Consumer Lifestyles in The Philippines PDF

CONSUMER LIFESTYLES IN THE
PHILIPPINES
Euromonitor International
September 2013
CONSUMER LIFESTYLES IN THE PHILIPPINES Passport I
LIST OF CONTENTS AND TABLES

Current Top Five Consumer Trends ............................................................................................. 1
Workforce Moving To the Provinces ......................................................................................... 1
Filipinos Embrace Vertical Living .............................................................................................. 1
More Filipinos Can Afford To Travel for Leisure ....................................................................... 2
Fast Smartphone Adoption Makes Up for Low Broadband Penetration.................................... 3
Filipinos Are Becoming More Health Conscious ....................................................................... 3
Consumer Segmentation .............................................................................................................. 4
Babies and Infants .................................................................................................................... 4
Kids........................................................................................................................................... 5
Tweenagers .............................................................................................................................. 7
Teens........................................................................................................................................ 8
Young Adults ............................................................................................................................ 9
Middle Youth ........................................................................................................................... 10
Mid-lifers ................................................................................................................................. 11
Late-lifers ................................................................................................................................ 13
Table 1 Consumer Segmentation and Population Data 2000, 2005, 2010,
2011, 2012, 2015 ....................................................................................... 14
Chart 1 Population Aged 15-64 Compared with Old-Age Dependency Ratio
2000-2020 .................................................................................................. 15
Housing and Households ........................................................................................................... 15
Home Ownership .................................................................................................................... 15
Household Profiles.................................................................................................................. 16
Running Costs ........................................................................................................................ 17
Table 2 Housing and Households Data 2000, 2005, 2010, 2011, 2012, 2015 ........ 18
Chart 2 Number of Households by Disposable Income Bracket 2005, 2010,
2015 ........................................................................................................... 19
Money and Savings .................................................................................................................... 20
Attitudes Toward Payment Methods ....................................................................................... 20
Savings ................................................................................................................................... 20
Loans and Mortgages ............................................................................................................. 21
Table 3 Money and Savings Data 2000, 2005, 2010, 2011, 2012, 2015 ................. 22
Chart 3 Consumer Lending Compared with Savings and Savings Ratio 2000-
2015 ........................................................................................................... 22
Eating and Drinking .................................................................................................................... 23
Eating Habits .......................................................................................................................... 23
Drinking Habits ....................................................................................................................... 25
Table 4 Eating and Drinking Data 2000, 2005, 2010, 2011, 2012, 2015 ................. 26
Chart 4 Real Growth in Consumer Expenditure Compared with Real Growth
in Consumer Expenditure on Food and Alcoholic Drinks 2000-2015 ......... 27
Grooming and Fashion ............................................................................................................... 28
Perceptions of Beauty............................................................................................................. 28
Female Grooming ................................................................................................................... 28
Male Grooming ....................................................................................................................... 29
Fashion Trends ....................................................................................................................... 30
Table 5 Grooming and Fashion Data 2000, 2005, 2010, 2011, 2012, 2015 ............ 32
CONSUMER LIFESTYLES IN THE PHILIPPINES Passport II

in Consumer Expenditure on Clothing, Footwear and Personal Care
2000-2015 .................................................................................................. 32
Health and Wellness .................................................................................................................. 33
Attitudes To Health and Well-being ........................................................................................ 33
Obesity ................................................................................................................................... 34
Attitudes To Smoking.............................................................................................................. 34
Table 6 Health and Wellness Data 2000, 2005, 2010, 2011, 2012, 2015 ............... 35
Chart 6 Real Growth in Public and Private Expenditure on Health Compared
with Healthy Life Expectancy at Birth 2000-2015 ....................................... 36
Shopping Habits ......................................................................................................................... 37
Main Household Shop ............................................................................................................ 37
Shopping for Big-ticket Items .................................................................................................. 38
Personal Shopping ................................................................................................................. 38
Shopping Online ..................................................................................................................... 39
Table 7 Shopping Data 2000, 2005, 2010, 2011, 2012, 2015 ................................. 40
Chart 7 Index of Retail Sales Compared with Real Growth in Retail Sales
through Hypermarkets, Supermarkets and Internet Retailing 2000-
2015 ........................................................................................................... 40
Leisure and Recreation .............................................................................................................. 41
Staying in ................................................................................................................................ 41
Going Out ............................................................................................................................... 42
Sport and Fitness.................................................................................................................... 42
Vacations ................................................................................................................................ 43
Public Holidays, Celebrations and Gift-giving ......................................................................... 43
Table 8 Leisure and Recreation Data 2000, 2005, 2010, 2011, 2012, 2015 ........... 44
Chart 8 Percentage of Households in Possession of Cable TV; Satellite TV
System; Internet Enabled Computer; Mobile Telephone; Video
Games Console 2000-2015 ....................................................................... 46
Getting Around ........................................................................................................................... 46
Private Transport .................................................................................................................... 46
Public Transport...................................................................................................................... 47
Commuting ............................................................................................................................. 47
Air Travel ................................................................................................................................ 48
Table 9 Transport Data 2000, 2005, 2010, 2011, 2012, 2015 ................................. 48
in Consumer Expenditure on Transport Services 2000-2015 ..................... 49
CONSUMER LIFESTYLES IN THE PHILIPPINES Passport 1
CONSUMER LIFESTYLES IN THE

PHILIPPINES
CURRENT TOP FIVE CONSUMER TRENDS
Workforce Moving To the Provinces

Metro Manila is no longer the only destination of choice for call centre and business process
outsourcing (BPO) companies wishing to set up new shops and expand. The industry employs
about 780,000 workers, and this number is expected to increase to 926,000 in 2013.
In 2013, the government, through the Department of Science and Technology and the
industry group Information Technology and Business Process Association of the Philippines
(IBPAP), has added more secondary cities to its yearly list of Top 10 Next Wave Cities. The list
now includes Baguio City, Davao City, Dumaguete City, Iloilo City, Lipa City, Metro Bulacan,
Metro Cavite, Metro Laguna, Metro Naga and Metro Rizal.
Gillian Joyce Virata, from IBPAP, has explained that many investors are now looking to move
out of Metro Manila to cut costs: The strong peso definitely has an effect. To mitigate costs
some firms are looking to go outside of Metro Manila or are postponing expansion.
In the provinces, especially in designated Freeport Zones, companies can access cheaper
manpower, land and office rents. In addition, they get incentives from the provincial
governments as a reward for creating more jobs, especially for young college graduates.
Traditionally, college graduates from the provinces have had to move to the capital for jobs.
According to the Cebu Chamber of Commerce and Industry (CCCI), in Cebu City, a top
alternative call centre and BPO destination to Metro Manila, the minimum wage is 37% less than
in Metro Manila and the cost of living is at least 30% cheaper. In 2013, three new BPO
companies have chosen to set up shop in the Province.
Even multinational companies are moving their global backroom operations to the countrys
secondary cities. IBM Corp has announced in 2013 that it will open a BPO facility in Naga City,
its first facility outside of Metro Manila. According to IBM Philippines, the companys expansion
in Naga affirms its commitment to help develop talent in next wave cities in the Philippines.
The government counts on the call centre and BPO industry to transform the provinces. When
call centre and BPO companies began to operate in Metro Manila in the early 2000s, they
provided employment opportunities for Filipinos who would have otherwise gone abroad. They
also helped to change the commercial landscape of the Philippine capital. The industry and its
young educated workers, whose spending power is relatively higher, contributed to the growth
of ancillary businesses, such as transport, property, telecom, restaurants and fast food.
The government started to encourage the industry to move out from Metro Manila in 2008.
The President at the time, Gloria Macapagal-Arroyo, had an ambitious goal to have a call centre
in every province in the country. The industry started to consider the option to save on costs,
also given the high attrition rate in the capital.
Filipinos Embrace Vertical Living

As mortgage rates hit an all-time low, more Filipinos can now afford to invest in their homes.
In Metro Manila, particularly, single young professionals, couples and small families increasingly
prefer to live in medium- and high-rise condominiums.
According to property broker CB Richard Ellis (CBRE), about 27,800 residential condominium
units were sold in 2012 in Metro Manila. Developers are continuing to build more units, to reach
41,077 units in 2013 and 47,408 units in 2014. It is estimated that almost 29,860 have already
been pre-sold for 2013 and 28,028 units for 2014.
Rick Santos, from CBRE, explains that the housing sector is experiencing democratisation
based on low interest rates and financing schemes. Residents are moving away from renting
and are now buying their own homes. Modern Filipino households are increasingly living in
condominiums. Thus, the demand for affordable condominium units keeps growing. The
property broker estimates that some 300,000 households in Metro Manila can now afford to buy
units worth at least Ps1 million.
According to a market study by property company Avida Land, young employees aged 25-40
who are working in the business districts of Metro Manila are the new buyers of residential
condominium units. They are busy and independent; they are very focused on their careers and
spend more time at work and socialising.
The most cited reason for choosing to live in a condominium is to avoid a long commute to
work. Living in a single-detached home can be very expensive. Aside from the cost, most of
these homes are located outside major cities, making travel time a big problem for most people,
according to property consultant KMC MAG Group. The other reasons are affordability, security,
maintenance and amenities.
In addition to the mass-market condominium segment, the luxury condominium market is also
enjoying brisk sales. Just two months after it was launched, the luxury condominium complex
The Milano Residences, with interiors designed by Versace Home, was 54% sold out. The
buyers are wealthy Filipinos living in the country and abroad.
More Filipinos Can Afford To Travel for Leisure

More Filipinos are now travelling within and outside the country on vacation. This trend is
primarily driven by higher spending power among the countrys middle class and the greater
access to budget air fares. Domestic travel has surpassed everyone's expectations," according
to Tourism Secretary Ramon Jimenez, Jr. A key development, as the industry is largely reliant
on domestic visitors.
The Philippine government has recently raised its domestic tourists target to 56.1 million by
2016, a 50% increase from the previous 2016 target of 35.5 million. There were 40.7 million
domestic travellers in 2012 and the number is expected to increase to 44.1 million in 2013. We
see reflection of good growth from the domestic travellers, better than last year or some two
years ago. The domestic market has grown, because the supply has grown, according to Hans
Hauri, the President of the Hotels, Resorts and Restaurants Association of Cebu. Cebu is one of
the top island destinations for domestic holidaymakers. Other preferred destinations are the
white sandy beaches of Boracay, Bohol, Davao and Palawan. Jay Aldeguer, whose company is
in the travel business, agrees; he cites low air fares and packages, increased domestic air
connectivity, and the presence of modern channels, such as Facebook, as the factors that have
encouraged Filipinos, especially the young, to travel. Economist Bernardo Villegas reveals that
Filipinos spending power when travelling and shopping has increased.
The availability of more low-cost flights has encouraged more Filipinos to travel. More
Filipinos are taking low-cost flights to domestic destinations. The Philippines largest low-cost
carrier has remarked that low-cost carriers contributed approximately 96% of total domestic air
travel growth between 2006 and 2011.
Foreign tourist destinations have also begun to take notice of Filipinos greater ability to travel.
Japan recently relaxed its travel rules for Filipino tourists, replacing its single visa with a three-
year multiple visa for Filipino tourists. Japan expects 103,400 Filipino tourists in 2013, from
85,600 Filipino tourists in 2010. The United States is a top foreign destination for Filipino
tourists; in 2013, the US expects the number of Filipino tourists to reach 182,000, a 3% increase
from the 176,000 recorded in 2012. In general, Asian destinations, led by Hong Kong and
Singapore, are the most popular destinations among Filipino tourists. This is due to new air links
and higher flight frequencies, the availability of budget airfares and the no-visa requirement for
Filipino travellers.
Fast Smartphone Adoption Makes Up for Low Broadband Penetration

More Filipinos are using smartphones to access the Internet and social media. The surge in
smartphone use is making up for the low (and slow) broadband penetration at home. The wide
variety of very affordable units is driving the high demand for smartphones, with local mobile
phone brands now offering units at below Ps4,000. "The growing preference for smartphones
will increase the use of mobile internet which, in turn, will help fuel our revenue growth,"
remarked Globe Telecom President, Ernest L. Cu. Globe is the second largest mobile network
provider in the country.
"In the Philippines, what we're seeing is that subscribers are very data-savvy, especially those
who are based in the urban areas," commented Elie Hanna, from Ericsson Philippines and
Pacific Islands. A recent study conducted by the company confirmed the increasing smartphone
use in the country: The Philippines leads other emerging markets in Southeast Asia with regard
to smartphone and tablet penetration in urban areas. According to South Korean mobile phone
brand Samsung, Filipinos are embracing smartphone functions that are not available on feature
phones.
Social media sites, particularly Facebook, are widely used, with a majority of users using
mobile phones to access them. As of January 2013, the number of Facebook users in the
country was 30 million. The users are young, with 40% aged 18-24, and 46% of the users are
female. Filipino Facebook users are very active; they spend considerable amounts of time
reading the news feed and posting statuses or updates.
Mobile broadband penetration is now estimated at 20% of the population, and it is expected to
grow further. The surge in the demand for handy Internet-enabled devices is making up for the
slow and still poor broadband penetration across the country. According to the 2012 global
broadband survey of the Broadband Commission of the United Nations, the Internet has
remained inaccessible to most Filipinos. Only 11.4% of households had a broadband internet
enabled computer in 2012, and about 30.5% of the population used the Internet.
Filipinos Are Becoming More Health Conscious

Filipinos are increasingly interested in fitness and health. Influenced by the latest health
trends from abroad and given their growing health awareness, more Filipinos, especially the
young and the educated, are using organic and healthy products. They are also enrolling in
fitness classes. The latest government study on the Filipino diet, covering the period from 1978
to 2008, reveals that Filipinos are eating more meat and chicken and fewer vegetables. Meat
consumption per capita reached 27.7 kg in 2012, against 26.5 kg in 2007; vegetable
consumption per capita reached 53.3 kg in 2012, down from 55.3 kg in 2007. The reduced
vegetable consumption has been attributed to mass migration to urban centres, where most of
the jobs and better schools are. The stress of urban living in the last three decades has given
people less time to go to the market and cook food at home.
However, fish consumption has increased to 31.6 kg per capita in 2012, up from 28.2 kg in
2007. Healthier food trends are gradually changing consumers food choices. They now select
frozen yoghurt, milk tea, fruit juices and bottled green tea drinks. More weekend markets are
also opening in the metropolis, making it easier to find organic fruits and vegetables. Increasing
awareness about chronic diseases is also making consumers switch to more nutritious foods.
The government has announced a project (the Filipino plate) to give Filipinos basic nutrition
advice. This plate contains the amounts and kinds of foods that Filipinos should eat every day.
The government counts on the food plate to help reduce the cases of non-communicable
diseases (NCDs) due to smoking, unhealthy diets and sedentary lifestyles. It is estimated that
NCDs kill some 800 Filipinos every day. The government has also pledged support to organic
farming, given the growing interest in healthier fruits and vegetables. In 2012, the Department of
Agriculture began to allot Ps1 billion to promote organic agriculture in the country.
Part of the shift to a healthier lifestyle is getting more exercise. More Filipinos run, as the
weekly fun runs and marathons indicate. More fitness gyms are opening; Fitness First and
Golds Gym are the most popular, but smaller gyms are fighting it out to get a piece of the
burgeoning fitness market. In addition to the usual circuit training and weights at the gym,
classes are now on offer, such as Zumba, Capoiera and other dance workouts. The number of
yoga and Pilates studios has grown significantly as demand has increased. According to a news
report, fitness centres have been sprouting like mushrooms in every major city in the last few
years. Filipinos are becoming hooked on having a good physique.
CONSUMER SEGMENTATION
Babies and Infants

The total number of babies and infants, aged 0-2 years, was 6.68 million in 2012, and this
number is projected to reach 6.94 million by 2015. The birth rate was 24.1 per thousand in 2012,
and this is expected to decline to 23.5 per thousand in 2015, as fewer people are having
children.
Still, the countrys population growth rate is higher than Thailands (0.54%) and Indonesias
(1.03%). Yet, the impending implementation of Republic Act No. 10354, known as the
Responsible Parenthood and Reproductive Health Act of 2012, is likely to help curb the
countrys birth rates further. The law was temporarily suspended, pending a Supreme Court
decision on constitutionality concerns that were brought forth by the laws opponents who are
connected to the Catholic Church. While the law does not set a limit to the number of children
that a couple may have, it mandates access to contraceptives and raises awareness about
family planning. These measures aim to enable couples, especially women, to make informed
choices about their reproductive health, such as birth spacing and how to prevent unwanted
pregnancies. The country had an infant mortality rate of 9.0 per 1,000 live births in 2012, down
from 9.5 in 2007.
To take care of their children during the first months up to the early years of infancy, some
Filipinos hire nannies. It is also common to have a relative usually, the grandparents or any
close family member take care of the child while the parents work.
Another option is the day care centre. On one hand, fancy day care centres, like Gymboree
and Kindermusik, offer yoga, music sessions, and other classes for babies and infants aged up
to two years. On the other hand, other day care centres, usually located near barangay (village)
halls, are government funded and manned by social welfare and community workers. These
centres cater to the low-income households that can only afford a minimal fee, if any.
Lately, there has been a stronger push for healthier baby feeding, a challenge for mothers
who live below the poverty line. Nearly 30% of the population is poor. According to a 2011 study
from the Philippine Food and Nutrition Research Institute, the exclusive breastfeeding rate
among mothers stood at 46.7%. Almost 40% chose to give their babies formula milk and very
poor mothers were giving evaporated milk with water, rice water or sugar with water.
Through the Department of Science and Technology, the government has partnered with a
pharmaceutical company, Long Live Pharma, to manufacture food packs for children aged six
months to three years. The food packs contain rice and mongo (mung beans); they include rice-
mongo curls and rice-mongo instant blend.
Some parents have discovered the benefits of making homemade baby food, an alternative to
buying ready-made baby food. One mother has commented that baby foods are quite expensive
and most are available in blended variants and flavours, which is not ideal for a babys first food.
She chose to give her second child homemade food instead of store-bought baby foods when
he started to eat solid food. Other parents choose to buy only organic food, but, according to
one parent, the few products available are expensive. In addition, since there is no independent
certification body for organically-grown fruits and vegetables, there is no assurance that a
product is indeed organic.
Formula milk still in high demand

