Survey: Filipino consumer sentiment during the coronavirus crisis

| Survey
Filipino consumers who were surveyed remain optimistic on the economy post-COVID-19, with their optimism now reaching prepandemic levels.

In the Philippines, optimism has been at one of the highest rates in APAC, specifically among the older generation, the highest income group. Both income and spending have increased compared to year-end 2020, with positive consumer trends in spending for essential commodities, but discretionary spend showing caution.

About half of consumers are engaging in out-of-home activities, with more than 70 percent modifying behaviors when going out for entertainment and traveling. While 97 percent are engaging in social media and continue to use digital services, in-store shopping is recovering in a majority of categories, specifically researching for essential supplies and services.

More than 90 percent of consumers also exhibit new shopping behaviors, including switching brands or retailers, with value the top driver among those who switched brands.

These exhibits are based on the COVID-19 Philippines Pulse Survey data collected in the Philippines October 28–November 11, 2022. Check back for regular updates on consumer sentiments, behaviors, income, spending, and expectations.

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Three emerging consumer themes in December 2022
Globally, Philippine consumer optimism about economic recovery is one of the highest
Overall optimism in the Philippines has continued to increase, especially post-COVID-19
Millennials and mid-income consumers are driving optimism
Filipinos are feeling the double pinch of lower income and higher expenditures
Consumers expect to spend more for essential items/groceries, and gasoline
Consumers cite higher prices as the reason for increased spending; smaller purchase and lower income drive decreased spending
Nearly half of consumers are engaging in out-of-home activities, driven by Gen X and higher-income consumers
About 70 to 85 percent of surveyed respondents have modified their behavior when out of home
Relevance of social media and omnichannel continues in purchasing behavior
In-store shopping recovers and prevails across most categories; discretionary items are typically bought through online channels
Social media played a vital role in purchase decisions for discretionary items and services like skin care, fitness, and clothing
Many discretionary categories continue to see online or omnichannel purchases
All consumers surveyed say they engage with social media platforms at least once a week
Consumers will continue to use new apps and purchasing modes while also intending to increase usage
Consumers intend to continue and even increase usage of at-home alternatives versus out-of-home activities
Brand switching continues, with value as the top reason among APAC countries
Consumer behavior change has been more extensive among younger and higher-income consumers
Among surveyed consumers who could not make a purchase, around a third have faced stockouts, mainly in groceries, personal care, and skin care
Consumers are most likely to substitute a retailer or brand rather than wait for stocks to be available
The dominant reason for brand switching was better prices or promotions, followed by novelty and better quality
All consumers noticed price increases across categories, with the most seen in groceries and gasoline
Although respondents were willing to pay the additional premium, for some categories they switched brands or delayed purchases
Among those who switched brands, a majority switched to store brands due to value and promotion
Consumers are most concerned with rising inflation and gasoline shortages
Consumers care about sustainability and health, but will they pay for them?
Three emerging consumer themes in December 2022
Global surveys of consumer sentiment during the coronavirus crisis

Global surveys of consumer sentiment during the coronavirus crisis

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