Makati city: Lifestyle-related products are anticipated to drive the fast-moving consumer goods (FMCG) industry in the Philippines this year, with projected growth between 3 percent and 4 percent despite slower domestic economic growth.

According to Philippines News Agency, consumer knowledge firm Worldpanel by Numerator is forecasting a tempered growth rate of 4 percent for the industry this year, down from 5 percent last year. Shopper insights director Laurice Obana shared these insights during a briefing in Makati City. Obana remains optimistic due to rising demand among older shoppers with greater financial capacity, overseas Filipino workers (OFWs) who are spending on cross-category product bundles, and animal lovers.

The older generation, those aged 55 and up, currently represents about 16 percent of the country's population, projected to rise to approximately 34 percent by 2055. OFW households continue to drive consumer spending, with their spending 25 percent higher than those without OFW members. Pet ownership is also a significant contributor to the FMCG market's growth, with around 67 percent of Filipino homes having at least one pet.

Businesses not directly catering to pet needs are also benefiting by offering pet-safe products like multi-purpose cleaners and air fresheners. Obana noted the increasing appeal of discounters, small groceries selling a wide range of products, and e-commerce as key touchpoints in the market.

The competition has intensified, leading large supermarket stores to enhance their accessibility and offerings to attract more customers. Obana highlighted the emergence of modern palengke (market) setups providing a one-stop-shop experience for essentials, dining, and other services. While discounters are still new in the Philippines, Obana believes they will become a popular option as the market matures.