The Philippines is slow to return to pre-pandemic levels when it comes to its purchases of fast-moving consumer goods (FMCG).
Consulting firm Kantar in a report said the FMCG industry in the Philippines registered a 4 percent contraction in January to September 2021 from the same period in 2020 and a reversal from the 11-percent growth registered in the previous quarter.
According to Kantar, unlike in other countries where work-from-home contributed to increased food consumption, the Philippines registered only a 1 percent increase in beverages purchases while dairy experienced an 11 percent decline in January to September 2021 compared to the same period the year before.
Breakfast categories like total coffee, coffee creamer, cereal and oatmeal further declined in the last two years since the pandemic started.
Filipinos instead turned to easier or more convenient ways of cooking via bouillons, instant noodles, cooking oil, seasonings and sauces. Healthier beverages such as cultured milk, family and adult milk, and energy drinks also showed stable growth locally.
The Philippines shared growth trends of major markets in electronic commerce (e-commerce) purchases despite the height of restrictions during the period.
From September 2019 to September 2021, the total online FMCG penetration increased from 5 percent to 7.2 percent. This was even higher in the National Capital Region (7.8 percent to 9.9 percent), North Luzon (5.6 percent to 8.5 percent), and South Luzon (6 percent to 9.4 percent).
Although still nascent, online channels were more popular for bar bath soap, shampoo, laundry powder, lotion, baby diaper, and frozen or chilled meat.
According to Kantar, 1.8 million Filipino homes purchased in-home FMCG items online at least once in 2021. Lourdes Deocareza-Lozano, new business director, Worldpanel Division of Kantar Philippines said “there’s still room to increase its share of the FMCG market in the country.” – Irma Isip