Despite a law to encourage mothers to breastfeed their babies from birth up to 36 months of
age and asking formula milk manufacturers to include a disclaimer in their advertisements that
says Breast milk is still best for babies up to 2 years, infant formula milk remains popular
among Filipino parents. The Philippine Milk Code of 1986 was only strictly enforced in 2007.
Between 2008 and 2011, the breastfeeding rate only increased to 46.7% from 35.9%, according
to a study from the Philippine Food and Nutrition Research Institute.
Milk products, which include infant formula milk, are top consumer items in the Philippines. An
estimated 40% of Filipino parents feel that, by giving their children formula milk, they are getting
something better [than breast milk]. Currently, a pending bill in Congress seeks to relax some of
the provisions in the Milk Code. If passed, the total ban on advertisements for baby products will
be reduced to cover infants aged 0 to 6 months from the current 0 to 36 months. It will also allow
donations of milk substitutes during disasters and emergencies, make mothers lactation breaks
unpaid breaks, and permit the distribution of product samples in health centres and practitioners
offices.
Mothers warm up to natural baby products

Organic, natural and eco-friendly food products are getting more popular. Consumers, mainly
young city dwellers, are drawn to their many perceived benefits, not only for babies but also for
the environment and their contribution to social entrepreneurship. New mums, in particular, are
extra cautious and are constantly searching for baby care products that are safe. Home-grown
brands, such as Human Heart Nature and Indigo Baby, carry a wide range of infant products
that include baby shampoo, baby lotion, massage oils, and insect repellent spray.
Kids
Kids, aged 3-8 years, made up 12.9 million of the Philippines 97 million people in 2012. With
birth rates at 24.1 per thousand, the segment is projected to hit 13.2 million by 2015, or 13% of
the total population.
Previously, Filipino kids could enter Grade 1 without stepping into kindergarten, but the
Enhanced Basic Education Act of 2013, or K-to-12 Programme, now establishes universal
kindergarten. It requires kids to enrol in kindergarten before they can enter primary school or
Grade 1 at age 6. Kindergarten is now free to five-year olds in public elementary schools. As a
result, families with kids age 5 and below now have an alternative to expensive private pre-
schools. Most of the parents who can afford to send their kids to private early education
programmes are from the middle or upper classes. According to a 2009 government survey,
25% of families in the country live on a dollar a day or less.
Primary education is free in the Philippines. In the 2013 school year, there are about 1.75
million kindergarten pupils and 14 million elementary pupils. Rich and middle-class parents
prefer not to send their kids to public schools as the public education system in the country does
not have enough teachers, classrooms, school seats, textbooks and sanitation facilities.
School uniforms are the rule in both private and public schools, but in many provincial public
schools, pupils are allowed to wear civilian clothes (due to pupils lack of finances). Kids are
normally brought to school by a parent or an assigned guardian and fetched accordingly at
dismissal time.
School children either bring their own lunch (called baon) or eat at the school cafeteria.
These establishments were recently reminded by the government to sell nutritious food instead
of unhealthy soft drinks, chips and other processed foods. This comes on the heels of the rising
incidence of obesity among kids in the Philippines. Kids prefer to eat spaghetti, hotdogs and
hamburgers at fast-food chains when they go out with their parents or to the malls on weekends.
A typical mother, especially if she works, resorts to a lunch box of rice and processed meat,
such as ham, tried-and-tested kids favourites, such as chicken fingers and meat balls and other
easy dishes like fried egg with cheese.
Some conscientious and well-informed mothers go for organic and healthier lunch choices.
We do our chicken fingers and fish fillet from scratch because the packaged ones come with
artificial flavours. There are a few extra steps but everyone is used to it. Sometimes we do
adobo [a typical Filipino marinated meat dish], cooked the night before, according to one
mother.
During their free time, most kids in the cities, particularly kids from the middle and upper
classes, watch TV, play video games either with their parents or older siblings. They spend less
time playing outdoor games with other children in the neighbourhood. At family gatherings and
other occasions, kids can be found in one corner, not playing with each other, but playing with
gadgets. Today, TV has become by default a babysitter. The Disney Channel, Nickelodeon and
the Cartoon Network are the top channels for kids who have access to cable and satellite TV. In
2012, 38.6% and 0.4% of the countrys 20.4 million households had cable TV and satellite TV,
respectively. Other kids watch tagalized (translated into the local language Tagalog) Japanese
and American animation programmes on the free channels.
Kids get hooked on downloadable games and gadgets

Fewer kids are playing outdoor games. Instead, more kids are into electronic games,
particularly downloadable games for touchscreen gadgets and smartphones, such as
Despicable Me, Temple Run and Ben10.
More and more children are getting into the habit of using electronic devices to play Angry
Birds or watch YouTube videos as these gadgets become cheaper and more readily available,
according to a news report from gmanetwork.com. One ophthalmologist said that out of 10 kid
patients I get aged 3 and above, about half of them have dry eyes.
Filipino children are ahead of their peers in more developed countries in Asia Pacific. The
Cartoon Networks New Generations Survey 2012 reveals that They love using gadgets,
whether borrowed, hand-me-down or their own. No wonder parents are considering buying
computers, mobile phones and tablet computers in the next months. Another survey, by
insurance firm Pru Life UK, found that 70% of Filipino children set aside part of their pocket
money to buy the latest gadgets.
Fast-food birthday parties are preferred

More working parents choose to celebrate their kids birthdays at fast-food chains. This is
widely seen as convenient, cheap and preferred by kids. Kids favourite party places are
McDonald's, Jollibee, Shakeys and Pizza Hut. As fast food chains expand to the provinces,
some rural kids are starting to celebrate their birthdays at their favourite outlets.
The main advantage of choosing this option is that it is readily accepted by the birthday
celebrant and the young visitors as well. Partly due to active marketing efforts of fast-food
chains that offer this service, children relish the familiarity with the food, the activities, and the
token mascot appearance. This is the usual preferred option for children aged 1 to 7, said one
mother.
Tweenagers
Tweenagers, aged 9-12 made up 8.24 million of the countrys population in 2012. The
segment has seen steady growth since 2000.Their number is projected to reach 8.42 million by
2015, as more kids grow older and enter the stage when they are neither a young child nor a
grown up. These consumers are still too young to wear adult styles, but old enough to know how
they want to look. They aspire to be like their Hollywood celebrity idols and young stars, like
Selena Gomez or Taylor Swift, and in the Philippines, Kathryn Bernardo or Julia Montes.
Jessica Sanchez, an American Idol finalist who is half Filipina, is also popular among girls. Many
tween girls are also fans of British-Irish boy band One Direction and local act Chicsers. They
make up the huge fan base of young heartthrob Daniel Padilla and collect his CDs, attend his
concerts, or support his movies or TV shows.
Tweens are easily influenced and many Filipino parents find ways to make time and be
involved in all aspects of their growing sons or daughters life. Still, some are brought up by
their yaya (nanny) or by close relatives, such as grandparents or aunts. Like younger kids, most
tweens are brought to school by a parent or guardian, or take a designated vehicle. Walking or
cycling to school is not widely encouraged at this age, especially given the perceived lack of
security on Philippine roads.
School supplies, such as notebooks and ball pens, are becoming obsolete in this age group
because schools, especially private ones, have started to introduce tablets, which replace text
books and even the need to take down notes. It is common to have ones own mobile phone at
this age to keep in touch with friends and classmates. Tweens play games like Candy Crush
and Temple Run and compare scores. They share photos on social networking sites, where
they also follow or interact with their idols.
A survey conducted by insurance firm Pru Life UK has found that, in general, children up to
the age of 12 put aside part of their allowance to buy the latest gadgets, clothes, and toys. The
respondents, from Metro Manila and Cebu, on average get Ps157.60 in pocket money per
week. The survey reveals that 67% saves to buy things they want, 50% spends and saves
about the same amount, 30% spends most of their pocket money, but 24% asks their parents or
grandparents to purchase items for them.
From textbooks to iPads and tablets

In 2010, St. Paul College in Metro Manila acquired tablets to replace students textbooks. The
school tested and developed apps for research and other tools that students would find useful.
If the tablet lasts for about 2-3 years, it might turn out cheaper than the actual books, said one
technology observer. St. Scholasticas Academy and La Salle Greenhills have since followed
suit, and more schools are making the switch from traditional textbooks to digital ones.
Even schools in the provinces are changing their ways. The Foundation University in
Dumaguete, Negros Oriental, initially implemented an iPad pilot programme for high-school
sophomores in 2011. After getting good feedback, the school expanded the programme to cover
Grades 4 to 6 students aged 10-12 and all high-school levels. I noticed that my son is
eager to learn and his grades have improved, said one parent. Tablets, being the latest it
device, are seen as having great potential for teaching. After all, students seem to take to it very
well... students take to everything technology-related very well, added another.
Growing fashion sense

It is common for a female tweenager to hear that she is no longer a girl, but not yet a
woman. This often causes confusion, and, for growing girls, dressing becomes a challenge.
These days, tweenagers and their parents are finding themselves with more choices. Justice,
an American brand that caters to trendy tweens, recently opened in one of the countrys high-
end department stores. Aside from clothes, it offers accessories and personal care products
aimed at girls aged 7-14, making it a one-stop shop for tweenagers. Home-grown brand Kids of
Bayo is targeted at girls and boys aged 2-18. Kids of Bayo has a range of clothes that are cute
and stylish yet age-appropriate for those adorable Rugrats and tweens in your life, said one
observer.
Teens
Filipino teens, aged 13-18, amounted to around 10 million or about 10% of the countrys
estimated 97 million people in 2012. This age group has grown steadily over the years and is
expected to hit 10.2 million by 2015. They are mostly students, ranging from high-school
freshmen (13-year olds) to college sophomores (18-year olds). The government estimates that
four million teens and young people aged 19-30 are not in school.
Compared to earlier generations, teens today are more exposed to technology and becoming
tech-savvy at an early age. The Philippines, as a whole, has over 90 million mobile phone
subscribers and Internet penetration stands at 32% of the population. The early adopters of
technology are usually young people.
Middle-class and wealthy students are usually driven to school in private vehicles, while
others take a rented tricycle or school bus, often a van converted to carry students to and from
the school. In some areas, motorcycles have become a common means of transportation and
those old enough to have a licence (at least 16 years old) ride the motorcycles themselves.
Others commute via public transport or walk, if the school is near their homes or dormitories.
Teenagers have plenty of food choices, but efforts have been made to promote nutritious
foods to this group. The Department of Education (DepEd), for instance, introduced a policy
against the sale of unhealthy foods and beverages, including soft drinks, chips and other
processed foods, in 2007. However, this is not a guarantee that students are eating better since
it has not been easy getting school canteens to cooperate, especially those outside DepEds
jurisdiction. In addition, teenagers are exposed to a variety of fast-food chains once they go out
of the school campus. Among teenagers, quick-service restaurants, like McDonalds and
Jollibee, are the most popular. They are chosen for their casual ambience and food offerings
that fit in students limited budgets. For teenagers with a bigger allowance, stores that serve
frozen yoghurt, milk tea, or specialty coffee are also quite popular, especially owing to the free
Wi-Fi connections that they usually offer.
Basketball remains the most popular sport in the Philippines, but running, football, and
volleyball also have quite a following. While physical education is part of the curriculum from
high school to college, not all schools are equipped with facilities or have a good sports
programme to support athletes.
Without their own source of income, Filipino teenagers purchasing activities, quite
understandably, are still subject to their parents approval. This does not mean, however, that
teens do not buy more expensive items, such as smartphones and tablets, using their pooled
savings and cash gifts. These gadgets are now commonly used by teens to stay connected to
Facebook, Twitter, Instagram, and other social networking sites.
Teens like and share

Social media has a huge influence on teenagers buying habits. Just seeing which brand
pages a friend liked which Facebook displays on friends newsfeeds raises awareness,
and, ultimately, affects the decision to buy certain products and services liked by people in an
individuals social network. With teens penchant for posting their whereabouts, through
Facebooks check-in app and creating Twitter hashtags of what they are having at the moment
(such as #starbucks #kfc), they are becoming unofficial endorsers of their favourite brands.
Teens look up to Glocal role models

Glocal, (combination of global and local) grabs teenagers attention. This mostly involves
well-known celebrities coming to the Philippines and endorsing local brands. Teenage
consumers willingly yield to this strategy, especially if it means an opportunity to see their music
or TV icons in the flesh.
For instance, Penshoppe has turned to Ian Somerhalder and Nina Dobrev, stars of the
popular TV series Vampire Diaries, to endorse its clothing. British-Irish boy band One Direction
and Thai heartthrob Mario Maurer were also recruited to tap into their huge teenage girl fan
base in the Philippines. Similarly, the clothing brand Bench had half-Filipino singers Bruno Mars
and Jessica Sanchez, Maroon 5 vocalist Adam Levine, and South Korean heartthrob Lee Min
Ho come to the Philippines for meet-and-greets and mall shows, dressed in the requisite
clothing brands.
Young Adults
The Philippines has one of the youngest populations in Southeast Asia, with a median age of
22.9 years in 2013. In 2012, Filipinos aged 18-29, collectively called young adults, amounted to
around 21.5 million or about 22% of the countrys population. This segment has grown steadily
over the past five years and is expected to hit 22.5 million by 2015. This means that the country
has a growing young labour force. Many adults who live in cities work in the call centre and
business process outsourcing (BPO) industry. They get a relatively higher salary and can afford
to splurge on food, clothes, the latest gadgets, travel and various forms of entertainment. The
rise of BPO workforces in the metros has prompted fast-food chains to offer 24-hour service and
bars to introduce early morning happy hours.
Young adults still have a high regard for education, partly as a result of their family upbringing.
Their parents have shown them the importance of education, which is perceived as a way out of
poverty and, in some cases, a way out of the country for greener pastures. Seafaring, nursing
and engineering courses are popular as they are perceived as leading to jobs abroad. In rural
areas, fewer lucrative job opportunities are available for young Filipino graduates. They often
have to move to cities to find work. Foreign blue-collar and domestic jobs appeal to young
people, even to college-degree holders.
Young adults, especially those who have a steady income, prefer foreign brands, led by US
brands, for their clothes and accessories. This is due to the easy access to American television
shows and Hollywood films. Young and trendy foreign clothing brands, such as Forever 21,
Uniqlo and Muji, Miss Selfridge, and Cotton On (brands from the US, Japan, the UK and
Australia, respectively) have appeared in malls in metro areas. Young adults have also warmed
to Korean fashion as a result of the increasing popularity of Korean popular music K-Pop and
the dubbed versions of Koreanovelas or Korean television dramas.
Most young educated city dwellers are marrying later and having fewer children. Couples with
either no children or raising smaller families are spending most of their incomes on acquiring
and saving for top urban living must-haves, such as their own condominium units or apartments
and cars. This is not yet the case for young adults belonging to lower-income classes and those
living in rural areas. Most of these young adults are either continuing to live in their parents
house or supporting their families.
Fewer young Filipinos are getting married

While having a family is still widely perceived as important, fewer young Filipinos are getting
married in the Catholic Church. In a news report from abs-cbnnews.com, the National Statistical
Coordination Board (NSCB) is reported to have found that, during the 2001-2010 period, 43.5%
of married couples preferred civil weddings, against 35% who went for more expensive church
weddings. Filipino young couples have become more practical, opting to invest their hard-
earned money in their future instead of spending it on lavish one-day wedding ceremonies. The
savings from either having less expensive civil weddings or from delaying marriage are normally
spent on buying a home, personal products and recreation.
No sign that social media use will slow down

