Grocery retailer trends in the Philippines

Socio-economic profile

Country overview

Economic pressures and rising costs are factors driving Filipino consumers to adopting more budget-conscious behaviors, seeking bargains and focusing on maximizing value, while adapting spending habits in response to inflation and cost-of-living increases. In 2023, the Philippines faced shifting consumer patterns influenced by a predominantly young population, led by Gen Z and Millennials (aged 13 to 28 and 29 to 44 years), along with economic growth and digital acceleration (boosted by government investments in infrastructure under the "Build Better More" programme). Digital engagement is at an all-time high, with Filipino consumers increasingly enjoying virtual experiences and online platforms for self-expression, data sharing and online engagement.^{Footnote 1}

Consumer demographics

The Philippines' population is relatively young, resulting from a moderate birth rate and a gradually improving healthcare system. The total population of the Philippines grew by 0.8% to reach 114.9 million people in 2023, which consisted of 0.2 million (0.2%) of foreign citizens (net migration rate of −1.4%); 32.9 million between the ages 0 to 14 years, with the largest population (28.2%) predominantly being from within the Generation Z. The median age was 26.3 years in 2023, below the Asia Pacific (APAC) average of 32.9 years. The fertility rate reached 1.9, below the replacement rate of 2.1 children per woman in 2023. Over the forecast period (2023 to 2040), the total population in the Philippines is estimated to grow by 12.8% and reach 130 million by 2040. The largest population (21.1%) will be from within the generation alpha (0 to 14 years) age group at 27.4 million, with a median age of 33 years in 2040.^{Footnote 1}

The urbanization trend across the Philippines is set to continue as citizens tend to move to the cities for better education and employment opportunities and better access to healthcare services. In 2040, the urbanization rate in the Philippines is estimated to reach 62.4%, above the Asia Pacific average of 59.2%. Manila is forecast to be the most populous city, increasing by 14.2% from 2023, to reach 34.2 million by 2040. As urbanization advances and migration flows robustly expands, the Philippines' working-age population (15 to 64 years) is expected to expand by 20.8%, supporting economic development. Those among the top 7 most populated cities that are projected to see the fastest increase in their working-age residents include Zamboanga City, General Santos City and Cebu.^{Footnote 1}

In 2023, the number of households (total: 28.4 million) consisting of couples with children at 15.9 million (55.9%) still dominate, as single person households at 3.1 million (10.9%) grow the fastest in the Philippines. Among households with children (average household size: 4.1 persons), those with one child were the most prevalent in the Philippines in 2023 - reflecting a shift towards smaller family sizes. The number of households in the Philippines is expected to expand over the forecast period from 2023, to reach 37.4 million by 2040. Urbanization is driving the growth of child-free households (single person in 2040: 6.3 million, 17%), as many low-income workers move to urban areas for better job opportunities. Furthermore, rising female labour force participation, improving access to education and healthcare services most likely will lead to delayed family formation.^{Footnote 1}

Over the forecast period (2023 to 2040), household heads in the Philippines will continue to age and be lead by males (74.5%) and/or individuals aged 60+ (27.8%). Household heads over 60 increasingly drive consumer choices, focusing on healthcare, financial security and trusted brands. Traditional gender roles continue to influence household dynamics in the Philippines, often influencing career, family responsibilities and financial management decisions. Female-headed households in the Philippines face a multitude of challenges and are particularly vulnerable to poverty due to limited access to formal employment, most often working within the informal sectors; which often lacks in job security and benefits and lower wages compared to their male counterparts. Female-led households are more susceptible to economic shock and frequently encounter barriers in accessing financial resources, such as credit and loans, which restrict their ability to invest in businesses or education for their children.^{Footnote 1}

Consumer eating and dietary habits

Consumers are more actively managing their weight and dietary intakes. Many are on specific vegan, vegetarian or flexitarian diets, while 31% of survey respondents said that they are trying to lose weight and 64% are actively looking for healthy ingredients in food and drink products. Actions are taken to learn about health concerns and close attention is taken, especially from Gen X (45 to 60 years) consumers, whom read nutritional labels on product packaging that they consume.^{Footnote 2} Albeit, between 2023 and 2040, it is forecast that there will be rising obesity and health risks (diabetes prevalence) driving focus on wellness in the Philippines - more prevalent in females over males (aged 18+) increasing from around (10.5% vs 7.8%) in 2023 to (16% vs 12.2%) in 2040, respectively.^{Footnote 1}

Factors such as personal health, rising prices and sustainability concerns are all impacting consumers' desire to reduce the proportion of meat in their diets (25%); while 13% said they now eat meat or fish only occasionally. As food prices continue to rise, 30% of respondents are more purposefully looking towards private label or low-cost products in the grocery stores. More consumers (59%) are also taking more time to cook or bake at home at least once a week, instead of dining out, however, 42% said they reheat/prepare ready meals to save more time and effort. Meanwhile, 27% said they regularly order home delivery, with 37% regularly ordering food for takeaway, or picking up ready-made food to eat at home.^{Footnote 2}

