation models often flatten regional nuance, failing to capture the complexity of cities like Coimbatore or Chengdu. For companies reliant on trend forecasting or demand modelling, that means moving from regional sampling to localised data capture, often city by city.

Product development and inventory planning are also evolving. In India, brands like Mamaearth and Plum are adjusting their SKUs for tier-2 and tier-3 cities, shifting from large-format products to smaller, trial-sized offerings that match local price expectations. In the US, national retailers like Target have refined their assortments in cities like Charlotte and Nashville, prioritising core everyday goods while reducing premium or seasonal inventory that underperforms outside the major metros.

Media planning is undergoing a parallel transformation. As digital access expands in emerging urban centres, traditional broadcast budgets are giving way to city-level targeting across mobile platforms and social commerce channels. Short-form video, regional influencers, and WhatsApp-based promotions are becoming more effective in places where ad fatigue hasn’t set in and trust in peer-to-peer recommendations remains high. In markets like Vietnam, TikTok is now the primary discovery channel for beauty and electronics purchases in cities outside Hanoi and Ho Chi Minh City, according to recent industry data.

Even logistics, often treated as an operational concern, is now central to brand reputation in smaller cities. The rise of same-day and next-day delivery expectations—previously confined to tier-1 cities—is now common in places like Cebu or Bristol. For many brands, the challenge isn’t reaching these markets, but reaching them reliably. That’s led to increased partnerships with regional fulfilment services, and in some cases, internal investments in micro-warehousing and localised dispatch.

This redistribution of consumer power is forcing brands to move beyond scale and standardisation. The era of national uniformity in messaging, product lines, and delivery models is fading. In its place is a more fragmented but arguably more dynamic landscape—one where understanding the pulse of smaller cities is becoming essential to staying relevant in the broader market. Brands that treat these urban centres as strategic priorities, not afterthoughts, will be the ones best positioned to grow as the next wave of consumer demand continues to take shape outside the old capitals.

grocery-shopper-persona-types

The Future Is Smaller, Faster, and Closer Than You Think

The cities driving the next era of global consumption won’t always be the ones on postcards. They won’t host the Olympics or top the rankings for financial centres. But they will be where new preferences are formed, where loyalty is won, and where growth happens quietly until it isn’t quiet anymore.

This is not a temporary correction or a cost-of-living workaround. It’s a structural shift. In many ways, secondary cities are better attuned to the values shaping modern consumerism: access, flexibility, and balance. These are places where people can afford to live and choose how they spend, not just how much.

For brands, the path forward lies in proximity—not just geographic, but cultural. Success will depend less on scale than on sensitivity. Less on dominating share of voice in capital cities, and more on understanding how tastes evolve in places that rarely make headlines but increasingly make markets.

The middle is no longer a middle ground. It is the next frontier. And those who invest in it early will not just meet new demand—they’ll define it.

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 is embarking on a bold economic initiative that intertwines fiscal stimulus with digital innovation. The government has launched a digital wallet scheme, providing eligible citizens a one-time payment of ฿10,000 (approximately USD 275). This initiative aims to invigorate local economies and accelerate the nation’s transition to a cashless society.

The program is being rolled out in phases, with the third phase targeting 2.7 million young individuals aged 16 to 20. These recipients will receive the funds through the Thang Rath app, a government-developed platform to facilitate digital transactions. The funds are intended for use within local communities, with certain restrictions to ensure the money stimulates domestic consumption.

Thailand’s digital wallet initiative aims to stimulate economic activity and promote digital transactions. The program’s first phase targeted 50 million citizens aged 16 and above, each receiving ฿10,000 (approximately USD 275) through a digital wallet. This approach is designed to encourage spending within local economies and accelerate the country’s shift towards a cashless society.

Thailand’s digital wallet program is a significant case study in integrating fiscal policy with digital technology. By distributing funds through digital means, the government stimulates the economy and encourages the adoption of digital payment systems, potentially influencing consumer habits and financial behaviours.

From Handout to Handset

This is money designed to move markets. Thailand’s ฿10,000 (USD 275) digital wallet credit is distributed exclusively via mobile apps. It has clear boundaries: it must be spent within a designated time period, in specific geographic areas, and only through participating merchants equipped to handle digital payments. The delivery mechanism is the government-backed Thang Rat app, which uses national ID verification to register users and link them to eligible purchases.

The program injects short-term liquidity while strategically embedding digital transactions into routine life. Access requires digital fluency – scanning codes, verifying identity, and transacting within the PromptPay ecosystem. The interface has been streamlined for ease, but the implications are layered. Thailand is accelerating the normalisation of app-mediated spending across demographics and regions.

