Thais Tighten Belts as 77% Dip Into Savings and Borrowing
Thai consumers are tightening spending as 77% rely on savings withdrawals or borrowing to cover daily expenses, with buy-now-pay-later services increasingly popular across income levels despite financial caution rising to 66% in April 2025.
A Milieu consumer survey conducted in April 2025 reveals Thai consumers are entering a new era of cautious spending. Sixty-six percent report increased financial caution, up from 56% in 2024, and 71% expect to be even more careful in the coming months. However, consumers are not stopping purchases entirely—they are instead buying more carefully and emphasizing value for money. Fifty-five percent lack confidence in their financial status over the next three months, while 51% acknowledge spending has increased compared to the previous three-month period.
According to a follow-up study in July 2025, 77% of consumers have relied on borrowing or withdrawing savings to cover daily expenses over the past three months, with only 23% managing without additional financial support. Among those seeking supplementary income, 34% withdrew from emergency savings for necessities like food and groceries, 29% used buy-now-pay-later services, 26% used credit cards, 15% borrowed from family or friends, and 11% used loan applications. Notably, buy-now-pay-later dependence is not limited to low-income groups—consumers earning 30,000–39,999 baht per month use it at a rate of 48%, reflecting a shift toward flexible payment methods to manage living costs and maintain their lifestyle.
Despite financial pressure, 69% of consumers acknowledged thinking "life is uncertain anyway, so let me spend money for happiness now" before making purchases. While large luxury purchases may be postponed, consumers still allocate small rewards for themselves. Additionally, 59% admitted hiding purchases or actual spending amounts from spouses, partners, or family members, and 8% do this regularly, reflecting growing financial pressure that may affect transparency within households. However, 50% of Thai consumers believe their financial status will improve in 2025, compared to 22% expecting it to worsen. Groceries remain the highest priority at 61%, followed by utilities at 58%.
