Sunday, 20 April 2025, 9:59 am

    Private label grocery market seen generating sales of P52B in 2025

    The private label grocery sector in the Philippines is projected to generate sales estimated at USD896 million, roughly P52 billion in local currency, this year, capturing 7 percent of total food and beverage (F&B) grocery sales. The F&B market is forecast to hit USD12.8 billion, some P748 billion in local currency, according to a report from the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture in Manila.

    The report, dated 15 January 2025, highlights the growing commercial significance of private label products, which consistently accounted for 7 to 10 percent of total grocery sales in the Philippines over the past five years—surpassing the 6 percent average in the broader Asia Pacific region. Total F&B sales in the country is projected to grow by 5 percent, up from USD12.1 billion (707 billion) in 2024.

    The data covers a wide range of retail channels, including supermarkets, hypermarkets, membership clubs, convenience stores, and smaller grocers. Key categories driving growth include fresh produce, frozen meats, oils, condiments, and gourmet, “free-from,” and ready-to-eat products.

    FAS Manila’s report also underscored significant opportunities for U.S. exporters, noting that many local grocery operators are planning to double their private label portfolios over the next five years. This expansion presents a lucrative avenue for U.S. food and beverage brands, which could be marketed both under U.S. labels and private label brands from local retailers.

    Among the dominant players in the Philippine grocery market, SM Markets, Puregold Price Club, and Robinsons Retail collectively control 50 percent of the market. SM Markets, which operates SM Supermarket, Hypermarket, Savemore, Alfamart, and Waltermart, holds the largest share at 22 percent, with a range of private label brands including SM Bonus and Everyday. 

    Puregold follows with a 16 percent market share through its Puregold Supermarket and Hypermarket, as well as its S&R Membership Club, offering brands like Pure Basics and Fresh Pick. Robinsons Retail, with 12 percent of the market, operates Robinsons Supermarket, Marketplace, Shopwise Hypermarket, and Uncle John’s, featuring private labels such as Surebuy and Healthy You.

    Smaller grocery operators and independent retailers, such as 7-Eleven, Metro Retail, Super8, and Landers, make up the remaining 14 percent of the market. Additionally, over 1.3 million micro-operators across the country account for 36 percent of the F&B grocery sales.

    The increasing prominence of private label products in the Philippines presents significant commercial opportunities in a rapidly expanding market, which is drawing attention from both domestic and international suppliers.

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