Financial institutions and major digital wallet providers are working behind the scenes to integrate merchant systems and stabilise the transaction flow to ensure rapid uptake. This isn’t limited to major retailers. Many small vendors, from noodle stalls to corner pharmacies, are registering to accept payments. The digital wallet scheme demands not just consumer participation, but full-scale merchant onboarding into a cashless economy.

This is a behavioural leap for millions of Thais who still rely heavily on cash. But for younger recipients, the transition feels intuitive. Many live on their smartphones, accustomed to social commerce, e-wallet promos, and gamified savings. What the government is effectively doing is placing a financial incentive on behaviour they’re already inclined to adopt.

In this way, the program is a behavioural nudge packaged as an economic policy. It’s teaching people how to spend in a new way, and rewarding them for doing it quickly.

submit-research-request

A Timed Windfall for Local Commerce

Businesses across Thailand are preparing for increased consumer spending driven by the digital wallet program. The requirement for funds to be used within a specific period encourages immediate spending, prompting merchants to adjust their pricing strategies and promotional activities accordingly.

Food stalls are printing QR codes, retailers are adjusting shift schedules, salon owners, café managers, and shopfront vendors are updating signage to remind passersby that e-wallets are accepted here. The shift is visible and urgent in provinces where cash has long dominated daily transactions.

In Bangkok’s inner districts, chains and convenience stores are doubling down on digital promotions. Buy-one-get-one offers, bundled discounts, and mobile flash sales are being calibrated to coincide with the disbursement dates. The psychology behind it is clear: create immediacy, trigger impulse purchases, and keep consumers in-app and on-premise.

Meanwhile, mom-and-pop stores in Chiang Mai, Khon Kaen, and Phuket are entering the formal financial ecosystem for the first time. Participation in the program requires digital onboarding. The upside: access to new customers flush with government-backed spending power. The risk: failing to move quickly could mean missing the wave altogether.

Consumer behaviour is expected to be fluid but focused. Analysts anticipate that essentials and small indulgences, like meals, home goods, and personal care, will dominate early spending. But discretionary categories, especially fashion and electronics, could also benefit, particularly if retailers tailor offerings to fit within the ฿10,000 bracket.

This is a demand surge programmed into the system. Every player, from a street vendor selling grilled pork skewers to a regional supermarket chain, is being pulled into a countdown economy, where readiness and responsiveness could decide who gains and who gets left behind.

Digital Payments Go Mainstream in Thailand

The timing of Thailand’s digital wallet rollout is no accident. With PromptPay already embedded into daily life through peer-to-peer transfers and utility payments, the infrastructure for mass adoption was quietly laid years ago. What’s happening now is a sudden acceleration, where digital payments are no longer a convenience, but a condition for participation.

The mechanics are simple: the digital credit can only be spent via QR code transactions within the Thang Rat app or partner platforms. While younger, tech-savvy consumers may find the digital wallet system intuitive, older demographics and small businesses in semi-urban or rural areas face challenges in adopting this technology. Efforts are underway to support and educate these groups to ensure inclusive participation in the program.

This forced familiarity is a powerful lever. In previous government subsidies, such as the “Half-Half” co-payment scheme, uptake of digital payments spiked, but often reverted once the incentive expired. The difference this time lies in scale, urgency, and exclusivity. With no offline alternative, digital behaviour becomes the default.

Retailers, both large and small, are expanding their digital loyalty ecosystems, leveraging infrastructure that’s already in place. Meanwhile, independent merchants are being trained through government-led and private sector initiatives, many of whom accept mobile payments alongside cash for the first time.

There are structural benefits too. Digital transactions bring transparency, reduce leakage, and pull more activity into the taxable economy. For financial institutions and fintech platforms, it’s a rare moment to onboard users en masse, expand digital credit histories, and introduce adjacent services like microloans and savings tools. What was once novel, QR payments and app-exclusive deals, is now baseline behaviour. Habits form, preferences evolve, and expectations reset.

For Thailand, this isn’t just about going cashless. It’s about normalising a new rhythm of consumption, one mediated by apps, verified by biometrics, and reinforced through constant interface with digital payment systems.

Programmed Consumption and the Rise of Directed Demand

Thailand’s digital wallet program doesn’t simply encourage spending; it shapes it. By placing parameters on how, where, and when the ฿10,000 can be used, the government has introduced a form of economic steering rarely seen at this scale. Unlike traditional cash stimulus, which relies on recipients to allocate funds freely, this initiative narrows consumer choice and concentrates activity into predefined lanes.

