Southeast Asia is continuing to post steady growth amid macroeconomic headwinds, according to a report by Bain & Company and NielsenIQ.
This findings come amid the ongoing profound transformation in the consumer landscape in the region, with affordability pressures, digital disruption, and the rise of local and regional brands identified to be reshaping the fast-moving consumer goods (FMCG) industry.
The gross domestic product (GDP) of SEA-6 economies is forecast to grow almost 5% annually through 2034, with Vietnam and the Philippines leading the way, each expected to expand by about 6% per year.
However, Bain says this growth is not translating into FMCG category growth driven by weak consumer sentiment, as growth rates in the first half of 2025 have been weaker than prior years.
Amid all these, investors are keeping their heads up, betting on long-term prospects. For the first time in 10 years, Bain says the region is attracting more foreign direct investment (FDI) than China, as multinational companies diversify manufacturing footprints. In 2023, FDI per capita for SEA-6 was 6.4%, compared to 0.2% for China.
The report also revealed that Southeast Asia’s commerce landscape is being transformed by two forces. These redefine how consumers connect, discover, and buy. Social commerce has rapidly evolved from an experiment to a mainstream channel. Platforms like TikTok Shop now account for roughly 20% of total e-commerce in the region and saw triple-digit GMV growth rates in Thailand, Vietnam, Malaysia and the Philippines between 2022 and 2024.
Bain says artificial intelligence is transforming purchase journeys as a new shopping partner for consumers, as around 85% of Southeast Asian shoppers are already using or considering AI tools to guide decisions, from product discovery to price comparison and personalised recommendations.
