MANILA, Philippines — The food retail industry in the country will continue to expand with total sales expected to reach a record-high $50 billion, driven by rising income and a growing population.
In the latest report of the United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS), the domestic food retail market is seen increasing by 5.4 percent to $50 billion from $47.4 billion last year.
“Driven by rising incomes, a growing population, and a strong preference for American brands, the Philippines imported $1.09 billion of US consumer-oriented products in 2018. US exports in this sector may grow further in 2019, reaching an all-time high of $1.2 billion,” USDA said.
“With a growing middle class and a large, young population, the Philippine economy is rooted in strong consumer demand, boosted by rising incomes and overseas remittances,” it added.
Last year, Filipino households spent more than half of their budget on essentials including food.
Purchases of food and non-alcoholic beverages comprised almost 40 percent of total household expenditures in 2018.
The country’s traditional “sari-sari” stores still dominate the food retail market, which accounts for 58 percent of the market.
Read more: The Philippine Star
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