The logic is deliberate. Restricting usage to local businesses prevents capital leakage to international e-commerce platforms. Limiting the timeframe creates urgency. Requiring digital payment methods brings consumers and merchants into closer contact with formal financial systems. By specifying where and how the digital wallet funds can be used, the government effectively directs consumer spending towards specific sectors and regions, aiming to boost local economies and encourage digital payment systems.

This creates a behavioural moment for consumers. Faced with a ticking clock and a limited range of vendors, they are more likely to make purchase decisions that are reactive, needs-based, or convenience-driven. This doesn’t eliminate agency, but it does channel it. The consumer becomes a participant in a curated economic script.

Retailers are adapting quickly. Some design promotions that align with the wallet’s value cap, offering bundles or tiered discounts pegged just under ฿10,000. Others are integrating in-app incentives, such as exclusive digital deals or gamified rewards. It’s not a one-off campaign. It’s a moment for brands to convert compliance into long-term connection.

There are also downstream effects. Data trails emerge as millions engage in digital-first transactions over a condensed period. Purchase preferences, time-of-day activity, and location-based behaviour are logged in real time. This creates a trove of behavioural insights for tech partners and financial services firms, potentially reshaping how credit scoring, product development, and localised marketing unfold in the months ahead.

Similar experiments have been attempted globally, particularly in conditional cash transfers. But Thailand’s version is uniquely digitised, centralised, and transactional. It offers a test case in how programmable money can accelerate economic recovery and behavioural adaptation.

Understanding how different consumer groups respond to this stimulus is essential for long-term strategy. Young adults, already comfortable with mobile interfaces, adapt rapidly, but older consumers may show resistance or partial adoption. Rural users face infrastructure gaps that could slow uptake or reshape spending patterns around trusted local merchants. Urban Gen Zs may spend impulsively and favour experiential categories, while Gen X participants lean toward utility-driven purchases. These behavioural distinctions matter for segmentation, pricing, and product development, particularly as brands look to refine future targeting based on wallet usage data.

New Norms in Marketing and Merchandising

The digital wallet program is forcing businesses in Thailand to rethink the fundamentals of how they market, merchandise, and manage demand. Digital credit may be temporary, but behavioural ripple effects influence how brands present themselves online and in-store.

At the heart of this transformation is timing. With a strict window in which the funds must be used, consumer attention is compressed. That changes the marketing calculus. There’s no luxury of a long lead funnel or sustained brand storytelling. Campaigns must hit fast and deliver clear value. QR codes aren’t just payment methods; they’re now marketing triggers, embedded in posters, flyers, and social posts that tie spending to immediacy.

Product curation has also shifted. Brands are building product bundles priced just below the ฿10,000 threshold, creating psychological cues for consumers to spend the full amount. Some offer flash deals that reset daily, while others push limited-time bundles through retailer apps or LINE commerce channels. These are not just promotions but engineered conversions calibrated to align with the digital wallet framework.

Inventory planning, too, has become more dynamic. Mid-sized retailers and national chains are using digital dashboards to track wallet-driven demand in real time, enabling rapid stock reallocation. Categories like food delivery, personal electronics, cosmetics, and small household appliances are spiking, especially among younger consumers already fluent in app-centred shopping habits.

The new challenge is coherence for businesses operating in both physical and digital spaces. Messaging must be synchronised across touchpoints, inventory systems must be tightly integrated, and customer service needs to anticipate a wave of first-time digital shoppers. This isn’t just a surge; it’s a behavioural onramp for consumers who have never interacted with a loyalty program or browsed a brand’s offerings through an app.

Loyalty itself is being redefined. With state-funded money in play, consumer allegiance becomes fluid. People are less concerned with brand heritage and more focused on price, accessibility, and in-app rewards. The brands that win in this window may not be the ones with the longest history, but the ones that adapt fastest to this new consumption model.

fintech report

A Testbed for Market Entry and Innovation

Thailand’s digital wallet stimulus is becoming a live laboratory for market entrants and tech innovators. The initiative presents a rare opportunity to observe real-time consumer responses at scale, under state-structured conditions, by creating a compressed environment of digitally enabled, time-bound consumption.

This moment offers more than a demand bump for global brands and startups exploring Southeast Asia. It provides behavioural proof points. Which price points resonate with a digitally empowered consumer base? How do young adults prioritise purchases with a fixed wallet balance and expiration date? What formats – QR discounts, app-based coupons, social-first promotions – translate into immediate action?

