‘Outlier’ PH logs Asia’s sharpest confidence drop
HONG KONG—Filipino consumers recorded the sharpest drop in confidence in Asia in 2025, as persistent inflation worries, stagnant wages and the fallout from a recent graft scandal weighed on sentiment, a new survey found.
And with the ongoing war in the Middle East stoking local pump prices, effective government intervention is needed to shore up household confidence.
The Philippines stood out as an outlier in the Asia Consumer Study 2026 by Germany-based consultancy Roland Berger. The survey found that 35 percent of Filipino respondents expressed a positive outlook on the future, down from 53 percent in 2024—the steepest decline among 11 Asian markets surveyed.
Roland Berger polled more than 3,500 respondents across the region to track the forces shaping consumer behavior in 2025 and this year.
Hugo Texier, the study’s author and a partner at the firm, said the gloomier outlook largely reflected domestic developments. “Typically, this is driven by a political or economic event,” he said in an interview. “I think there is fear of inflation. I think there is wage stagnation.”
“It doesn’t mean they will not spend, but it means they are more cautious,” he added.
The findings echo the Bangko Sentral ng Pilipinas’ own consumer survey, which showed confidence deteriorating to a pandemic-era low of -22.2 percent in the fourth quarter of 2025.
A negative reading indicates pessimists outnumber optimists. Among the factors that dragged down household sentiment, the central bank said, was a sweeping corruption scandal that has implicated high-ranking government officials.
Roland Berger said the erosion in confidence was making Filipinos more price-conscious. About 22 percent of respondents said they were highly sensitive to prices when making purchases, relying on promotions, bundles and installment schemes to maximize value.
Even so, a larger share—49 percent—still placed the highest priority on product quality in their buying decisions.
Notably, that emphasis on quality is boosting interest in luxury goods. The proportion of Filipino respondents intending to shift toward premium purchases rose to 22 percent in 2025 from a year earlier, with the strongest demand for high-end clothing and footwear (61 percent), jewelry (59 percent) and cosmetics and fragrances (55 percent).
Looking ahead, Texier said the ongoing war in the Middle East could trigger a “fundamental” shift in consumption patterns in the Philippines, with households likely to turn more price sensitive.
This, Texier said, should prompt businesses to rethink their strategy.
“Use promotions, bundles, installment options and loyalty programs to appeal to price-conscious consumers,” he said.
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