Consumer Lifestyles - Philippines

CONSUMER EXPENDITURES Spending on Consumer Goods and Services

Consumer spending on consumer goods and services was P4.61 trillion in 2007, a 67.08% growth from the P3.23 trillion in 2000. Consumer spending was largest for food and non-alcoholic beverages during the review period with an average annual spending share of 38.41% mainly because consumers regard food and non-alcoholic beverages as the primary commodities among consumer goods. Largest spending share in food and non-alcoholic drinks is also due to the high cost of other consumer goods such as houses and private vehicles among others, which led consumers to spend less on these goods. Large spending share in food and nonalcoholic drinks was also due to growing health consciousness of many consumers. Among the consumer goods and services, communications had the strongest growth with a 164.73% growth rate during the review period. Growing interest and growing consumption of communications devices, the internet and other communicationsrelated tools especially among the teen population propelled spending on communications at a higher and faster rate. Meanwhile, spending on luxury products and services such as leisure and recreation was in the lowest position with only .52% average annual spending share. Other luxury products such as hotels and catering posted a 6.58% average annual spending share. Spending on luxury products and services, however, make up the lowest proportion in consumer spending growth during the review period. This is due to accelerated annual disposable income of household members and consumers. Impact Growth in consumer spending has increased demand and consumption for different consumer goods, including food and nonalcoholic beverages, while increasing the rate of housing units occupied and miscellaneous goods and services sold. A rise in consumer spending also increased consumption for household goods and services, transport services, communications services, education, leisure and recreation, clothing and footwear, hotels and catering, health goods and medical services, and alcoholic beverages and tobacco. Large expenditures on food and non-alcoholic beverages and other primary commodities led to decreased spending and consumption for luxury goods. High spending growth for the communications sector increased spending and consumption for communications devices, the internet, media and other communications-related products.

Table 68 Consumer Expenditures by Product Type: 1995/2000/2005/2007/2010/2015

Ps billions Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Miscellaneous goods and services TOTAL
Note: Constant value at 2007 prices

2000 1,277.9 66.7 97.6 640.2 167.2 88.8 209.7 33.5 17.6 146.0 208.3 341.5 3,295.0

2005 1,561.5 76.1 124.7 855.2 209.2 93.1 254.3 43.0 20.9 170.1 275.8 404.0 4,088.0

2007 1,761.9 83.6 137.6 974.2 233.6 104.3 286.2 49.3 23.5 189.6 310.4 453.5 4,607.8

2010 2,100.2 94.7 163.3 1,194.5 277.3 116.2 348.8 60.2 27.3 219.0 373.6 530.2 5,505.3

2015 2,835.2 117.9 221.3 1,679.6 370.2 145.5 476.8 80.7 35.9 287.8 508.8 687.4 7,447.3

Source: National statistical offices, OECD, Eurostat, Euromonitor International

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Table 69 Consumer Expenditures by Product Type (% analysis and % growth) 1995/2007/2015/1995-2007/2007-2015

% of total consumer expenditures Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Miscellaneous goods and services TOTAL
Note: Constant value at 2007 prices

1995 39.06 2.03 3.29 19.43 5.08 2.69 6.02 0.68 0.53 4.43 6.28 10.48 100.00

2007 38.24 1.81 2.99 21.14 5.07 2.26 6.21 1.07 0.51 4.11 6.74 9.84 100.00

2015 38.07 1.58 2.97 22.55 4.97 1.95 6.40 1.08 0.48 3.86 6.83 9.23 100.00

1995-2007 65.20 51.15 53.11 83.63 68.53 41.80 74.16 164.73 61.07 56.74 80.94 58.42 68.74

2007-2015 60.92 41.03 60.84 72.40 58.51 39.51 66.58 63.60 52.98 51.80 63.95 51.58 61.62

Source: National statistical offices, OECD, Eurostat, Euromonitor International

Table 70 Consumer Expenditures by Commodity Type: 1995/2000/2005/2007/2010/2015

Ps billions Durable goods Semi-durable goods Non-durable goods Services TOTAL
Note: Constant value at 2007 prices

1995 210.2 84.4 1,265.7 1,170.3 2,730.7

2000 255.8 92.5 1,516.5 1,430.2 3,295.0

2005 320.7 117.2 1,858.1 1,792.1 4,088.0

2007 357.1 129.1 2,092.6 2,029.1 4,607.8

2010 425.6 161.1 2,480.0 2,438.7 5,505.3

2015 570.8 240.2 3,310.7 3,325.6 7,447.3

Source: National statistical offices, OECD, Eurostat, Euromonitor International

Table 71 Consumer Expenditures by Commodity Type (% analysis and % growth) 1995/2007/2015-/1995-2007/2007-2015

% of total consumer expenditure Durable goods Semi-durable goods Non-durable goods Services TOTAL
Note: Constant value at 2007 prices

1995 7.70 3.09 46.35 42.86 100.00

2007 7.75 2.80 45.41 44.04 100.00

2015 7.66 3.23 44.45 44.65 100.00

1995-2007 69.90 52.84 65.33 73.37 68.74

2007-2015 59.86 86.13 58.21 63.90 61.62

Source: National statistical offices, OECD, Eurostat, Euromonitor International

Table 72 Consumer Prices and Costs: 1995/2000/2002/2004/2006-2007

1995 = 100 Index of consumer prices (1995 = 100) Average of CLIFE countries 100.0 326.3 475.8 605.3 706.2 766.9 1995 100.0 2000 136.6 2002 150.3 2004 164.8 2006 188.4 2007 194.0

Source: National statistical offices, OECD, Eurostat, Euromonitor International

Table 73 Consumer Prices and Costs (actual growth): 1995-2007/2000-2007

Percentage points Index of consumer prices (1995 = 100) Average of CLIFE countries
Source: National statistical offices, OECD, Eurostat, Euromonitor International

1995-2007 94.04 666.89

2000-2007 57.43 440.60

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