Philippines Retail Sector Market Trends

Statistics for the 2023 & 2024 Philippines Retail Sector market trends, created by Mordor Intelligence™ Industry Reports. Philippines Retail Sector trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Team License

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Corporate License

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Market Trends of Philippines Retail Sector

The Philippines' Food and Beverage Sector: A Key Pillar of the Nation's Economy

The food and beverage sector in the Philippines is a vital driver of the nation's economy, accounting for nearly half of its GDP. Within the country's manufacturing landscape, this sector alone contributes to about 25% of the GDP. The Philippines stands out as one of Asia's major food producers. This growth is propelled by the rising disposable incomes of the middle and upper classes. Notably, the 25-34 age group remains a dominant force in discretionary spending, a trend expected to persist for the coming decade. The US Department of Agriculture projects a 6% rise in the industry's revenue, reaching USD 35 billion this year, primarily attributed to an improved labor scenario.

With the proliferation of restaurants, fast food chains, and food delivery apps like Grubhub and Caviar, the demand for food and beverages in the Philippines is poised for significant growth. Moreover, consumers are increasingly recognizing the health benefits of organic, natural, and fresh foods, further fueling this demand.

Retail Industry in the Philippines : Food and Beverage Retail Sales Value, Philippines, USD Billion, 2018-2023

The Online Distribution Channel is Emerging in the Market

Benefiting from robust internet and smartphone penetration rates, the Philippines stands out as one of Southeast Asia's most rapidly expanding e-commerce markets. The COVID-19 pandemic further catalyzed a pronounced shift in consumer behavior, with a notable preference for online platforms over brick-and-mortar stores. In the Philippines, key players in the online marketplace landscape include Lazada, Shopee, Zalora, Ebay, and Kimstore. Notably, Lazada, backed by Chinese e-commerce titan Alibaba, has been extending its footprint to ASEAN markets via its China-based platform, Taobao. Concurrently, the nation has been witnessing a surge in online grocery shopping, with notable collaborations like Foodpanda's partnership with 7-Eleven stores. As the e-commerce landscape expands, so does the adoption of digital payment services. While a significant portion of shoppers have reverted to in-store purchases, the e-commerce segment for food and beverages, albeit small, showcases a promising potential for product imports.

Retail Industry in the Philippines : Mobile E-Commerce Retail Sales Value, Philippines, USD Million, 2017-2022 and Forecasted 2026

Retail Industry in the Philippines Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)