Filipino C-Stores Taking Market Share from Grocery Stores

Time-strapped consumers turning to prepared meals and local shopping.

October 28, 2014

MANILA – Monthly grocery spending in the Philippines has dropped sharply as people increasingly choose to eat in quick service restaurants or buy meals prepared in convenience stores.

According the latest Nielsen Shopper Trends report, which covered 1,783 grocery decision makers aged 15 to 65 living in urban locations, the average monthly grocery spend has fallen 13% over the past two years. This decline appears in large part to be a consequence of a rapid growth in the habit of eating out, combined with evidence that consumers are turning to prepared meals sold by convenience stores as an alternative to cooking food themselves at home.

These are trends that food brands cannot afford to ignore, say experts, who cite the increasing amount of time that Filipinos are spending away from home or in transit. As a result, they are frequently turning to convenient alternatives.

In addition to creating more “ready to eat” type meals, food manufacturers would be wise to explore ways of linking up with fast food restaurants and convenience stores, in order to maintain relevance with the consumers who shop those channels.

The Nielsen report cited also noted that consumers prefer to make all their purchases in stores nearest their homes, so location is critical.

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