Lifestyle-oriented products are poised to power the country’s fast-moving consumer goods (FMCG) sector this year, even as overall domestic economic growth slows. Industry expansion is forecast at between 3 percent and 4 percent, signaling moderated but steady momentum.
Consumer intelligence firm Worldpanel by Numerator Philippines projects the industry will grow by 4 percent this year, easing from 5 percent previously. Speaking at a media briefing in Makati City on Friday, shopper insights director Laurice Obana said the outlook reflects tempered but resilient demand.
Despite the slower pace, Obana expressed confidence in several high-potential segments shaping consumption patterns. These include older consumers with stronger purchasing power—particularly for plant-based milk alternatives and health supplements—overseas Filipino worker (OFW) households that increasingly spend on cross-category bundles and bulk purchases rather than just essentials, and the expanding community of pet owners.
Consumers aged 55 and above currently make up roughly 16 percent of the population, a figure projected to more than double to about 34 percent by 2055. This demographic shift is expected to significantly influence product development and marketing strategies in the years ahead.
OFW households continue to serve as a key engine of consumer expenditure. According to Obana, spending among these households runs approximately 25 percent higher than in homes without OFW members, reinforcing their importance to FMCG growth.
Pet ownership is another strong contributor to sector expansion. Around 67 percent of Filipino households now have at least one pet, broadening demand beyond traditional pet food and supplies. Obana noted that even companies not directly focused on pet care are benefiting by introducing pet-safe variants of everyday items such as multi-purpose cleaners and air fresheners.
Retail dynamics are also evolving. Obana pointed to the growing appeal of discounters—small-format groceries offering a broad assortment of goods, including private-label brands—as well as sellers operating through electronic commerce platforms. Heightened competition has prompted large supermarket chains to enhance accessibility and expand their product mix to retain and attract shoppers.
“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.
When asked whether discounters could eventually become the dominant purchasing channel, Obana indicated that while they are gaining traction, they remain in an early phase of development locally.
“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 PHOTO