According to the US Department of Agriculture (USDA), food and beverage retail sales in the Philippines are expected to slow down this year as the trend of “revenge spending” fades after the COVID-19 pandemic. However, imports still hold the potential to drive growth.
In its report, the USDA’s Foreign Agricultural Service (FAS) projected a 6% growth in food and beverage retail sales for 2023, which is slower compared to last year’s growth rate of 8%.
The USDA-FAS stated in its report that consumers are now looking for new product offers that provide value, while price-sensitive consumers prefer purchasing smaller stock keeping units (SKUs). It also mentioned that revenge spending, where customers buy more goods and services than usual after a period of isolation, has weakened, resulting in a decrease in bulk purchases.
However, domestic demand is still expected to contribute to an increase in food and beverage sales from $33 billion to $35 billion in 2022.
The Philippines remains Southeast Asia’s largest market for the United States, with imports driving growth and sustaining the income of various establishments. Warehouse clubs such as S&R and Landers are major players in the import market, offering a wide selection of imported brands, especially from the US. Around 70% of their store sales come from imported products.
These warehouse clubs cater to different types of consumers. Restaurants and hotels purchase larger SKUs, while large households buy products in packs of 12 or 24. Warehouse clubs also provide product tastings, discounts, and incentives to their members, attracting more customers.
In 2023, sales in these establishments are expected to exceed $1 billion, with half of the revenue coming from food and beverage sales.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