For global brands operating in Thailand, the closed-loop nature of the wallet system introduces new constraints. Transactions are restricted to pre-approved domestic merchants using Thai QR payment infrastructure, sidelining international platforms and foreign e-commerce flows. This forces global players to rethink their localisation strategy, not just in language or pricing but also in payment compatibility, compliance with local fintech protocols, and partnerships with Thai digital ecosystems. Without local enablement, access to wallet-driven demand is effectively off-limits.

These are questions that typical market entry research can only approximate. But in Thailand right now, the data is unfolding in real time.

Retail tech platforms are already responding. Point-of-sale solutions are being retrofitted to accommodate PromptPay and Thang Rat app syncing. Loyalty software providers are rolling out integrations tailored for the short-term stimulus. Meanwhile, financial institutions are watching new patterns emerge around credit top-ups, digital wallet storage, and tiered savings, insights that could inform broader regional product development.

For brands considering market entry, the digital wallet rollout reduces uncertainty. It forces clarity around key operational requirements: payment infrastructure compatibility, smartphone-optimised UX design, local partnership strategy, and promotional agility. Previously theoretical risks like payment fragmentation and uneven digital engagement are unfolding in real time, offering rare visibility.

There is also a broader story unfolding around interoperability. Local players that capture wallet-based spending may quickly gain bargaining power in distribution deals or tech partnerships. New winners could emerge, not just based on product strength but also on their ability to move quickly, adapt nimbly, and serve a new type of Thai consumer who expects digital fluency as the norm.

In this way, the program becomes more than a fiscal initiative. It is a proving ground for what works in digitally conditioned economies, and a barometer for how brands, especially those eyeing ASEAN growth, should rethink their playbooks.

Beyond the Wallet

The digital wallet program is temporary, but the behavioural architecture it introduces is anything but. Thailand’s push toward app-based, conditional cash disbursement may be a one-off stimulus. Still, it functions as a prototype that could shape the long-term relationship between consumers, digital ecosystems, and the state.

At a policy level, it hints at future mechanisms for targeted fiscal relief. With a national app tied to ID verification, merchant QR capability, and geofenced rails, Thailand has the infrastructure for agile, targeted interventions. Imagine fuel subsidies issued directly to drivers’ wallets, or education grants tied to purchases at approved vendors. Thailand is effectively building the scaffolding for programmable transfers that move beyond welfare and into consumer engineering.

For brands, this shifts the horizon. Suppose public spending can be deployed with this degree of precision. In that case, market strategy must now factor in state influence – not just regulation or taxation, but direct participation in how demand is created, distributed, and spent.

It also raises questions about data sovereignty and consumer privacy. Every transaction under this program is logged, time-stamped, and geolocated. While much of the data is anonymised or aggregated, tracking purchasing behaviours at this scale gives policymakers and platforms a new level of visibility and responsibility. Transparency, ethical use, and public trust will become defining themes as similar programs proliferate.

For consumers, the wallet scheme introduces a new normal, not just in how they pay but also in how they engage with money. Spending has become traceable and digitally shaped. This could foster a generation of Thais who expect convenience, traceability, and flexibility from every financial interaction—expectations that will extend far beyond this program.

In the broader Southeast Asian context, Thailand’s experiment is being watched. Governments from Vietnam to Malaysia are exploring their own pathways toward digital inclusion and financial modernisation. If Thailand’s model successfully drives lasting consumer habits, similar regional models could be accelerated.

What remains unclear is whether these behaviours will stick. Will consumers continue favouring QR payments, or will familiar cash habits resurface? Much will depend on how embedded digital convenience becomes in daily transactions and whether follow-up incentives, merchant retention, and habit reinforcement mechanisms remain. This presents a live opportunity for market researchers to track post-stimulus drop-offs, digital payment stickiness, and evolving consumer loyalty under real-world conditions.

If replicated across ASEAN, this state-led digital payment model could redefine how governments stimulate economies and how brands prepare for demand. Thailand’s model offers a scalable blueprint in markets like Indonesia, Vietnam, and the Philippines, where digital infrastructure is expanding but financial inclusion remains uneven.

There’s also a broader possibility: what begins as a one-off wallet scheme could evolve into a prototype for Universal Basic Income trials delivered via fintech. Conditional, trackable, and segmentable, such frameworks would allow governments to deploy aid, test responses, tweak incentives, and monitor outcomes in real time.

Thailand’s digital wallet initiative illustrates the growing interplay between government policy and consumer behaviour. For businesses, this underscores the importance of aligning with digital platforms and payment systems increasingly influenced by public sector strategies.

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.

Jollibee is rewriting the rules of global fast food.

