The holiday season in the Philippines is a time of joy, festivities, and most importantly, sumptuous feasts. Despite economic challenges and inflation pressures, Filipinos are gearing up to celebrate this year’s holiday season with a grander Noche Buena and Media Noche than ever before. A recent report from Kantar Philippines reveals that consumers are expected to boost their spending on food and beverage items during the upcoming holidays, reaffirming the country’s commitment to cherished traditions and celebrations.
Rising Holiday Spirit:
The Christmas spirit in the Philippines is known to start as early as September, with decorations, carols, and anticipation filling the air. However, when it comes to Christmas spending on fast-moving consumer goods (FMCG), the bulk of it traditionally commences in December. Filipinos receive additional disposable income through 13th-month bonuses and other incentives, which they eagerly allocate to create unforgettable holiday memories.
Data from Kantar:
Kantar Philippines, a marketing data and analytics company, has shed light on the extraordinary spending trends during the holiday season in the archipelago. The data released on Thursday showed a remarkable 7% increase in spending on fast-moving consumer goods (FMCG) from December to January compared to the rest of the year.
Food and Beverage Categories Soar:
According to Kantar’s findings, food and beverage categories witnessed an 11% and 9% increase in spending, respectively. Even amidst economic challenges, Filipino families are determined to uphold their Noche Buena and Media Noche traditions. To cope with rising prices and inflation, some consumers are opting for more affordable brands while still enjoying the festive celebrations.
Headline inflation accelerated to 6.1% in September from 5.3% in August. However, this is a drop from the 6.9% recorded in September 2022, according to preliminary data from the Philippine Statistics Authority. In particular, the food and non-alcoholic beverages index rose to a seven-month high of 9.7% in September, while food inflation alone surged to 10%.
“Inflation continues to impact FMCG in terms of pack size and brand choices,” Kantar said. Households, looking to manage their budgets, may choose to downsize or purchase more affordable brands for their holiday meals.
Suggestions for FMCG Brands and Retailers:
Nino C. Nierva, Account Director at Kantar Philippines Worldpanel Division, suggested that retailers could release holiday promotions or bundle packs to help consumers save during the season.
Kantar also highlighted specific products that registered substantial growth in December last year, including spreads (34%), canned fruits (25%), alcoholic beverages (24%), noodles and pasta sauces (21%), lechon sauce (17%), condensed milk (9%), mayonnaise (8%), and all-purpose cream (6%).
Spending Trends and Shopping Habits:
On average, Filipinos spend P1,309 per month in sari-sari stores during the holidays, while seven in 10 households spend P1,559 in hypermarkets and supermarkets, according to Kantar. Christmas baskets or boxes typically include a variety of FMCG products, from pasta and pasta sauce to canned meats, biscuits, instant coffee, cheese, canned fruits, sweets, and even personal care items like soap.
Kantar Philippines based its findings and analyses on the spending habits of over 5,000 Filipino households. Despite economic challenges, Filipinos are determined to make this holiday season special, demonstrating the resilience and unwavering commitment to their cherished traditions.
