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Filipinosmore value-conscious in FMCG purchases

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Filipinos are coming out of the pandemic more value-conscious than ever, Kantar, the world’s leading marketing data and analytics company, reveals based on its latest data about the FMCG (Fast Moving Consumer Goods) industry. The Kantar report also outlines key trends that are shaping consumer behavior amidst rising tides of inflation.

“Filipinos are becoming more critical of their brand choices, especially this year, as their decisions are expected to be influenced largely by the level of inflation we will face. To cope with higher prices whilst purchasing what they need for their post-pandemic lifestyle, shoppers are leveraging a range of tactics, including changing their product mix,” explains Marie-Anne Lezoraine, Managing Director, Worldpanel Division, Kantar Philippines.

Lezoraine notes, however, that FMCG purchases will remain a priority for shoppers with FMCG typically among the most resilient industries. During this time of inflation, brands need to offer a compelling value proposition to their target consumers. This means finding the sweet spot between knowing the optimum pricing and delivering product superiority to consumers, with innovation being a great way for brands to differentiate itself from competitors.


As Filipinos seek value, Kantar finds that more homes are also considering Private Labels or products sold under a retailer's own brand. This increase is even seen in Private Label staples such as bread and vinegar, among others.

Another trend to look out for in 2023 is the change in repertoire needs. According to Kantar shows, Filipinos are expanding their repertoire of categories, including those they had deprioritized during the pandemic such as beauty products. But with the increasing prices of goods, Lezoraine says that shoppers will become more discerning of what personal products they buy moving forward.

Kantar has also observed that Filipino shoppers will continue to spend for the things that matter to them, and this includes pet care products. In 2022, almost 10% of households purchased pet food, a significant increase compared to pre-pandemic figures. While this poses opportunities, pet brands are being challenged to have the right portfolio of products that will attract pet owners who are also on a budget.



Shopper sentiment on sustainability

Meanwhile, in a related Kantar research, “Who Cares, Who Does?,” almost 7 out of 10 (67%) Filipino respondents feel that it was harder to act sustainably due to social or financial constraints. Nevertheless, the number of Eco-Actives, shoppers who are highly concerned about the environment and are doing concrete actions to reduce their waste, continues to remain stable.[1] In contrast, the number of Eco-Dismissers or those who have little or no interest in the environment, may rise in the short term due to barriers in engaging with environmental practices, Kantar shares.

As prices continuously increase, Lezoraine says that acting sustainably will remain challenging for shoppers. Thus, brands must find ways to make it easier for consumers to make more sustainable choices that will benefit the planet in the long-term.

“Inflation may be inevitable, but historical data on consumer behavior tells us that brands can still grow during precarious times. With a better understanding of the trends surrounding consumers and their FMCG choices, brands will be able to make more focused decisions for pricing, packaging and promotions to better serve Filipinos,” added Lezoraine.

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