With the campaign season in full swing and elections set for May 2025, Worldpanel by Kantar projects a 5% overall growth in Fast-Moving Consumer Goods (FMCG) value this year.
Increased economic activity driven by election-related spending, coupled with improving economic indicators such as inflation, GDP, unemployment, and consumer confidence, is expected to fuel this upward trend, said Worldpanel by Kantar Shopper Insights director Laurice Obana.
“Historically, in-home FMCG purchases see an uptick during election years compared to non-election years. Previous elections have shown growth in FMCG mega-sectors such as food, beverage, personal care, and household care, particularly across mid- to lower-income segments,” Obana explained.
Public gatherings in 2025 may further boost out-of-home consumption of FMCG products.
In Q2 2024, out-of-home purchases contributed 38% of total FMCG spending among Filipino households.
Worldpanel by Kantar highlights the importance of “third spaces”—neutral, accessible locations outside of home and work where consumers spend time and shop.
Aside from places of worship, 30% of Filipinos consider retail areas like sari-sari stores, markets, and malls as their go-to third space, with 6 out of 10 visiting these locations at least once a week.
“One in three shoppers who frequent retail areas as their main third space spends at least two hours there, offering a prime opportunity for brands to introduce new products, particularly those suited for on-the-go consumption,” Obana noted.
Filipinos continue to embrace omni-shopping, purchasing from a mix of neighborhood sari-sari stores, grocery chains, drugstores, and larger-format retailers like hypermarkets and supermarkets.
However, in recent years, proximity shopping has gained momentum, with sari-sari stores capturing a 40% value share.
Additionally, neighborhood discounters, online platforms, and minimarts are expanding their reach, responding to changing shopper behaviors.
As the next generation of consumers—Generations Z and Alpha, who make up 62 percent of the Philippine population—shapes the future of FMCG, brands must stay attuned to their evolving preferences, redefining value beyond just low prices and promotions.
“Filipinos remain value-conscious, but value today encompasses more than just affordability. Convenience, a wide product range, impactful marketing, and an engaging shopping experience all contribute to what modern consumers seek,” Obana emphasized.