After a strong financial year, the Filipino fast-food giant is entering 2025 with around USD 364 million earmarked to open as many as 800 new stores worldwide. That would push Jollibee’s total store count past 10,000, a staggering figure for a homegrown chain once dismissed as quirky outside Asia. But this is no vanity expansion. The brand’s global push reflects a more profound shift at home, where demand for quick, affordable meals surges, defying inflation, reshaping food culture, and fueling a new era of fast-food dominance in the Philippines.

This isn’t just about chicken and burgers. It’s about how one brand’s rise is capturing the cravings of an entire nation.

Fast food emerged as the most popular choice for dining out, particularly among chicken and burger lovers. Quick-service establishments accounted for over half of the industry’s total revenue, generating over USD 7 billion in 2023. Since then, the segment has been dominated by homegrown players, led by Jollibee Foods Corporation, whose portfolio includes Mang Inasal, Greenwich, and Chowking. McDonald’s remains a distant second, operating under the exclusive franchise of Golden Arches Development Corporation. As demand rises, local chains expand into provincial areas, while international brands continue to enter the market, adding more variety to Filipino tables.

Whether students meet after class, families treat themselves on weekends, or office workers order lunch through an app, the momentum is clear: Filipinos are dining out, ordering in, and doing it more often.

This revival isn’t a return to the past. It’s an acceleration. The pandemic disrupted routines and deepened appreciation for fast, reliable food options. A more mobile, value-conscious consumer emerged who now sees fast food as affordable and dependable.

Demand for fast food stays strong in the Philippines

The latest research indicates that consumer spending on food services remained steady despite elevated inflation rates, with quick-service restaurants showing particular resilience. Budget-friendly combo meals, seasonal promos, and tiered pricing have helped brands stay within reach for everyday customers.

For many, an under-two-dollar value meal is more than just food. It’s an accessible treat, a small reward at the end of a long day. In uncertain times, the routine of fast food offers something dependable.

market-research-brief

Global ambition with local roots in the Philippines

Jollibee’s international footprint is a calculated strategy powered by years of steady domestic growth and rising demand from Filipino communities abroad. From Los Angeles to Riyadh, queues outside Jollibee outlets speak to nostalgia and a global appetite for distinctly Filipino offerings.

In 2024, Jollibee Foods Corp opened new stores across North America, the Middle East, and Southeast Asia, adding to its diverse portfolio that includes Smashburger in the U.S., The Coffee Bean & Tea Leaf, and Yonghe King in China. Its global network spans over 30 countries, with stronghold cities like Toronto and Dubai seeing expansion fueled by the diaspora and growing mainstream interest.

But the push outward is rooted in confidence built at home. JFC’s record earnings have created room to double down on international markets, and the brand’s ability to localise, while staying true to its core identity, has become its competitive edge.

Regional QSRs take root beyond Metro Manila

While major players dominate the headlines, a quiet transformation occurs in provincial cities. Homegrown fast-food chains like Mang Inasal (also under JFC) and Potato Corner are seeing rapid expansion in tier-2 and tier-3 areas, where demand is driven by a growing middle class and increased infrastructure investment.

Cities like Iloilo, Cagayan de Oro, and General Santos have become new frontiers for QSR growth. These markets value familiarity, affordability, and local relevance, and regional chains are responding to these preferences with rice-based meals, grilled dishes, and snackable comfort food.

The Department of Trade and Industry (DTI) notes that regional retail hubs posted double-digit growth in food service in 2024, a sign that the fast-food phenomenon is no longer concentrated in major urban centres. For brands, this shift signals the need to build hyper-local strategies, not just nationally but by province, city, and even neighbourhood.

Global fast-food chains step up competition in the Philippines’ quick-service market.

Jollibee may dominate the local scene, but it no longer stands alone. International quick-service brands are scaling up in the Philippines, eyeing the same value-driven, convenience-loving consumers.

McDonald’s Philippines, which opened its 700th store in 2024, continues to match Jollibee’s momentum with localised offerings and digital upgrades. Popeyes and Shake Shack are expanding footprints in Metro Manila, while brands like Tim Hortons and Five Guys are testing growth in urban centres. Each new entry promises variety and the pressure to compete.

What’s different now is the intensity. With a young, urban population and rising mobile penetration, the Philippine QSR market has become a battleground for homegrown and global players. Store count is only one metric. The real contest is for relevance: who can adapt, respond, and resonate fastest with local tastes and lifestyles?

Fast Food Menus that speak the local language

Taste is local, and brands are listening. Filipino diners want more than burgers and fries. They expect flavour profiles reflecting regional preferences and seasonal cravings. That’s why spicy chicken, sweet-style spaghetti, and ube-flavoured desserts are staples, not novelties, across fast-food menus.

