Fitch Solutions' BMI Eyes PH's Growing Middle Class To Fuel Household Goods Spending

BMI, a unit of Fitch Solutions, has projected that the expanding middle class population in the Philippines will drive growth in spending on household goods, alongside an increase in expenditures on leisure items due to rising income levels.

Domestic chains, such as SM Home, compete alongside Europe-based and global rivals, such as Sweden-based IKEA and Hong Kong-based Japan Home Centre. I Photo: SM Mall of Asia Official Facebook

“Spending on household goods across the Philippines is forecasted to experience steady growth of 7.5 percent year-on-year in 2024, reaching PHP 270.4 billion (USD 4.8 billion),” BMI stated. It further indicated that by 2028, household goods expenditure is anticipated to climb to PHP 354 billion (USD 6.1 billion), averaging 7.1 percent annually.

The Fitch Solutions unit emphasized that this spending trend would be supported by a technology-literate, urban middle class with growing disposable incomes.

Additionally, it highlighted that the increasing number of middle- and upper-income brackets in the country would stimulate the housing market, encouraging Filipino households to invest in consumer electronics and home furnishings to enhance their living spaces.

BMI also noted that the Filipino household goods consumer market is dynamic, characterized by a mix of local and international retailers.

"A number of domestic chains, such as SM Home, compete alongside Europe-based and global rivals, such as Sweden-based IKEA and Hong Kong-based Japan Home Centre.

Retail formats vary, from out-of-town superstores to small city-center display stores and a robust online sales sector," BMI added.

It observed that consumers have access to a wide range of products, from electronics to white goods, through physical stores and e-commerce platforms.

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