What are Muslims in SEA spending on for Ramadan?

Across Southeast Asia (SEA), retail sales saw an average 16% increase during Ramadan 2024 compared to 2023. This demonstrates the growing importance of the holy month for businesses, according to a recent study by Criteo. 

Malaysia, in particular, experienced a 21% increase in retail transactions while Singapore recorded a 7% uptick. This signifies that even markets with smaller Muslim populations felt the impact of Ramadan. 

Surprisingly, Indonesia saw an 11% drop in online sales, indicating shifting consumer preferences and the need for local brands to redefine their Ramadan strategies, said the study. 

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According to the study the last two weeks of Ramadan saw particularly strong growth, with sales rising by 8% on average and peaking on 4 April. The date coincides with a double day which further fuels online sales. 

Indonesia saw the highest spikes, with sales surging by 74 on 31 March. Malaysia followed by a 34% peak on 1 April, while Singapore saw more stable sales patterns. 

What were Muslim consumers spending on?

Product that boosted sales were religions and ceremonial items, as well as apparel and accessories such as religious veils and clothes for Eid. In Malaysia, dresses saw a 41% increase, while Indonesia recorded a 96% surge in pants sales. 

Food, beverage and tobacco categories also saw a demand regionally, with soda surging 76%, cookies surging 66% and butter and margarine increasing by 49% as families stocked for Iftar meals. 

Similarly, home and garden products saw strong growth of 7% with tablecloths and air conditioners being popular items as families prepared for Eid gatherings. 

Ramadan was also a period where consumers booked travel plans. While travelling during the fasting month was lesser, many had planned Eid getaways and family reunions, leading to a 29% increase in travel bookings. 

In SEA, consumers started browsing products early, nearly 20 days before making purchases. Shopping activity peaked late at night, particularly between pre-dawn meals. This was especially evident in Indonesia where online sales doubled between 3am to 5am, and in Malaysia where sales peaked at 6am to 7am during Ramadan. 

However, shopping dipped during Iftar between 6pm to 7pm in Indonesia, and 7pm to 8pm in Malaysia. 

Interestingly, Singapore showed a slightly different pattern, with a modest decline in evening sales during Iftar hours between 7pm to 8pm, but transactions remaining stable throughout the day. 

In all, this signifies the importance of early campaign strategies to capture Muslim consumers during the month of Ramadan. 

How brands can maximise sales 

During Ramadan, brands can plan promotions and inventory around key shopping days such as double-day events and the last two weeks of Ramadans. Retailers should also leverage high-traffic periods with targeted promotions and flash sales. 

Evidently, consumers begin browsing and product discovery weeks before making purchases closer to Eid. Retailers can consider launching awareness campaigns early to reach shoppers before they commit to a purchase, said the study. 

Retargeting strategies are also key to re-engage visitors who browse but do not immediately convert. 

Brands should consider going beyond surface-level Ramadan themes and personalise product recommendations, offers and messaging for deeper engagement. Similarly, brands should leverage retail media for personalised advertising. 

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Study: SEA consumer-spending during Ramadan up by nearly 50%