According to a recent article on the media blog wearesocial.net, young adults in the
Philippines have embraced social networking in a big way and there is no sign that the trend will
slow down. The Philippines has long been renowned for its highly sociable people, but theres
something magical about the way Filipinos have embraced social media, said the blog. Young
adults tend to connect via social networking sites; the average web user in the Philippines is just
aged 23 while almost 60% of social media users are below the age of 24. Young adults food
choices, appearance and hobbies have been influenced by the social media activities of their
peers. They are finding themselves travelling more and spending more on non-essential goods
and services, such as gadgets, pampering and clothes. As a result, Facebook and Twitter are
now widely used by companies who tie up with local movie and music icons and tap into their
networks of fans and Twitter followers. Credit card ownership among young urban dwellers is
high. Compared to their parents, they are not afraid to buy clothes, accessories and gadgets
online using their credit cards.
Middle Youth
Filipinos aged 30-44 totalled 19.06 million in 2012; their number is projected to reach 20.49
million by 2015. Lately, fewer young Filipinos, including some in middle youth, are getting
married. The National Statistics Office reveals a 1.3% decline in marriages between 2010 and
2011. In 2012, the marriage rate was 5.6 per thousand, but it is expected to decline to 5.5 per
thousand by 2015. Widespread poverty and the rising costs of church weddings are
discouraging couples from tying the knot. Family units are saddled with severe problems of
providing for their children and making ends meet, so unfortunately marriage is the farthest
[thing] from their minds, much less divorce, said one politician in a news report.
Most people in middle youth are employed. According to the latest survey from the Bureau of
Labor and Employment Statistics, covering the period from April 2012 to April 2013, the 35-44
age group had a participation rate of 78.4%. The same survey notes that Filipino women in their
40s are very active in the labour force with a participation rate of 62.4%. Middle youth from
middle- and upper-income groups are having fewer children as more women are working and
are ambitious, especially those with college degrees. [The participation of] college educated
women started to peak right after they obtained their degree, which is normally around ages 20
to 24, dipped slightly at ages 30 to 34 and plateaued thereafter until their 60s, according to the
government agency. The agency notes that there is a small dent in the participation rates of
educated women when they enter married life. Since they also have fewer children and are
capable to hire someone to take care of their children, their participation in the labour force is
less interrupted, as evidenced by their consistently high [participation] throughout the life cycle,
it added. Indeed, the educated middle youth who have been successful in their careers now
hold at least middle-management positions. For instance, in the call centre and BPO industries,
the fresh college graduates of ten years ago who made up the first batch of employees of the
rapidly growing industries are now the supervisors. Other booming industries that hire them are
the construction, IT and utilities industries.
The strong economy is also encouraging people in middle youth to start their own business. It
is now made easier by the accessibility of franchise businesses, such as milk tea, dim sum
stores, and other food cart ventures. In addition, bank loans are available for small businesses
and start-ups. Telecommunication companies now offer packages for small and medium
enterprise owners.
Most of the countrys middle youth are technology- and social media-savvy. Single and
working professionals, with their higher disposable incomes, can splurge on food, movies and
gadgets. The married middle youth, on the other hand, are prioritising the education of their
young children and investing in family cars and houses.
The rise of thirty-something single women

More successful and educated Filipino women in their 30s are not married and tend to be
single. Most women earn almost the same or more than their male counterparts, and they feel
more empowered and independent. Nowadays, Filipino women want to buy their own house
and car; they want to start saving up for retirement without relying on their family or future
spouse. I figured out late in life what I wanted to do, and I was in a relationship at the time.
However, having had most of my decisions made for me by my parents when I was younger,
when I finally realised what I wanted to do, I wasn't going to let anything get in my way. So I was
even willing to sacrifice my relationship because I needed to accomplish my dreams or I knew
I'd regret it for the rest of my life, shared one woman.
Even women with children are also becoming independent. My boyfriends only investment
is his small agricultural business. We still need to work on building our investment portfolio,
which should ideally include stock investments, mutual funds, insurance, and government
bonds, explained one woman. Im not financially dependent on my boyfriend. He sends money
for our sons needs, but I decided that we should work on our finances individually for now...both
of us should be financially independent, she noted.
Metrosexual men on the rise

Increasingly, Filipino men want to look good and have good hygiene. Previously, men bought
and used beauty products meant for their mums, sisters or wives. A news report reveals that
Filipino males have long been known as macho, preferring to go to barber shops rather than
salons for men and women to highlight their masculinity. In the Internet and Facebook age,
macho has given way to metrosexual, with aesthetic beauty clinics catering to men sprouting
all over urban areas. One male blogger even reviewed a whole range of personal care products
(lip balm, hair gel, facial wash, toner, moisturiser, and deodorant) for men, something unheard
of, at least openly, until recently. Indeed, with a whole gamut of personal care products specially
formulated for oilier skin and larger pores, men no longer have a reason not to follow the basic
rule of facial care: cleanse, tone, moisturise. Belo Medical Group created Belo Men after seeing
that 30% of its patients are men who want to take better care of their skin.
Mid-lifers
Filipinos aged 45-59, the so-called mid-lifers, accounted for 12.16 million of the Philippines 97
million people in 2012. Their number is expected to climb to 13.24 million in 2015, nearly double
their size in 2000 at 7.79 million.
Mid-lifers make up a large part of the working population. Many have reached supervisory
levels, and some are just about to retire. The government statistics agency reports that a
growing proportion of the Philippine population is in the working ages and the elderly population
is increasing slightly. Most mid-lifers already know what they want and lead productive lives.
Their children are likely to be setting out on their own, so men and women in their mid-forties up
to their late-fifties have more time for themselves to pursue their personal interests.
Health and delaying ageing have become top concerns. Healthier food choices, vitamins and
supplements, maintenance medicine, and anti-ageing creams are regulars on shopping lists.
Sen Sanchez, a 45 year-old mother and jewellery designer, is one of those who believe that the
older a woman gets, the more she should be conscious of her food intake. If I have lunch out
with friends, I still stick to raw, organic and fresh salad or a bowl of soup or I would also order a
fish dish thats been steamed with just fresh herbs and olive oil. For dinner, I only have
vegetable soup or just a salad, explains Sanchez, who also works as a yoga instructor. Jacqe
Yuengtian, a brand manager for a cosmetics brand, comments that most women in their 40s
feel that they need an anti-ageing cream, but for women under 40, anti-ageing products are
seen as an unnecessary luxury.
Life after retirement, at least in the Philippines, does not always mean a life of leisure and
relaxation. Having a close-knit family culture, most Filipinos still continue to work after retirement
to support their families. Life insurer AXA Philippines, in its global annual research AXA
Retirement Scope, shows that 38% of Filipinos still have a job after retirement, higher than the
global average of 17%. About 83% of Filipino workers intend to have a job after retiring, higher
than the global average of 54%, and the highest among the 26 countries surveyed. This could
mean starting a business using part of ones retirement money or working for the private sector
if coming from the government sector. Another insurance firm, Sunlife, surveyed 1,100 people
up to the age of 55 and found that 51% said they wanted to start a business within the next two
years. More than 30% of respondents also said they wanted to buy life and health insurance,
proof of a growing trend that Filipino consumers now consider insurance as essential. Filipinos
are also becoming more discerning, seeking as much information about life insurance as
possible before a purchase, according to the report.
Traditional with money

There may be a growing interest in insurance, but most Filipinos remain traditional when
handling money. Another survey from the same insurance company shows that many lack
knowledge of basic financial concepts and how to properly prepare for their future needs, even if
they claim to be experts in managing their finances. The survey reveals that Filipinos still have
a huge tendency to depend on bank deposits and ignore or are unaware of other options in the
market. Asked to define financial security, respondents top answer was: having enough bank
savings. Ones money is intact in a bank account but with so little growth, or even negative real
growth, there is doubt if it can ensure ones financial security, the insurer warned. Many
Filipinos do not have money for their retirement years. An observer explains that, if they fail to
change their lifestyle and postpone saving and investing for their retirement, sad possibilities
can happen when they grow old. For instance, they may have to continue working after
retirement age or sell assets like their house when they get really sick.
Forever young mindset

Mid-lifers are still working and most, if not all, are at the peak of their careers and want to look
good. Aware of the inevitable effects of ageing, mid-lifers eat more fruits and vegetables, get a
health club membership, or turn to cosmetics with anti-ageing benefits. Wealthier mid-lifers turn
to hormone replacement therapy and dietary supplements, which are now offered by many
clinics and hospitals in the metro. Procedures also include Thermage, a non-invasive treatment
that delivers tighter skin and healthier collagen, and Ultherapy, a non-surgical cosmetic
procedure to get skin reminiscent of an earlier time.
People on a tighter budget can buy similar treatments through group-buying websites, which
offer anti-ageing procedures, like cryotherapy, with stem cell treatment, at almost 70% off, and
anti-wrinkle treatments with a more than 80% discount. Global beauty company Avon has
recently launched a cream in the Philippines touted to wipe out the need for cosmetic surgery,
as noted in the blog thebeautyjunkee.com. Other products are popular too, including
international brands, such as Nivea and Olay, and home-grown brands, such as Celeteque.
Late-lifers
Late-lifers, Filipinos aged 60 and above, amounted to 6.85 million in 2012; their number is
expected to rise to 7.85 million by 2015. In the Philippines, the common retirement age is 60
and mandatory retirement applies at 65.
Former government employees receive a pension from the Government Service Insurance
System or GSIS. Others receive a pension from the Social Security System (SSS) (for the self-
or privately-employed), or the Department of Social Welfare and Development (DSWD), which
provides cash assistance to indigent senior citizens. As of 2012, GSIS had 220,000 pensioners;
SSS had around 1.6 million; while DSWD was providing assistance to more than 140,000
indigent senior citizens.
In early 2013, the GSIS raised the basic minimum monthly pension to Ps5,000 to be more
responsive to the needs of old-age and disabled pensioners amid rising prices of basic
commodities. Nationwide, more measures are in place to provide comfort and assistance to the
Filipino elderly. The elderly are given priority in queues and public transport. Republic Act 7876,
or the Expanded Senior Citizens Act of 2010, provides more benefits to senior citizens, including
discounts on transport fees, food, cinemas, and medicines.
While most late-lifers are retired, many are still active and perform significant roles in the
community. Senior citizen groups organise events and fundraising activities. The Federation of
Senior Citizens Associations of the Philippines is pushing for legislation to have their sector
represented in local government. Our dream is...to make the remaining years of our lives fruitful
and have a legacy for the younger generations. We dream to be represented in our local
government units to lead the implementation of senior citizens laws and projects, especially on
medical and health facilities, the report said.
Most Filipino elderly people continue to play a significant role at home. It is common for
grandparents living with their children to help take care of the grandchildren while the parents
are at work. With an estimated 10 million overseas Filipino workers (OFWs), grandparents play
an important role in raising the children that these OFWs leave behind.
In grandparents twilight years, however, it is their childrens turn to take care of them.
Children are expected to take care of their parents in old age; putting a parent in a nursing home
is still unacceptable in Philippine society. Extended families are useful because, when the child
has to work, there is always a cousin, a niece or nephew who can look after the elderly at home.
On the other hand, wealthier families often hire a full-time caregiver to stay with the elderly if the
children or grandchildren are too busy with work. There are also institutions, like San Lorenzo
Ruiz Home for the Elderly and the Golden Acres Home for the Aged, but these are usually for
senior citizens who are abandoned, neglected and rely on government support.
Warming up to technology
Senior citizens are more internet aware than in the past. Telecommunications company
Bayantel introduced Lola Techie, an Internet-savvy grandmother who is on Facebook and
Youtube. A humorous advert shows that it is so easy to connect to the Internet that even
grandmothers could do it. Statistics suggest that once seniors go online, they can be just as
enthusiastic as younger users. Because of these wired seniors, there has been a sharp growth
in key Internet activities, such as looking for health information, e-shopping, and online banking.
ICT can open up opportunities to enable us to use our collective elderly wisdom to contribute
once more to society. We can advocate for reforms through social media, blogging and e-mail
campaigns, said Lola Techie, who is an advocate of senior citizen empowerment. In 2013, the
governments Information and Communication Technology Office has used Lola Techie to give
talks to senior citizens and promote basic computer literacy courses specifically designed for
senior citizens. The programme focuses on communication tools, such as social media
(Facebook, Twitter, and Skype).
Elderly immigrants return home

The majority of Filipino immigrants live in the US, and many retire every year. A number of
these retirees have returned to the Philippines to be with their families and save on medical
expenses. One group of Filipino immigrants is even lobbying to be allowed to take with them
their welfare assistance and entitlement benefits. But whether or not Medicare will be
accessible to us in the Philippines, there is no other choice but to go back home because we
cannot afford caregiver services or retirement home expense in the States, according to Esther
Villanueva, 87, a US-based retiree. Fe Bacalzo, 87, already made the move in 2004. I didnt
want to grow old there. Its lonely for old people like me. My kids are always busy working.
Theres no time to talk ... because of work. After work they have to cook. Its sad, she said.
Living together with her daughters family in Metro Manila, she employs two helpers.
Table 1 Consumer Segmentation and Population Data 2000, 2005, 2010, 2011, 2012,
2015
2000 2005 2010 2011 2012 2015
Babies/infants (aged 0- 6,071 6,251 6,672 6,674 6,687 6,945

2) ('000)
Kids (aged 3-8) ('000) 11,843 12,200 12,599 12,750 12,902 13,219
Tweens (aged 9-12) ('000) 7,443 7,933 8,159 8,199 8,243 8,424
Teens (aged 13-17) ('000) 8,518 9,404 9,970 10,039 10,093 10,215
Young adults (aged 18- 16,552 18,621 20,705 21,110 21,498 22,507
29) ('000)
Middle youth (aged 30- 14,059 15,968 18,133 18,595 19,060 20,496
44) ('000)
Mid-lifers (aged 45-59) 7,793 9,514 11,421 11,797 12,165 13,238
('000)
Later-lifers (aged 60+) 4,225 5,137 6,264 6,546 6,848 7,851
('000)
Population: National 76,504 85,029 93,923 95,709 97,495 102,896
estimates at January
1st ('000)
- Population aged 0-14: 28,879 30,237 31,460 31,674 31,896 32,700
January 1st ('000)
- Population aged 15- 44,947 51,509 58,438 59,850 61,246 65,260
64: January 1st ('000)
- Population aged 65+: 2,677 3,282 4,025 4,186 4,353 4,935
January 1st ('000)
- Male population: 38,524 42,802 47,255 48,156 49,059 51,794
January 1st ('000)
- Female population: 37,980 42,227 46,668 47,553 48,436 51,102
January 1st ('000)
- Urban population ('000) 44,792 53,321 62,344 64,174 66,009 71,569
- Rural population ('000) 31,712 31,707 31,580 31,535 31,486 31,327
Birth rates (per '000 29.1 25.9 24.5 24.3 24.1 23.5
population)
Death rates (per '000 5.3 4.9 4.7 4.7 4.7 4.7
population)
Marriage rates (per 7.5 6.1 5.7 5.6 5.6 5.5
'000 population)
Source: National statistics, Euromonitor International
Chart 1 Population Aged 15-64 Compared with Old-Age Dependency Ratio 2000-
2020
Source: Euromonitor International
HOUSING AND HOUSEHOLDS
Home Ownership
There were 20.4 million households in the Philippines in 2012. This is considered inadequate
in a country with a population of 97.5 million. Some 14 million of these households were in
urban areas. The 2012 numbers show only slight improvements from the 15.2 million
households, including nine million households in urban areas, in 2000. About 15.15 million
homeowners were mortgage free in 2012; about 2.71 million homeowners had mortgages. The
number of people who were renting was 1.4 million. The most common type of housing in the
country is the house, followed by detached, semi-detached and terraced, and apartment.
In crowded Metro Manila, where over 12 million people live, housing remains a problem.
According to the Subdivision and Housing Developers Association, the current housing backlog
in the country is at 3.9 million, including some 832,046 families that cannot afford a housing unit.
These families come from the low-income segment. If not addressed, through government
subsidy among other means, the housing backlog is expected to hit 6.5 million families by 2030.
In 2013, the constant flooding and the worsening traffic in Metro Manila have forced the
government to relocate 9,440 families living in makeshift shanties built along major waterways.
Most of the informal settlers are migrants from rural areas. People who opt to relocate outside of
Metro Manila will get Ps18,000 in financial assistance, while those who rent rooms in the city will
be given rental subsidies. Relocating informal settlers is a major challenge as they usually go
back to the city where the jobs are.
The middle class, families of overseas Filipino workers and Filipino young professionals are
the only ones who can afford the new housing units that are being built in the cities, particularly
in Metro Manila. It has become easier for them to invest in new housing units as interest rates
on loans have dropped. Monthly housing loan amortisation through the state-owned housing
fund Pag-IBIG was lowered to 7% from the previous 10%. It has also lowered its interest rates
for the low-income group from 6% to 4.5%. Condominium units, especially the more affordable
mid-market condominiums, are the most wanted. Previously, condominium projects meant
bigger sizes and higher prices. First-home buyers are now ready to switch from owning a house
or lot in the suburbs in exchange for short travel from home to work and other necessities,
according to a property consultant. Mid-market condominium units are priced between Ps1.5
million and Ps3 million. Condominium units that are strategically located in the central business
districts cost from Ps3 million to Ps10 million. Lately, foreigners, mostly from the US, Hong Kong
and Singapore, have started to buy condominium units as investments in the Philippines.
A recent blast at a posh condominium in Bonifacio Global City has prompted condominium
buyers to be more cautious about the safety of the buildings. The incident is seen to have a
short-term effect on condominium sales and prices. One property developer said that the blast,
caused by a gas leak which killed three people, has resulted in buyers making more inquiries
about the safety features of high-rise buildings.
People working in the central business districts of Makati, Taguig and Ortigas in Metro Manila
are compelled to invest in condominium projects near their workplaces due to the lack of an
efficient public transport system and the worsening traffic congestion.
Pre-owned properties offer an alternative to vertical living

