Household spending seen slowing
HOUSEHOLD spending is expected to slow down this year, partly due to the fluctuating unemployment rate, according to marketing data and analytics company Kantar.
The 2024 fast-moving consumer goods (FMCG) spending growth is forecasted at 0.4 percent, slower than the 6 percent growth posted last year.
This is based on the Outlook 2024 report from Kantar’s Worldpanel Division, which analyzed the FMCG purchases of 5,000 households between January and December 2023.
Kantar said that it “expects Filipinos to remain positively cautious in 2024 even as macroeconomic indicators such as inflation and gross domestic product (GDP) numbers improve.
Kantar Shopper Insights Director at the Worldpanel Division Laurice Obana said on Thursday that the spending rate is really “a push and pull” of good things and not so good things that are happening in the country.
The report said some categories that were previously deprioritized, such as healthy foods and personal and home care products, also continue to experience recovery.
“More shoppers chose healthier food options such as soy milk, yogurt, cereals and oatmeal in 2023 compared to the year before. They also purchased more self-care items like hair styling/treatments, facial wash and nail polish for home use,” said Obana.
Paper towels and other fabric cleaning products also saw an increase in spending.
Households in the National Capital Region posted the highest growth in FMCG purchases at 21 percent; Visayas and Mindanao with a 13 percent rise; and the rest of Luzon with 12 percent.
Obana said that five trends are still significant in the Philippines for this year, and businesses can utilize them to reach their growth targets.
These include the pursuit of value in purchases, the adoption of omni-channel shopping experiences, an increase in out-of-home purchases, a holistic approach to health-conscious shopping, and a growing expenditure on petrelated products.
“Filipino shoppers will continue to look for value in every purchase, and they are not limited to affordable brands or smaller packs,” said Kantar.
It also emphasized that staying healthy remains valuable for Filipino families. Nearly all households or 99 percent consider being healthy as significant or very significant, yet only 72 percent manage to consistently purchase healthy groceries.
“At the end of the day, Filipinos need to find the value in what they are buying. Sometimes, this may mean something more than just currency,” she said.