CONSUMER data and market research firm Worldpanel by Numerator sees a 3- to 4-percent growth in fast-moving consumer goods (FMCG) this year in the Philippines.
This will fall short of the 5.2-percent growth in 2025, which exceeded Worldpanel’s 4- to 5-percent projection.
The FMCG sector, which represents more than half of all consumer spending, includes food and beverage, personal care, household, health and hygiene, and baby and pet care products.
“The growth for 2026 is based on subdued economic growth projection, modest price increase of goods and a slight increase in consumer spending,” Worldpanel shopper insights director Laurice Obana told reporters on Friday.
“Whenever we make these projections, it is always with an if-and-then situation ... Because this is analytics and considers historical movements of economic growth, inflation, spending uplifts, the trajectory of how much shoppers are actually buying and the consumer confidence index,” Obana explained.
The slower projection for this year is attributed to anticipated gross domestic product growth of 5.3 percent, down from an initial estimate of 6 percent, said Obana.
Prices of goods had been higher in recent months, even as the government managed to temper inflation, she noted as consumers tightened their budget and limited their spending.
About 78 percent of FMCG spending comes from the lower middle class, the Worldpanel report said.
Discount stores such as Dali and O! Save, as well as e-commerce platforms, are expected to capture a larger share of consumer spending this year, with their growth targeted at 77 percent and 15 percent, respectively.
Other consumer channels such as supermarkets, hypermarkets and market stalls are still seen growing, even as shoppers look for greater value and convenience.
The growth for 2026 rests upon how FMCG brands can tap on high-value segments, particularly in key areas the company has identified, Obana said.
“FMCG players must pinpoint opportunities that fit the different lifestyles and interests of Filipino households,” she added.
The silver market, ages 55 and above, is anticipated to grow by 34 percent in 2055, Obana said.
The study noted that older shoppers spend 10 percent more on FMCG, prioritizing health and wellness products including plant-based milk alternatives and health supplements, as well as ground coffee, oatmeal and lip cosmetics.
Some 41 percent of the silver market participate in physical activities to stay fit.
Another group that spends more on FMCG is overseas Filipino workers (OFWs). Families of an OFW spend 25 percent more than those without a family member working abroad.
Obana said with a larger basket size, OFW families can be a key market for cross-category product bundles and bulk buying, especially since a bulk of their spending goes to large-format stores.
Meanwhile, 67 percent of Filipino households own at least one pet, with 17 percent of pet owners buy pet food from stores.
Brands may explore pet-safe products like air fresheners and multipurpose cleaners to complement the tendency of pet owners to buy food at pet stores, said Worldpanel.
Beauty products are also seeing expansion, with each consumer spending an average of more than P2,000 on local and smaller facial care and makeup brands.