Millennials are the highest age-group who are trying to reduce their consumption of alcohol (27%) and are the most likely to claim they do not have time for cooking (23%). The younger generations indicate that they love to snack, while watching television. Among overall respondents: 78% look for healthy ingredients in foods and beverages; 59% are willing to spend money to save time; 51% prefer branded goods to non-branded alternatives; 55% say buying eco-conscious products makes them feel good and buying sustainably-produced items; and 67% say they trust labels that claim being locally sourced or manufactured domestically.^{Footnote 2}

Grocery shopping trends

In 2023, the Philippines recorded an inflation rate of 6%. Food and non-alcoholic beverages, being one of the most costliest consumer expenditure by main category, was among the significant groups that witnessed the most crucial price increases - along with consumer goods and services, alcoholic beverages and tobacco, and hotels and catering categories. This is particularly alarming for lowest-income households, who allocate 75.5% of their total spending to essential goods and services, compared to just 36.9% for highest-income households. According to Euromonitor's Voice of the Consumer: Lifestyles Survey 2024, 80% of Filipino consumers (compared to global average 72%) are concerned that the cost of everyday items they buy is rising and 50% of respondents plan to cut back on overall spending over the coming year.^{Footnote 1}

Increasingly different cultural backgrounds of immigrants are diversifying consumer tastes and preferences in the Philippines. Generation Alpha will remain an essential consumer segment in the Philippines, accounting for 24.1% of the population in 2040. As digital natives, they are expected to drive demand for advanced technologies and personalized online experiences, along with the need for sustainable products and ethical brands due to their global outlook and environmental consciousness. This shift towards sustainability has been reflected with the rise in eco-friendly start-ups in the Philippines. Meanwhile in contrast, the decreasing older generations (Baby boomers and Gen X) tend to prioritize traditional retail experiences (physical stores), and value reliability and familiarity in products - which lends towards the prevalence of small local retailer shops that continues to gain relevance in the Philippines.^{Footnote 1}

Manila's (most populous city) digital-first and convenience-driven consumers have displayed a strong preference for online shopping in 2023. Whereby popular online shopping spaces such as Shopee, Lazada and Zalora have catered to these digital shopping habits, who focus on tailoring towards convenience, variety and affordability trends. Alternatively, the close bonds within Filipino families, also have a notable impact on consumer behaviour, often prioritizing the needs of extended family members, resulting in a strong preference for family-sized products and bulk buying.^{Footnote 1}

Retail sales of packaged food products

In the Philippines, consumers spent the most on staple foods at per capita expenditure (PCE) of US$56.3, followed by dairy products and alternatives (US$36.1 PCE), snacks (US$34.7 PCE), and cooking ingredients and meals (US$26.5 PCE) in 2024. More specifically, the most in demand packaged food categories in value terms over the year, were processed meat, seafood and alternatives to meat (US$27.4 PCE), dairy (US$27.0 PCE), savoury snacks (US$17.0 PCE), rice, pasta and noodles (US$13.8 PCE), edible oils (US$13.2 PCE), sauces, dips and condiments (US$11.0 PCE), and baked goods (US$10.7 PCE).

In 2024, total retail sales of packaged food products in the Philippines market reached US$17.8 billion and has risen by 7.2% in current terms (2019 to 2024). Sales of staple foods accounted for 36.6% of the total market share within the sector, followed by dairy products and alternatives (23.5%), snacks (22.6%), and cooking ingredients and condiments (17.2%) in 2024.

Staple foods and cooking ingredients and meals were the best performing categories in 2024, with respective retail value sales growing at compund annual growth rates of 9.2% and 9.0% over the historic review period. All segments within these two categories like sweet spreads, rice, pasta, and noodles, processed meat, seafood and alternatives, meals and soups etc., registered healthy growth. The only packaged food segment that experienced decline was within the plant-based dairy category at sales of US$46.6 million in 2024, which declined by 1.3% (2019 to 2024). Albeit, plant-based dairy is expected to show growth of 9.2% over the forecast period (2024 to 2029) to reach US$72.2 million by 2029 - along with all other packaged food categories in the Philippines.

Description of above image

Total sales: US$17.8 billion

• Cooking ingredients and meals (US$3.1 billion): 17.2%
• Dairy products and alternatives (US$4.2 billion): 23.5%
• Staple foods (US$6.5 billion): 36.6%
• Snacks (US$4.0 billion): 22.6%

Source: Euromonitor International, 2025

Grocery retailer trends by outlet type

Distribution channels

The majority of the Philippine's groceries (including food, drink and tobacco) were distributed through small local grocers, which accounted for a value sales market share of 63.5% in 2024. To follow included distribution channels such as supermarkets (19.8%), hypermarkets (6.6%), food/drink/tobacco specialists (4.4%), convenience/forecourt retailers (3.7%), warehouse clubs (2.0%), and discounter stores (0.1%).

Retail e-commerce sales by main product group, totaled US$11.6 billion in 2024. Food sales over the year, accounted for a 18.6% value share (US$2.2 billion) and drinks (including tobacco) sales at a value share of 0.7% (US$79.1 million). Both food and drinks value sales (closely correlated with product price increases) registered the highest combined growth, increasing by CAGRs of 84.2% and 63.4% respectively (2019 to 2024).

