Lifestyle-related products are expected to drive the fast-moving consumer goods (FMCG) industry in the country this year, which is projected to grow between 3 percent and 4 percent amid the slower domestic economic growth.
Consumer knowledge firm Worldpanel by Numerator in the Philippines is seeing tempered growth for the industry this year at 4 percent, from 5 percent last year, according to shopper insights director Laurice Obana during a briefing in Makati City on Friday.
She still expressed optimism, given the rising demand among the older shoppers, who have more financial capacity to buy particularly of plant-based milk alternatives and health supplements; overseas Filipino workers (OFWs) who are into cross-category product bundles and bulk-buying and not just spending on basic necessities; and animal lovers.
The older generation, or those aged 55 and up, accounts for around 16 percent of the country’s currently population and they are expected to rise to around 34 percent of the total by 2055.
For OFW households, Obana said they remain among the drivers of consumer spending and are spending 25 percent higher compared to those without OFW members.
Pet owners are also contributing largely to the growth of the FMCG industry, with around 67 percent of Filipino homes having at least one pet.
Obana said businesses that do not directly cater to pet needs also benefit from this sector by offering pet-safe products like multi-purpose cleaners and air fresheners.
In terms of touch points, Obana cited the rising attractiveness of discounters, or small groceries that sell wide range of products and have their own brand items, and those selling through electronic commerce (e-commerce).
The competition has risen, thus big supermarket stores are ramping up their accessibility and offerings to encourage more patrons, she said.
“We are seeing the rise of modern palengke (market) setups that provide a one-stop-shop experience for essentials, dining and other services across the country,” Obana said.
Asked whether these discounters will eventually be the preferred purchasing channel, Obana said they will be among the options because they are still new in the Philippines.
“In other countries, there’s a bit of a peak already but here, it’s still in a very young, early stage so I suppose it’s going to grow,” she added. (PNA)
