Philippine retail market to see $66.35b growth by 2028

It is driven by higher demand for convenience foods and increased online shopping.

The retail market in the Philippines is projected to grow by $66.35b from 2024 to 2028, with a compound annual growth rate of 11.1%, according to Technavio.

The growth is driven by increasing demand for convenience food products and a rise in online shopping.

The report said that big-box retailers are expanding physical stores, whilst e-commerce and mobile commerce are growing rapidly. Retailers are also using data analytics, artificial intelligence (AI), and machine learning to improve personalised marketing and inventory management. Additionally, fast delivery and multichannel retailing have become essential for customer convenience.

Key sectors in the market include food and beverages, supermarkets, convenience stores, motor vehicle dealers, gasoline stations, and specialty stores. Technology such as AR, VR, robotics, and drone deliveries is transforming shopping experiences.

Moreover, online sales of consumer goods are also rising as more retailers focus on e-commerce, capitalising on the growing internet and smartphone usage in the country. Consumers are increasingly shopping online for convenience, particularly for daily FMCG products.

Despite strong growth, the market faces challenges. Traditional stores must compete with online retailers, and issues like fast delivery and last-mile logistics are crucial.

Retailers are investing in AI, chatbots, and other technologies to streamline operations and improve customer experience.

Additionally, counterfeit goods are a major issue, especially in sectors like electronics and FMCG. Fake products, often sold online, harm both retailers and consumers by lowering product quality and damaging brand reputations, the report noted.