For Filipinos who do not want vertical living, the other affordable alternative is buying pre-
owned properties. Most of these properties are in gated areas and are a top choice for city
dwellers with large families. Today, more and more homes are being enclosed in gated
subdivisions and villages where community living is more independent and contained,
according to one Manila resident. Aside from buying from former owners, some of the pre-
owned properties are foreclosed properties. Mortgage servicing company BFS said in a news
report that, over the past five years, it has sold over 4,000 pre-owned properties nationwide,
with the bulk located in Laguna, Cavite, Bulacan, Rizal, Caloocan City, and Muntinlupa City.
These areas are on the outskirts and outside of Metro Manila, with developing communities.
They have access to good roads, electricity, and water supply. BFS properties are in rapidly-
developing areas, so the value of the properties may very well continue to increase over time,
according to a BFS official.
Condominiums appeal to growing city workers

Start-up families and young executives have embraced condominium living. The buildings are
close to their workplaces. Almost all buildings have security guards and maintenance personnel.
Condominium living is particularly popular among single workers and couples who do not have
children. Couples with children often employ house helpers and prefer living in apartments or
townhouses. The monthly condominium charges usually cover the security systems, waste
management, electricity in common areas, service elevators, guards, janitors, plumbers and
electricians. The neighbourhood is more secured in a condominium because of the security
guards and CCTV camera, said one owner.
Household Profiles
In 2012, almost half the 20.4 million households in the Philippines had at least five occupants.
By 2015, more people are expected to live alone: there will be 973,000 households with single
occupants, against 902,000 single occupants in 2012, as young Filipinos are increasingly
getting married later. A typical Filipino household has two rooms. There were about seven
million households with two rooms in 2012, followed by three-room households at 4.88 million
and single-room households at 3.95 million. The makeup is not expected to change in the near
future. About 16.98 million households had a male as the head in 2012; an estimated 3.42
million households were run by a woman. By 2015, about 17.9 million households will be
headed by men and 3.8 million will be run by women.
Households with couples without children are expected to increase to 1.89 million in 2015
from 1.75 million in 2012. Single-parent family households will increase to 1.9 million in 2015
from 1.77 million in 2012. Households with couples with children will also experience growth:
from 12.97 million in 2012 to 13.76 million by 2015.
Each year, thousands of new graduates who had moved from the provinces to study decide to
stay in the countrys capital and in key cities to work. Some unemployed people in the provinces
also move to Metro Manila and to cities to find work. It is common for them to stay with relatives
or for young professionals to share and rent an apartment or condominium unit. It is also
common for newly-wed couples and young families who cannot afford to buy a new house to
continue to live with their parents or for elderly parents to move in with their married children.
Domestic helpers are a fixture in Filipino households; they include maids, cooks, nannies,
drivers and all-around helpers. Most live with their employers. According to a 2010 government
survey, over 1.8 million households employed domestic helpers. Estimates of the number of
domestic workers range from 600,000 to 2.5 million. A new law has been implemented to
provide better working conditions for domestic helpers. It sets a minimum wage for helpers and
requires employers to make full social welfare contributions. Most employers are against the
law. Despite the complaints, most people, especially those with children, will continue to hire
helpers.
Manilas young professionals move out of their parents homes

The worsening traffic conditions in Metro Manila and the thirst for independence among the
citys young and moneyed professionals are two reasons why more young people are moving
out of their parents homes. Young professionals either rent or start investing in condominium
units or in apartments near their workplaces. According to a philstar.com columnist, unmarried
twentysomethings leaving the nest was rare until recently. Traditionally, they left only to move
into a new home with their spouse. Independence is very important to me. I like the idea of
being able to live on my own, especially in the Philippines where its not common to leave the
family home before 30, said 27 year-old creative advertising professional Tami Acena when
asked why she moved out.
Single-parents lobby for more support

The number of single-parent households is growing. One reason is the increase in the
number of mothers or fathers moving abroad to work. In addition, young Filipinos are becoming
more emancipated. Previously, if a girl became pregnant, she was forced by the family to marry
the father of the child. Some hope that the Solo Parents Welfare Act of 2000 will be amended to
make the law more accessible to solo parents and to lessen their financial burden. One
provision seeks to reduce the waiting time for single parents to get benefits, from one year to six
months. Though my parents still help out, it can be difficult. I do not ask for child support from
my son's father. Most of the time, I just go without buying things for myself. Better for me to go
without than for the baby to go without, according to one single mother.
Running Costs
The average household expenditure on maintenance and repair of dwellings was Ps1,313 in
2012, while the average expenditure on water and miscellaneous domestic services was
Ps1,853.
Electricity and gas expenses represent the largest share of household running costs.
Electricity costs are higher in the country than in some of its Southeast Asian neighbours. Being
a tropical country, electric fans and air-conditioning are a must, especially during the long warm
and humid summer months. The average electricity, gas and other fuel cost per household was
Ps15,352.8 in 2012. The most common appliances in Filipino households are television sets,
electric fans, mobile phones and land lines, VCD/DVD players, gas stoves and refrigerators.
Consumers are still afraid to drink tap water

Despite an assurance from the Health Department that the tap water in Metro Manila is safe
for drinking, most households still spend on purified drinking water. Providing purified drinking
water is a major task; the number of water refilling stations in the country is estimated at over
3,000. We drink bottled water at home. We buy 5-gallon bottles, three at a time, and use an
electric water dispenser with hot and cold functions, said one Metro Manila resident. Now we
still get drinking water from the tap, but we use a simple tabletop water purifier just to be sure.
Table 2 Housing and Households Data 2000, 2005, 2010, 2011, 2012, 2015
2000 2005 2010 2011 2012 2015
Total number of 15,272 17,322 19,508 19,954 20,401 21,755

households ('000)
- Urban ('000) 8,990 10,913 13,000 13,430 13,863 15,183
- Rural ('000) 6,282 6,410 6,509 6,524 6,538 6,572
Households by tenure
- Home owner ('000) 13,025 15,213 17,098 17,482 17,869 19,055
-- Home owner without 12,440 13,887 14,806 14,970 15,153 15,854
mortgage ('000)
-- Home owner with 585 1,326 2,292 2,512 2,716 3,201
mortgage ('000)
- Rented ('000) 1,227 1,324 1,409 1,422 1,433 1,451
Households by type of
dwelling
- House ('000) 8,330 9,169 10,020 10,187 10,353 10,843
-- Detached ('000) 6,403 7,064 7,720 7,849 7,976 8,353
-- Semi-detached and 1,928 2,105 2,300 2,339 2,377 2,489
terraced ('000)
- Apartment ('000) 6,865 8,045 9,360 9,637 9,917 10,784
- Other ('000) 76 109 128 130 131 128
Households by number of
persons
- 1 ('000) 609 733 855 879 902 973
- 2 ('000) 1,423 1,685 1,947 1,999 2,051 2,205
- 3 ('000) 2,190 2,574 2,960 3,037 3,113 3,343
- 4 ('000) 2,767 3,221 3,683 3,776 3,868 4,146
- 5 ('000) 2,858 3,280 3,719 3,808 3,896 4,164
- 6+ ('000) 5,424 5,828 6,344 6,455 6,569 6,924
Households by number of
rooms
- 1 ('000) 2,977 3,369 3,788 3,873 3,959 4,218
- 2 ('000) 5,363 6,039 6,762 6,910 7,058 7,508
- 3 ('000) 3,608 4,118 4,661 4,771 4,881 5,216
- 4 ('000) 1,691 1,964 2,251 2,310 2,368 2,543
- 5+ ('000) 1,632 1,832 2,047 2,091 2,135 2,269
Households by sex of
head of household
- Male ('000) 13,204 14,757 16,350 16,666 16,980 17,910
- Female ('000) 2,067 2,565 3,158 3,287 3,421 3,845
Households by type
- Single person ('000) 609 733 855 879 902 973
- Couple without 1,083 1,380 1,647 1,698 1,747 1,892
children ('000)
- Couple with children 10,214 11,247 12,456 12,712 12,971 13,767
('000)
- Single-parent family 1,244 1,465 1,684 1,727 1,770 1,898
('000)
- Other ('000) 2,120 2,497 2,866 2,938 3,010 3,225
Housing stock ('000) 14,901 16,964 19,107 19,545 19,983 21,315

Housing completions 384 460 441 441 444 451
('000)
House price index (2010 - - 100.0 105.6 114.9 n/a
= 100)
Pet population (animals 1.7 1.7 2.0 2.1 2.1 2.2
per household)
Ownership of household
durables by type
- Dishwasher (% of 0.6 1.4 2.5 2.7 2.9 3.5
households)
- Freezer (% of 2.6 3.8 4.7 4.8 4.9 5.3
households)
- Microwave oven (% of 3.1 4.5 5.9 6.2 6.4 6.9
households)
- Refrigerator (% of 32.9 39.4 40.5 41.4 42.4 45.5
households)
- Telephone (% of 14.2 11.6 11.6 11.6 11.5 11.4
households)
- Tumble drier (% of 1.5 1.7 1.9 2.0 2.0 2.1
households)
- Vacuum cleaner (% of 18.5 28.8 39.2 41.2 43.1 48.4
households)
- Washing machine (% of 20.4 31.2 31.9 32.1 32.3 33.1
households)
Average household
expenditure on running
costs
- Maintenance and 1,635.3 1,503.5 1,339.1 1,303.4 1,312.8 1,335.6
repair of dwellings (Ps
per household, at
constant prices)
- Water and 1,084.1 1,556.3 1,739.8 1,771.5 1,853.1 2,082.6
miscellaneous domestic
services (Ps per
household, at constant
prices)
- Electricity, gas and 10,362.8 13,890.9 14,682.9 14,799.0 15,352.8 16,902.1
other fuels (Ps per
prices)
- Hardware and DIY 2,016.6 1,980.0 1,754.2 1,808.4 1,842.2 1,956.7
goods (Ps per
prices)
- Household and 3,980.0 4,042.6 3,698.3 3,836.6 3,924.6 4,207.3
domestic services (Ps
per household, at
constant prices)
Chart 2 Number of Households by Disposable Income Bracket 2005, 2010, 2015
MONEY AND SAVINGS
Attitudes Toward Payment Methods

Cash is still king in the country, as only 7.6% of the population has a credit card. Cash
compels consumers to stay within budget, and it is also the preferred mode of payment for most
businesses. Bargain shopping centres in Manila usually give big discounts when a customer
pays in cash for gadgets or goods in bulk. Although the Trade Department has made it
unlawful, some establishments continue to impose additional charges on credit card payments.
Some consumers who do not know any better keep on paying the surcharges or are forced to
pay in cash.
Given the robust Philippine economy, Filipino consumers are looking forward to better job
opportunities and higher salaries. More Filipinos are applying for credit cards or using them.
New methods of payment are also gaining ground, particularly debit cards, or ATM cards that
also act as debit cards. A financial planner has noted that having either a credit card or a debit
card is now a must for the average Filipino consumer. About 7.4 million credit cards are in
circulation in the Philippines, while debit cards amount to 35.4 million. Debit cards are perceived
as more convenient than cash, but more controllable than credit. E-money services, like G-
CASH and SMART Money, which are offered by the countrys leading telco firms, are also
emerging as an alternative mode of payment for consumers and businesses. They are mostly
used for mobile payments and for sending and receiving remittances from other parts of the
country or from overseas. They do not charge annual membership fees and are cheaper to
maintain than credit cards.
Savings
The savings ratio, or the percentage of disposable income saved, has been on a decline since
2007, from 2.66% to 2.5% in 2012. In contrast, consumer expenditure has been increasing in
real terms since 2009; it grew by 4.1% between 2011 and 2012. However, the growth rate is
expected to drop slightly over the next few years.
Most Filipinos still have a low degree of financial literacy. This is a big concern for the
government, but at the same time it is an opportunity for banks and financial institutions. Often,
Filipinos do not think of the long term; they have low interest and lack considerable knowledge
of saving and investing their money for income protection and retirement. Cash savings are
mostly made for health and education. According to a Central Bank survey, some households
savings drop during the enrolment season, when these households are forced to take out their
savings to pay for school tuition fees. This shows that Filipinos still put a premium on education,
which is perceived as a way out of poverty for most people. Filipino consumers also save for
housing, which many consider their main asset, followed by home appliances, retirement
insurance, motor vehicles, and other real property like commercial lots and farms. The
government acknowledges that the percentage of Filipino households that have savings is
small, prompting financial literacy programmes to persuade families to save and invest more.
About 10% of Filipino households depend partly or fully on remittances sent by family
members who work abroad. Those who have savings are mostly remittance-dependent families
and people on higher than average incomes. Among people who have savings, only 20% has at
least one bank account. The rest, or 80% of Filipinos, mostly low-income households, are still
unbanked; they tend to keep their money at home rather than in banks. However, often, people
have very little to save. Many Filipinos do not worry about tomorrow, and many spend their
money as soon as they earn it.
In addition, Filipinos are afraid to take risks. They prefer to invest in real estate properties and
do not bother to look into financial instruments like stocks, bonds, or mutual funds.
Loans and Mortgages

With an annual lending rate of 5.7% in 2012, the outstanding consumer credit balance stood
at Ps738 billion, almost triple the balance of Ps246 billion in 2000, when the annual lending rate
was 10.9%. The outstanding credit balance is expected to hit a high of Ps1,018 billion by 2015.
The outstanding mortgage balance was Ps287 billion in 2012, against Ps162 billion in 2000. It
is projected to reach Ps436 billion in 2015. Property developments, mainly condominium
projects, are rising throughout Metro Manila and in key cities in the country like Cebu City. The
government-funded housing loan agency Pag-IBIG has begun to offer very low interest rates,
with the interest rate for minimum-wage earners dropping to an all-time low of 4.5%. Despite the
increase in supply and low interest rates, property loans remain out of reach for the majority of
Filipinos. Applying for housing loans can be intimidating and cumbersome for minimum-wage
earners, some of whom do not have college degrees.
A majority of Filipino families would rather apply for small emergency cash loans from banks,
cooperatives, employers and state-owned funding agencies, such as the Social Security System
(SSS) or the Government Service Insurance System (GSIS). Often, the loans are used to pay
for their childrens school tuition.
According to an opinion piece in newspaper Malaya, it is now easier to get a loan to buy a car
than to get a bank to finance the construction of a home. The banks have made the process of
applying for loans easier, but they remain cautious about lending money. Indeed, the automotive
industry is experiencing record-breaking sales. More middle-class Filipinos and those who have
regular jobs can get car loans due to low interest rates and the availability of more affordable
compact car models.
People financing property developers, whereby developers get money from customers ahead
of construction, are mostly the families of Filipinos working abroad who have access to bank
loans.
Smartphone craze hits town

About a decade ago, the Philippines was predominantly a Nokia nation as the Finnish brand
was the brand-of-choice among Filipino mobile phone users. Now, Samsung, BlackBerry and
iPhone handsets have grown in popularity, according to a report from Rappler. Smartphones
have become more affordable; consumers have accepted the local brands Cherry Mobile and
Starmobile, offering units at below Ps4,000 or about US$100. Mobile internet sales of PLDT
(The Philippine Long Distance Telephone Company) grew to almost P1 billion (US$25 million) in
the first quarter of 2013, a hefty 42% year-on-year increase. PLDT attributed the growth to the
increasing data usage on smartphones. Consumers are increasingly using their phones to make
payments and becoming more confident in making purchases on their mobiles too.
Wider credit card use seen

