Come hell, high water,Christmas comes
Filipinos spent 11 percent more on food and 9 percent more on beverage categories during the holidays
Daily TribuneFilipinos spent 11 percent more on food and 9 percent more on beverage categories during the holidays
Despite challenges from inflation and other difficulties because of the geopolitical shifts, Filipinos still look forward to celebrating Christmas on expectations of bonuses and the observance of family traditions.
Based on historical data, Kantar, the world's leading marketing data and analytics company, expects households to increase their spendings on food and beverage during the holidays compared to ordinary months.
"The Christmas spirit is felt as early as September. Spending in the fast-moving consumer goods typically starts in December when Filipinos receive additional disposable income through their 13th month pay and other incentives," Nino Nierva, account director, Worldpanel Division, Kantar Philippines, said.
"What we've observed, based on our analyses of the spending habits of over 5,000 households' year-on-year, is that Filipinos spend mostly on food and beverage items from December to January versus the rest of the year."
There is a spending uplift of 7 percent in the total FMCG segment during the height of the Christmas season last year, or from December 2022 to January 2023, compared to other months, or from February to November.
This translates to approximately P6 billion more spent every month within the holiday period.
Specifically, Filipinos spent 11 percent more on food and 9 percent more on beverage categories during the holidays.
This trend also extends to dairy products (6 percent higher), which include all-purpose cream and condensed milk that are key ingredients of fruit salad, a staple Christmas dessert in the country.
In contrast, the health and beauty category takes a back seat during this same period based on a 4 percent decline in growth last year, according to Kantar's study.
Season of eating, shopping
Data from Kantar further showed that holiday feasts must-haves will continue to take-over the shopping baskets of Filipinos in the remaining months of the year.
These items, which registered significant growth in December 2022, are expected to remain a priority for households.
These are spreads (up 34 percent), canned fruits (up 25 percent), alcoholic beverages (up 24 percent), noodles and pasta sauces (up 21 percent), lechon sauce (up 17 percent), condensed milk (up 9 percent), mayonnaise (up 8 percent), and all-purpose cream (up 6 percent).
However, Kantar notes that inflation continues to impact FMCG in terms of pack size and brand choices.
In particular, households, strapped for cash, may buy less holiday meal staples like pasta sauces or cheese, and may choose to purchase more affordable brands of canned fruits, all-purpose cream and noodles.
Tight budget not a problem
While Filipinos continue to patronize sari-sari stores, they will still visit hypermarkets, supermarkets and groceries to check their options during the holiday season.
According to Kantar, Filipinos still buy from sari-sari stores and they spend an average of P1,309 per month during the holidays.
This is followed by hyper and supermarkets where 7 out of 10 homes visit the channel with an average monthly spend of P1,559.
Aside from their own purchases, households will likewise make extra room in their pantry for FMCG products that they receive as gifts.
