NextGen Day

Even if limits on transportation have been relaxed, the Philippines’ urbanization and disposable money are predicted to support the growth of food and grocery delivery services.

Following government lockdowns to stop the spread of the coronavirus epidemic 2019, delivery services, especially for basic commodities, developed dramatically during the pandemic, according to a report by Fitch Solutions Country Risk and Industry Research (Covid-19).

According to the article, this forced merchants to add delivery options to their menus in order to stay competitive.

Without these dynamics, the sector in Asia would have taken much longer to develop, the statement continued.

According to the report, companies that deliver food and groceries are continuing to improve their offerings and transportation infrastructure, which is a significant barrier to the pre-pandemic robust expansion of electronic commerce (e-commerce).

According to the statement, “industry competitors have continued to hone their products post-Covid, while the number of first-time customers will continue to utilize the service as they recognize its convenience and delivery service will become more effective and user-friendly.”

According to the report, the expansion of food and grocery delivery has benefited from the increase in the nation’s disposable household income.

It predicts that between 2022 and 2026, the typical household disposable income will increase by an average of 8.4 percent year, to an estimated PHP567,900, growing by an estimated 9.3 percent annually to roughly PHP413,900 this year.

The growth of discretionary income is anticipated to surpass inflation, which is predicted to average around 5.6 percent this year despite continuing to rise.

This implies that consumers in the Philippines will experience an increase in real disposable income. As customers’ propensity to spend more money increases, they have increased access to modern MGR (mass grocery retail), which we feel complements the trend of retail formalization in the Philippines.

Urbanization is also anticipated to grow the market for e-commerce and delivery services.

Approximately 50.9 percent of Filipinos are expected to live in urban areas by 2030, up from about 48 percent this year, according to the research.

A huge number of households with increased disposable income, sophisticated logistics, and people with the technical know-how and equipment to access e-commerce platforms are among the elements that will boost food and grocery services, according to the report.

According to the study, Filipinos are increasingly choosing healthier eating options, particularly those from middle- to high-income groups.

These households, it was noted, “trade up price points for premium and healthier food options; they are likely to be more cognizant of the health advantages of their food choices and have greater bandwidth when contemplating their dietary choices.”

The analysis cited the most recent data available to claim that dairy and fresh and preserved fruits are the two fastest-growing food index categories, with medium-term growth rates of 8.6 percent and 8.3 percent, respectively.

According to the report, the importation value of fresh fruits and nuts increased from approximately $27.3 million in 2002 to over $736.9 million in 2021.

This was followed by the statement, “These two categories support our opinion that Filipino consumers are gradually spending more on healthier meals.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

Feel free to Email Us for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---