MANILA — The Philippines is seen as one of the most attractive markets in Asia for household goods, with the market here projected to reach PHP249.7 billion, or around USD5.1 billion by 2022.
BMI Research forecast that spending in household goods in the country may grow 6 percent yearly from 2018 to 2022, amounting to PHP197.5 billion, or USD4 billion to almost PHP250 billion in the next four years.
In a report, BMI Research said the bright prospect for the country’s household goods market is driven by its large demographic group of first-time home buyers and rising disposable income.
“The growth in spending will be driven by rising disposable incomes in the country with a growing middle-income (household disposable income of USD10,000-USD25,000) capable of spending on ‘big-ticket’ furniture items like sofas and cabinets,” the BMI Research report noted.
It projected middle-income group to grow from 18 percent of the total households this year to 37 percent by 2022 or expanding to 5.4 million over said period.
“The Philippines also offers a high proportion of young adults that are likely to be first-time home buyers, that typically need to furnish their empty new houses,” it said, citing that those in ages 25 to 29 years old have highest likelihood to be first-time buyers.
But it also included those aged 30 to 34 years old as first-time buyers as individuals are spending longer renting or living at home with their parents due to increasing housing prices.
“We estimate that those aged 25-34 years old to increase from 16.8 million people in 2018 to 18.3 million by the end of 2022,” the research read.
Moreover, the BMI Research report said it has seen robust growth in Philippine consumers’ spending on furniture and furnishing, expanding at 8.3 percent annually from 2018 to 2022.
Aside from furniture and furnishing, the Philippine market is likely to spend strongly on household textiles; household appliances; glass, tableware, and utensils; and home and garden tools/equipment.
“The attractiveness of the market has caught the attention of Swedish furniture giant IKEA, which is set to open in the country at an undisclosed date,” the report said.
“Growing wealth levels will lend support to spending on larger furniture items, as well as, higher quality furniture and furnishings offered by IKEA for example, compared to locally produced furniture,” it added. (Kris Crismundo/PNA)
