Philippines E-commerce Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 15.51 Billion |
| Market Size (2029) | USD 29.57 Billion |
| CAGR (2024 - 2029) | 13.78 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Philippines E-commerce Market Analysis
The Philippines E-commerce Market size is estimated at USD 15.51 billion in 2024, and is expected to reach USD 29.57 billion by 2029, at a CAGR of 13.78% during the forecast period (2024-2029).
Online purchasing and selling of products and services is known as e-commerce. Affiliate marketing strategies are also a possible part of the definition of an e-commerce firm. To increase online sales, users can leverage e-commerce platforms like their own website, through a well-known retailer like Amazon, or social media.
- Due to its strong economy and a significant number of digitally savvy people, the Philippines is one of Southeast Asia's fastest-growing e-commerce markets. Many websites and digital applications are striving for market share against local, regional, and global rivals. Owing to better connectivity in the Philippines and the developing infrastructure, a growing portion of the country's sizeable population is now connected to the Internet. The connected population of the Philippines typically accesses the nation's e-commerce market through computers and mobile devices.
- One of the biggest trends in online retail is platform convergence. Customers prefer an all-in-one shopping experience that includes product ratings and prices, buying, and making payments using the platforms' new online payment options. Consequently, online shopping features are available on portal websites, social media, TV home shopping, over-the-top media services (OTT), etc. As a result, their platforms are becoming more popular.
- The quick development of wireless and Internet technology has significantly impacted online retailing and e-commerce advancement. The accessibility of smart devices, advancements in telecommunications infrastructure, rising purchasing power, a lack of time, and additional convenience have compelled businesses to adopt technology and meet customers' expanding needs, which has sped up the development of this new business model for online food ordering.
- Despite its rapid progress, the Philippines has not yet made management and technology more accessible to wider audiences. E-commerce advancements have also been delayed by government officials and local organizations' inaction in defining infrastructure initiatives to promote the nation's technology and internet sectors. To accommodate the growing traffic in the area, carriers and governments in the nation need to make increases in internet speeds.
- A turning point for e-commerce in the Philippines was the COVID-19 pandemic, which resulted in lockdown and movement restrictions, drove demand to record highs, attracted new buyers and sellers to online marketplaces, and provided players with long-term development. The e-commerce industry benefited greatly from the epidemic as a result of containment efforts that made consumers aware of the convenience of online shopping and encouraged seasoned online shoppers to make additional purchases.
Philippines E-commerce Market Trends
Fashion Industry to Dominate the Market Significantly
- Before the COVID-19 outbreak, Filipinos hesitated to make financial commitments online. Due to the obstruction, Filipinos were obliged to purchase food and other needs online, this skyrocketed the number of e-commerce transactions. Thousands of Filipino business owners rapidly caught up, opening online stores offering everything from face masks to electronic consumer items. In the fashion and cosmetics sectors, prominent corporations also increased their E-commerce activities.
- With its Southeast Asian neighbors, the Philippines' e-commerce environment is continually expanding and changing. Physical storefronts at malls have always been a significant economic paradigm in the fashion retail industry, but pandemics have completely altered this.
- The Philippines has encouraged new fashion-related businesses to establish operations there for the past few years. Because of this, the market has continued to grow, in the wholesale and retail industries, utilizing the e-commerce market with new brands domestically.
- The e-commerce landscape in the Philippines is witnessing a surge in popularity among online consumers. These platforms not only offer a wider array of products but also boast competitive pricing. Consequently, the e-commerce market is on a trajectory of significant growth, with projections extending to 2030. Notably, Shopee leads the pack, drawing in over 70 million monthly web visitors, closely followed by Lazada, which sees around 37 million visitors each month. Insights from Meltwater reveal that, during the third quarter of 2023, a substantial 57% of Filipino respondents reported making weekly online purchases, with a notable portion opting for online grocery shopping.
- Moreover, due to rising disposable incomes and lavish spending, consumer demands in the fashion industry are becoming more complex and diverse. Other elements include the rise of life-enriching consumption, such as leisure and cultural activities, an increase in internet sales, an aging population, and a shift in the core demographic of consumers.