Small local grocers

Small local grocers - which are mostly independent retail outlets (with a selling space of under 400 square metres), kiosks, market stalls or street vendors, owned by families and/or run on an individual basis, and with a primary focus on selling food/beverages/tobacco and other groceries - are currently the largest grocery retailers within the Philippines. In 2024, sales within small local grocery stores totaled US$37.4 billion (63.5%) and have been growing by a CAGR of 4.9% since 2019 - set to rise by 6.0% to reach sales of US$50.2 billion by 2029.

Despite the rapid expansion of smaller-format supermarkets and convenience retailers in 2024, small local grocers remain a cornerstone of the Philippine retail landscape. Sari-sari stores, prevalent especially in rural and residential areas, offer Philippine shoppers the flexibility to purchase individual items over buying in bulk - particularly attractive to consumers on a tight budget. Leading major companies like Coca-Cola, Pepsi, and Unilever establish direct ties with these sari-sari stores, to ensure a steady flow of fast-moving, frequently purchased essential products within these smaller, more rural communities.^{Footnote 3}

Most of these small, family-owned sari-sari stores typically cater to a relatively smaller consumer base, with these microbusinesses generally being more slower to adapt to the growing demand for e-commerce technological solutions (other than digital payment options). However, there are various initiatives to help equip these businesses with digital tools and other technological resources necessary to meet the evolving needs of today's more modern consumers. In 2024, the Department of Trade and Industry (DTI) launched the Sari-Sari Store Advancement Program to accomplish this goal, where the program has also received strong backing from key private sector partners such as Universal Robina Corporation, Smart Communications, and Nestlé, among others.^{Footnote 3}

Over the forecast period, hard discounters like Dali and convenience stores previously found within the Metro Manila pose a threat to traditional small local grocers as these retailers are aggressively, poised to expand their footprint in rural areas. Consequently, it will be vital for small local grocers to adapt to demands of consumers by offering a broader range of goods and services, such as mobile payment solutions and delivery options. Despite the continued proliferation of more modern grocery retailers outside the Metro Manila, with the prospect of economic recovery in the Philippines, small local grocers are expected to see sustained growth in terms of both constant value and the number of outlets over the forecast period (2024 to 2029). This retail channel is culturally ingrained in Filipino culture and will continue to play a vital role when it comes to accessibility of essential fast-moving consumer goods (FMCGs).^{Footnote 3}

Small local grocers are actively embracing sustainability initiatives, with around 2,400 sari-sari stores and carinderias (small informal eateries) in the Metro Manila serving as recycling points for empty polyethylene terephthalate (PET) bottles through the Tindahan Extra Mile (TEM): Balik PET Bottle Program. Further financial incentives are offered to these local micro-entrepreneurs, launched by Coca-Cola Philippines and Basic Environmental Systems and Technologies Inc. - where each collection is weighed and recorded via the store owner's bXTRA app, earning points redeemable for cash or Coca-Cola products and merchandise. Moreover, fintech start-ups are enabling support towards the acceleration of more efficient procurement and inventory management among sari-sari store owners (that is; the adoption of the GCash e-wallet and platforms like GrowSari); which in turn, are empowering these small retailers to mirror the multifaceted services offered by other modern convenience retailers. Small sari-sari stores are becoming more crucial with the help of partnerships with leading companies like Coca-Cola Philippines and Mondelez Philippines, who are investing heavily in trade marketing initiatives that not only enhance brand visibility, but also support merchandising and operational needs.^{Footnote 3}

Supermarkets

Supermarkets - which are chained or independent retail outlets with a selling space of between 400 and 2,500 square metres and with a primary focus on selling food/beverages/tobacco and other groceries - are the 2nd largest grocery retailers within the Philippines. In 2024, sales within supermarket stores totaled US$11.7 billion (19.8%) and have been growing by a CAGR of 4.7% since 2019 - set to rise by 5.2% to reach US$15.0 billion by 2029.

Growth in leading supermarkets in the Philippines was boosted by the continued expansion of players such as SM Retail Inc. (market share: 25.6%), Robinsons Retail Holdings (13.4%) and Puregold Inc. (3.5%) - which extended their presence into new territories in 2024. Benefitting from higher visibility in residential areas, supermarkets had an advantage over hypermarkets, requiring less selling space, while improving their product assortments and rolling out bundle discounts and other promotions to entice consumers into their stores.^{Footnote 4}

In 2024, leading companies (brand names) within supermarket retailers in the Filipinos market included SM Retail Inc. (SM/Save More/Waltermart Supermarket) at a total of US$3.0 billion, followed by Robinsons Retail Holdings Inc. (Robinsons, Marketplace) at US$1.6 billion, and Puregold Price Club Inc. (Puregold) at US$409.8 million. With expansion in new regions, market leader SM Retail Inc. experienced a significant surge in foot traffic across its SM Supermalls, a trend that also benefited its SM Savemore and SM Supermarkets. The company also advanced its integrated sustainability strategy by adopting eco-friendly practices throughout its supply chain, including sourcing supplies from environmentally responsible vendors. SM Retail Inc. also, reported that over 50% of its operations were powered by renewable energy, with solar rooftop panels installed across most malls. In addition, this main player champions responsible water use across all its malls, utilizing a recycling system that repurposes used water for cleaning, landscaping, and toilet flushing; along with implementing a waste management practices initiative that diverts waste away from landfills: #SMWasteFreeFuture programme. Meanwhile, Puregold Price Club Inc. partnered with Nissan to integrate 100% Nissan Kicks e-POWER vehicles into its operational fleet.^{Footnote 4}

