What: Southeast Asian Ramadan retail sales surge 16% year-over-year, with Malaysia leading at 21% growth, driven by evolving digital shopping patterns and personalised retail strategies.

Why it is important: The significant growth in Ramadan retail sales demonstrates Southeast Asia's emerging role as a digital retail powerhouse, with consumers embracing sophisticated shopping patterns that combine traditional festivities with modern commerce.

Ramadan continues to strengthen its position as a crucial shopping period across Southeast Asia, with retail sales demonstrating remarkable year-over-year growth. From 2023 to 2024, sales surged by 16%, building on the previous year's 8% increase. Malaysia's predominantly Muslim market led the growth with a 21% increase in retail transactions, while Singapore posted a 7% rise. However, Indonesia experienced an 11% decline in online sales, highlighting the complexity of regional market dynamics. The shopping patterns during Ramadan have evolved significantly, with sales peaking during the final two weeks of the holy month. Consumer activity shows distinct temporal shifts, with online sales spiking during late-night and early-morning hours, particularly between Sehri and Iftar. Religious and ceremonial items dominated the growth categories with a 63% increase, followed by clothing at 23%. The transformation extends beyond retail, with the travel sector experiencing a 29% year-over-year increase in bookings. Retailers are adapting to these changing patterns by implementing sophisticated strategies, including targeted retail media placements and personalized product recommendations. The success of these approaches demonstrates the increasing sophistication of Southeast Asian consumers and the importance of combining cultural understanding with digital innovation.

IADS Notes: The strong Ramadan retail performance aligns with broader regional trends identified throughout early 2025. As noted in January 2025, Singapore's achievement of 13.3% online sales penetration demonstrates the region's growing digital maturity, while March 2025 reports showed most Southeast Asian countries achieving over 5% growth rates. February 2025 research revealed 90% of Asian consumers value AI-driven recommendations, supporting the success of personalised retail strategies during Ramadan. These developments reflect the sophisticated evolution of Southeast Asian retail, where cultural events are increasingly driving digital innovation and market adaptation.

Ramadan shopping trends unpacked: What retailers need to know