A consumer study has revealed Filipinos are being compelled to be creative in stretching their daily budget for food and other basic needs in the face of rising prices.
The latest Sari IQ Report released by Packworks on Thursday showed typical purchases for every visit to the market or store has gone down to P702 in 2024 from P788 in 2023 and P809 in 2022.
On average, people’s purchases generally indicate a reduction in spending over the period.
Average inflation in 2022 ran at 5.8 percent and accelerated to 6.1 percent in 2023. This year, the average stood at 5.1 percent
Packworks, a Filipino startup that provides a business-to-business (B2B) open platform to sari-sari stores, revealed in its study that sales of seasoning mix items grew 80 percent from a year earlier, while recipe mix sales surged by 72 percent. Additionally, seasoning mix was sold in 69 percent more sari-sari stores, while recipe mix saw an even greater reach, expanding to 79 percent more locations.
“These trends reflect the resourcefulness of Filipino households, who are stretching their budgets by buying cost-effective additives to enhance cheaper ingredients sourced from wet markets. As prices continue to rise, many Filipinos find ways to make their money go further,” said Andoy Montiel, Packworks chief data officer.
“The resilience of Filipinos shines through in the way they adapt their purchasing habits to make ends meet. These insights highlight not only the shifting preferences of sari-sari store customers but also their enduring ingenuity in navigating economic challenges,” Montiel added.
The number of sari sari stores rose from 270,000 in 2023 to 300,000, based on Packworks data.
Sales of sari-sari stores increased by 21.2 percent in 2023 to P8 billion in 2023 from P6.6 billion recorded in 2022.
Packworks in an earlier report said the number of transactions in the country’s sari-sari stores rose from 7.2 million in 2002 to 8.2 million in 2023,
Packworks’ Sari IQ Report utilizes data analytics to understand and predict consumer behavior, enabling retailers and multinational brands to make data-driven decisions that boost sales for sari-sari store owners and expand their product offerings to a larger customer base.
