Consumer goods growth slows in 2026 as brands adjust to shifting Filipino household spending habits

Numerator highlights key segments—older shoppers, OFW households, pet owners, and beauty consumers—shaping retail demand in 2026.

Consumer brands are facing a challenging year in 2026, with overall growth slowing and shoppers’ preferences evolving. Fast-moving consumer goods (FMCG) products are projected to grow by just 3% to 4% this year, driven by subdued economic expansion, modest price increases, and only slight improvements in consumer spending. Companies that fail to adapt to changing lifestyles and household priorities may struggle to maintain momentum.

Market research firm Numerator, in its Worldpanel by Numerator FMCG Outlook, said that “leveraging more lifestyle-fit product propositions, more consumer touchpoints, and more dining occasions will help unlock sustainable growth” this year. The forecast marks one of the slowest expected growth rates in recent years, trailing 2025’s stronger gains and suggesting that brands can no longer rely on broad volume increases alone.

The report also highlighted changing shopping behaviors. Consumers are increasingly seeking value and convenience, with spending shifting toward hard-discount formats and e-commerce platforms. Traditional channels such as supermarkets and market stalls are still growing, but only when they deliver accessibility and a clear value proposition. As the market adjusts, companies that expand where and how they meet consumers may be better positioned to maintain momentum.

Older consumers are reshaping household spending

Older Filipinos are emerging as one of the most valuable consumer groups for everyday products. Shoppers aged 55 and above spend about 10% more on average than younger generations, supported by stronger purchasing power and shifting lifestyle priorities.

The demographic currently makes up around 16% of the Philippine population and is projected to grow to 34% by 2055, signaling a long-term shift in who drives household spending. Numerator said that older consumers increasingly prioritize health and wellness alongside pantry staples, including plant-based milk alternatives and health supplements. Many also invest in physical activities and fitness-related products as part of efforts to stay active.

“This is because they prioritize health and wellness products such as plant-based milk alternatives and health supplements on top of the usual pantry staples. They also participate in physical activities, with some having access to sporting equipment, in order to stay fit and healthy,” the report said.

Brands may need to adjust product development, messaging, and retail strategies to align with wellness-focused and lifestyle-driven consumption habits as the population ages.

OFW households remain a key segment

Households supported by overseas Filipino workers (OFWs) are also shaping the FMCG market. Numerator’s data shows that 73% of FMCG categories record higher spending per buyer among OFW households. Remittances continue to support stronger purchasing power, enabling these families to expand spending across multiple product categories.

OFW households tend to maintain broader shopping baskets, engage in bulk buying, and make more trips to larger retail formats such as hypermarkets and supermarkets. “Over the years, cash remittances from OFWs have been a pillar of growth for the local economy,” Numerator said. These patterns create opportunities for brands to introduce cross-category bundles and larger pack sizes, catering to higher-volume purchases and lifestyle-driven needs.

As overall consumer growth moderates, remittance-backed households remain an important segment shaping retail demand and influencing how companies plan pricing, packaging, and distribution strategies.

Pets driving lifestyle-focused purchases

Pet ownership is increasingly influencing Filipino households’ spending habits. Sixty-seven percent of homes in the Philippines own at least one pet, and 17% of pet owners buy pet food, primarily from dedicated pet stores.

The report highlighted that households with pets also create opportunities for products beyond food. “With still a large market to tap, these brands can explore elevating their product lineup by offering pet-safe products like air fresheners and multi-purpose cleaners that are free from high-fume irritants, corrosive disinfectants, and pesticide-grade actives that can be harmful to animals,” Numerator said. 

Companies that align product development and marketing with the needs of pets and their owners can potentially capture additional share, while responding to lifestyle-driven spending trends that go beyond traditional FMCG categories.

Beauty spending continues to expand

Beauty remains a resilient sector, with Filipino consumers spending more than ₱2,000 on average per buyer. Local and smaller facial care and makeup brands are gaining preference, reflecting a mix of value, convenience, and personalization in purchasing decisions.

According to Numerator, ABC consumers typically purchase beauty products through modern retail and online platforms, while DE households turn to sari-sari stores and direct selling channels for their glow-up needs. The report added that supermarkets, hypermarkets, and market stalls are showing signs of recovery, suggesting renewed activity across both modern and traditional retail formats.

“Filipino shoppers look for value and convenience when choosing a store. Based on figures from Worldpanel by Numerator, supermarkets, hypermarkets, and market stalls are growing and are showing signs of recovery,” Numerator said. Accessibility and channel strategy remain key factors for brands aiming to capture growth in the country’s evolving beauty market.

Adapting to a complex consumer landscape

The insights from Numerator underline that FMCG brands can no longer rely on a one-size-fits-all approach. Growth will increasingly depend on identifying high-value segments, understanding household priorities, and tailoring products, marketing, and retail experiences to match lifestyles. Whether it’s tapping older consumers, OFW households, pet owners, or beauty-conscious shoppers, companies that align their strategies to evolving behaviors are more likely to maintain relevance and momentum amid a challenging 2026.

 

 

Consumer brands face slower growth in 2026, with FMCG products projected to rise just 3%–4%.

 

 

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