Increased Internet Use, Online Payments, and Mobile Phones to Drive the Market
- The Philippines' e-commerce market has a lot of room to expand and advance. Filipino consumers' adoption of a digital lifestyle is the key force behind this. According to the World Bank, the Philippines has one of the most dynamic economies in the East Asia Pacific area. In 2023, The Philippines emerged as Southeast Asia's fastest-growing economy, boasting a 5.6% growth rate, slightly below the government's ambitious target of 6.0-7.0%. This data is sourced from the IMF's Economic Forecast for 2024.
- The country is witnessing rapid development in 5G and internet services. In 2023, Globe Telecom significantly bolstered its 5G infrastructure, introducing 894 new sites. This expansion led to an outstanding outdoor coverage of 97.90% in the National Capital Region and 92.36% in major cities spanning the Visayas and Mindanao.
- The Philippines leads in digital payments, boasting a range of platforms like GCash, Maya, and PayMongo. In April 2024, the nation furthered its digital payment landscape with the launch of Higala, an Inclusive Instant Payment System (IIPS). This move aims to reduce real-time payment costs for the financially underserved in the country.
- According to a survey conducted by Telenor ASA, a Norwegian majority state-owned multinational telecommunications company, in August 2023, 38% of respondents in the Philippines reported predominantly using a 5G connection on their mobile devices. In contrast, 10% of respondents did not utilize a 5G network.
- Additionally, the majority of local online merchants have mobile-friendly websites and apps, which hastens the growth of mobile-based e-commerce purchases. Consequently, having a mobile-friendly application or website is widely regarded as being essential for success in the e-commerce sector.
Philippines E-commerce Industry Overview
The Philippines' E-commerce is fragmented with the presence of key players in the country. With the introduction of new competitors, the market has become highly competitive, and foreign players entering the nation take advantage of the E-commerce market. The platforms accept new merchants through a variety of partnership-based programs. Businesses also put a lot of effort into broadening their reach by giving sellers in other parts of the Philippines better service and faster delivery.
- June 2024 - Building on the Philippines' ongoing digital transformation, the Department of Trade and Industry (DTI) led discussions with TikTok. Their objective is to fortify existing ties and explore new collaborations, all in a bid to bolster the nation's innovative economy. DTI views this partnership as a pivotal move in advancing e-commerce within the Philippines. The envisioned outcome is a digital marketplace set for substantial growth, benefitting businesses, consumers, and the broader economy. With TikTok's significant influence over local micro, small, and medium enterprises (MSMEs), it is expected an accelerated adoption of e-commerce in production sectors. This, in turn, promises to create high-quality employment opportunities and enhance the global competitiveness of Philippine products.
- June 2024 - GHL Systems Philippines Inc. (GHL Philippines), a subsidiary of GHL Systems Berhad, has facilitated the integration of Alipay+ for Philippine businesses. This move allows local businesses to accept digital payments from prominent Asian mobile wallets, both in face-to-face transactions and e-commerce. The integration is poised to significantly enhance the e-commerce landscape in the Philippines.
Philippines E-commerce Market Leaders
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Lazada Group
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Shopee
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eBay Inc.
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Zalora
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Metrodeal
*Disclaimer: Major Players sorted in no particular order
Philippines E-commerce Market News
- June 2024: Shopee Philippines is aligning with the Department of Trade and Industry's (DTI) vision to bolster the Philippines' e-commerce landscape. To this end, the platform has launched the Future Operations Leader Program (FLP), an ambitious initiative aimed at nurturing the future leaders of e-commerce operations.
- March 2024: HSBC Philippines has introduced 'Omni Collect,' a novel e-commerce payment solution centered around an application programming interface (API). This platform is crafted to streamline payment management for businesses, enabling the seamless fusion of online and offline payment avenues for their clientele. 'Omni Collect' is tailored to meet the payment demands of a diverse array of industries, spanning retail, consumer brands, healthcare, pharmaceuticals, shipping, logistics, and financial services.
Philippines E-commerce Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Key Market Trends and Share of E-commerce of Total Retail Sector
4.4 Impact of COVID-19 on the E-commerce Sales
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Demand from Fashion Industry
5.1.2 Penetration of Internet and Smartphone Usage
5.2 Market Challenges
5.2.1 Low Internet Speed
5.3 Analysis of Key Demographic Trends and Patterns Related to E-commerce Industry in Philippines (Coverage to include Population, Internet Penetration, E-commerce Penetration, Age & Income etc.)
5.4 Analysis of the Key Modes of Transaction in the E-commerce Industry in Philippines (Coverage to Include Prevalent Modes of Payment such as Cash, Card, Bank Transfer, Wallets, etc.)
