Latest dentsu Consumer Navigator reveals a widening gap between consumers’ financial reality and economic confidence, as drinking, discovery and social occasions are redefined

• 61% of APAC consumers comfortably covered their monthly expenses, yet only 49% believe the economy is in good shape. 
• 82% say social events can be just as good without alcohol, while one in four APAC consumers do not drink. 
• 31% switched to cheaper grocery options, up from 22% in Q2. 
• Non-drinkers favour familiar and functional beverages over direct alcohol substitutes. 

APAC consumers remain financially resilient, but growing uncertainty is reshaping how they spend, according to dentsu’s latest Consumer Navigator.

The quarterly research series tracks consumer sentiment and behaviour across Asia Pacific. Its Q3 edition surveyed 2,500 consumers across Australia, China, India, Japan and South Korea, combining its regular Consumer Mindset study with a beverage attitudes and behaviours deep dive.

Confidence and cash have come apart across APAC

The Consumer Mindset study found that six in ten consumers (61%) are comfortably covering their monthly expenses, yet fewer than half (49%) believe the economy is in good shape. The findings mark a shift from earlier optimism, with confidence now shaping behaviour as much as financial capacity.

In Q2, 54% viewed the economy positively and 37% expected their personal finances to improve. In Q3, those figures fell to 49% and 31% respectively, while the share comfortably covering expenses edged up from 59% to 61%, suggesting many consumers are choosing caution despite retaining spending power.

This disconnect is most visible across generations. Gen Z is the most optimistic generation, with 59% describing the economy as good or excellent, yet the least financially comfortable, with 56% comfortably covering expenses. Boomers show the opposite pattern.

For brands, the contrast points to two different jobs: offer reassurance and protect value for older consumers, while giving younger consumers accessible ways to act on their sense of momentum.

Lukas Snioka, Integrated Strategy Partner, dentsu APAC, commented: “The most financially comfortable generation is the least positive about the economy. 73% of Boomers comfortably cover their expenses, yet only 39% rate the economy well. Gen Z is the reverse. Spending power tells brands who can buy, while confidence shapes who will.”

That caution is already showing up in spending. Across 16 of 17 categories measured, more consumers reduced spending or delayed purchases than increased spending, with petrol seeing the sharpest pullback and dining out, luxury goods and experiences also under pressure.

Everyday spending is becoming more selective too. Nearly one-third (31%) switched to cheaper grocery options during the past month, up from 22% in Q2, while only 10% splurged on premium groceries. Similar trade-down behaviour is visible across clothing, beauty and dining.

Snioka added: “In vehicles, appliances and tech, more buyers are delaying or cutting back than switching to something cheaper. Brands need to address the hesitation behind the purchase. Financing, trade-ins and price guarantees can help make the commitment easier.”

Confidence remains strongest in China and India, where more than seven in ten consumers describe the economy positively. Japan and South Korea show a different tension: consumers are about as likely as those in India to cover their expenses comfortably, but fewer than one-third view their economies positively. Australia remains the most financially stretched market in the study, with 46% only comfortably covering expenses. The contrast shows why brands cannot sell the same version of optimism across APAC. Messaging must reflect the economic story consumers in each market feel they are living.

Beverage choices show social occasions moving beyond alcohol

The Q3 Consumer Navigator’s beverage study shows how this more intentional mindset is reshaping a major consumer category. Three in four APAC consumers drink alcohol, but only 28% do so regularly. Drink choice still carries social weight: 70% say the beverages they serve reflect their taste and who they are.

For the one in four consumers who do not drink, abstinence is more often a lifestyle choice than a search for alcohol replacements. Nearly half (48%) say they have never been interested in alcohol and 41% cite personal health or wellness. Regular choices are led by coffee or tea (44%), water or basic soft drinks (40%) and energy drinks (27%), while only 5% to 7% regularly purchase non-alcoholic beer, wine or spirits.

The findings also point to opportunities around hosting, trial and discovery. Just over half (51%) consume more beverages at home than two years ago, while 31% buy more premium options when hosting. Among consumers choosing alcoholic beverages, 72% say hosting encourages them to trade up. Two-thirds (66%) are interested in side-by-side sampling, suggesting brands can reduce choice friction by making discovery more tangible and lower risk.

Social media leads beverage discovery at 44%, followed by friends and family at 39%, but trusted brands still carry weight at the point of purchase in bars and restaurants, creating a clear role for brands to connect inspiration with easy access, credible guidance and occasion-led experiences.

“82% say a social event can be just as enjoyable without alcohol, yet 56% say not drinking can still feel awkward. That gap is social, so the fix is too. Alcohol-free drinks need to look like a choice worth making, in the glass and on the menu,” said Snioka.

The dentsu APAC Consumer Navigator Q3 2026 reports are available for download here: https://www.dentsu.com/sg/en/insights

- ENDS -

For further information, contact:

Lucy Povlsen                                        

APAC Communications Director                                                            

+61 411 251 933                                                           

lucy.povlsen@dentsu.com