Grocery retail sales in the country are set to amount to PHP 7.08 trillion (US$149 billion) by 2021 from US$96 billion in 2016, which will make it the fifth-largest grocery retail market in Asia.
Shirley Zhu, programme director, IGD, Asia Pacific, said: “We expect to see fast growth in both the number of outlets and sales for modern grocery retailers.”
The market is driven by the nation’s growing population, higher disposable income and increasingly urbanised lifestyles, and Filipino consumers are demanding more convenience in their grocery shopping.
Domestic multi-format retailers hold the largest share in the market and have shown robust growth over the last five years—with SM Retail, Puregold and Robinsons the largest grocery retailers in the country.
The number of convenience stores in the country is set to increase as domestic retailers continue to drive this part of the market. One of the reasons that there is high demand for convenience store is because they are centred mainly in urban areas, operate 24 hours a day, and the areas are populated by young consumers with disposable income who want to shop for their groceries conveniently.
Online grocery shopping in the Philippines is still in its infancy, but bricks and mortar retailers have already been experimenting with their own ecommerce solutions. Lazada, an ecommerce platform in Southeast Asia, has been operating in the country since 2012 and now has six million users in the nation.
“There is no doubt that the convenience and online channels will be on a fast growth trajectory over the next few years. There is a wealth of opportunity for retailers and suppliers looking to grab a slice of the action in this rapidly evolving market,” Ms Zhu concluded.