Sales of fast moving consumer goods rise 10.9%

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(By: Sunstar)

Filipinos have been shopping more as the volume sales of fast-moving consumer goods (FMCG) in the Philippines has risen by 10.9% in 2018 compared to a year ago, according to Kantar’s FMCG Monitor.

The same report revealed that FMCG sales value increased by as much as 11.2% during the same period, reflecting Filipino homes’ move to consume more goods as prices stabilized in 2018.

Kantar’s FMCG Monitor findings are based on Kantar’s FMCG data from 52 weeks to December 2018. It monitored the take home grocery purchasing habits of 3,000 households across urban and rural areas in the country. Its panel tracked more than 80 FMCG categories, across four mega-sectors namely, food, beverage, personal care and household care.

According to Kantar, the growth of FMCG purchases is mainly attributed to more purchases per trip of Filipino households.

“Our research observed that there was a sizeable growth in the average spending of Filipinos within the span of a year. From P84 per trip in 2017, Filipinos spent an average of P92 per trip in 2018,” said Lourdes Deocareza, Kantar New Business Development head said.

Spending on mega-sectors

Data from Kantar showed that gains in consumption and spending were observed across all the FMCG mega-sectors in the country, with personal care registering 18% increase in value sales and 11% in volume sales.

The food mega-sector went up by 11% in terms of value sales and four percent in volume sales. Staple products such as bread, snacks and seasoning powder grew the quickest within the food mega-sector.

Household care products increased by 10% in value sales and five percent in volume sales, while the beverage products grew by six percent in value sales and 13% in volume sales.

The report also showed that there was an 11% overall growth across all FMCG mega-sectors in terms of both value sales and volume sales within the same period.

The rise in FMCG spending was also seen nationwide, across all regions and social economic classes.

The National Capital Region topped the list with an 18% growth in total FMCG spending, followed by North Luzon at 13%, South Luzon and Mindanao at 10% each while FMCG spending in Visayas stood at six percent. Likewise, all socio-economic classes in the country have increased their spending, with class ABC and E enjoying a 13% jump in terms of value spend, while class D increased spending by 10%.

Rise of modern trade

Kantar also noted that Filipino homes continue to increase their purchase of FMCG products in modern trade channels like hyper/supermarkets, groceries, convenience stores and the like. It registered faster growth and reached an almost equal value share of 43% as compared to traditional trade’s (sari-sari stores) value share of 44% in 2018.

Interestingly, more Filipinos are now turning to the web for FMCG products with 3.5% of Filipino households purchasing items online in 2018, up from only 1.6% in 2017. Classified under modern trade, e-commerce growth is driven by personal care products such as face wash, cosmetics, bath soaps and diapers.

“The Kantar report shows that Filipinos are not only spending more for FMCG products in 2018, they are also changing where they are doing their shopping. With modern trade channels catching up to traditional sari-sari stores and wet markets, marketers must pay equal attention to both trade channels so as not to lose out on opportunities to make it to the shopping baskets of Filipino homes,” said Deocareza.

 

The article is first published HERE on May 26, 2019.