Leading brands in the Philippines are integrating digital technology (including online services into its platform) to create a more seamless and personalized shopping experience. For example, shoppers can conveniently trigger item pick-ups to streamline the retail process quicker and better connect promotions between Robinsons retail brands (referred to GoCart). Despite the rapid growth of e-commerce, the majority of Filipinos still prefer to shop at physical supermarkets to choose their products in person. As such, major supermarket players are expected to expand their respective footprints with particular focus on territories beyond Luzon. Demand is forecast to drive sales further in supermarkets, as more individuals return to work, leading to increased foot traffic and higher transactional values, strengthening the labour market and enabling greater spending power. Nevertheless, as price competition intensifies, supermarkets need to improve their operating efficiencies by forging closer ties with suppliers and limiting the influence of intermediaries. Driven by anticipated growth in retail e-commerce becoming the norm in the coming years, consumers are increasingly seeking convenience and a seamless shopping experience through mobile/smartphone app-based options and investment in an effective delivery system.^{Footnote 4}

Hypermarkets

Hypermarkets - which are chained or independent retail outlets with a selling space of over 2,500 square metres and with a focus on selling both grocery and non-grocery merchandise and are frequently located on out-of-town sites - were the 3rd largest grocery retailers within the Philippines. In 2024, sales within hypermarket stores totaled US$3.9 billion (6.6%) and have been growing by a CAGR of 5.2% since 2019 - set to rise by 8.1% to reach US$5.7 billion by 2029. Despite competition from smaller-format stores, hypermarkets in the Philippines recorded positive growth (+5.1%) in current value terms in 2024, albeit at a slower rate than the previous two years - decreasing annually from (+12.8%) in 2022 and (+6.1%) in 2023.

In 2024, leading companies (brand name) within Filipino hypermarkets included Puregold Price Club Inc. (Puregold) at a total of US$2.4 billion or 61.1% value share, followed by SM Retail Inc. (SM Hypermarket) at US$715.1 million (18.5%), and Super8 Retail Systems Inc. (Super8 Grocery Warehouse) at US$283.2 million (7.3%). This retailer channel has benefitted from the sustained efforts of leading player PureGold, which has expanded its network into provincial areas, with the hypermarket retailer operating close to 300 outlets at the end of 2024. Meanwhile, Super 8's expansion efforts were centered on Luzon with new store locations that opened in the area. By contrast, SM Hypermarket and Super Metro enhanced their product selection and refined their supply route-to-market strategies, on how it efficiently takes its products from production to the final customer, in turn driving improved same-store growth during the review period.^{Footnote 5}

Hypermarket format stores continue to face direct competition from supermarkets, which requires smaller spaces. Nevertheless, hypermarkets benefit with their large footprints that stocks a variety of non-grocery merchandise, often located within large retail shopping malls or commercial centres; offering multi-purposeful opportunities in terms of convenience and time to socialize with family and friends. To intensify offline sales and boost in-store shopping, hypermarkets like Super 8 have rolled out a series of seasonal campaigns and promotions to increase foot traffic, by fostering traditional events for its loyal customers - including summer, anniversary and pre-Christmas sales. Despite seeing forecast growth within the channel, with the trend towards increasingly hectic lifestyles, hypermarkets must continue to market as being a one-stop physical shopping destination, while also building a deeper integration between online platform offerings and adopting socially responsible/eco-friendly practices.^{Footnote 5}

Food / drink / tobacco specialists

Food / drink / tobacco specialists (including non-alcoholic or alcoholic drinks stores, tobacconists and cannabis stores - where legal) - which are chained or independent retail outlets typically with a selling space of under 400 square metres and with a primary focus on selling mainly one category of food, drinks or tobacco products. - were the 4th largest grocery retailers within the Philippines. In 2024, sales within these specialist stores totaled US$2.6 billion (4.4%) and have been growing by a CAGR of 4.6% since 2019 - set to rise by 4.8% to reach US$3.3 billion by 2029.

In 2024, leading companies (brand) reviewed by Euromonitor within food/drink/tobacco retailer specialists in the Filipino market included Goldilocks Bake Shop Inc. (Goldilocks) at total sales of US$277.9 million or 10.7% value share, followed by Werdenberg International Corporation (Santis Delicatessen) at US$31.7 million (1.2%), San Miguel Corporation (Monterey Meatshop) at US$10.2 million (0.4%), and BreadTalk Group Ltd. (BreadTalk) at US$2.9 million (0.1%). Other food/drink/tobacco specialists registered sales of US$2.3 billion, which accounted for a remaining market share of 87.9%.

Convenience retailers

Convenience retailers - which are the aggregation of convenience stores and forecourt retailers - were the 5th largest grocery retailers within the Philippines. In 2024, sales within hypermarket stores totaled US$2.2 billion (3.7%) and have been growing by a CAGR of 9.2% since 2019 - set to rise by 11.5% to reach US$3.8 billion by 2029.

