As Southeast Asia grapples with the impact of climate change, global strategic insights practice Canvas8’s APAC breakout report on coming trends for 2025 suggests that the region stands at a crossroads where innovative cooling technologies and a commitment to sustainable living are increasingly vital. Authored by Manila-based analyst Therese Reyes and featuring expert insights from Dr. Lau Kong Cheen, Associate Professor of Marketing at the Singapore University of Social Sciences, Canvas8’s APAC report highlights the evolving landscape of sustainability and business in the Asia-Pacific region with a particular focus on Southeast Asia.
Climate Change and Its Toll on Daily Life
The realities of climate change are undeniable, particularly in Southeast Asia, where many communities lack the infrastructure to cope with extreme heat. In 2024, the heat has taken a significant toll, with reports from Thailand indicating at least 30 heatstroke fatalities and temperatures soaring to 38.8 degrees Celsius in Manila. Dr. Lau emphasizes the urgent need for both immediate solutions and long-term strategies: “Climate change will have a huge impact on a lot of things, from consumer products to food. If you look at the prices of rice, our staple food, it has gone up by about 40%—cocoa as well. All of this will impact the cost of food, which we are going to experience whether we’re cooking or eating out.”
As people seek relief from the sweltering heat, the market is witnessing a surge in innovative cooling products. From Japan’s cooling sprays to portable fans in the Philippines, companies are responding to the needs of consumers. Yet, as Dr. Lau points out, many individuals are also committed to tackling the root causes of climate change, with over half of APAC respondents indicating a shift towards sustainable purchasing practices.
A Shift Toward Sustainable Consumerism
A survey by Rakuten Insight reveals that 54.6% of APAC respondents have adopted sustainable purchasing practices, up from 51.9% in 2022. Notably, younger generations are leading this charge, with 56% of Gen Z and 59% of Gen Y expressing a willingness to pay more for eco-friendly products. Dr. Lau observes, “We will see people become a lot more sustainable. About two-thirds of Gen Zers and three-quarters of Millennials are willing to pay more for environmentally sustainable products and services.”
As governments implement policies such as carbon taxes—Thailand’s set to launch by 2025—businesses are encouraged to innovate. “There are now more products coming out from brands that help people adapt to the heat, like smart fabrics, clothing, and skincare products,” Dr. Lau states, reflecting a growing trend toward sustainable innovation.
However, this transition is not without its challenges. Dr. Lau highlights a significant paradox: while consumers are increasingly aware of sustainability, many do not fully understand the environmental impacts of the technologies they embrace. “Although more people have the intention to be more sustainable, some are still not fully aware of the sustainability claims,” he notes. For instance, battery-powered cooling devices may offer immediate relief but also contribute to environmental harm through unsustainable lithium extraction processes.
Emerging Trends for 2025 – Preparing for a More Sustainable Future
Looking ahead, Dr. Lau predicts a rise in the popularity of cooling products and sustainable luxury items. “More people will be buying clothes that give them a cooling effect… We’ll also see demand for more sustainable products and brands, particularly in luxury,” he asserts. This shift signals a broader cultural change towards sustainability, spurred by stronger policies and consumer demand.
As the region transitions into 2025, the emphasis on sustainable practices will shape both consumer behaviour and business strategies. Dr. Lau advocates for a collaborative approach: “The entire industry needs to collaborate to achieve this, in terms of R&D and creating a circular economy.”
To ensure competitiveness, larger companies are already leading the charge. For example, Apple’s sustainability initiatives—from solar-powered offices to the use of recycled materials—set a benchmark for others. Yet, Dr. Lau stresses that small and medium-sized enterprises (SMEs) may struggle without government support. He emphasizes the importance of grants and initiatives that enable SMEs to innovate sustainably.
Nick Morris, founder and Managing Director of Canvas8, said: “As Southeast Asia navigates the challenges of climate change, the 2025 APAC Expert Outlook on APAC underscores the critical role of sustainable innovation and consumer responsibility. But, to echo Dr. Lau, people these days are simultaneously growing more sensitive to greenwashing. Brands that adopt sustainability just to meet consumer demand often lose authenticity, so a delicate balance needs to be struck for brands to move forward effectively on this.”
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