UOB study: More than one in two Thai consumers opt for sustainable products
A better future for the next generation of greater concern for Thai and ASEAN consumers
UOB bank
A better future for the next generation of greater concern for Thai and ASEAN consumers
Bangkok, 28 February 2022 – Thai consumers are buying more sustainable products and turning to more sustainable investments as they recognise the impact of climate change on their children’s future and well-being, according to the UOB ASEAN Consumer Sentiment Study 2021.
The study found that more than half of Thai respondents (52 per cent) have chosen to support environmental friendly brands. More than one in two respondents (53 per cent) said they are replacing their current basket of goods and services with sustainable alternatives, while 45 per cent indicated they are willing to pay more for sustainably-sourced goods and services. On top of the shift to more sustainable goods, Thai consumers said they intend to stop supporting brands that did not behave responsibly during COVID-19. Six in 10 Thai respondents (62 per cent) said they stopped buying from a brand that took advantage of consumers during the pandemic. This trend was also visible among consumers across ASEAN, with five in 10 respondents (54 per cent) stating that they stopped buying from companies that exploited consumers, five per cent more than last year.
The desire to create a better future for the current and future generations was the key motivation for more Thai consumers choosing sustainable lifestyles. This sentiment was echoed by the respondents across all age groups, with more millennials (up from 30 per cent to 57 per cent) and Gen Z respondents (up from 12 per cent to 56 per cent) saying that they want to ensure their children’s future is brighter. The share of Baby Boomers and Gen X who expressed this view almost doubled to 72 per cent (up from 38 per cent) and rose from 43 per cent to 66 per cent respectively. Similarly across ASEAN, more consumers (16 per cent increase to 58 per cent) are acting to ensure their children’s better future.
Growing preference for sustainable investments
Thai consumers are also looking for ways to increase their financial resilience. Regardless of the ongoing concerns around COVID-19, more consumers stayed invested with those allocating same amounts to investments increasing from 33 per cent to 43 per cent. With growing awareness and acceptance of the importance for responsible investing, a third of those who increased their holdings (34 per cent) said they invested more in sustainable investments.
Mr Yuttachai Teyarachakul, Managing Director, Country Head of Personal Financial Services, UOB Thailand, said, “We believe that sustainability starts with consumers’ everyday choices, from where they live and how they commute to what they buy and invest. In fact, the UOB ASEAN Consumer Sentiment Study 2021 showed that nine in 10 Thai respondents want more sustainable investing and financing options. To assist our customers on making a positive impact, we have incorporated environmental, social and governance considerations into our investment product offering. This is in line with our Risk-First approach, which focuses on helping our customers understand potential risks ahead of investment returns. By selecting investments suitable to their risk profile, appetite and financial goals, our customers can build portfolios that offer profit and purpose.”
In steering wealth to sustainable investments, UOB Thailand launched in late 2020 a suite of ESG-focused products such as the United Sustainable Equity Solution Fund (USUS) and the United Sustainable Equity Solution Super Savings Fund (USUS-SSF). As at the end of 2021, the number of customers who purchased such products jumped nearly 250 per cent since launch.
The UOB ASEAN Consumer Sentiment Study aims to provide a better understanding of ASEAN consumers at a time when the region is undergoing deep social and economic transformation. This is the second edition of the study that was completed in July 2021. Approximately 3,500 respondents from five ASEAN countries were interviewed, including 1,000 from Singapore and more than 600 each from Indonesia, Malaysia, Thailand and Vietnam.
About UOB Thailand
United Overseas Bank (Thai) Public Company Limited is a fully-licensed commercial bank with its network of 149 branches, 352 ATMs nationwide (as at 31 December 2021). UOB Thailand is 99.66 per cent owned by Singapore-headquartered UOB, which has a global network of more than 500 offices in 19 countries and territories in Asia Pacific, Europe and North America.
UOB Thailand is rated among the top banks in Thailand: AAA (tha) by Fitch Ratings. We offer innovative financial solutions, quality products and excellent services through understanding and identifying the needs of our customers.
Generations of UOB Thailand employees have carried through the entrepreneurial spirit, the focus on long-term value creation and an unwavering commitment to do what is right for our customers and our colleagues. We believe in being a responsible financial services provider and we are committed to making a difference in the lives of our stakeholders and in the communities in which we operate. Just as we are dedicated to helping our customers manage their finances wisely and to grow their businesses, UOB Thailand is steadfast in its support of social development, particularly in the areas of art, children and education.
For media queries, please contact:
Yada Srisammasheep
Strategic Communications and Customer Advocacy
Email : yada.sri@uob.co.th
Tel: +66(0)2343 4965; Mobile: +66(0)84640 0058