In 2024, leading companies (brand) within convenience and forecourt store retailers in the Filipino market included Philippine Seven Corporation (7-Eleven) at a total of US$1.5 billion, which held a high value share of 66.5%, followed by Sumber Alfaria Trijaya Tbk PT (Alfamart) at US$483.7 million (22.1%), and Robinsons Retail Holdings Inc. (Uncle John's) at US$105.9 million (4.8%).

Convenience retailers in the Philippines recorded a dynamic performance (+16.8%) in current value terms in 2024. This was largely attributable to aggressive expansion plans amongst 7-Elevens with growth strategies within both urban and rural areas (higher emphasis within the urban capital region) - not to mention how the company has catered to the evolving preferences of busy young professionals and students seeking quick, ready-to-eat meal options through its in-house offerings such as its Crunch Time and 7-Eleven Chef Creations. As well, Alfamart stores, previously more concentrated mainly within underserved communities are contributing to this channel's success with large expansion and enhancements made towards grocery offerings in local neighbourhoods. By contrast, Family Mart, under the ownership of Pheonix Petroleum Philippines Inc., faced challenges, with reports of multiple store closures, including prominent branches in Makati City and Bonifacio Global City.^{Footnote 6}

The demand for convenience stores is rising as the urban population increases and consumers who are living a fast-paced lifestyle are looking for quick and accessible shopping options. The return of Filipinos to their physical work offices with extended opening hours and accessible locations within business districts and city centers, have also, lead to a greater mobility within the convenience retailing landscape. In 2024, there was a notable rise of Korean-themed convenience stores such as FunHan Mart, which has emerged as a prominent player - expanding to eight new branches across Metro Manila within the year of its launch, established in February 2021, and continuing to open new outlets into 2024 in key locations like Bacolod City.^{Footnote 6}

Convenience retailers in the Philippines will continue to see vibrant growth during the forecast period with key players focusing on expanding their respective footprints into previously underserved areas and making essential goods more easily accessible to the wider segment of the population. Along with expansion, convenience store chains are also focusing on furthering digitalization in their operations; heightening the need for diversification and developing e-commerce platforms, that will help to create a more distinct and engaging retail experience beyond mere accessibility.^{Footnote 6}

Warehouse clubs

Warehouse clubs - which are chained outlets that sell a wide variety of merchandise, typically situated in out-of-town locations, with a selling space of over 2,500 sq metres (and invariably over 4,000 sq metres in total size); and where customers have to pay an annual membership fee in order to shop and are able to keep prices low due to the no-frills format of the stores and large volume SKUs - were the 6th largest grocery retailers within the Philippines. In 2024, sales within hypermarket stores totaled US$1.2 billion (2.0%) and have been growing by a CAGR of 10.3% since 2019 - set to rise by 16.9% to reach US$2.6 billion by 2029.

In 2024, warehouse club companies (brand) in the Filipino market included Puregold Price Club Inc. (S&R Membership Shopping) at a total of US$898.9 million - representing a value share of 76.2%, followed by Southeast Asia Retail Inc. (Landers Superstore) at US$281.1 million (23.8%).

Discounters

Discounters are chained retail outlets typically with a selling space of between 400 and 2,500 square metres. These retailer stores have a primary focus on selling a limited range of foods, beverages, tobacco and non-groceries at budget prices, regularly via private label. Discounters can be classified as hard or limited-line discounters (stock fewer than 1,000 product lines largely in packaged groceries made up of private-label brands) and soft or extended range discounters, which are usually slightly larger (typically stock 1,000 to 4,000 product lines) of private-label and budget/leading brands at discounted prices. The only discounter grocery retailer reported in the Philippines was Puregold Price Club Inc. In 2024, discounter sales within this company totaled US$66.7 million (retailer market share: 0.1%) and have been growing by a CAGR of 3.2% since 2019 - set to rise by 17.6% to reach US$149.8 million by 2029.

In light of having a limited store count and fierce competition with other retailer types, discounters registered only modest growth (+2.0%) in current value terms in the Philippines over the year in 2024. Location played a factor with the revival of hectic pre-pandemic lifestyles, once consumers returned back to their physical work offices; where Filipinos were more likely to seek out smaller-format stores (that is; convenience stores) that offered a faster shopping experience (including extended operating hours) and that were typically located close to consumer homes or workplaces. Traditional sari-sari stores that sell items in smaller quantities, also, remained attractive to low-income consumers. Lastly, discounters saw fierce competition with hyper/supermarkets and warehouse clubs, whom in return provided a larger assortment of products.^{Footnote 7}

Although, Puregold Extra remained the only discounter retailer in the Philippines in 2024, the chain continued to face increasing competition from smaller-format supermarkets (that is; SM Savemore Express) and convenience stores (that is; Alfamart) - both catering to time-strapped consumers looking for quick and accessible shopping options. Despite offering competitive pricing, Puregold Extra continues to face a challenge to compete with these other retailers in terms of its limited product variety offerings. Additionally, Dali Everyday Grocery (owned and operated by Hard Discount Philippines Inc.) has announced its intention to aggressively expand into the Philippines in 2024, while targeting underserved communities and positioning itself as a hard discounter compared to supermarket giants like Waltermart and SM Supermarket - who claims to keep costs low by eliminating advertising expenses and maintaining a lean workforce.^{Footnote 7}

