PH grocery sales to grow 5% yearly
Grocery sales in the Philippines are projected to grow by 5 percent yearly through 2029 as major industry players plan to expand their respective private label portfolios in the coming years.
In a report, the United States Department of Agriculture’s Foreign Agricultural Services (USDA-FAS) pegged the country’s food and beverage sales this year to reach $12.8 billion or approximately P749.3 billion.
“This growth is expected to continue at a compound annual growth rate (CAGR) of 5 percent over the next five years, outpacing the broader Asia-Pacific market’s projected CAGR of four percent,” the foreign agency said.
Private label products dominated by major conglomerates—SM Markets, Puregold Price Club and Robinsons Retail—account for $896 million of the estimated grocery sales this year.
“In the past five years, private label products have made up an average of seven to 10 percent of grocery food and beverage sales in the Philippines, higher than the Asia-Pacific average of 6 percent,” it added.
These conglomerates, which offer diverse portfolios of grocery brands, collectively account for 50 percent of the market share.
Independent operators that each have a single grocery brand, including Philippine Seven Corp. (7-Eleven), Metro Retail Store Group, Suy Sing Commercial Corp. (Super8), Southeast Asia Retail (Landers) and Prince Retail Group, hold a market share of 14 percent.
More than 1.3 million micro-operators across the country comprised 36 percent of the market.
