Christy Balita
Research expert covering the Philippines
Food retail industry in the Philippines - statistics & facts
The Philippines has a vibrant food retailing scene, from stalls selling fresh produce to warehouse clubs offering local and international goods. Although in-store retail still dominates over online outlets, the COVID-19 pandemic created opportunities for retailers to provide a more convenient shopping experience online. In addition, grocery chains have partnered with third-party providers for their delivery. The revenue of food and beverage retailers in the Philippines was expected to sustain growth in the following years, despite the threat of inflation.
Hypermarkets, on the other hand, are usually located in bigger cities, as they require more retail space, although some chains have started expanding into rural provinces to accommodate more customers. This retail outlet allows shoppers to conveniently shop for grocery items while also shopping for clothes and similar items. Puregold was by far the leading hypermarket in the Philippines by retail sales, followed by SM Hypermarket.
Food retail in the Philippines has diversified recently, with the availability of online grocery delivery providers. Although in-store retail still makes up a considerable share of retail sales, online grocery shopping can be expected to continue providing consumers with a convenient shopping experience, especially during peak periods such as the Christmas holidays.
Dominance of informal traditional retailers
With significantly more stores in easy-to-find and accessible locations, most Filipino consumers have purchased food items from informal traditional retailers in 2023. Traditional retailers, such as sari-sari stores and wet and dry markets, are usually run by an entrepreneur or a family and are usually located within the shopkeeper’s residence. Though they may typically apply a certain price markup for seasonal items, they allow customers to buy items in units rather than the whole package. For example, customers can purchase a lower-priced sachet instead of an entire bottle of soy sauce. Due to their popularity and accessibility, the sales of informal traditional retailers in the Philippines significantly increased in 2022 after experiencing slower growth during the COVID-19 pandemic.The state of modern grocery retailing
Among the modern grocery retail channels, supermarkets registered a higher share of food retail sales compared to hypermarkets or warehouse clubs. Supermarkets are typically smaller and offer more basic groceries and household essentials, perfect for those who have a smaller shopping list. Among supermarket chains, Robinsons Supermarket generated the highest retail sales in the Philippines in 2023, although it was only second to Savemore Supermarket by store count.Hypermarkets, on the other hand, are usually located in bigger cities, as they require more retail space, although some chains have started expanding into rural provinces to accommodate more customers. This retail outlet allows shoppers to conveniently shop for grocery items while also shopping for clothes and similar items. Puregold was by far the leading hypermarket in the Philippines by retail sales, followed by SM Hypermarket.
Digitalization of food and beverage retail
While the pandemic boosted e-commerce transactions, several supermarket and hypermarket chains have previously developed their online presence to provide an overview of the products they have on offer. Although online shopping was still more geared towards non-perishable items such as apparel and electronics, e-commerce sales of food and beverages in the Philippines saw a 130 percent growth between 2020 and 2021. The popularity and convenience of online shopping paved the way for numerous supermarkets, delivery apps, and online marketplaces to start offering online grocery delivery services. Although there are additional costs for delivery and a waiting time depending on the store, online grocery delivery makes it easier for customers to fill their pantry without leaving their homes. The revenue of the online grocery delivery market in the Philippines was pegged to continue growing in the succeeding years.Food retail in the Philippines has diversified recently, with the availability of online grocery delivery providers. Although in-store retail still makes up a considerable share of retail sales, online grocery shopping can be expected to continue providing consumers with a convenient shopping experience, especially during peak periods such as the Christmas holidays.