Discounters in the Philippines are set for strong growth over the forecast period, with both value sales and store openings expected to increase. The channel has significant growth potential, particularly in rural areas that remain largely untapped by convenience stores and larger supermarkets. With its higher presence in these communities who traditionally rely on sari-sari stores, demand in these retailers is likely to become more appealing amongst highly price-conscious consumers looking for more affordable or budget-friendly retail options. In addition, as a large portion of Filipino consumers struggle to pay for their essential day-to-day expenses, discounters have an opportunity to collaborate with local government units (LGUs) to promote more affordable shopping options. Partnership strategies include taking the form of public awareness campaigns, or price comparison initiatives led by the Department of Trade and Industry (DTI) to highlight the benefits of shopping at discounters in order to gain cost savings on essential goods.^{Footnote 7}

New product launch analysis

According to Mintel's Global New Products Database (GNPD), there were 12,020 new food, drink, health, and pet food products launched in the grocery stores in the Philippines from January 2020 to June 25, 2025. These new products consisted of 77.7% food (9,337), 14.9% drink (1,785), 4.7% health (568), and 2.7% pet food (330).

Description of above image

Product	2020	2021	2022	2023	2024	January-June 2025	Total
Food	1,647	1,704	1,698	1,824	1,665	799	9,337
Drink	308	310	344	357	310	156	1,785
Health	90	92	105	134	96	51	568
Pet food	59	55	59	65	60	32	330

Total product item count: 12,020

Source: Mintel, 2025

Food

Between the period of January 2020 and June 25, 2025, the main food products in the Philippian grocery stores were 15.8% bakery products (1,476), 12.4% sauces and seasonings (1,157), 10.8% snacks (1,007), 8.9% dairy (832), 8.8% meals and meal centers (818), 6.7% meat products (630), 5.8% chocolate confectionery (539), 4.7% fish products (436), 4.2% side dishes (395), and 4.2% sugar and gum confectionery (391).

Description of above image

• Bakery: 1,476
• Sauces and seasonings: 1,157
• Snacks: 1,007
• Dairy: 832
• Meals and meal centers: 818
• Meat products: 630
• Chocolate confectionery: 539
• Fish products: 436
• Side dishes: 395
• Sugar and gum confectionery: 391
• Desserts and ice cream: 362
• Fruit and vegetables: 239
• Breakfast cereals: 214
• Sweet spreads: 167
• Egg and egg products: 81
• Baby food: 78
• Sweeteners and sugar: 77
• Soup: 65
• Savoury spreads: 45

Total item count: 9,337

Source: Mintel, 2025

Over the 5-year period, 26.3% of the food product launches in the Philippines were new products (2,456); while 39.3% were new variety/range extension products (3,669), 28.4% new packaging (2,648), 5.4% relaunches (508), and 0.6% new formulations (56). Top food brands over the same period, were SM Bonus (87), Robinsons (76), 7-Fresh (73), Meadows (72), Coles (65), CDO (65), Marby (61), McCormick (55), SureBuy (53), and Purefoods Hormel (49).

Top companies launching new food products (2,044) in the Philippines over the last year [Q2-2024 to Q2-2025] were the San Miguel Corporation (68), Unilever (59), Robinsons Retail Holdings (50), Seven & I Holdings (41), S&R Membership Shopping (37), and Universal Robina Corporation - URC (32). New food brands appearing for the first time within the Philippian market in the last six months included Grona - Ukraine (Slastyona baked milk taste biscuits), Grandbisco (Private Label) - Hard Discount, Philippines (Ube filled crackers), Frontier Topfer - Frontier Food Industries, Malaysia (hazelnut flavoured chocolate cream crunchy sticks), and Better Than Noodles - Calorie Watchers, UK (Thai style noodles).

Locations of manufacture of these food products over the 5-year period included 2,424 domestically made in the Philippines (26.0%); followed by China (375), Thailand (318), Malaysia (300), Australia (232), Indonesia (166), South Korea (131), USA (131), Vietnam (114), and Italy (103). Canada was the 20th largest location for manufacture at 32 products (0.3%). When sorted by main category, the Canadian products found on the Philippian grocery shelves consisted of bakery - sweet biscuits/cookies (7), breakfast cereals (7), snacks (3); two products of each from categories such as sauces and seasonings, dairy, meals and meal centers, chocolate confectionery, sweet spreads, soup; and fish product (1), vegetables (1), and savoury spreads (1). Over this period, Canada manufactured 11 brand new products found on the shelves, followed by new variety/range extension (15), new packaging (4), and new formulation (2). New Canadian products to the Philippian market launched for the first time in 2025, were Zesty Ranch Cracker Chips and Raspberry Chocolatey Covered Marshmallow Cookies (manufacturer of both: Dare Foods).

The top growing food categories (Q2-2024 to Q2-2025) for these food products were dairy (+32.1%), chocolate confectionery (+30%), bakery (+29.2%), processed fish, meat and egg products (+12.8%), and sauces and seasonings (+10.8%); while declines occurred in desserts and ice cream (−21.1%), meals and meal centers (−14.6%), snacks (−11.1%), and sugar and gum confectionery (−9.5%). Over the last year (Q1-2025/2024), top growing claims were added calcium (+700%), low/no/reduced fat (+650%), functional - bone health (+350%), free from added/artificial additives (+200%), and antioxidant (+200%); meanwhile declines occurred by 100% in claims such as ethical - toxins free, functional - eye health, prebiotic, stanols/sterols, and organic.