An increasing number of Filipinos are warming up to using credit cards. A recent report from
Malaya says that, as a result, merchants such as movie houses, events and bazaars have
begun to accept credit card payments. What were seeing is that customers now are more
savvy, they take time to understand the features and maximize the benefits and features of
credit cards, according to one Citibank official quoted in the report. Credit cards are traditionally
used by Filipinos to pay for groceries, fuel, dining and shopping. The split is estimated at 80%
cash and 20% credit.
Table 3 Money and Savings Data 2000, 2005, 2010, 2011, 2012, 2015
2000 2005 2010 2011 2012 2015
Financial cards in
circulation
- ATM cards (mn cards) 10.1 15.0 28.0 33.1 39.3 53.2
- Debit cards (mn cards) 9.0 13.7 25.3 29.9 35.4 47.3
- Credit cards (mn cards) 3.8 4.8 6.8 7.0 7.4 8.7
Financial cards'
Transactions (Ps mn, at
constant prices)
- ATM cards 2,108,522 3,216,416 3,861,283 4,028,449 4,179,536 4,549,223
- Debit cards 101,358 131,369 185,688 200,836 227,661 341,741
- Credit cards 182,846 244,135 416,670 463,367 507,096 704,147
Cash transactions 3,192,977 3,690,106 4,474,964 4,510,219 4,527,729 4,734,544
Other paper 458,562 462,166 412,597 398,867 396,583 401,361
transactions
Annual savings 150,539 130,709 179,620 192,160 200,865 236,027
Savings ratio (% of 3.3 2.2 2.5 2.5 2.5 2.5
disposable income)
Annual lending rate (%) 10.9 10.2 7.7 6.7 5.7 n/a
Consumer lending (Ps mn
outstanding balance)
- Consumer credit 246,594 345,677 602,005 671,450 738,375 1,018,432
- Mortgages/housing 162,186 174,743 204,788 245,016 287,158 436,433
Chart 3 Consumer Lending Compared with Savings and Savings Ratio 2000-2015
EATING AND DRINKING
Eating Habits
Most Filipinos say hello by asking, Have you eaten? This reflects the culture of people who
like to eat and for whom food is a permanent fixture of both simple and grand occasions.
For most Filipinos, a meal without rice is not a worthy lunch or dinner. Pizza, pasta or burgers
are normally eaten at merienda, or the meal in between. Traditional dishes served at home
and at Filipino restaurants are rice paired with meat and vegetables. The most common dishes
are meat adobo (marinated pork or chicken or a combination and seafood); sinigang (sour soup
dish); nilaga (tender meat stew); and pinakbet (mixed vegetable dish). Some of the dishes
reflect Spains influence, the countrys longest coloniser. It's difficult to pinpoint what exactly
makes up Filipino food. I've been eating it my whole life and I'm no closer to answering that. It's
so diverse. We have incorporated a lot of Western and other Asian influences in our methods of
cooking, according to one commentator.
A typical Filipino eats three meals a day and snacks in between. Aside from lunch and dinner,
breakfast can also be a heavy rice meal: rice paired with fish, dried fish or meat. In recent times,
Filipinos have been eating more meat and fewer vegetables. The rise in meat consumption is
partly attributed to the fact that more Filipinos are eating at fast-food chains, which always have
chicken on their menu. According to a 2012 study from the Food and Nutrition Research
Institute, the average Filipino's daily consumption of fish, meat and poultry has increased by 60
grams in 30 years.
Among poor families and in the provinces, a typical meal consists of rice with fish and/or
vegetables. Of late, poor families, particularly those living in Metro Manila, where fish, seafood
and vegetables are relatively expensive, have resorted to eating instant noodles and canned
goods. The GG [short for galunggong which is a type of fish] had long disappeared from the
diets of poor families, as even the locally caught variety had become too expensive. Even rice is
increasingly becoming a luxury. Instant noodles, filled with salt and artificial flavouring, now feed
families, including children who desperately need proper nutrition, commented a consumer
rights organisation in a recent report.
In 2012, per capita consumer food expenditure reached Ps32,594 and is likely to increase to
Ps35,886 by 2015. Most of the spending in 2012 went to bread and cereals (Ps11,636 or 35%),
meat (Ps5,471 or 17%), and fish or seafood (Ps4,845 or 15%). Dairy (milk, cheese and eggs)
accounted for only 8.7% of the per capita food expenditure at Ps2,865. Aside from the fact that
milk and cheese are expensive for the majority of Filipinos, many do not like eating dairy
products. It is estimated that up to 50% of the population is lactose intolerant. In 2012, the share
of spending on fruits was 6%, at Ps2,084; vegetables 5.9%, at Ps1,948; oils and fats 4%, at
Ps1,376; and sugar and confectionery 4%, at Ps1,319. Although Filipinos claim to love coffee,
they only spent Ps337 per capita on coffee, tea and cocoa in 2012, less than on mineral waters,
soft drinks and juices, at Ps1,821.
Working Filipino mothers have been buying instant products, including marinades, soups, and
entrees, that only need to be heated up before being served. These products have received
mixed reviews. Would I buy this again? Probably not. Ive never made afritada [a popular
chicken dish] from scratch but Im pretty sure I can make a better batch than this, said one
consumer, albeit adding that she still wants to try the other instant meals.
Regional dishes are common in the provinces, like bagnet (deep-fried crispy pork) in the
northern region of Ilocos; kare-kare (a meat and vegetable stew) in Pampanga, a province in
Central Luzon, and various tuna dishes in General Santos in the south. While these can be
cooked at home, they are laborious to prepare for urbanites who are short of time. Thus, these
dishes are usually cooked at the weekend. Families can also simply head to the nearest
restaurant or weekend market where traditional Filipino dishes are sold.
In a recent report, a Filipino chain of casual dining restaurants said that Filipinos, as
consumers, are very easy to convince but can be hard to retain because they are fickle when it
comes to brands. For Filipino diners, predominantly a young market with a median age of 21-33,
everything has to be now and they like to try out new foods and restaurant concepts. They also
like bargains and are easily attracted by promotions, such as online deals from group-buying
and discount sites.
The most popular types of snacks are rice-based, like puto, suman, and pichi-pichi or
Filipinos take on pasta, pansit, or Filipino-style spaghetti (with a sweeter sauce). They are
typical fare at any celebrations.
Filipinos love their sweets

Filipinos have an affinity for sweets, particularly donuts. Dessert or the pasalubong
(homecoming gift) of choice is determined by which particular donut brand is popular at the
moment. In 2005, people waited in line to get their fill of Gonuts Donuts, then a new store. When
legendary Krispy Kreme came to the Philippines, consumers lined up for its original glazed
donut. The most recent entry, J.Co., is now getting all the attention with long lines in all its three
branches. J.Co., founded by an Indonesian businessman, claims to be made for the Asian
market, its bestselling flavours are a mix of Eastern and Western tastes. Another sweet treat,
the cronut, a croissant and a donut at the same time, might soon challenge J.Cos reign. So
far, the sweet, flaky pastry is currently offered in three stores: Wildflour Caf and Bakery for the
high-end market; Dunkin Donuts and Chatime for the mass market.
Ramen as the latest food craze

Even before the onset of the rainy season, ramen (a Japanese noodle soup topped with
pieces of meat), not the instant variety, was making a buzz around the metropolis. Consumers
have been more willing to shell out a few hundred pesos to have a taste of the traditional
Japanese noodle dish. For instance, Ikkoryu Fukuoka, a ramen bar in an upscale mall, sells a
single serving at Ps380, an amount that could buy two entrees in other restaurants.
Manilas Little Tokyo has been drawing in more diners since the ramen craze started.
Regulars include Japanese nationals, a good sign that the food they serve is authentic. For
instance, Yamazaki Ramen House serves a bowl for Ps200, slightly less than in other places.
There are lots more, at least a dozen [ramen places] in the Makati area alone. Some of the
other highly recommended ones include Shinjuku Ramen and Hokkaido Ramen Santouka,
stated one writer. We've heard people rave about the ramen here but we hated the line so we
thought that by going there early before dinner, we won't have to line up that long, commented
a customer after trying out a new ramen restaurant.
Drinking Habits
Filipinos are soda drinkers; Coca-Cola and Pepsi are drunk on all occasions. Always been
told how its not too good for the health ever since I was a kid but at the end of the day, its all
about the taste (its just so good!), said one consumer.
In 2004, many consumers switched to drinking C2, a non-carbonated green tea-based drink.
Many Filipinos are not into tea, but they have warmed up to drinking cold tea, if sweetened. We
noticed that they were becoming more concerned with their well-being and were taking better
care of themselves. We therefore saw a need for a healthier alternative beverage, explained an
official from one tea company. Lately, city residents have started to buy all-natural and healthier
drink alternatives, such as buko juice (coco water), and fresh fruit juices that are either juiced
or blended upon order. Per capita spending on mineral waters, soft drinks, fruit and vegetable
juices reached Ps1,821 in 2012 and is expected to increase to Ps2,009 by 2015.
The Philippines ranks second in alcohol consumption in Southeast Asia; it is home to at least
five million alcohol drinkers. In 2012, Filipino consumers spent on average Ps561 per capita on
alcoholic drinks. Beer was the most consumed (Ps340), followed by spirits (Ps205) and wine
(Ps17).
Filipinos have learned to drink variations of their classic beers and spirits. Now, they can buy
apple- and lemon-flavoured beers. This is for people who want to socialize with their beer-
drinking friends without having the bitter taste of beer, said one consumer. In addition,
consumers are taking more interest in flavoured spirits It is my first time to drink Antonov Vodka
and I have no complaint. The apple flavour is just fine and the vodkas spirit is not that strong
commented another consumer.
With the implementation of the Sin Tax Law in 2013, which effectively increases the price of
alcoholic drinks, Filipinos per capita expenditure is expected to decline when the law increases
taxes on alcoholic drinks by 36%. A liquor vendor has said that the impact is not yet evident:
weekends are still busy days for the shop, despite the end of the school break and holiday
season. Another sari-sari store (neighbourhood convenience store) owner has noted that her
beer sales have slowed after she increased the price of a bottle of beer to Ps70 from Ps60. A
wine trader has explained that consumers will have an initial shock as the price of wine
increases, but in the long run, they will accept and get used to these new prices. Filipinos are
some of the biggest alcohol consumers in Asia; hence, the wine trader doubts that these higher
prices will change their habits.
Per capita wine consumption has remained at Ps17 over the past seven years, and it is
expected to remain the same in 2015. Many are intimidated by wine, often associating the drink
with a high price. There is also a common notion among Filipinos that to drink is to get tipsy,
and wine can be expensive if drunk in large amounts. According to a local wine producer, who
started his business 13 years ago, there was a huge gap between desire and actual
consumption because Filipinos believed that wine was beyond their reach or was too strong and
bitter for their taste. A news report noted that Filipinos are more known to chug down a bottle
of beer more than a glass of wine owing to the latters "snobbish" reputation and its
accompanying price, plus the fact that it is not available in the neighborhood store like beer.
Filipinos are considered to be the worlds top gin drinkers: they downed 2.7 litres of gin per
capita in 2012. The Filipinos taste for gin can be attributed in part to good marketing and to the
spirits long-established toe-hold in the local market, according to a news report. Filipinos rum
consumption is high, at 1.7 litres per capita in 2012.
Most Filipinos still cannot afford to buy expensive liquor and cannot visit bars or clubs to drink
due to the high cost. While new clubs open in upscale parts of Metro Manila, most people
continue to drink at home, in bar and grill restaurants, or in KTVs where it is cheaper and
perceived as equally enjoyable. A typical drinking session at home or at a street corner, for
instance, only has one glass and a pitcher of beer with ice. They share one glass and it is
passed around in a circle. [One person is assigned] to put liquor into the glass and remember
whose turn it is, wrote one observer who added, Drinking in a circle and sharing the glass is a
sign of brotherhood and equality among the group.
Alcoholic drinks are readily available in supermarkets and sari-sari (corner) stores.
Convenience stores sell them 24/7, but most require an ID to prove that the purchaser is of legal
drinking age. Some local governments have begun to consider passing stricter regulations to
prevent minors from drinking and to curb the increasing number of crimes caused by
intoxication.
Milk tea anyone?

A few years ago, frozen yoghurt or froyo was the hottest craze in Metro Manila. Consumers,
especially the health-conscious ones, rushed to get a scoop or two, but milk tea has since taken
over. Serenitea, which serves tea steeped in a teaspresso machine, is credited for starting the
demand for gourmet milk tea. However, other establishments like Bubble Tea were already
selling it before the craze began. The beloved drink from Taiwan is now a common sight in
Metro Manila, from global brand Happy Lemon to home-grown store Moonleaf. While the cost of
these brewed and flavoured teas is not far from specialty coffee, consumers still line up for the
novel beverage. Why not? Its healthier compared to the usual cola so I dont mind drinking a
lot of these cold beverages, said one consumer. Recent entrants to the milk tea scene offer
unique concoctions and give more room for experimentation, observed another customer.
Several milk tea joints have since opened shop, not only in Metro Manila but also in the
provinces. In addition to Moonleaf, Serenitea, and Happy Lemon, people enjoy Gong Cha,
Saints Alps, Chatime, Cobo Milk Tea Shop, Tokyo Bubble Tea, and Dakasi.
All-natural juice drink considered a healthier choice

Juice cleansing has caught on as a trend, driven partly by local celebrities who have been
promoting its health benefits. Since the introduction of a juice fast-delivery service two years
ago, which primarily caters to Metro Manilas well-off and health-conscious population, several
all-natural juice stalls have opened in malls. I think Juju Cleanse are a great tandem because I
love the veggie and fruit combinations that go into every single bottle they produce. I absolutely
love beets, though for some this juice takes a bit getting used to. Its great as a cleanser and
you can really see it go through your body, according to one customer.
Although soda is usually the first alternative, we all know that the sugar content, among other
things, makes it both fattening and unhealthy. But because of the weather, it's still so very hard
to resist, said one customer of a newly-introduced healthy beverage line. The government,
through the Department of Science and Technology, has even come up with natural fruit drinks
that come in ready-to-drink packs.
Table 4 Eating and Drinking Data 2000, 2005, 2010, 2011, 2012, 2015
Ps per capita, at constant prices

2000 2005 2010 2011 2012 2015
Food consumer 22,916 25,502 29,309 30,897 32,594 35,886

expenditure
- Bread and cereals 7,814 8,859 10,387 10,996 11,636 12,888
consumer expenditure
- Meat consumer 4,109 4,454 4,969 5,204 5,471 5,981
expenditure
- Fish and seafood 3,535 3,876 4,381 4,602 4,845 5,314
- Milk, cheese and eggs 2,047 2,263 2,582 2,718 2,865 3,149
- Oils and fats 881 1,020 1,221 1,298 1,376 1,529
- Fruit consumer 1,628 1,738 1,904 1,987 2,084 2,268
expenditure
- Vegetables consumer 1,473 1,592 1,771 1,853 1,948 2,127
expenditure
- Sugar and 775 935 1,165 1,249 1,319 1,460
confectionery consumer
expenditure
Coffee, tea and cocoa 222 244 302 319 337 372
Mineral waters, soft 1,243 1,411 1,631 1,725 1,821 2,009
drinks, fruit and
vegetable juices
Alcoholic drinks 601 584 563 567 561 550
- Beer consumer 291 331 338 343 340 335
expenditure
- Spirits consumer 298 236 208 208 205 198
expenditure
- Wine consumer 12 17 17 17 17 17
expenditure
Catering consumer 1,374 1,835 2,091 2,143 2,232 2,442
expenditure
Availability of fruit 157.0 164.9 188.9 189.9 191.2 192.9
and vegetables (kg per
capita per year)
Chart 4 Real Growth in Consumer Expenditure Compared with Real Growth in

Consumer Expenditure on Food and Alcoholic Drinks 2000-2015
GROOMING AND FASHION
Perceptions of Beauty
A fair complexion, a chiselled nose, and pin-straight hair (for women): these attributes
continue to measure physical attractiveness in the Philippines, an indication that foreign
influence on beauty remains strong. This general concept of beauty has been around since the
Spanish colonial time. Maria Clara, the iconic mestiza (mixed race) heroine of a book written
by the countrys national hero Jose Rizal in the 1800s, was described as fair skinned. Today,
most of the countrys most beautiful personalities tend to be of mixed heritage, usually half-
Filipino/Asian and half-Caucasian.
Yet, an increasing number of female celebrities are waving the morena (dark) flag with pride.
The countrys strong showings in recent Miss Universe pageants, where the Philippines was
represented by dusky beauties who all landed in the top five, is paving the way for the wider
acceptance of brown skin.
In the Philippines, two opposite concepts of beauty are now celebrated. The mestiza beauty
with her fair skin, large eyes and Eurasian features is epitomised by the nations sweetheart,
Anne Curtis (a Filipino-Australian). Miss Universe first runner-up Janine Tugonon embodies the
morena beauty with her caramel skin, blunt nose and jet-black hair, according to a news report.
Most Filipino girls aspire to look like a mestiza and most Filipino boys consider fair-skinned
girls attractive. This is despite the fact that most indigenous Filipinos, those without Chinese
ancestry, have brown skin colour.
... I learned that clients prefer mestiza models, especially for hair or beauty advertisements
that sell aspirational beauty. TV commercials for other products use morena girls as theyre
more relatable, said one female model who has worked in the Philippines.
Female Grooming
A recent international survey, High Heeled Warriors, found that wealthy Filipinas used nine
out of 23 brands of consumer products, the most among women in the region. The study also
revealed that these wealthy Pinays (those with an average monthly household income of
Ps150,000) spent on average Ps11,000 a month on personal care, fragrances, cosmetics, and
skin care.
Per capita spending on personal care in the Philippines reached Ps3,539 in 2012 and is likely
to rise to Ps3,900 by 2015. In 2012, Filipinos spent the most on hair care at Ps357, followed by
oral care at Ps209, fragrances at Ps77, and colour cosmetics at Ps69.
Per capita spending on hair care products and colour cosmetics is set to increase to Ps363
and Ps74 by 2015, respectively. On the other hand, per capita expenditure on oral care
products and fragrances is likely to go down to Ps203 and Ps72 by 2015, respectively.
Most Filipinos covet whiter skin and believe that any darkening caused by sun exposure can
be countered by greater use of whitening products. Per capita spending on sun care products
was low in 2012, at Ps2.8, and it is expected to increase slightly to Ps2.9 by 2015. Whitening
products, including deodorants, toothpastes and lotions, appeal to most Filipinos. According to a
local healthcare provider, 50% of Filipinas use skin whitening products. Demand for whitening
products is growing, as advertisements promoting them are widely seen on television, the radio,
billboards, and on the internet. While women are the usual target for these products, a wide
variety of skin whitening lines is now available for men.
In the Philippines, younger women generally do not follow a stringent skincare regimen until
they start to see the signs of ageing and skin deterioration, like wrinkles, fine lines or
pigmentation. In 2012, per capita spending on skin care products reached Ps317.6, and it is
expected to rise slightly to P318.4 in 2015.
Long, straight, shiny black hair remains the most popular hairstyle, as reflected in the TV
advertisements that promote straight is beautiful. Hundreds of straightening irons have been
sold and salons have benefited from the demand for straight hair by offering treatments like hair
relaxing and hair re-bonding. After the re-bonding craze, perming became trendy, although it
was not embraced as much as hair straightening. [Curling and perming are] not compatible with
most Filipina hair types, so straightening is still preferred, said one observer. Many women
want their hair straightened because it is the best solution to tame thick, unruly hair. In addition,
the media has played a huge role in instilling that straight hair is indeed more attractive.
Cosmetic surgery procedures used to be had secretly, as telling others often resulted in
criticism. Times have changed, and cosmetic surgery clinics, such as Belo, Calayan and Beverly
Hills, now openly advertise on billboards, featuring their latest celebrity endorsers and showing
how their images have been enhanced. According to a doctor, there is currently no official data
on surgical and non-surgical cosmetic procedures. Yet, informal surveys show that, among
surgical procedures, rhinoplasty, breast augmentation, liposuction and abdominoplasty are
popular. Botulinum toxin injections, hyaluronic acid injections, chemical peels and laser skin
resurfacing are among the most commonly performed non-surgical procedures.
Male Grooming
Filipino men used to need only a bar of soap and some shampoo when taking a shower.
Nowadays, as a result of Filipino mens increasing urge to look good, a whole range of personal
care products are being used. Special formulations of hair gel, facial wash, toner, moisturiser,
deodorant, sunscreen, and even lip balm are catering to mens personal care needs. Male
grooming products are in high demand, thanks to the growing popularity of the "metrosexual"
look and the increase in advertising of male personal care products, according to a recent report
on businessinsider.com. Per capita spending on male grooming was Ps54.20 in 2012, similar to
2011, when it reached Ps54.10; by 2015, it is expected to grow very slightly to Ps54.70. This is
likely to be due to reduced prices amidst growing competition among male grooming products
on the market.
According to a beauty columnist on philstar.com, it has become common to find men in
dermatologists clinics. Im tired of using my wifes creams when shes not there. Too much
work. And I forget most of the time. Shes complaining. She thinks the maid uses her stuff,
revealed a male customer.
It is not common to sport long beards in the Philippines. Hair products, from gels to creams,
are popular for styling hair, especially among metrosexuals. Hair colour to cover grey and white
hair is also quite common, although these treatments are seldom bought in salons; many DIY
hair colour kits can be easily applied at home. For balding or thinning hair, the wealthy go to
specialists who offer laser treatments designed to strengthen the hair. Some also offer hair-loss
prevention programmes for people who have a family history of hair loss. Consumers on smaller
budgets often resort to herbal shampoos and other topical solutions that promise blacker,
thicker hair.
Local male celebrities who drive mens grooming trends in the Philippines are usually people
whose active lifestyles and tough image most men aspire to. They include actor Derek Ramsay,
who endorses a personal care line for men, and athletes Phil Younghusband and Christ Tiu,
poster boys for a brand of shampoo and mouthwash, respectively. As the health and wellness
trend is growing, men increasingly believe that exercise and diet are not enough to keep looking
good and they are increasingly looking after their skin.
Safer cosmetics
The demand is growing for natural products and those made from natural ingredients that do
not contain parabens, sodium laureth sulfate, or other aluminium compounds or synthetic
ingredients that may disrupt hormones and affect ones health after long-term use. Some
consumers now even opt for fragrance-free products. I didnt breakout further when I started
using this product. You cant imagine how it was such a relief. The main reason for this, I
believe, is that this product is organic and contains zero chemicals so it didnt harm my skin,
reported one customer.
The use of BB and CC cream is growing

