FMCG Monitor: Q1 2020
As the Philippines faced the challenge of Taal Volcano eruption and COVID-19 pandemic in the first quarter of the 2020, economic growth was hindered. Gross Domestic Product (GDP) contracted, while Household Final Consumption Expenditure (HFCE) barely managed to grow. This slowdown also translated to in-home FMCG purchasing of Filipino homes.
Looking at Year-to-Date April 2020, households from regions heavily affected by the pandemic posted greater FMCG spending decline due to lesser shopping trips. Furthermore, as the country posted its highest unemployment rate on record, spending from middle-income homes also plummeted.
Among key channels, groceries thrived amid the pandemic as proximity and convenience continue to play an important role in the channel choice. More homes from across regions and socio-economic class (SEC) shopped from the said channel, primarily purchasing more pantry staples.