Growing food flavours (Q2-2023 to Q2-2025) were dark/black chocolate (+500%), chicken (+350%), caramel/ caramelized (+350%), lemon (+250%), berry (+200%), and cheesecake (200%). New ingredients appearing in the market for the first time within the last 12 months were tomato solids, nature identical peppermint flavour, egg substitute, silicones, black grapes, spare rib flavour, modified corn starch (1440), L-threonine, essential amino acids, and nature identical chilli pepper flavour.

Drinks

Between the period of January 2020 and June 25, 2025, the main sub-categories for drink products in the Philippian grocery stores were 17.4% coffee (310), 11.9% carbonated soft drinks (212), 10.3% fruit/flavoured still drinks (183), 6.2% ready-to-drink (RTD) iced tea (110), 6.1% beverage mixes (108), 5.9% juice (105), 5.7% tea (101), 4.9% RTD iced coffee (88), 4.7% malt and other hot beverages (84), and 4.3% flavoured alcoholic beverages (77).

Description of above image

• Coffee: 310
• Carbonated soft drinks: 212
• Fruit/flavoured still drinks: 183
• Ready-to-drink (RTD) (iced) tea: 110
• Beverage mixes: 108
• Juice: 105
• Tea: 101
• Ready-to-drink (RTD) (iced) coffee: 88
• Malt and other hot beverages: 84
• Flavoured alcoholic beverages: 77
• Beer: 58
• Water: 53
• Nectar: 49
• Beverage concentrates: 46
• Nutritional and meal replacement drinks: 42
• Flavoured water: 33
• Energy drinks: 29
• Sports drinks: 27
• Other spirits: 15
• Gin: 11

Total item count: 1,785

Source: Mintel, 2025

Over the 5-year period, 30.5% of the drink product launches in the Philippines were new products (545); while 32.0% were new variety/range extension products (572), 31.6% new packaging (564), 5.2% relaunches (92), and 0.7% new formulations (12). Top drink brands over the same period, were Tang (33), San Miguel (17), Nescafé (17), Golden A (17), Coca-Cola (17), Pepsi (16), UCC (16), No Brand (15), Ceres (14), and Great Taste (14).

Top companies launching new drink products (393) in the Philippines over the last year [Q2-2024 to Q2-2025] were The Coca-Cola Company (19), Nestlé (18), UCC Ueshima Coffee (12), PepsiCo (11), Mondelez International (10), and Universal Robina Corporation (9). New drink brands appearing for the first time within the Philippian market in the last six months were Samlip Café Snow - SPC Samlip, South Korea (peach ice tea), Tiger Radler - Asia Pacific Breweries, Singapore (Pomelo flavoured beer), Buko Loko - Hard Discount, Philippines (coconut drink), and Nutrifizz - Pacific Synergy Food & Beverage, Philippines from China (zero sugar yogurt flavoured soda with prebiotics).

Locations of manufacture of these drink products over the 5-year period included 310 domestically made in the Philippines (17.4%), followed by Thailand (103), Malaysia (63), South Korea (46), Taiwan (36), Indonesia (33), USA (27), Vietnam (26), France (25), and UK (21). Canada was the 22nd largest location for manufacture at five products. When sorted by sub-category, the Canadian drink products found on the Philippian grocery shelves consisted of juice (2), flavoured water (2), and a carbonated soft drink (1). These Canadian drink products consisted of a sparkling mango beverage (Rubicon Exotic, launched May 2024), fruit punch flavoured water for kids (Rethink, Dec. 2021), lemonade (Kiju Organic, Apr. 2020), grape apple juice (Kiju Organic, Apr. 2020), and a berry flavoured water for kids (Rethink, Apr. 2020).

The top growing categories (Q2-2024 to Q2-2025) for these drink products were water (+150%), hot beverages (+133.3%), and carbonated soft drinks (+9.1%); while declines occurred in alcoholic beverages (−37.5%), RTDs (−33.3%), sports and energy drinks (−33.3%), nutritional drinks and other beverages (−18.2%), and juice drinks (−7.1%). Over the last year (Q1-2025/2024), top growing drink claims were convenient packaging (+300%), sugar free (+200%), ease of use (+200%), and functional - stress and sleep (+200%); meanwhile declines occurred by 100% in claims such as low/no/reduced lactose, microwaveable, low/no/reduced saturated fat, GMO free, and low/no/reduced fat.

Growing drink flavours (Q2-2023 to Q2-2025) are lime (+400%), Calamansi (+300%), ginger (+200%), lemon (+100%), and mango (100%). New ingredients appearing in the market for the first time within the last 12 months within these drink products were Butylated Hydroxytoluene, hydrolyzed collagen, Mangosteen skin extract, firming agent, and Sorbitol syrup.

Health products

Between the period of January 2020 and June 25, 2025, the top 10 sub-categories for health products in the Philippian grocery stores were 32.7% vitamins and dietary supplements (186), 16.4% antiseptic treatments (93), 10.4% pain relief (59), 7.6% decongestive, cough, cold and flu relief (43), 6.2% personal insect treatments/repellents (35), 4.4% plasters and bandages (25), 2.3% test kits (13), 1.9% ear, eye and mouth care (11), 1.8% contraception and sexual health (10), and 1.6% anti-fungal (9).