5.5 Analysis of Cross-Border E-commerce Industry in Philippines (Current Market Value of Cross-Border & Key trends)
5.6 Current Positioning of Country Philippines in the E-commerce Industry in Asia-Pacific
6. MARKET SEGMENTATION
6.1 By B2C E-commerce
6.1.1 Market Size (GMV) for the Forecast Period
6.1.2 By Application
6.1.2.1 Beauty and Personal Care
6.1.2.2 Consumer Electronics
6.1.2.3 Fashion and Apparel
6.1.2.4 Food and Beverage
6.1.2.5 Furniture and Home
6.1.2.6 Others (Toys, DIY, Media, etc.)
6.2 By B2B E-commerce
6.2.1 Market Size for the Forecast Period
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Lazada Group
7.1.2 Shopee
7.1.3 eBay Inc.
7.1.4 Zalora
7.1.5 Metrodeal
7.1.6 Carousell
7.1.7 Galleon (Sterling Galleon Corporation)
7.1.8 BeautyMNL (Taste Central Curators Inc.)
7.1.9 Inter IKEA Systems B.V.
7.1.10 Ubuy Co.
7.1.11 Sephora Digital SEA Pte Ltd
7.1.12 Kimstore
7.1.13 Perfume Philippines
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF MARKET
Philippines E-commerce Industry Segmentation
E-commerce is the buying and selling of goods and services over the Internet through online shopping. However, this term is often used to describe all the seller's efforts in selling products directly to consumers. It begins when potential customers learn about a product, buy it, use it, and ideally maintain lasting customer loyalty.
The scope of the study is limited to tracking the revenue generated through the e-commerce market in the Philippines. The study also tracks key market metrics, underlying growth influencers, and significant industry vendors, providing support for market estimates and growth rates in the Philippines e-commerce market throughout the anticipated period. The study looks at Covid-19's overall influence on the ecosystem. The report's scope includes market size and forecasting for B2B and B2C segments, with the qualitative analysis of the B2C channel being further split by application.
The Philippines e-commerce market is Segmented into B2C e-commerce (application (beauty and personal care, consumer electronics, fashion and apparel, food and beverage, furniture and home)) and B2B e-commerce. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By B2C E-commerce | ||||||||
| Market Size (GMV) for the Forecast Period | ||||||||
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| By B2B E-commerce | |
| Market Size for the Forecast Period |
Philippines E-commerce Market Research Faqs
How big is the Philippines E-commerce Market?
The Philippines E-commerce Market size is expected to reach USD 15.51 billion in 2024 and grow at a CAGR of 13.78% to reach USD 29.57 billion by 2029.
What is the current Philippines E-commerce Market size?
In 2024, the Philippines E-commerce Market size is expected to reach USD 15.51 billion.
Who are the key players in Philippines E-commerce Market?
Lazada Group, Shopee, eBay Inc., Zalora and Metrodeal are the major companies operating in the Philippines E-commerce Market.
What years does this Philippines E-commerce Market cover, and what was the market size in 2023?
In 2023, the Philippines E-commerce Market size was estimated at USD 13.37 billion. The report covers the Philippines E-commerce Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Philippines E-commerce Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Philippines E-commerce Industry Report
The E-commerce industry in the Philippines is experiencing significant growth, driven by various market segments including B2C E-commerce such as beauty and personal care, consumer electronics, fashion and apparel, food and beverage, and furniture and home, as well as B2B E-commerce. The industry analysis provides a comprehensive market overview and industry outlook, highlighting key industry trends and growth rates.
Industry reports indicate substantial market growth, with industry statistics reflecting an upward trajectory in industry sales and market value. The market forecast suggests continued expansion, supported by detailed market segmentation and market data. Research companies have provided a thorough market review, emphasizing the importance of industry research in understanding market predictions and identifying market leaders.
The industry information gathered points to a robust market outlook, with industry size and industry trends playing a pivotal role in shaping the future of the E-commerce sector in the Philippines. The report pdf offers an in-depth report example, showcasing the market overview and market segmentation, essential for stakeholders to make informed decisions.
Overall, the industry reports and industry analysis underscore the dynamic nature of the E-commerce market, with a strong emphasis on market value and market growth. The insights provided by market leaders and research companies are crucial for navigating the evolving landscape of the E-commerce industry.