Beauty conscious Filipinos are now using new skincare products, the BB cream, short for
blemish balm, and the CC cream or complexion correcting cream. If you go around the beauty
counters these days, chances are, you wont miss seeing BB creams theyre everywhere, in
several brands and various formulations, shades, finishes and price points, described a news
report. Many women claim that these products are effective. The products have gained
popularity, partly due to K-pop or hallyu, the global spread of South Korean pop culture, which
has brought along Korean cosmetics along with it. Filipinos prefer to cover up skin imperfections
instead of tackling them at the root. Some women see a BB cream as a makeup product with
extra benefits; it reduces the skin care and makeup process to a minimum, skipping putting all
the layers of products on the face.
Fashion Trends
The country holds an annual Philippine Fashion Week to showcase trends and launch new
collections from budding and veteran designers. The most current fashion trends include prints,
from bold geometric designs to florals, and Old World elegance which might have been the
influence of recently-released Hollywood movie The Great Gatsby, as observed by a reporter.
The event founder Joey Espino has noted the populations improving fashion awareness. Now,
you see what's happening in other markets and you can do something about it, enjoy what they
have. You can adapt their trends to your own style using the available resources in this country,
he said. The collections for the 2013 holiday season featured a lot of dark and bold hues,
contrasting black, white and red with neutral greys in every shade. Chic nudes and browns and
spots of colour here and there were also popular. According to fashion magazine Mega, the
most stylish women in the Philippines in 2013 include hosts Georgina Wilson and Patti
Grandidge, designers Ann Ong and Lilianna Manahan, and artists Maxine Syjuco and Joan
Laygo.
Being in the tropics, Filipinos usually wear light fabrics on regular days. They pile on the
clothes only when there is a typhoon or in the colder months between December and February.
Work clothes depend on the type of job: jeans and a business top for people who are often in
the field and business suits for people in corporate settings. Gowns or cocktail dresses and suits
or tuxedos are worn for formal events. Filipina attire, barong for men and kimona and wrap
sayas for women, are worn on special occasions.
Lately, Filipino teenagers and young professionals have embraced fast fashion. A fashion
journalist has noted that the Swedish fast-fashion chain H&M is the one remaining hold-off in
the Philippine fast-fashion shopping list that already has Zara, Uniqlo, Forever 21, Topshop,
Mango, Miss Selfridge. Since it opened its first store in SM Megamall, Forever 21 has enjoyed
enormous success with its customer base increasing at an exponential rate, according to
another fashion observer. Given their price, fast-fashion brands are still not affordable to most
Filipinos; these brands have gained popularity among middle- and upper-class shoppers.
Thrift shopping is quite common in the Philippines. Several ukay-ukay (from halukay, which
means to dig up) stores nationwide sell used clothes, bags, shoes, bedroom linen and home
wares. Shopping at these places is not limited to people on a tight budget, as fashionistas are
also known to visit them, looking for vintage clothing, retro styles or branded items. Some even
post their finds on their blogs and offer tips on how to shop for pre-loved clothes, like
thebargaindoll.com and ineedsomewants.com. In 2012, per capita expenditure on clothing was
Ps1,002, and it is projected to increase to Ps1,025 by 2015.
Footwear is worn according to the occasion: leather shoes for business and formal events,
and casual loafers or sneakers for recreation. For ladies, high-heeled shoes or kitten heels are
the norm at work, and ballerina flats and flip flops on casual days. Per capita spending on
footwear was Ps193.2 in 2012, and it is expected to increase to Ps200 by 2015. According to a
fashion observer, most Filipina women buy three or four pairs of footwear every year depending
on their income level. Three categories of footwear buyers can be spotted based on whether
they shop at the high-, middle- or low-end market. According to trendypinayshoes.blogspot.com,
high-end consumers normally buy imported shoes with prices starting at US$75 a pair. Their
preference is for imported French, Italian and American branded shoes and, occasionally,
locally-made branded footwear from local boutiques, made from imported materials, selling at
US$50 to US$75 a pair. The middle-end market is composed of working and professional
consumers, who consider price and comfort when buying shoes. They pay at least US$12 for a
pair. They prefer footwear from local boutiques that are trusted to be distributors of quality,
affordable shoes. Low-end consumers only buy very affordable shoes. They forgo quality and
focus on price. They invest in a few pairs of formal shoes that cost US$6 to US$8 a pair. Most of
the designs preferred are casual and simple and the shoes cost around US$2.50 a pair.
Less fashion-conscious consumers usually do away with accessories. A separate exhibition
now takes place specifically to promote accessories: Style Manila. The last exhibition featured
the work of six famous Filipino designers. Many individuals dont realize the power of well-made
earrings, belts and necklace to make a fashion statement. Most will purchase accessories from
tiangges [flea markets], sacrificing design and craftsmanship for affordability, said one report.
In recent Philippine Fashion Week shows, menswear has been one of the most-watched
shows. [It] was once again jam-packed with fashion enthusiasts yearning for the new designs
and subconsciously eager to spot male models walking down the runway, described a news
report on the recently-concluded Fashion Week. New trends in Filipino menswear fashion are
Japanese inspired, minimalist and baroque.
Young Filipinos embrace Korean-inspired fashion

Filipinos, especially the young, have embraced Korean fashion; they have been wearing
boots, despite the tropical weather, sleeveless tops and short shorts, among others. They try to
copy Korean stars by wearing hip and chic Korean fashion items. Although some clothes are not
suitable to the countrys warm climate, they still wear them and match them with different
accessories. Previously, fashion-forward Filipinos could only buy Korean fashion online. Now,
Korean apparel shops have opened. The Korean fever is making big waves in Manila, from
Korean music, to Korean food and Korean fashion.
More fashionable Filipino men

There is a lot of excitement in the Philippines mens fashion segment. Filipino mens taste in
fashion is starting to evolve, according to observers. Your typical Filipino office worker probably
goes to work in black, pleated dress pants, a billowy dress shirt, square-toed, synthetic loafers,
and a too-wide necktie, stated one writer. A fashion observer has noted that the recent
menswear show at the Philippine Fashion Week has gone way beyond typical suits, ill-fitting
ensembles and sometimes interpretations that tip towards being too flamboyant for the stylish
man. Sports-inspired mens fashion stands out; the many items available are varied and stylish
and go well beyond jersey tops and shorts.
Table 5 Grooming and Fashion Data 2000, 2005, 2010, 2011, 2012, 2015
Ps per capita, at constant prices

2000 2005 2010 2011 2012 2015
Personal care consumer 2,550.8 3,064.7 3,185.5 3,490.6 3,539.2 3,900.1

expenditure
Colour cosmetics retail 52.6 58.8 66.4 67.5 69.3 74.2
sales
Fragrances retail sales 109.3 96.1 88.0 81.6 77.3 72.4
Hair care retail sales 338.6 376.4 357.5 354.7 357.3 363.0
Oral care retail sales 283.7 284.7 214.7 212.2 208.9 202.9
Men's grooming retail 65.1 62.2 55.8 54.1 54.2 54.7
sales
Skin care retail sales 225.4 309.3 326.8 321.4 317.6 318.4
Sun care retail sales 3.2 2.7 2.4 2.7 2.8 2.9
Clothing consumer 1,183.2 1,121.0 1,010.7 988.2 1,002.1 1,025.3
expenditure
- Clothing materials 32.7 24.2 17.4 16.3 16.0 15.3
- Garments consumer 1,042.4 1,010.5 926.1 907.9 922.4 947.6
expenditure
- Other clothing 69.9 57.1 45.4 43.4 43.3 42.7
- Clothing cleaning, 38.2 29.2 21.8 20.6 20.4 19.7
repair and hire
Footwear consumer 204.7 213.6 194.7 190.2 193.2 200.0
expenditure

Consumer Expenditure on Clothing, Footwear and Personal Care 2000-2015
HEALTH AND WELLNESS
Attitudes To Health and Well-being

The Philippines is yet to have a fully functional universal public healthcare system. A majority
of the countrys 97 million people cannot afford essential drugs, even though generic
equivalents are available for some medicines. Total health expenditure stood at $89.3 per capita
in 2012 or about a third of the salary of a minimum-wage earner in Metro Manila. Total health
spending accounted for about 3.5% of the countrys GDP. Public health spending represented
35.7% of the total, against 64.3% for private health. The Health Department has noted that the
share of medicine costs out of total spending has been higher for the poor than for richer
Filipinos.
Except in the capital and nearby cities, where residents prefer private hospitals and clinics,
health centres are the most visited health facilities in the country for medical check-ups, the
treatment of illnesses and injuries and dental care. Services and some medicines are often free
at health centres. The main sources of health financing are the national and local governments,
public and private insurance, personal money and donors. Since the majority of the population is
uninsured, most patients spend their own money during confinement. This is prevalent in public
hospitals, where most patients are poor.
Access to essential drugs remains a challenge, especially among the poorest. The
government has adopted a number of legislative acts to address this, but implementation
hurdles remain. The Generic Act of 1988 requires the extensive use of generic drugs and seeks
to educate Filipinos on the existence and availability of generic drugs. The Cheaper Medicines
Act of 2008 enables generic drug manufacturers to compete better with the originators while the
Executive Order prescribes the maximum retail prices for selected drugs and medicines.
The country faces two pressing health concerns. A large number of Filipinos have
tuberculosis and more suffer from HIV-AIDS. An estimated 200,000 to 600,000 Filipinos have
active TB and up to 6,000 new cases of resistant TB are seen each year. The recorded number
of Filipinos who are suffering from HIV-AIDS was 12,082 in January 2013. Since the start of the
year, the rate of increase has risen, now estimated at 12 new cases daily.
Self-medication is prevalent among Filipinos who wish to save on costly hospital visits. An
appointment with a private doctor normally starts at Ps300. Self-medication is cited as a cause
for the high number of drug-resistant TB patients. Ordinary colds and flu are usually treated with
over-the-counter medicines. In rural areas, people often use alternative medicines and herbs;
their use has become more popular since the Health Department approved at least 10 medicinal
plants for basic medical care. In recent years, native plants started becoming popular among
Filipinos, who have been shocked no end by expensive Western medicines, according to a
news report.
An increase in the demand for food supplements has been noted lately. Health Secretary
Esperanza Cabral once remarked that many are being misled into thinking that these food
supplements can cure diseases. To address this, in 2010 the Health Department began to
require food supplement manufacturers to label their products as non-medicinal.
Obesity
The obesity rate among Filipinos aged 15 and up was 7.2% in 2012. The rate has been rising,
and it is estimated that it will reach 7.8% by 2015, from 4.9% in 2000. About 25.2% of the
population aged 15 and up was estimated to be overweight in 2012. The Health Department has
attributed the rise in obesity and overweight to increasingly sedentary lifestyles and changes in
the Filipino diet. Filipinos are now eating more meat, but eating fewer fruits and vegetables as
they have become more expensive. More are also eating out, and fast food has become the
norm as it is relatively less expensive, with most fast-food meals only a few pesos more than the
meals served at carinderias (neighbourhood eateries).
Urban workers are also finding themselves eating more to combat stress and as a reward.
Using food to reward myself and cheer me up when I feel down has caused me to gain a lot of
weight, an entrepreneur was quoted as saying in one news report. Metro Manila also has few
parks for physical recreation and exercise. Those who can afford it and have the time enrol in
fitness classes or go to gyms to exercise.
Children are not spared, especially in cities. Yet, parents have started to take notice.
Previously, big kids were considered healthy kids and it was seen as a sign of wealth and
prosperity. Today, childhood obesity is being regarded as the newest form of malnutrition,
which has affected not only the affluent Western countries, but also the Asian countries like the
Philippines, as it poses numerous health risks, explained a senator who has initiated a
programme to encourage healthy diets and lifestyles among children. Ask a child about their
favourite snack and fruits are rarely mentioned. Instead of spotting kids running on the streets,
you will find toddlers to adolescents making their avatars run for them in Temple Run or
DotA, expressed an observer. The growing number of absentee parents is also seen as a
factor. With many Filipinos working abroad, it is possible that there are also some parents who
may make up for their physical presence by allowing a child to watch plenty of TV, or play video
and computer games, said another. The government has launched the campaign Oh My
Gulay! (OMG!) to ensure proper diet for grade-school children. The programme highlights the
importance and advantage of eating vegetables.
Attitudes To Smoking
Consumer expenditure on tobacco amounted to Ps433.7 per capita in 2012, down from the
Ps644.9 spent in 2000. The decrease in tobacco consumption among Filipinos is likely to
continue; per capita tobacco expenditure is expected to fall to Ps422.9 by 2015. In 2012, the
smoking prevalence amongst the adult population was 27.9%; it is expected to drop to 27.6% by
2015. Most smokers in the country are men; about 47% of the male adult population smoked in
2012. Only 9% of female Filipino adults smoked in 2012. The rates are expected to fall to 46.7%
and 8.7% for male and female adults, respectively, by 2015.
Despite the drop in the number of smokers, the Philippines has one of Asias highest smoking
rates. Tobacco-related diseases cost the country some Ps177 billion in 2012. At the start of
2013, the government started to implement a law raising taxes on sin products, including
tobacco and alcohol. The tax on cigarettes will gradually be raised to Ps30 per pack by 2017,
almost doubling the current price to around Ps52, to discourage people from smoking. In 2003,
the country enacted a law restricting smoking in enclosed public places and workplaces. Even
local governments in the provinces have started to implement anti-smoking programmes. Albay,
a province south of Metro Manila, set a new world record in 2013 for creating the largest no
smoking sign.
Filipinos are becoming less afraid of generic drugs

There is now a growing acceptance of the more affordable generic medicines in the country. I
cant imagine life without Mefenamic Acid, Ibuprofens, and Paracetamols... I had an idea to buy
cheap and in bulk which should all save us some money, time, ... explained a mother after
trying out a service delivering products from generics company, The Generics Pharmacy. She
added that one of their many missions is to make medicines and healthcare accessible to more
Filipinos by offering generic drugs which function the same but cost less. A proponent of the
Cheaper Medicines Law has also noticed Filipinos greater acceptance. The good thing is that
consumption of generics drugs has increased, with 55% of households purchasing generic
drugs. However, the price of branded (innovator) products continue to increase, and with
overwhelming dominance of branded products in the market, whatever gains that we have had
from the generics law and the cheaper medicines law could be easily undermined, according to
the senator. In 2009, the Health Department estimated that 60% of Filipinos were opting for
generic medicines over more expensive branded counterparts.
Smokers shift to cheaper brands

