Micro 04

MODULE 04
Basic Consumer Goods in the

Philippines
Philippines Consumer & Retail 2024
We hold a positive outlook for
consumer spending in the Philippines
in 2024 and 2025. While household
spending already recovered to the pre-
Covid levels in 2022, the rate of
increase slowed in 2023. For 2024, we
expect an acceleration, driven mostly
by easing inflationary pressures, a
stable labor market and lower interest
rates.
Risks to this outlook include
prolonged inflation, lower
remittances and a weakening of the
domestic economy. All of these risk
factors adversely affect household
purchasing power. Geo-political
tensions (eg, the Israel-Hamas
conflict) have also emerged as a risk
that is likely to impact inflation and
interest rates.
Household final consumption expenditure in the
Philippines in 2023, by purpose(in trillion Philippine
pesos) https://www.statista.com/statistics/708945/philippines-household-final-consumption-expenditure-by-type/
The current situation of
Philippine economy in 2023.
The Philippines ended 2023 on a

high note, being the fastest
growing economy across
Southeast Asia with a growth
rate of 5.6 percent—just shy of
the government's target of 6.0 to
7.0 percent.
Growth moderated from 7.6 percent
in 2022 to 4.3 percent in the second
quarter of 2023, largely due to a
weak global economy and tightened
policy settings.
Weighed down by the COVID-19
pandemic, the Philippine economy
is forecast to grow at 4.7 percent
this year before accelerating to 5.9
percent in 2022 and 6.0 percent in
2023. Local governments have
played a crucial role at the front
lines of the COVID crisis.
We forecast real household
spending to grow by a strong
5.5% y-o-y in 2023. Consumer
confidence has increased since
its all-time low reported and is
showing recovery.
While unemployment has
fallen to a record low, the cost
of living remains elevated. We
predict inflation to remain
elevated over 2023, a risk to
household purchasing power
in the short term.
Food & Nutrition. The category Food &
Nutrition provides facts and market data on
the food industry. It illuminates Milk &
Dairy Products, Fish & Meat, Fruit &
Vegetables, Bread & Bakery, Organic &
Health Food, Convenience & Frozen Food,
Functional Food & Dietary Supplements,
Sweets & Snacks, Condiments & Seasoning
and Eating Behavior.
Agriculture is a major sector in the
Philippines, employing a large
portion of the population and
contributing to both domestic
consumption and exports. Key
products include rice, corn,
bananas, coconut, sugarcane, and
fish.
Food exports, such as coconut
products, seafood, and tropical
fruits, are important for the
country’s international trade
balance.
The food processing industry is a
significant sub-sector of
manufacturing in the Philippines.
It includes products like canned
goods, snacks, beverages, and
processed meat.
Local food manufacturing
companies like San Miguel
Corporation, Universal Robina, and
Nestlé Philippines are key players,
alongside multinational
corporations.
Apparel & Shoes. The apparel industry is
of great importance to the economy in
terms of trade, employment, investment
and revenue all over the world. This
particular industry has short product life
cycles, vast product differentiation and is
characterized by great pace of demand
change coupled with rather long and
inflexible supply.
Alcoholic Beverages. The industry
Alcoholic Beverages provides statistics, facts
and market data on beverages containing
alcohol. The category is further divided into
beer, wine & Champagne, and spirits. The
production, distribution and consumption
of those beverages are highly regulated
around the world.
Furniture, Furnishings & Household
Items. The global home furnishings and
household items industry encompasses a
range of product lines such as bedding,
kitchenware and office furniture. Recent
phenomena in the industry include a trend
towards environmentally friendly goods to
appeal greater consumer awareness
concerning respect for the environment.
Cosmetics & Personal Care. The global
beauty market is usually divided into five
main business segments: skincare, haircare,
color (make-up), fragrances and toiletries.
These segments are able to satisfy all
consumers’ needs and expectations with
regard to cosmetics. Beauty products can be
also subdivided into premium and mass
production segments, according to the
brand prestige, price and distribution
channels used.
The beauty and personal care
market in the Philippines has
experienced strong growth,
particularly in recent years.
This expansion is fueled by rising

disposable incomes, increased
urbanization, and a heightened
focus on self-care and appearance.
Millennials and Gen Z are key
drivers of growth, with their
heightened interest in beauty
trends, skincare routines, and
health-conscious products.
Social media influencers and beauty

bloggers also have a significant
impact on consumer behavior.
Key Players and Brands:
Local companies like Bench, Ever
Bilena, and Human Nature are
major players in the Philippine
cosmetics industry. These brands
often emphasize affordability and
cater to Filipino beauty standards.
International brands such as
Unilever, Procter & Gamble, L'Oréal,
Shiseido, and Estée Lauder are also
prominent in the market, offering
premium and mid-tier products.
Traditional retail remains strong in
the Philippines, with products
available in supermarkets,
drugstores (e.g., Watsons, Mercury
Drug), and specialty beauty stores
(e.g., BeautyMNL, SM Beauty).
The growth of e-commerce platforms
such as Lazada and Shopee has
opened new avenues for cosmetics
and personal care sales.
Cleaning Products. Demand for cleaning
products continues to grow due to
consumer awareness concerning the
importance of hygiene and the spread of
infectious diseases. The global cleaning
products market is benefiting from
increased focus on safe food storage,
hygienic garbage disposal, the importance
of sanitary conditions and the need to
disinfect household surfaces.
THANK YOU.
• E-SOURCES
• https://www.marketresearch.com/Business-Monitor-International-v304/Philippines-Consumer-Retail-Q1-13794391/
• https://www.statista.com/statistics/708945/philippines-household-final-consumption-expenditure-by-type/
• https://www.statista.com/markets/415/topic/468/food-nutrition/
• https://www.statista.com/markets/415/topic/466/apparel-shoes/
• https://www.statista.com/markets/415/topic/469/furniture-furnishings-household-items/
• https://www.statista.com/markets/415/topic/467/cosmetics-personal-care/
• https://www.statista.com/markets/415/topic/464/alcoholic-beverages/
• https://www.imf.org/en/News/Articles/2023/10/03/pr23331-philippines-imf-staff-completes-2023-article-iv-mission-to-the-
philippines#:~:text=The%20Philippines%20economy%20has%20emerged%20from%20the%20pandemic%20strongly%20but,economy%20and%20tightened%20policy%
20settings.
• https://www.fitchsolutions.com/consumer-retail/philippines-consumer-outlook-household-spending-continues-recovery-trajectory-08-08-
2023#:~:text=At%20PHP12.,9trn%20in%202019.
• Demand for cleaning products continues to grow due to consumer awareness concerning the importance of hygiene and the spread of infectious diseases. The global
cleaning products market is benefiting from increased focus on safe food storage, hygienic garbage disposal, the importance of sanitary conditions and the need to
disinfect household surfaces.
• https://store.fitchsolutions.com/consumer-retail/philippines-consumer-retail-report
• For Classroom discussion use only

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MODULE 04

Basic Consumer Goods in the

The Philippines ended 2023 on a

This expansion is fueled by rising

Social media influencers and beauty

• For Classroom discussion use only

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