The Market Monitor Minding the Nation's Business
Shopping trends continue to evolve, especially for fast-consuming goods, indicating a change in consumer behavior shaped by the global lockdown during the recent pandemic.
According to Kantar – the world’s leading data, insights and consulting company – households across the country have increased their overall spending, expected to continue in 2024.
Laurice Obana, Kintanar’s shopper insights director, said, “We observed a lifestyle shift among Filipinos over the past year. According to our Outlook 2024, more shoppers chose healthier food options. They also purchased more self-care items. Paper towels and other fabric cleaning products saw an increase in spend as well.”
Laurice sees the previous years’ (pandemic years) trend to continue with Kitanar listing five shopping trends “that are still relevant in the Philippines” –
There’s value in every purchase. Filipino shoppers will continue to look for valuer in every purchase. These are not limited to affordable brands or smaller packs. Households may also choose items that satisfy their needs even if these go in bigger packs or at higher prices. Brands must therefor find their edge to gain attention of the consumer.
Omni-channel experience. Observed in 2023 and continues to the present, almost half of local households shopped across six to eight channels – from sari-sari stores and grocery stores to supermarkets and e-commerce sites. This reflects the Filipinos’ preference to shop in alternative choices.
Out-o-home purchases. Since 2020 (start of pandemic), out-of-home purchases have seen an uptrend. Globally, snacks and non-alcoholic beverages comprise the bulk of out-of-home purchases.
Filipinos see health holistically. Staying healthy remains valuable to Filipino families. almost all households (99%) said being healthy is very important, but only 72% are able to consistently shop for healthy grocery items. This trend is influenced by Filipinos’ budget and product availability.
Pet love. In 2024, Kintanar believes Filipinos will continue to allot budget for their pets. Pet food is fast gaining relevance among pet owners. Recent figures show that 66% of Filipinos buy pet food, significantly increasing from last year’s 44%. Pet grooming and pet accessories are areas that are expected to increase in spending.
Based on these trends, Laurice suggests that consumer brand companies ask the question – What do Filipinos deem important and what can we bring to the table to address those needs?
Laurice said, “The answer is not far from or different from a year or two ago. The market is inundated with so many choices from brands, channels and retailers. This can get overwhelming for Filipino shoppers, especially if their lifestyles are shifting and their habit are changing. Filipinos need to find the value in what they are buying. Sometimes, this means some more than more currency savings. It is important to balance one’s understanding of what value is in the present need and lifestyle for Filipinos.”
Included in the list of fast-moving consumer goods are soy milk, yoghurt, cereals, oatmeal, hair styling products, facial wash, nail polish, paper towels, etc.
Kantar expects Filipinos to remain positively cautious in 2024 even as macro-economic indicators such as inflation and gross domestic product numbers improve.
The lifestyle shift in 2023 may be attributed to change in consumer habits during the two-year total lockdown that radically altered behavior on a global scale.