The Sin Tax Law, which imposes higher taxes on cigarettes and alcohol, is expected to
discourage smokers. While it can force low-income individuals to buy fewer cigarettes, those
who can still afford them are likely to continue smoking. Months after its implementation, the
government has reported that its tax revenues on sin goods have increased. Smokers have
shifted to cheaper cigarette brands. At the start of the tax implementation, many small vendors
were worried about the laws impact on their businesses. The new prices compared to
countries like Singapore, for example, are still low, but for the ordinary Filipinos they are
expensive, a shop owner was quoted as saying in a news report. An informal survey conducted
by The LaSallian, the official paper of a private university where most of the students come from
rich families, showed that 10% of those surveyed have stopped smoking, 36% has purchased
fewer cigarettes and 36% has reported no change in their cigarette consumption.
Table 6 Health and Wellness Data 2000, 2005, 2010, 2011, 2012, 2015
2000 2005 2010 2011 2012 2015
Total health 33.5 42.1 77.3 84.6 89.3 n/a

expenditure (US$ per
capita)
Share of total health 3.2 3.5 3.6 3.6 3.5 n/a
expenditure in GDP (%
of total GDP)
- Public health 47.6 39.2 35.3 35.5 35.7 n/a
expenditure's share of
total health
expenditure (% of total
health expenditure)
- Private health 52.4 60.8 64.7 64.5 64.3 n/a

expenditure's share of
total health
expenditure (% of total
health expenditure)
Healthy life expectancy 55.1 59.7 62.3 62.5 62.8 63.6
at birth: total
population (years)
at birth: males (years)
at birth: females (years)
Average supply of food 2,412.0 2,462.0 2,573.7 2,595.2 2,626.6 2,695.1
calories per day
(calories per capita)
Average supply of 54.5 57.0 60.0 60.7 61.6 63.5
protein per day (grams
per capita)
Average supply of fat 50.6 46.2 50.3 50.6 51.0 51.8
per day (grams per
capita)
Obese population (BMI 4.9 5.9 6.8 7.0 7.2 7.8
30 kg/sq m or more) (%
of population aged 15+)
Overweight population 20.7 22.8 24.6 24.9 25.2 26.2
(BMI 25-30 kg/sq m or
more) (% of population
aged 15+)
Tobacco consumer 644.9 598.8 454.2 438.6 433.7 422.9
expenditure (Ps per
capita, at constant
prices)
Smoking prevalence 26.2 25.9 27.9 27.9 27.9 27.6
amongst adult
population (% of total
adult population)
amongst adult male
population (% of male
adult population)
amongst adult female
population (% of female
adult population)
Chart 6 Real Growth in Public and Private Expenditure on Health Compared with
Healthy Life Expectancy at Birth 2000-2015
SHOPPING HABITS
Main Household Shop

The Philippines is still far from achieving the inclusive growth sought by the Aquino
administration. Yet, the countrys strong economy is reflected in the growing buying power of
consumers, especially the middle class.
Grocery spending per household has been falling in recent years, but it is set to recover by
2015. Average household spending at grocery retailers fell to Ps83,397.9 in 2010 from
Ps96,407.2 in 2005. It fell further to Ps81,555.5 in 2011 and Ps81,380.1 in 2012 due to the tight
economy. Spending at traditional grocery retailers is set to grow to Ps63,326.9 per household by
2015, from Ps61,060.3 in 2012. Over the past 12 years, average household spending at
traditional grocery retailers reached its peak in 2005 at Ps78,349. In 2012, households spent
Ps15,688 in supermarkets; this figure is expected to reach Ps16,917, in 2015. Since public
transport systems and terminals are often located near or in the middle of commercial centres, it
has become very convenient to drop by the supermarket or grocery store for additional or
emergency purchases. Supermarkets and grocery stores have sprouted all over the metro,
prompting Filipinos to shop more frequently and less in bulk than before. More are buying
additional essential items at the supermarket rather than from neighbourhood sari-sari stores.
Among the top 10 brands in the Philippines, seven are food products, such as coffee, milk,
seasoning and noodles, and three are non-food household items (laundry soap, bath soap and
shampoo). Only three of these are home-grown names, indicating that most Filipino shoppers
still prefer global brands. When shopping for daily cosmetic products, such as shampoo,
conditioner and soap, Filipino shoppers from low- to middle-income classes usually buy micro-
packaged or sachet products. The government estimates that 25% of people live on a budget of
Ps46.14 a day; for these people, low-cost sachets make the otherwise expensive daily
necessities affordable. An observer remarks that most people have to budget carefully. While it
may be cheaper in the long run to buy in bulk, poorer people buy only what they need for the
moment. Yet, among large families and busy professionals, the trend is to buy in bulk, which is
perceived as more convenient and economical.
As an alternative to supermarkets and grocery stores, weekend markets have mushroomed in
many locations, at least five are currently scattered across Metro Manila. At these markets,
organic farmers and producers sell their goods directly to health- and eco-conscious consumers
and foodies gather to taste chefs specialty dishes. Yet, consumers need not always wait for the
weekend for their fill of organic or locally-produced vegetables, fruits, and meats. The
Department of Agriculture (DA) and the Philippine Association of Supermarkets have partnered
to help local farmers by referring supermarkets to agro-fishery suppliers, farmers groups and
producers. Supermarkets get a regular supply of organic agricultural products while farmers are
encouraged to produce more and earn more.
Shopping for Big-ticket Items

With more disposable income, Filipinos appetite for appliances, cars, and furnishings is also
growing. A recent survey by the Central Bank, which measured the buying intentions of Filipino
households, found that the demand for houses, lots and motor vehicles has increased over the
last year. In addition to the prospect of having higher incomes in the future, consumers buying
intentions are also driven by remittances from migrant workers. The Central Bank explained
that, as households believe that the Philippine economy will perform favourably and incomes will
be steady or increase further, many are in the mood to buy big-ticket items with the help of bank
loans. People will need domestic appliances, such as LED televisions, refrigerators and
microwave ovens, in their new homes. Just as some are buying their first washing machines,
others are upgrading their appliances to larger capacity models with enhanced technology. Air-
conditioners, washing machines, and refrigerators posted high volume demand in 2012.
Consumers flock to commercial centres to visit an Abenson, SM Appliance Center, or
Automatic Center and check out Blims or Greenhills for furniture. Electronics are widely
available; most malls have a wing or entire floor dedicated to mobile phones, tablets, and other
consumer gadgets. In 2012, average household expenditure on electronics and appliances
reached Ps7,157.90, and it is expected to grow to Ps7,572.20 by 2015. Filipinos are also opting
to buy more energy-efficient home appliances; they read carefully the energy efficiency tags on
the equipment. The Department of Energy has recently issued a new yellow label to make it
easier for consumers looking for energy-efficient appliances and lighting equipment. The yellow
label can be found on air conditioners, refrigerators, lamp ballasts, and compact fluorescent
lamps.
When making a purchase decision, price remains a big factor. Definitely, we want a unit with
an inverter. But whether itll be a Samsung, an LG or a Panasonic, well have to study and
compare the features some more. And, of course, the price will be a major factor, observed a
mother who was trying to decide which refrigerator to buy - a more affordable Samsung with an
inverter, or an LG or Panasonic with more eco-friendly features.
Personal Shopping
Given their convenient locations and wide arrays of products and services, malls are favoured
when consumers look for apparel, footwear, and beauty and personal care products. Right
before school starts and the Christmas season, bargain hunters still flock to market districts,
Divisoria and Baclaran, which sell a variety of goods at very low prices, but malls offer more
comfort. Besides, malls appear to have replaced parks on weekends. Families go to malls to
shop, eat, catch a movie, or simply spend time together. In a news report, Filipinos were found
to derive enjoyment from grocery shopping. Trips to the supermarkets, at least in the
Philippines, seem like family affairs, with parents bringing their children and, sometimes, their
babies, too, noted one observer. Filipinos visit department stores and stand-alone stores at the
malls to shop for clothing, footwear, beauty and personal care products. In Metro Manila, some
families also drive to warehouses outside the metro to buy discounted branded shoes and
apparel.
Shopping Online
Despite the rise of online stores, Filipinos shopping habits largely remain traditional,
according to Readers Digest Trusted Brand 2013 Survey. Filipinos are among the most active
in social media, but only 17% has made the shift to online shopping in the last two years. Less
than 10% of Filipinos actively share their brand experiences online, and only 7% trusts online
comments regarding products sold by online stores.
However, the buy-and-sell sector seems to be doing well. Websites like sulit.com and
ayosdito.com, which offer a free platform for posting classified ads for clothing, gadgets,
furniture and appliances, among others, are revolutionising the way Filipinos buy and sell items.
Sulit.com, founded in 2006, today has at least 2 million registered users, with an average 10
million daily page views, including 700,000 unique visitors per day. However, these transactions
do not take place purely online, as buyers and sellers still need to meet to exchange goods and
pay. This perhaps explains why Filipinos embrace this form of shopping more than pure online
shopping.
As more Filipinos get access to the internet through mobile devices and get accustomed to
online shopping, household internet retailing is expected to reach Ps731.30 in 2015, up from
Ps682.10 in 2012.
Group buying is rising

Filipinos are shopping online, not just for convenience, but also to get good deals. Filipinos
are known to be frugal and look for discounts or a bargain price in order to stretch their limited
budgets. They are always on the look-out for promotions and the best deals. Unsurprisingly,
group buying, whereby discounted items are sold to buyers if the sellers get a specified number
of buyers, has increasingly become popular in the Philippines. There are more group buying
sites! Wow! Those sites just kept popping up. I got overwhelmed a bit after buying too many
vouchers. I had to control myself or else, I would be spending too much money for stuff I dont
really need, said one consumer.
Discounts range from 10% to 70%, allowing consumers to buy a wide range of products and
services, such as clothes, gadgets, home appliances, and discount coupons in restaurants,
hotels, and travel packages, at very affordable rates. Blog thinkrichbefree.com lists popular
group buying sites among Filipinos: Groupon Philippines, Deal Grocer, Ensogo, Pinoy Great
Deals, Cash Cash Pinoy, Deal Spot, Deal Dozen, Metro Deal, Pinoy Vouchers, Deal Amigos,
and Okay Okay Deals. Group buying sites offer different payment methods, making deals
accessible even for those who do not have credit cards. Bank deposits, mobile money transfers,
and the traditional cash on delivery are welcome.
City dwellers make time for membership shopping

When warehouse membership shopping outlet S&R started to enlist members in Davao City
in southern Philippines, it had 10,000 members ahead of the stores formal opening. Given the
warm response, the store expects the number to double in just a month. The Davao store is its
seventh store to date. Members like the exclusive local and imported merchandise in the stores,
including baked goods, grocery items, wellness and beauty products and home furnishings, as
well as the exclusive deals and discounts on offer. Shoppers have expressed that, at S&R, most
products are imported and it feels like shopping at duty-free shops only more conveniently and
cheaply. Others comment that it feels like shopping in the US. The grocery side of the store is
what really shines for me. They carry a lot of products from the states you wont find at SM or
Market Market. They also carry many of the items in bulk, great for a big family but sometimes
too much for a small one. We usually stock up on things like toilet paper and diapers which are
noticeably cheaper than the other stores here in the area, said a shopper.
Table 7 Shopping Data 2000, 2005, 2010, 2011, 2012, 2015
Ps per household, at constant prices
2000 2005 2010 2011 2012 2015
Grocery retailers' 93,226.6 96,407.2 83,397.9 81,555.5 81,380.1 85,703.6

- Modern grocery 15,320.4 18,058.3 19,265.3 19,646.7 20,319.8 22,376.7
retailers'
-- Convenience stores' 501.8 589.7 616.7 682.5 719.5 873.7
-- Discounters' - - 2.4 38.4 53.3 92.1
-- Forecourt retailers' 71.3 68.9 83.0 80.6 83.0 94.9
-- Hypermarkets' 591.7 1,564.3 3,179.4 3,405.7 3,776.0 4,398.9
-- Supermarkets' 14,155.7 15,835.4 15,383.8 15,439.5 15,688.0 16,917.1
Traditional grocery 77,906.2 78,349.0 64,132.7 61,908.8 61,060.3 63,326.9
retailers'
-- Food/drink/tobacco 5,752.8 4,901.3 4,394.2 4,331.9 4,338.9 4,446.1
specialists'
-- Independent small 7,125.6 5,507.8 4,052.3 3,869.9 3,836.1 3,896.7
grocers'
-- Other grocery 65,027.8 67,939.9 55,686.2 53,707.0 52,885.3 54,984.2
retailers'
Apparel specialist 8,232.1 6,513.3 5,156.4 4,983.4 4,877.5 4,853.8
retailers'
Electronics and 11,337.1 9,367.4 7,314.8 7,186.2 7,157.9 7,572.2
appliance specialist
retailers'
Health and beauty 8,943.4 9,584.6 7,970.8 7,750.2 7,671.9 7,851.1
specialist retailers'
Home and garden 14,832.5 12,033.0 8,841.2 8,574.0 8,583.6 8,381.7
specialist retailers'
Leisure and personal 8,264.9 6,442.2 5,049.7 4,863.5 4,779.9 4,761.7
goods specialist
retailers'
Mixed retailers' 9,404.3 8,494.3 7,990.0 8,025.0 8,265.6 8,753.7
Other non-grocery 15,081.5 10,994.3 8,095.8 7,845.1 7,739.8 7,537.3
retailers'
Internet retailing 655.6 634.8 635.0 654.0 682.1 731.3
Chart 7 Index of Retail Sales Compared with Real Growth in Retail Sales through
Hypermarkets, Supermarkets and Internet Retailing 2000-2015
LEISURE AND RECREATION
Staying in
Watching television remains Filipinos most popular form of in-house entertainment. This is
especially true in Metro Manila where the number of parks and space for activities, such as
gardening, is limited. In 2012, 73.5 % of Philippine households had a colour TV set, 38.6% had
a cable TV connection and only 0.4% of households had a satellite TV system. Over the next
few years, the growth of colour TV and cable TV will be moderate at the expense of the Internet.
By 2015, 74.9% of households will have colour TV sets, 39.8% cable TV and 0.6% satellite TV.
Consumer expenditure on leisure and recreation per capita stood at Ps1,374 in 2012, and this is
set to increase to Ps1,525.7 by 2015.
Most often Filipinos watch locally-produced dramas and imported dramas from South Korea,
news, gossip shows and sports, which now include football games, in addition to the staple
basketball games. For the poor and uneducated, the television is the only tool they can afford
to make it easier for them to cope with their misery. The promise of acquiring a better life
through other people better lives on television shows help relieve persistent feelings of
depression or general sadness, described a report. One of the latest breakthroughs in
television is the hit light drama Be Careful with My Heart. It is about a young hardworking
woman who became a nanny for the child of a wealthy widower and ended up romantically
involved with him.
In 2012, only 13.1% of households had an internet-enabled computer, and the number is set
to reach 16.8% by 2015. With a monthly subscription starting at Ps999, most households cannot
afford to have internet access at home. Now, more Filipinos get internet and social media
access through their internet-enabled smartphones. In 2012, 83.9% of households had mobile
telephones and this is likely to increase to 88.5% by 2015. The growth in data usage on
smartphones, primarily driven by the availability of locally-branded smartphones, is still
concentrated in Metro Manila. One telecom company estimates that the average monthly
revenue per subscriber in the Philippines is below US$5. Filipinos are among the worlds most
sociable people and their social media presence proves it. Facebook is particularly popular with
students and women, especially young housewives, who use it to stay in touch with their family
and friends. On Facebook, they chat, share content and play online games. Facebook is easily
the most popular online destination in the country, and Filipinos spend considerable amounts of
time on the site despite a large volume of access coming from simple feature phones, explains
wearesocial.net. It also notes that Filipinos are now spending twice as much time online as
watching TV.
Most Filipinos, especially those living in Metro Manila, think that staying at home during their
free time is cheaper than going out. For most, the second best option is to go to the nearest mall
to meet with friends, shop or eat. At home, aside from watching TV and browsing the internet,
some read or play video games. Per capita spending on newspapers, magazines, books and
stationery stood at Ps178.6 in 2012, and it is forecasted to increase to Ps191 by 2015.
Meanwhile, about 2.4% of households had video game consoles in 2012, and this number is
expected to reach 2.5% by 2015.
Going Out
Going to the mall is the most common leisure activity within Metro Manila. A mall has almost
everything, from dining to movies and handy service centres, such as those processing bill
payments. We live and breathe mallsit's ingrained in our cultureand it's just so difficult to
imagine being in a city without one. We spend a lot of time and money at the mall; and in return,
they give us dining experiences, numerous shopping options, entertainment and, on sweat-
inducing days, free air-conditioning, explained a frequent mall visitor. Between a mall and a
museum, most Filipinos choose going to the mall: a curator of a museum that is adjacent to a
mall observed that, even if the museum is attached to a mall, few people visit the museum.
Now, more Filipinos are spending money on live shows of foreign acts due to the greater
choice and their increasing spending power. Last year was described as particularly big for
concerts. Social media has also had a big hand in improving our concert line-ups, with todays
viewers freed from the need to send fan mail able to directly, instantly appeal to singers or
bands via Twitter, described a news report.
Sport and Fitness

