MANILA — Lifestyle-related products are expected to lead growth in the fast-moving consumer goods (FMCG) sector in the Philippines this year, even as the industry slows due to weaker domestic economic conditions.

Consumer insights firm Worldpanel by Numerator Philippines projects the FMCG sector to grow 3 to 4 percent in 2026, down from 5 percent last year, according to Laurice Obana, the company’s shopper insights director, during a briefing in Makati City on Friday.

Obana highlighted that demand is rising among older shoppers, overseas Filipino workers (OFWs), and pet owners. She noted that Filipinos aged 55 and above make up about 16 percent of the population and are expected to reach 34 percent by 2055. This group has the financial capacity to purchase products such as plant-based milk alternatives and health supplements.

OFW households remain major drivers of consumer spending, with expenditures reportedly 25 percent higher than households without OFW members.

Pet owners also contribute significantly to FMCG growth, as around 67 percent of Filipino homes have at least one pet. Businesses benefit from this sector not only through pet-specific products but also by offering pet-safe items like multi-purpose cleaners and air fresheners.

Obana also pointed to changing retail trends, including the growing popularity of discounters—small grocery stores offering wide product ranges and private-label items—and e-commerce platforms. In response, larger supermarkets are enhancing accessibility and expanding offerings to attract more shoppers.

“We are seeing the rise of modern palengke setups that provide a one-stop-shop experience for essentials, dining, and other services across the country,” Obana said.

Asked whether discounters could become the preferred purchasing channel, she said they remain in the early stages in the Philippines but are expected to grow, following patterns seen in other countries.