Description of above image

• Vitamins and dietary supplements: 186
• Antiseptic treatments: 93
• Other healthcare: 66
• Pain relief: 59
• Decongestive, cough, cold and flu relief: 43
• Personal insect treatments/repellents: 35
• Plasters and bandages: 25
• Test kits: 13
• Ear, eye and mouth care: 11
• Contraception and sexual health: 10
• Anti-fungal: 9
• Digestive and detoxifying treatments: 7
• Sleep aids: 6
• Allergy relief: 4
• Smoking cessation: 1

Total item count: 568

Source: Mintel, 2025

Over the 5-year period, 42.3% of the health product launches were new products (240); while 32.6% were new variety/range extension products (185), 22.4% new packaging (127), 2.6% relaunches (15), and 0.18% new formulations (1). Top health product brands over the same period, were Watsons (24), Rhea (12), Mediplast (11), Tiger Balm (7), Katinko (6), McBride (5), Hisamitsu Salonpas (4), Best Lab (4), Biogenic (4), and Bayer Berocca Performance (4).

Top companies launching new health products (96) in Philippines over the last year [Q3-2024 to Q3-2025] were Hutchinson Whampoa (10), International Pharmaceuticals (5), Unilab (4), Philusa Corporation (3), Bayer (3), and Sanofi (3). New health brands appearing for the first time within the Philippian market in the last six months included Mucosolvan - Sanofi Winthrop Industrie, France (24hrs Ambroxol HCI Mucolytic sustained release capsules), Taisho FlanaxCool - Taisho Pharmaceutical, Indonesia (menthol topical gel counterirritant), Nutribear Beauty and Wellness, Philippines (vitality boost NAD+ resveratrol gummies), and Trizie - The OCBFF Corporation, Philippines (mango fibre shots dietary supplement product).

Locations of manufacture of these healthcare products over the 5-year period included 68 domestically made in the Philippines (12%); followed by the China (25), United States (11), South Korea (10), Taiwan (9), Japan (7), Canada (4), Malaysia (3), Italy (3), and India (3). Canada was the 7th largest location for manufacture at four products (0.7%), which consisted of three vitamins and dietary supplements (two Vitamin D3 tablets by Jamieson Laboratories and Swanson Health Products; Pomegranate Lime Flavoured Kids Super Immunity Gummies by Luvolux) and one digestive and detoxifying treatment product (Original Lactase Enzyme Supplement by McNeil Nutritionals).

Over the last year (Q3-2025/2024), healthcare products in the Philippines have grown by 23.8%. Top growing claims on these health products were anti-bacterial (+250%), ethical - environmentally friendly package (+100%), children - 5 to 12 years (+100%), functional - skin, nails and hair (+66.7%), and functional - other (+11.1%); meanwhile declines occurred by 100% in claims such as low/no/reduced sodium, all natural product, babies and toddlers (0-4 years), organic, and functional - eye health (Q2-2025/2024)..

Growing flavoured healthcare products (Q3-2023 to Q3-2025) were more in demand, while unflavoured/plain products were on the decline by 20%. New ingredients appearing in the market for the first time within the last 12 months within these healthcare products were Chebulic Myrobalan, peach, corn fibre, polyglycerol esters of fatty acids, Nicotinamide Adenine Dinucleotide, raspberry flavour, Maltitols, African mango extract, asparagus powder, and artificial mango flavour.

Examples of new product launches

For more information

The Canadian Trade Commissioner Service:

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

Find a Trade Commissioner

More agri-food market intelligence:

Agri-food market intelligence service
Canadian agri-food and seafood businesses can take advantage of a customized service of reports and analysis, and join our email subscription service to have the latest reports delivered directly to their inbox.

More on Canada's agriculture and agri-food sectors:

Canada's agriculture sectors
Information on the agriculture industry by sector. Data on international markets. Initiatives to support awareness of the industry in Canada. How the department engages with the industry.

Resources

• Euromonitor | January 2025. Country Report: Philippines – Consumer Profile
• Euromonitor | June 2025. Country Report: Consumer Lifestyles in the Philippines
• Euromonitor | March 2025. Country report: Convenience Retailers in the Philippines
• Euromonitor | March 2025. Country report: Discounters in the Philippines
• Euromonitor | March 2025. Country report: Hypermarkets in the Philippines
• Euromonitor | March 2025. Country report: Small Local Grocers in the Philippines
• Euromonitor | March 2025. Country report: Supermarkets in the Philippines
• Global Trade Tracker, 2025
• Mintel Global New Products Database, 2025

Grocery retailer trends in the Philippines
Global Analysis Report

Prepared by: Erin-Ann Chauvin, Senior Market Analyst

© His Majesty the King in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2026).

Photo credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright His Majesty the King in Right of Canada.

To join our distribution list or to suggest additional report topics or markets, please contact:

Agriculture and Agri-Food Canada, Global Analysis
1341 Baseline Rd, Tower 5, 3rd floor
Ottawa ON  K1A 0C5
Canada
Email: aafc.mas-sam.aac@agr.gc.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.

Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of agriculture and agri-food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.

Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.