Before launching new items like Spicy Tuna Pie or ube-flavoured desserts, Jollibee conducts sensory testing and product trials to gauge appeal across regions. JFC’s 2021 Sustainability Report outlines a quality assurance process that includes sensory evaluations and physicochemical analysis, ensuring every product meets both safety standards and consumer taste expectations.

Jollibee continues to lead with offerings designed around Filipino palates, from its best-selling Burger Steak to newly launched spicy Tuna Pie variants. McDonald’s Philippines has followed suit, bringing back its Twister Fries and McSpicy lines while experimenting with rice-based meals and desserts like the Ube McDip.

This localisation trend isn’t limited to Filipino chains. Even global brands are learning to localise faster, rolling out limited-time items that reflect local tastes. Product development has become both a marketing tool and a competitive differentiator, allowing brands to stay top-of-mind in a saturated landscape.

Sustainability now comes standard in fast food chains in the Philippines

Sustainability is no longer a side note—it’s influencing what Filipinos order, how often they return, and which brands earn their trust. Jollibee’s “Joy for Tomorrow” program has moved beyond recycling pledges and into action, including energy-efficient store designs, reduced food waste, and stronger partnerships with local farmers.

Other fast-food players are following suit. Biodegradable packaging, cage-free sourcing, and ingredient transparency are making their way into the mainstream. These shifts speak to a consumer base that wants convenience without compromise. The cost of a meal now includes a calculation of impact, and brands that take that seriously are gaining ground.

fast-food-sustainability-trends

The screen is the new QSR storefront.

Ordering food has become a tap-and-go experience. Mobile apps, third-party delivery platforms, and social commerce are no longer add-ons; they’re central to the Filipino consumer journey.

In 2024, Food Industry Asia reported that nearly 60% of quick-service restaurant orders in Philippine cities were placed through digital channels.

Foot traffic has given way to app traffic, with brands competing on flash deals, loyalty rewards, and free delivery to stay top of mind.

Digital payments are now part of everyday life in the Philippines. In 2024, usage among adults aged 15 and up hit 33%, a steep climb from just 3.2% in 2018. The shift mirrors the rise of mobile-first ordering and in-app transactions, especially in fast-paced urban dining.

Jollibee’s mobile ordering platform has expanded its features, allowing personalised recommendations, pre-orders, and seamless integration with payment apps. McDonald’s Philippines, GrabFood, and Foodpanda continue to lead in delivery convenience, but newer players like TikTok Shop have begun to influence food discovery and promo-led conversions.

Fast food is no longer just about what’s on the menu; it’s about how quickly, easily, and enjoyably it can be accessed.

Where Gen Z eats, posts, and connects

For Gen Z in the Philippines, fast food isn’t just a meal; it’s part of the social fabric. Chains like Jollibee and McDonald’s have become informal meeting places, study zones, and TikTok backdrops. With free Wi-Fi, student discounts, and sleek interior revamps, fast-food locations are evolving into lifestyle spaces for a digital-first generation.

Over 70% of Filipinos aged 15–24 visit a fast-food restaurant at least once a week, not only to eat but also to socialise, stream content, or work on school assignments. The ambience, affordability, and accessibility make these venues a go-to choice, especially in areas with few alternatives.

QSR brands have noticed. Jollibee’s recent store designs incorporate more seating zones, charging stations, and group-friendly configurations. Meanwhile, McDonald’s continues to roll out McCafé-style concepts with a café vibe. Marketing also leans heavily on youth-driven platforms. Jollibee’s TikTok content, for instance, regularly goes viral thanks to campaign hooks that merge pop culture, food hacks, and humour.

This convergence of dining, content creation, and community adds a new layer to how fast food functions in Filipino society. It’s not just about convenience or flavour; it’s about belonging.

Innovation behind the fast-food counter

Fast food has always been about speed, but now it’s also about smarts. Behind the counter, brands adopt AI-driven inventory systems, real-time analytics, and predictive modelling to optimise operations.

On the consumer side, personalisation is becoming standard. Delivery apps suggest orders based on time of day, while loyalty platforms trigger tailored promos and gamified incentives. In 2024, over 8 in 10 Filipino consumers ordered fast food through delivery apps, the highest in Asia, making digital innovation a make-or-break factor for staying relevant.

This tech transformation isn’t just about convenience. It’s how brands scale, adapt, and survive in an economy where expectations move faster than supply chains.

