The combined consumer spend of Indonesia, Thailand, the Philippines, Vietnam, Malaysia and Singapore could nearly double between 2017 and 2030, according to DBS analysts in a new report.
They project household personal consumption expenditure to rise from US$1.4 trillion in 2017 to US$2.7 trillion in 2030, fuelled by rising incomes across the region.
"As Asia works smarter and earns more, we believe the two sectors that will benefit the most will be tourism and discretionary consumption," says the report.
With Singapore already enjoying high income levels, the Republic's spending increases are likely to come in healthcare, education, recreation and overseas travel.
But neighbours such as Indonesia, Vietnam and the Philippines are expected to see strong growth in categories such as food, alcohol and tobacco, as well as housing, furnishing and utilities.
“As lifestyles improve, transport and communication is another area where we expect spending as a percentage of income to rise, such as ownership of vehicles and communication devices (mobile phones, computers),” the DBS researchers write. They estimate spending in this category to reach US$579 billion by 2030 across these six Asean countries, growing by 5.4 per cent each year.
Dining and prepared foods could see expenditure rise to US$294 billion, or a compound annual growth rate of 5.3 per cent a year, the analysts add. The increase will be “driven by income, coupled with urbanisation, and more hectic lifestyles”.