Philippine e-commerce market to surge by 19.6% in 2024

Increasing consumer preference for online shopping and robust internet penetration are driving this growth.

The e-commerce landscape in the Philippines is poised for a growth of 19.6% in 2024, according to GlobalData.

This surge is attributed to increasing consumer preference for online shopping and robust internet penetration.

The market witnessed a compound annual growth rate (CAGR) of 28.6% from 2019 to 2023, reaching $20.1b (PHP1.1t) in 2023.

Projections also indicate further growth to $24.1b (PHP1.3t) by the end of 2024.

Shivani Gupta, Senior Banking and Payments Analyst at GlobalData, credits this growth to factors like the young population, trust in online payments, improved logistics, and availability of secure payment solutions.

Additionally, government initiatives, such as the One Town One Product Philippines program, are also driving e-commerce sales.

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In August 2023, Chinese e-commerce powerhouse Temu entered the Philippine market, intensifying competition with established entities like Lazada and Shopee. Moreover, social media platforms like TikTok are emerging as key e-commerce hubs, whilst alternative payment methods dominate, though cash remains prevalent, especially amongst certain demographics.

Gupta anticipates sustained growth, projecting a CAGR of 13.2% from 2024 to 2028, reaching $39.5b (PHP2.2t) by 2028.

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GlobalData

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