A new flavour of identity in Philippine QSRs

Fast food in the Philippines has evolved from an occasional indulgence into a defining thread in everyday life. It reflects shifting routines, modern appetites, and a generation that blends tradition with convenience.

Jollibee’s global rise is not just a business story; it’s a cultural signal. It shows how a local brand, deeply rooted in national identity, can compete on the world stage without losing its soul. At the same time, the growing presence of foreign QSR players and the embrace of digital-first experiences suggest that Filipino consumers are increasingly cosmopolitan in their tastes, but still loyal to brands that understand them.

Jollibee’s QSR expansion isn’t just about chicken. It’s about claiming a cultural and commercial space that reflects where Filipino consumers are headed, and how fast the world is learning to follow.

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 next wave of edtech growth isn’t being engineered in boardrooms or classrooms. It’s unfolding in bedrooms, dorm halls, and digital chat groups – where students turn smartphones into production studios and learning platforms into launchpads. Armed with ring lights and revision hacks, Gen Z creators are transforming how education is marketed, consumed, and experienced.

As the creator economy collides with online learning, edtech firms increasingly tap into student-led content to drive adoption and engagement. These are not traditional brand ambassadors. They’re 17-year-olds making calculus go viral on TikTok, undergraduates breaking down coding concepts on YouTube, and peer influencers creating community-led momentum that no ad spend can replicate.

It’s a shift that goes beyond marketing. The rise of peer co-creation is shaping the very future of digital education, raising questions about influence, equity, and outcomes. And as both Western and Asian edtech platforms double down on this strategy, one thing is clear: the line between learner and creator is rapidly disappearing.

Students take control of the edtech narrative.

This behavioral shift isn’t accidental. It’s a direct outcome of how Gen Z and Gen Alpha navigate the world: socially networked, algorithm-aware, and deeply influenced by peer credibility.

For today’s learners, discovering an edtech platform through a classmate’s Instagram Reel or a late-night TikTok “study with me” session holds more weight than a polished brand campaign. Tutorials, crash courses, and day-in-the-life videos now double as endorsements, often outperforming official content in reach and relatability.

Behind the scenes, edtech companies are starting to adapt. Instead of focusing solely on institutional partnerships or top-down content strategies, platforms nurture creator ecosystems. Sometimes, they quietly offer toolkits, early access, and micro-incentives to student influencers who generate organic traction. The logic is clear: trust is the new currency, and students trust each other.

This peer-powered loop doesn’t just drive engagement – it shapes product design, fuels viral growth, and turns users into evangelists. For edtech brands seeking to scale in saturated markets, the most strategic growth play may be letting students take the mic.

Khan Academy builds influence through relatability.

In the US, Khan Academy is leaning into student-powered storytelling without making a spectacle of it. While the platform’s core content remains institutionally produced, its growth on social media owes much to an informal network of young creators – high schoolers and college students explaining how Khan helped them prep for the SATs, ace AP exams, or survive algebra.

Rather than launching overt influencer programs, Khan Academy benefits from what marketers might call “earned influence.” Creators like Thomas Frank—whose YouTube channel has over 3 million subscribers and more than 183 million views – frequently reference tools like Khan Academy in their tutorials. These mentions – organic, peer-driven, and peppered with personal success stories – carry a resonance that brand messaging rarely matches.

The result? A constant stream of creator-led endorsements embedded in motivational reels, test prep rundowns, and “study with me” live streams. The platform’s visibility continues to grow not through ads but through creators who view Khan as part of their academic survival toolkit. For students, it’s not just a resource. It’s a badge of belonging.

Classplus taps regional creators to drive depth over scale.

In India’s competitive edtech landscape, Classplus has carved a distinct path by empowering educators to run their online classrooms. But increasingly, it’s students who are amplifying its reach. On Instagram, ShareChat, and even WhatsApp groups, testimonials and tutorials recorded by learners in Hindi, Tamil, and Bengali are helping the platform penetrate beyond metro cities into India’s vast tier-2 and tier-3 markets.

These are not slick influencer campaigns. Often filmed on low-budget phones with minimal editing, the content reflects real student experiences – test scores, improved confidence, or simply how a Classplus module helped crack a tough exam concept. The authenticity resonates, especially among first-generation digital learners seeking guidance in their native language.

Classplus hasn’t ignored the trend. The company has begun quietly supporting these student creators by spotlighting their content on its official channels and offering resources to help structure their narratives. In some cases, creators have even evolved into local brand champions – hosting peer workshops, leading Telegram study groups, and shaping how the platform adapts to regional needs.

