Data analytics company GlobalData has reported that the rise in demand for suncare products will drive the Philippines’ personal care sector, which is projected to record a compound annual growth rate (CAGR) of 4.8% to grow from USD 3.63 billion in 2019 to USD 4.45 billion by 2024.
- Suncare: In value terms, the suncare sector is expected to register a CAGR of 7.4% during 2019–2024. In volume terms, the suncare sector is tipped to register the fastest volume growth at a CAGR of 4.9% during 2019–2024. A growing interest in achieving and maintaining a fair complexion, supported by demand for skin whitening and protection from UV rays, contributed to strong growth in demand for suncare products, according to Globaldata.
- Skincare and makeup: The skincare and makeup sectors are expected to record CAGRs of 6.7% and 6.2% in value terms, respectively.
- Personal hygiene: Meanwhile, personal hygiene remained the largest sector in volume terms, recording sales of 295.7 million units in 2019.
While affordable products continue to dominate the market, there is a growing demand for premium products that claim to use sophisticated formulations for superior results as there is increasing consumer awareness of such products. Furthermore, a relatively young population, burgeoning middle class, rapid urbanization, and rising income levels have made the Philippines a dynamic market of shoppers with evolving needs.
Increasing presence on social media and its influence on consumer purchasing decisions could also present significant opportunities for local and international companies to further educate consumers and expand business in the coming years, according to GlobalData.
Convenience stores are the leading distribution channel in the country, with a value share of 26.9% in 2019, closely followed by hypermarkets and supermarkets, and health and beauty stores.
(Source: Retail Asia)