HOUSEHOLDS: THE PHILIPPINES

Euromonitor International
April 2018
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LIST OF CONTENTS AND TABLES

Chart 1 SWOT Analysis: The Philippines .................................................................. 1
Household Size and Location ....................................................................................................... 1
Infrastructure Fails To Keep Up With Rapid Urbanisation ........................................................ 1
Chart 2 Households by Location and Number of Rooms/Persons in the
Philippines .................................................................................................... 1
Consumer Composition ................................................................................................................ 2
Female Earners Abroad Drive Domestic Purchasing Power .................................................... 2
Chart 3 Sex, Age, Education and Employment in the Philippines ............................. 2
Family Types ................................................................................................................................ 3
One of the Most Concentrated Family Markets in the World .................................................... 3
Chart 4 Family Units and Children per Household in the Philippines ........................ 3
Scenario analysis...................................................................................................................... 4
Chart 5 Hasbro Inc Retail Value by Country in Asia Pacific ...................................... 4
Household Facilities and Durables ............................................................................................... 5
Economic Growth Drives Appliances Uptake ........................................................................... 5
Chart 6 Household Penetration by Facilities and Durables in 2030 in the
Philippines .................................................................................................... 5
Household Telecoms .................................................................................................................... 6
Long-awaited Broadband Plan Launched ................................................................................. 6
Chart 7 Household Digitalisation in the Philippines ................................................... 6
Property Market ............................................................................................................................ 7
Strong Demand Across Entire Real Estate Segment................................................................ 7
Chart 8 Rentals and Household Finance in the Philippines ...................................... 7
Housing Construction ................................................................................................................... 8
Chronic Housing Shortage........................................................................................................ 8
Chart 9 Houses and Apartments in the Philippines ................................................... 8
Chart 10 Case Study on Housing Construction: The Philippines ................................ 9

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HOUSEHOLDS: THE PHILIPPINES

The Philippines has one of the world’s most vibrant household markets, with rapid growth in
the number of households, a dynamic real estate market, and increasing household purchasing
power. However, strong economic growth has presented challenges, particularly in developing
infrastructure to sustain population expansion and dealing with chronic housing shortages. An
extremely concentrated family market presents considerable opportunities.

Chart 1 SWOT Analysis: The Philippines

Source: Euromonitor International

HOUSEHOLD SIZE AND LOCATION

Infrastructure Fails To Keep Up With Rapid Urbanisation

The Philippines is at a critical juncture in its urbanisation process, which has driven growth but
could see this slow due to poor infrastructure and complicated regulations. The country’s
inadequate investment in household and basic infrastructure had led to traffic congestion, lack
of essential services, and a rising risk from natural hazards. Sustaining rapid growth in
households will be a major challenge for the government going forward.

Chart 2 Households by Location and Number of Rooms/Persons in the Philippines

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Source: Euromonitor International from national statistics/UN

Note: Data for 2018-2030 are forecasts

CONSUMER COMPOSITION

Female Earners Abroad Drive Domestic Purchasing Power

In the past two decades, the Philippines have emerged as one of the world's leading source
countries for migrant workers, particularly as more powerful typhoons and other harsh weather
make life at home more difficult. A growing majority of these workers are females, meaning that
women are becoming the dominant earners in many households. Product marketing campaigns
aimed at females are, therefore, becoming more important.

Chart 3 Sex, Age, Education and Employment in the Philippines

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Source: Euromonitor International from national statistics

Note: Data for 2018-2030 are forecasts

FAMILY TYPES

One of the Most Concentrated Family Markets in the World

The Philippines has one of the highest proportions of couples-with-children households in
Asia Pacific. In addition to traditional family values, a major driver of the high rate of children per
household is the widespread occurrence of teenage pregnancies, largely due to a lack of
education. The state has launched programmes to combat this, as it tries to temper a surge in
population growth.

Chart 4 Family Units and Children per Household in the Philippines

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Source: Euromonitor International from national statistics

Note: Data for 2018-2030 are forecasts

Scenario analysis
The large number of children per household and the huge family market in the Philippines
have provided significant opportunities for companies like toy maker Hasbro. The country was
Hasbro’s fourth largest market in Asia Pacific by retail value in 2016.

Chart 5 Hasbro Inc Retail Value by Country in Asia Pacific

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Source: Euromonitor International Competitor Analytics

HOUSEHOLD FACILITIES AND DURABLES

Economic Growth Drives Appliances Uptake

Consumer appliances in the Philippines are benefiting from rising income levels, as a result of
economic growth, in addition to the widening availability of easy-access consumer credit and
growing economic confidence. A housing boom is also boosting demand, with many consumers
keen to buy appliances for their new homes. Most consumers are only interested in products
that they view as essential and value-for-money, such as semi-automatic washing machines,
fridge freezers and cooling fans.

Chart 6 Household Penetration by Facilities and Durables in 2030 in the Philippines

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Source: Euromonitor International from national statistics/UN/trade sources

HOUSEHOLD TELECOMS

Long-awaited Broadband Plan Launched

President Rodrigo Roa Duterte recently directed the Department of Information and
Communications Technology (DICT) to develop the National Broadband Plan (NBP), which will
serve as a blueprint for the acceleration and deployment of fibre-optic cables and wireless
technologies in the country, thereby improving internet speed for households.

Chart 7 Household Digitalisation in the Philippines

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Source: Euromonitor International from national statistics/UN/trade sources

Note: Data for 2018-2030 are forecasts

PROPERTY MARKET

Strong Demand Across Entire Real Estate Segment

The Philippine real estate market is sustaining its momentum with the country’s bullish
economy, young demographics, and consumption-driven market. Demand for new housing units
is strong across the spectrum, from high-end apartments in Manila to affordable units in
suburban areas. Strong expected growth in rentals and access to home mortgages will further
solidify and mature the market going forward.

Chart 8 Rentals and Household Finance in the Philippines

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Source: Euromonitor International from national statistics

Note: Data for 2018-2030 are forecasts

HOUSING CONSTRUCTION

Chronic Housing Shortage

A major issue in the Philippines is a chronic housing shortage, with government figures
placing the backlog at around 4.0 million units. Although housing completions are at a healthy
annual average of around 200,000, more than 300,000 new housing units are needed each year
to address the shortage by 2030. The market is, therefore, likely to see even more robust
construction, as the state deals with population growth in urban hubs.

Chart 9 Houses and Apartments in the Philippines

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Source: Euromonitor International from national statistics

Note: Data for 2018-2030 are forecast

Chart 10 Case Study on Housing Construction: The Philippines

Source: Euromonitor International

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