Philippine consumer confidence falls to 35% as shoppers tighten spending

It is the sharpest decline amongst major Asian markets.

Consumer confidence in the Philippines dropped sharply from 53% in 2024 to 35% in 2025, the biggest decline amongst major Asian markets, according to Roland Berger’s Asia Consumer Study 2026.

The drop in confidence is prompting Filipino households to adopt more cautious spending habits, particularly in fast-moving consumer goods (FMCG) and essential items.

Shoppers are becoming increasingly price-conscious, prioritising value for money as they navigate tighter budgets.

As a result, promotional deals, bundled offers, and installment payment schemes are emerging as key drivers of purchasing decisions.

"Yet, even in this cautious environment, there is a strong aspiration for branded goods in categories such as fashion and beauty, fuelling the rise of 'affordable premium" and "masstige' (mass prestige) brands that deliver perceived quality at accessible price points," the report said.

Underlying these trends is the Philippines’ strong sense of community. The country leads Asia in the proportion of “Social Anchors,” with 41% of consumers influenced by family, belonging, and social connections.

Retail environments that encourage social interaction such as shopping malls, pop-up events, and community markets are maintaining strong foot traffic.

Additionally, peer recommendations, group discounts, and community-driven campaigns are proving highly effective in influencing consumer choices, highlighting the importance of social proof and word-of-mouth marketing.

Looking ahead, the report expects Filipino consumers to strike a balance between caution and aspiration over the next two years.

Whilst spending on essentials is likely to remain constrained, discretionary categories tied to self-expression and social identity are projected to grow.

Brands that offer flexible payment options alongside aspirational yet affordable products are expected to gain a competitive edge.

“Retailers and brands should focus on promotions, loyalty programs and community engagement, whilst affordable premium and masstige offerings will be best positioned to capture share in a market where value and aspiration coexist,” the report noted.