The country’s retail sector is expected to grow 5.7 percent this year, reaching $110 billion, or P6.5 trillion, according to a new report from the USDA’s Foreign Agricultural Service (FAS) in Manila. Food and beverage sales will account for the biggest share, climbing 5.1 percent to $62 billion (3.65 trillion.
The USDA-FAS said the sector’s momentum is fueled by a stronger labor market, continued economic recovery, and rapid expansion of modern retail—including supermarkets, convenience stores, warehouse clubs, and especially e-commerce. Growth, however, may be tempered by cautious consumer spending and typhoon-related mobility issues.
E-commerce remains the fastest-growing food retail channel, projected to jump 14.8 percent to $2.48 billion (P146 billion). Warehouse clubs will follow with 11.8 percent growth, while convenience stores, discounters, supermarkets, and hypermarkets are all expected to post increases of around 5 to 10 percent.
Traditional outlets like wet markets and small grocers continue to dominate with 60 percent market share, though modern channels are growing faster.
With some prices still elevated and transportation costs rising, shoppers are becoming more budget-conscious. Retailers are responding with promotions, discounts, private-label brands, and omnichannel services such as online ordering, mobile apps, and in-store pickup.
The report also highlights that the United States remains the Philippines’ biggest single-country food exporter, shipping $1.3 billion (P76.6 billion) worth of products in 2024. Strong opportunities remain for US meats, dairy, snacks, frozen foods, fruits, sauces, coffee, chocolates, wines, and pet food.
Overall, the USDA-FAS sees strong potential in the Philippine food and beverage market, with modern retail and e-commerce continuing to reshape how Filipinos shop.
