Insights into the growth of the Philippines ecommerce including payment methods, target audiences, marketing, social media, economy and logistics
The Philippines is home to almost 108 million people with a total GDP of US$376 billion in 2019.
GDP per capita is currently US$3,312 and expected to reach US$4,588 by 2024. The Philippines is ranked as the 123rd richest country by the World Bank GDP per capita rankings.
Check out other exciting markets such as Japan, Thailand and Vietnam.
Digital User Insights
There are currently 38.9 million ecommerce users in the Philippines, expected to reach 55.8 million by 2025. These 55.8 million ecommerce users will represent almost 51% of the total population. The average user spends US$91.19 USD online, which will grow to US$137 by 2025.
52% of online shoppers are in the 25-34 year old group as of 2018 (latest data), with 18-24 year olds comprising 26%, and 35-54 year olds comprising 13%.
Total ecommerce revenue across all product categories is US$3.5 billion in 2020, expected to reach US$7.65 billion by 2025. Electronics is currently the leading product category, accounting for US$955 million market share. Fashion is second, accounting for US$652.7 million.
By 2025, Electronics will still lead, valued at US$1.69 billion. Fashion will also grow, reaching US$1.45 billion.
In 2018, the Philippines was ranked 60th in the World Bank Logistics ranking. 47% of the Philippines’s population reside in urban areas.
Preferred Online Payments
Cash is the most popular method of paying for online purchases in 2020 at 37%, with credit card accounting for 22% of purchases. Bank transfer was also popular accounting for 29% of recent online payments.
Where does the Philippines buy from?
China supplies the Philippines with US$32.3 billion in imports. Other key import partners are South Korea (US$12.6 billion), Japan (US$11.6 billion), Chinese Taipei (US$10.2 billion), and the United States (US$9.15 billion).
Internet and Device Usage
Internet penetration in the Philippines is currently at 72%, and should reach 76% by 2024. Smartphone penetration is 63% and is projected to grow to 77% by 2025.
Total marketing spend in the Philippines is projected to grow by US$2.22 billion between 2016 and 2019. Consumers are most likely to shop based on personal recommendations, but show a high level of trust for advertising across the board. Text ads on mobile phones, online banner ads and social advertising perceived as the least trustworthy types of advertising by consumers. Interestingly, branded websites are the second most trusted advertising source.
The Philippines’s Social Media Penetration is 53% of the population, with this expected to reach 55% by 2023. Facebook is the leading social network with 40% penetration.