While many edtech players chase national scale, Classplus is betting that peer-led credibility in small communities may prove more sustainable (and more powerful) than mass-market advertising.

on-demand-entertainment-trends

Zenius turns TikTok into a learning laboratory.

In Indonesia, Zenius is rewriting the rules of student engagement by meeting Gen Z exactly where they are – on TikTok. The platform, which offers curriculum-aligned content for K-12 learners, has seen a surge in student-driven explainers, study hacks, and motivational clips that blend humor with academic rigor. What might once have been dry exam prep is now delivered with trending sounds, meme formats, and an unmistakably local voice.

Rather than competing for attention, Zenius has embraced this creative energy. Its team actively encourages students to remix educational content into short-form videos and even runs nationwide creator challenges to spark participation. Top-performing videos – like a viral breakdown of Newton’s laws using motorbike stunts – don’t just boost app downloads. They position Zenius as a platform that understands and reflects the student mindset. Zenius’s own TikTok account, @zeniuseducation, has built a substantial following, demonstrating the platform’s resonance with Gen Z audiences in Indonesia.

The strategy taps into more than entertainment. By enabling students to co-create and share learning moments, Zenius is fostering a sense of ownership and community. Creators become informal tutors, and learning transforms into a social experience – one that travels through peer networks far faster than traditional classroom methods.

For a generation that learns in bursts, scrolls for validation, and values authenticity over authority, Zenius is proving the future of education might look a lot more like the For You Page.

How-Student-Creators-Are-Shaping-the-Future-of-EdTech

The influence dilemma behind student-led learning

As student creators gain traction, edtech companies navigate a delicate balance between engagement and responsibility. What happens when learning starts to look more like content creation? For every viral study hack or exam tip that spreads across TikTok or YouTube Shorts, there’s the risk of misinformation, burnout, or unintended pressure to perform for views.

Experts are divided. Some argue that co-creation fosters deeper learning, with students reinforcing their knowledge by teaching others. For example, an academic review of TikTok’s role in education cautioned that while it increases engagement, the brevity and virality of the content can undermine conceptual depth and accuracy, especially when non-experts are involved. 

Others warn that when education is filtered through the lens of likes and shares, rigor can give way to popularity.

There’s also the question of transparency. As platforms begin to reward creators – either through visibility, free subscriptions, or direct payments – questions around sponsorship disclosure and authenticity are becoming harder to ignore. In a space where trust is everything, even the perception of promotion can erode credibility.

Mental health concerns are mounting, too. Students doubling as creators often juggle schoolwork with self-imposed content calendars, leading to stress, screen fatigue, and anxiety around performance metrics. Without clear boundaries or institutional support, the model risks amplifying the very challenges it aims to solve.

-From the study: TikTok’s Influence on Education, ResearchGate

The blending of learning and influence isn’t inherently flawed, but it demands stronger guardrails. If student creators are to shape the future of education, platforms will need to offer more than visibility. They’ll need to offer support.

Learning becomes a networked, creator-powered ecosystem

The convergence of student influence and educational technology is no passing trend; it’s reshaping how learning is discovered, delivered, and defined. What began as a handful of creators posting revision tips has evolved into a decentralised learning ecosystem where peer networks hold as much sway as professional educators.

Many edtech brands are adapting. Some invest in tools that allow creators to track engagement and refine their content. Others are experimenting with monetisation models, giving high-performing student educators a path to income or certification. Features once exclusive to influencer platforms – analytics dashboards, branded content guidelines, creator portals – are quietly being layered into the backends of learning apps.

The implications are global. In the West, the trend is accelerating around standardised testing, college prep, and niche STEM content. In Asia, it’s unlocking growth in local language education and expanding access in low-bandwidth, mobile-first environments. While the pace may differ, the destination is the same: education that is personalised, social, and driven by those closest to the experience.

For brands, the message is clear. Students aren’t just users anymore. They’re builders of trust, momentum, and meaning. And in a market where attention is earned – not bought – platforms that empower them will lead the next generation of education.

Why this matters for brands

For brands operating in or adjacent to education, the rise of student creators is both a growth lever and a governance challenge. The decentralisation of influence, from institutions to peers offers unmatched authenticity and reach but also introduces new variables around accuracy, accountability, and impact.

The platforms that will lead are not those that simply ride the trend but those that help shape it responsibly. That means investing in tools that empower young voices while embedding safeguards: content verification, mental health resources, and transparent disclosure practices. Aligning with creators is no longer just a marketing strategy; it’s a responsibility.

Students have become trusted messengers in a market where attention is earned, not bought. But with that trust comes a new mandate for brands: to amplify wisely and build ecosystems that value innovation and integrity.

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.