Leading data agency Kantar Philippines Worldpanel expects a slower growth in the country’s fast-moving consumer good (FMCG) market of 0.4 percent in 2024 after expanding 6 percent in 2023.
Kantar Worldpanel Division’s 2024 Outlook, covering FMCG purchases of 5,000 homes from January to December 2023, indicates cautious optimism among consumers and households with the latest macro-economic factors at the backdrop.
“In 2023, coming from so many economic disruptions, hyperinflation, we see it controlled now. This is a reason for us to be optimistic this 2024. However, we know that circumstances can also be volatile. While there is reason for us to be optimistic, maybe the proper way to approach the year is to be cautiously optimistic,” said Kantar shopper insights director Laurice Obana.
Kantar data reveal a shift in Filipino consumer behavior as the country embraces normalcy in 2023. Filipinos are spending more on household essentials or FMCG.
The report also shows a clear focus on healthier choices like soy milk, yogurt, cereals and oatmeal compared to previous years. This trend extends to personal care, with a surge in demand for self-care products like hair treatments, facial wash, and nail polish for home use.
The focus on hygiene is reflected by increased spending on paper towels and cleaning products.
The shopping trend is influenced by Filipinos’ budget and product availability, according to Kantar.
Kantar expects a rise in pet food purchases which evolved as a priority for pet owners. About 66 percent of Filipinos buy pet food, and spending on pet care jumped 44 percent last year.
The trend of purchasing snacks and non-alcoholic beverages for on-the-go consumption continues to rise. Kantar’s upcoming “Out-of-Home Pulse” report will explore this trend further.
While the National Capital Region (NCR) witnessed the highest FMCG spending growth of 21 percent, other regions also saw an increase, with Visayas and Mindanao at 13 percent and the rest of Luzon at 12 percent.
Filipino shoppers remain budget-conscious, seeking the best deals across brands and pack sizes.
The report highlights a growing omnichannel shopping experience in the Philippines. Nearly half of Filipino households shop across a wider range of 6 to 7 channels including sari-sari stores, grocery stores, supermarkets and even e-commerce sites.
The shift reflects a growing awareness and willingness to explore various FMCG purchasing options.
