Philippine Population

The current population of the Philippines is 108,642,684.1 This is equivalent to 1.4% of total world
population and ranks 13th in the list of countries by population. 47.1% or almost 51 million people of the
population is urban. United Nations estimated PH population to reach 109M by 2020, having the following
cities as most populated:

Share from Total

# CITY NAME POPULATION
Population
1 Quezon City 2,761,720 3%
2 Manila 1,600,000 1%
3 Caloocan City 1,500,000 1%
4 Budta 1,273,715 1%
5 Davao 1,212,504 1%
6 Malingao 1,121,974 1%
7 Cebu City 798,634 1%
8 General Santos 679,588 1%
9 Taguig 644,473 1%
10 Pasig City 617,301 1%

Sex Ratio is 1.01 Males to Females. And 2.6 total fertility rate.2

The above Population pyramid with a wide base suggests high fertility and a growing population. However,
we may notice that age group 0-4 is relatively lower than the preceding age group, which suggests lower
youth dependency rate in the upcoming years. The broad age group 15-64 is considered as the working
age population and consists 64.4% of the total population of 2020.

1
Wikipedia
2
Worldometer
Philippine Economy

With an estimated $356.814 Billion GDP in 2019 (nominal)3, this is the world’s 38th largest economy and
13th in Asia. Gross Domestic Product (GDP) grew year-on-year by 6.2% in the 3rd quarter of 2019. Trade
and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods, Construction, and Financial
Intermediation were the main drivers of the growth.

Survey results shows that the average annual Filipino family income was approximately 267 thousand
pesos. In comparison, the average annual family expenditure for the same year was 215 thousand pesos.
Hence, Filipino families has savings of 52 thousand pesos in a year, on average. 4

The Philippines is one of the emerging markets and is the sixth richest in Southeast Asia by GDP per capita
values, after the regional countries of Singapore, Brunei, Malaysia, Thailand and Indonesia. The Philippine
economy is projected to be the 5th largest in Asia and 16th biggest in the world by 2050.5

3
Wikipedia
4
Philippine Statistics Authority
5
Inquirer.net
Global & Philippine Confectionery Market

The Global confectionery market is values at $15000 million in 2018 and will reach $19700 million by end
of 2025, growing at a CAGR of 4.0% during 2019-2015.6

Key leading players that operate in confectionery industry include Delfi Limited (Singapore), Ezaki Glico
Co., Ltd. (Japan), Ferrero SpA (Italy), Lindt & Sprugli AG (Switzerland), Lotte Confectionery Co. Ltd. (South
Korea), Mars Incorporated (U.S.), Mondelez International, inc. (U.S.) Nestle S.A. (Switzerland), The
Hershey Company (U.S.) and Wm. Wringley Jr. Company (U.S.).

The per capita consumption of confectionery was lower in the Philippines compared to both the global
and regional levels in 2018. Still, the Sugar confectionery category, which is the leading sector in Philippine
confectionery industry is expected to gain market share in both value and volume terms during 2018-
2023. With leading distribution channels of Hypermarkets and supermarkets. 7

Consumer Insights and Retail Trends

Over the last decade, companies have heavily targeted millennials across the globe. As millennials begin
their own families, companies need to update the way they perceive and reach out to them.8

 Growth in Health Awareness: which is a restraint to Sugar-Confectionery Sector but an

opportunity to organic products;
 Place greater Value in locally produced products: a risk for imported products but
premiumisation is still a key;
 Spending more time together: invested in building close relationship with children/family, but
are also taking time for themselves. Hence, they are willing to spend money to save time and be
as efficient as possible;
 Supportive of socially responsible brands: Consumers are now shopping with their emotions and
values instead of just their wallets;
 Personalization & Experiential stores: although consumers trend is moving away from brick-and-
mortar department stores, millennials still seek brand-specific stores, which often carry a status
that relates to their lifestyle choices;

Summary

Overall, the growth in economy and population means increase in demand, products and services alike.
With the Philippines’ GDP performing well and forecasted to grow at a rate of 6.2% in 2020, rise in average
household income is expected to follow. Supported with the changing demographics, as Millennials are in
no rush to start a family, total dependency ratio is projected to further decline, which allows the
government and households to either save or spread freed up resources.

It is on how each company innovates and expands, dictates their market share within the industry.
Consumption patterns are changing and marketing strategies should be adjusted. By 2020, millennials will
be the largest consumer group, and this generation is one of the most cautious consumers, due to having
standard education and experience with developing technology. Technology associates convenience,
which the new market is willing to pay for. Top companies stays relevant by adopting multichannel sales,
by offering customers the option to browse online and buy in-store, this gives them advantage over
business that are only online or brick-and-mortar stores.

6
Marketwatch.com
7
Giiresearch.com
8
Euro monitor: Millennial Parents Transforming Family Life