Why Launch Your Brands to the Philippines?

The Philippine growth story is evidenced by favorable economic numbers. Driven by consumption and investment, the country’s GDP growth has ranged from 6% to 7% for the past two years. Since a credit rating raise to BBB-/ Baa3 (investment grade) by Standard & Poor’s Ratings Services (S&P), Fitch Ratings and Moody’s in 2013 (putting it on par with some ASEAN countries like Indonesia), the Philippines received another upgrade from S&P in 2014 to BBB (comparable to that of Italy).   

There are opportunities for American companies in the consumer sectors.

• On the consumer front, the Philippines has a population close to 100 million. Purchasing power is strengthened by remittances of more than US$20 billion from about 8 million Filipinos working abroad. These remittances spur consumer spending in the Philippines. 
• The dual-income, middle-class families and young professionals who are willing and able to pay for what they want, coupled with a low lending rate as well as an increase in number of foreign expatriates and tourists into the country (due to the expansion of Manila’s gaming industry) are key drivers of the Philippine consumer market.

• American food and retail companies can partner Philippine companies to tap into this large and growing consumer market. 

• Potential partners include large consumer giants that own malls and retail stores, as well as multi-brand distributors, which have the experience stewardship and marketing of international brands.  

Under the leadership and governance of the current administration, the Philippine economy has been performing well. The World Bank described the Philippines as the next “Asian miracle”; HSBC estimates it to be the 16th largest economy in the world by 2050; and the country’s growth rate is projected to be one of the highest in ASEAN in the next few years. We identify key opportunities in the consumer sectors in the Philippines and share insights on doing business in the country.