DATA and analytics company Kantar said growth in in-home spending for fast-moving consumer goods (FMCG) in the Philippines could slow drastically to 0.4% this year from the 6% posted in 2023.
At the launch of the FMCG Outlook 2024 Philippines on Thursday, Laurice Obana, shopper insights director at Kantar’s Worldpanel Division, said the projection for 2024 is on the conservative end due to the market’s volatility.
“In 2023, we saw a little bit of normalcy because after so many months, or even years, of heightened inflation, we started to see it controlled or going down. So it is actually a reason for us to be optimistic,” Ms. Obana said.
“However, we do know that circumstances can also be volatile, and so while there is a lot of reason for us to be optimistic, we think that maybe the proper way to approach things in 2024 is to be cautiously optimistic,” she added.
She said that the report projected continued recovery in certain FMCG categories like healthy foods, pampering products and home care items.
“In 2023, which we’re seeing to be continuing in 2024, we saw that there’s continued recovery in certain categories such as healthier options like soy milk, yogurt, and cereals, pampering is also recovering, home care including pet food, cleaning and paper products,” she said.
“Some categories are also being deprioritized and we see it in baby categories and hygiene,” she added.
She said consumer purchases of alcohol will fall, while a slowdown in infant or growing-up milk and baby diapers has also been noticed.
To further support growth in spending for FMCGs, Kantar said that businesses should make every purchase valuable for shoppers.
“Filipino shoppers will continue to look for value in every purchase and they are not limited to affordable brands or smaller packs,” it said.
“Brands must therefore find their edge to gain the attention of the buying public,” it added.
Businesses were also advised to explore FMCG channels as shoppers explore “an expanded repertoire of FMCG channels.”
“Observed in 2023 and continuing till the present, almost half of households shopped across 6 to 8 channels — from sari-sari stores and grocery stores to supermarkets and e-commerce sites,” Kantar said.
Meanwhile, businesses are also advised to focus on health and pets which Kantar said are commending more of the shopping budget.
“In 2024, Kantar believes that Filipinos will continue to allot a budget for their pets, with pet food gaining relevance among pet owners. Pet grooming and pet accessories are areas that they may also spend more on this year,” it added. — Justine Irish D. Tabile