A recent report on entrepreneur.com.ph identifies a growing trend among Filipinos to practice
a lifestyle of fitness and health. In the report, a spokesperson for a local spa association has
noted that the country is entering the experience economy stage. The emphasis is on creating
experiences to address consumers more sophisticated needs.
The fitness regimens that have remained strong, especially among young city dwellers, are
biking, running and going to the gym. Fitness centres that offer a variety of exercise options
have attracted people. A consumer has explained that she likes a new gym in Metro Manila
because it is non-traditional as it does not have bulky fitness machines. It has value for your
time because a complete workout routine is achievable in 30 minutes and lastly has value for
your money. An annual membership is just Ps2,090 per month, she added.
Zumba and PlanaFORMA have recently become the new craze. They are particularly popular
with young professionals and college students who see them as fun ways to lose weight.
People find streaming TV is a practical alternative

Lately, more Filipinos, not only those living abroad, have been watching TV online. A local TV
station has noted that, from 306,000 users at the end of 2011, it had 1.9 million registered users
by the end of March 2013. In the country, the growth is driven by the greater use of
smartphones and other Internet-enabled mobile devices, which are now more affordable.
For Filipinos abroad, watching locally-produced TV programmes provides solace. Luckily for
Filipinos living abroad in this time of digital communications and the internet, the pangs of
loneliness has been somewhat mitigated by our ability to reach out and touch someone
regardless of space and time. They not only get to chat with and see friends and loved ones
back home in real-time over the internet, they also get to watch TV as if they are back in their
own living rooms in the Philippines, said a Filipino who lives abroad.
The popularity of football is rising

Basketball has been the countrys most popular sport for a very long time. This started to
change in 2010 when the Philippine Azkals, then a struggling national football team, defeated
Vietnam, the defending champion of the AFF Suzuki Cup. For a country where basketball has
been the dominant sport for a very long time, football is quickly gaining ground thanks to the
Philippine football team Azkals and the popular Younghusband brothers, Phil and James,
observed a news report. It has helped that the Younghusbands are two good-looking British-
Filipinos. A football fan has commented that the girls sudden interest in football has been
boosted by having good-looking men playing for the Azkals, formally known as the Philippines
National Football Team.
Vacations
Each year, employees in the Philippines get at least 15 days of paid annual leave. Some
convert the paid leave into cash, others choose to stay at home, but an increasing number of
Filipinos, mostly singles, young professionals and those from better-off families, use the time to
travel.
Filipinos are travelling within the country more frequently; their preferred local destinations are
Cebu City, Boracay and Palawan. A news report explains that flights are more frequent and
more land transportation routes to domestic tourism hotspots are available. The Tourism
Department expects the number of local travellers to reach 56.1 million by 2016, up from the
recorded 37.5 million in 2011.
Overseas destinations such as Singapore and Hong Kong are preferred due to their proximity.
They are also convenient as no visa is required for Filipino holidaymakers. Hong Kong is a
particularly popular shopping destination during Christmas, the Holy Week and the July summer
sales season. A news report revealed that Filipinos spend just three to five days in the city
short, but with a fully-packed shopping itinerary. It added that The only clothes packed from the
Philippines are the clothes worn to the airport on the first day, just enough underwear, and
whatever is required for sleep. Everything else will just be bought from Giordano, Bossini,
Cotton On, H&M, Marks & Spencer, Uniqlo, Pull & Bear, Baleno, and Zara...
The top reasons why some Filipinos choose to spend their vacation abroad are the availability
of cheaper international airfares, the expensive hotel rates in the country, shopping, gaining new
experiences and deals from group buying sites, such as Ensogo and Groupon.
Per capita spending on packaged holidays reached Ps207.5 in 2012, almost equivalent to just
one movie ticket, but the majority of Filipinos cannot yet afford packaged holidays, which are
considered economical. Per capita spending will rise slightly to Ps233.1 by 2015. Per capita
spending on local accommodation amounted to Ps327 in 2012, and it is set to increase to
Ps349.4 by 2015. Filipinos spend more on shopping than on food. In 2012, per capita spending
on shopping reached Ps297.1, while spending on food was only Ps268.9; in 2015, they are
forecast to amount to Ps395.4 and Ps353.1, respectively. While travelling abroad, per capita
spending on accommodation reached Ps576.9, spending on food amounted to Ps890.6 and on
shopping Ps313.4 in 2012. These figures are projected to increase only slightly by 2015.
Public Holidays, Celebrations and Gift-giving

Public holidays include New Years Day, Maundy Thursday, Good Friday, Araw ng Kagitingan
(Day of Valor), Labor Day, Independence Day, National Heroes Day, Bonifacio Day, Eid ul Fitr,
Christmas Day and Rizal Day (Birthday of the national hero Jose Rizal). The government
sometimes moves the observance of some public holidays to either Friday or Monday to create
long holiday weekends. In 2013, there are four long weekends - in March, August, November
and December.
Being a largely Catholic country, the Holy Week, which covers Maundy Thursday and Good
Friday, is the longest and most-awaited holiday in the country. Many working Filipinos take the
three days before Maundy Thursday off to have a full week of vacation. Almost all commercial
establishments are closed on Maundy Thursday and Good Friday. Filipinos working in Metro
Manila and other cities often go back to their provinces and hometowns during Holy Week.
Some also use the days to go to the countrys tourist spots or to travel abroad.
Another big celebration in the country is fiesta, a celebration held in honour of a towns patron
saint. A fiesta celebration can mean at least a full day of non-stop eating for the host families
and their guests, most of whom are relatives and friends, who may have come from far away.
Rain or shine, high tide or low tide, nobody stops Filipinos from coming over to a fiesta, where
they flock in numbers. Even if it was a long way off, people have got to go there. Its never too
expensive to ride a passenger jeep or tricycle [two common modes of transportation], revealed
an observer.
Birthdays are also important in almost every Filipino household. On birthdays, the person who
has a birthday buys his/her family, friends, or co-workers a meal and drinks, or the other way
around. Typically, no Filipino birthday celebration is complete without pansit, a noodle dish
believed to assure the celebrant a long life.
Most celebrations at home involve singing. Almost every Philippine home has a karaoke
machine or a Magic Sing microphone a digital microphone that turns your television into a
karaoke machine. Its almost always a feature at birthday and holiday parties, described one
news report.
The rise of the short vacation in a local hotel

For most Filipino families, a vacation means being close to a beach or a pool. For Metro
Manila residents, going to a beach requires hours of driving to nearby provinces or flying to a
beach destination. The less expensive option is to stay at a hotel or resort club within Metro
Manila. I was on the hunt for a bargain stay in a hotel that has swimming pool but nothing fitted
my budget. My next option was a day tour to a resort club of some sort until I searched online
for 'swimming pool manila' which led me to Ace Water Spa in Kapitolyo Pasig, according to one
holidaymaker looking for a short holiday getaway.
Group-buying sites are shaping Filipinos travel plans

With their value-for-money proposition, group buying sites have found an audience among
Filipinos. Group-buying sites or deal sites are popping up like crazy in the Philippines? Who
can blame them? Filipinos are frugal by nature, always looking for the best deals, sales and
discounts on everything, commented an observer.
Popular deals on these websites for Filipino customers include hotel accommodation and
holiday packages. I was only introduced to this mode of online shopping a couple of months
ago but mind you, I have already availed of different services with at least 50% off their total
prices spa and massage treatments, hotel bookings in Baguio and Cebu, restaurant buffets,
deluxe pedicure and foot spa, among other things, according to one customer. It really got me
hooked so I have subscribed to every group buying site in the Philippines and am continuously
scouting for bargain deals and promos close to home and everywhere else I can travel to in the
next months, she added.
Table 8 Leisure and Recreation Data 2000, 2005, 2010, 2011, 2012, 2015
2000 2005 2010 2011 2012 2015
Ownership of household
durables by type
- Colour TV set (% of 52.7 67.7 72.4 72.9 73.5 74.9
households)
- Cable TV (% of 11.1 28.6 37.3 38.0 38.6 39.8
households)
- Satellite TV system 0.2 0.2 0.4 0.4 0.4 0.6
(% of households)
- Internet enabled 0.1 4.3 10.1 11.8 13.1 16.8
computer (% of
households)
- Mobile telephone (% 15.5 47.7 79.3 81.8 83.9 88.5
of households)
- Video games console 2.0 2.1 2.4 2.4 2.4 2.5
(% of households)
Consumer expenditure on
leisure and recreation
(Ps per
capita, at constant
prices)
- Audio-Visual, 349.6 430.0 455.4 432.2 443.5 479.2
photographic and
information processing
equipment
- Other major durables 63.6 79.4 86.9 83.0 85.3 92.0
for recreation and
culture
- Other recreational 127.1 158.6 170.4 162.2 167.3 181.5
items and equipment,
gardens and pets
- Recreational and 177.4 237.8 278.6 269.8 280.5 311.7
cultural services
- Newspapers, 142.5 174.1 183.0 173.4 178.6 191.0
magazines, books and
stationery
- Package holidays 91.8 141.7 199.2 199.0 207.5 233.1
Domestic tourism
receipts and
expenditure
- Accommodation 291.3 283.9 309.5 318.1 327.0 349.4
- Entertainment 118.8 131.5 148.8 159.7 172.9 218.7
- Excursions 20.4 24.8 26.8 28.2 29.2 32.9
- Food 144.8 183.6 226.3 246.2 268.9 353.1
- Shopping 163.4 216.6 241.6 267.4 297.1 395.4
- Travel within the 18.3 20.3 26.6 29.4 32.2 41.4
country
- Other domestic 29.4 40.7 40.8 42.8 44.8 49.8
tourist expenditure
Outgoing tourism
receipts and
expenditure
- Accommodation 642.3 657.8 535.4 557.3 576.9 638.2
- Entertainment 574.7 595.3 603.0 626.6 650.4 725.7
- Excursions 202.6 208.1 200.1 204.1 207.4 216.6
- Food 811.7 831.4 822.8 856.5 890.6 998.5
- Shopping 341.1 362.8 281.8 297.3 313.4 364.8
- Travel within the 134.9 138.7 112.7 120.0 127.0 149.9
country
- Other outgoing 263.6 274.2 262.1 265.4 276.0 306.2
tourist expenditure
Departures by mode of
transport
- Air ('000) 1,237.6 1,906.4 2,989.2 3,335.1 3,716.5 5,156.2
- Sea ('000) 307.2 451.0 418.9 368.9 336.4 319.2
Demand factors
- Annual leave - 26 32 32 35 n/a
entitlement (days)
Chart 8 Percentage of Households in Possession of Cable TV; Satellite TV System;

Internet Enabled Computer; Mobile Telephone; Video Games Console 2000-
2015
GETTING AROUND
Private Transport
In 2012, per capita consumer expenditure on transport services reached Ps9,259. Since fresh
graduates normally get Ps12,000-Ps,15,000 a month for entry-level positions, the average
spending on transport services is steep. By 2015, it is forecasted that Filipino commuters will
spend an average of Ps10,342.
Private transport in the Philippines includes cars, motorcycles, and bicycles. About 27.7% of
households have a bicycle, 12.9% of households have a motorcycle and 11.2% of households
have a passenger car. By 2015, 30.2% of households are expected to own a bicycle, 13.1% a
motorcycle and 12% a car.
In the first half of 2012, 87,226 new vehicles were sold, according to the local industry group
of auto manufacturers and distributors. A growth of 20%, from the 72,871 units sold during the
same period in the previous year. About 28,035 of the units sold were passenger vehicles. The
latest industry report has noted brisk sales of Asian utility vehicles, or affordable all-around cars,
and of smaller car models. Based on interviews with several auto companies, a recent news
report on malaya.com.ph said that 2013 will be the year of small cars, commercial vehicles and
hybrids. A news report on interaksyon.com reveals that Filipinos can now afford to buy brand
new cars because of easier payment terms and the introduction of smaller car models.
When choosing their cars, todays Filipinos are said to be smarter. They consider things like
after-sales service and resale value when making their choices. They are constantly updated on
reviews of specific models which they also factor in when buying a vehicle, explained a Toyota
Philippines spokesperson. Filipinos also consider value-for-money features, such as fuel
efficiency, vehicle practicality, such as parking features, and durability. An Isuzu Philippines
representative revealed that the main trend in the coming years is for more practical vehicles,
such as subcompact cars and multi-purpose vehicles.
Despite the perceived crowded car market in Metro Manila, the car industry still has a lot of
room for growth as passenger car ownership is low. Most people in urban and rural areas still
rely on public transport to get around, both for personal and business trips.
Public Transport
The public transport system and infrastructure in the country, especially in Metro Manila,
remains poor. Traffic conditions within the metro have worsened. What is needed is an efficient
mass transport system, according to a philstar.com columnist.
A recent study by the Japan International Cooperation Agency has estimated that the country
is losing Ps2.4 billion a day in potential income due to heavy traffic congestion. A senator has
filed a bill proposing to institutionalise telecommuting, her solution to the worsening traffic
conditions in Metro Manila. The bill also includes the drafting of a sustainable transport action
plan that will encourage people to walk, cycle and use public transport systems. These may
help decongest the traffic of Metro Manila but to a minimal level. All ideas mentioned may help
but the most significant solution to this problem is anything but de-urbanization of the said
place, commented a news site user. This is not addressing the traffic issue but avoiding it.
Create more mass transport system (trains). Add more roads. Or provide alternative routes.
Regulate and monitor big trucks and buses, wrote another.
Public transport includes jeepneys, buses, trains, and tricycles. Jeepneys are the main mode
of public transportation in Metro Manila and in most towns, both for short- and long-distance
travel. Ordinary and air-conditioned buses are used for transportation within Metro Manila and
when travelling to other provinces. Meanwhile, tricycles roofed sidecars bolted to a motorbike
or a bicycleare found everywhere and are essentially used for short trips. Tricycles in Manila
are normally confined to certain routes, usually around commercial centers or residential
villages, and will seldom venture away from their regular beat, said one report. Passenger rail is
mostly found in Metro Manila; it includes the Light Rail Transit (Lines 1 and 2) and the Metro
Rail Transit (Line 3). These lines are used by people going to work, shuttling between the north
and south of the metropolis. The only other railway line in the country is the Bicol Express,
which connects Manila to the Bicol region in the southeast of Luzon.
Commuting
The minimum fare using jeepneys is Ps8, Ps12 for buses, Ps10 for the train lines, and Ps8 for
tricycles (Ps15 for special trips). Schoolchildren and senior citizens pay discounted fares on all
public transport vehicles.
In 2012, per capita spending on rail travel amounted to Ps287.5, against Ps1,541.7 on buses,
coaches and taxis. By 2015, it is forecasted that commuters will be spending an average of
Ps322.3 on rail travel and Ps1,694.9 on buses, coaches and taxis.
There are no established bike lanes along EDSA, the main thoroughfare in Metro Manila, but
some portions of the sidewalk have been turned into a bike lane, particularly between the
Magallanes and Ayala areas. Under the MMDAs bike sharing system, commuters bound for
Ayala may alight at Magallanes and use bicycles from there, or the other way around. Marikina
City has bike lanes, but cyclists have a difficult time once outside of the citys perimeter.
The 22-km MRT-7 project and the 12.56-km monorail are among the works planned to
expand the public transport system. These systems have been discussed for a long time and
residents are fed up with waiting for construction to begin on these lines. The MRT-7 will have
14 stations traversing North Avenue, Elliptical Road, Commonwealth Avenue, Quirino Avenue,
and San Jose del Monte in Bulacan and will be connected to the now operational LRT-MRT
Closing Loop Interconnection Project. The monorail will connect the Makati Central Business
District and Bonifacio Global City to the airport, easing traffic in the two areas.
Air Travel
Budget flights were introduced to Filipinos in 2005, when Cebu Pacific introduced the budget
airline concept. The airline was offering fares as low as Ps1, making average fares 30% lower
than ten years previously. Other local airlines soon followed and the growing competition in the
local aviation industry became a boon to Filipinos wanderlust. The promise of low fares and
new destinations prompted thousands to hop from one island to another and explore the
Philippines. More Filipinos have been booking flights since, and 2012 was a particularly big year
for budget carriers like Cebu Pacific, PAL Express, AirAsia and Zest Air. Between January and
September, they were used by almost 80% of the domestic markets 15.5 million passengers
and about 30% of the international markets 12.5 million. The most common destinations are
Boracay, the countrys most famous white sandy beach; Siargao, an internationally-acclaimed
haven for surfers; and Coron, which appeals to nature-loving travellers.
Despite the popularity of budget carriers in the Philippines, average consumer expenditure on
air travel remained very low at Ps270.50 per capita in 2012. It is projected to increase only
slightly to Ps300 by 2015.
Budget airlines have often been criticised for delayed flights and lost baggage. Most
passengers do nothing about it, believing that there is little to expect from cheap airfares. To
protect travellers from perceived abusive practices, the government implemented the Passenger
Bill of Rights in December 2012. It sets guidelines on overbooking, rebooking, refunds,
cancelled and delayed flights, lost luggage and misleading advertisements on fares -the top
passenger complaints in 2011.
Growing appetite for expensive cars

While middle-class Filipinos have been reported to prefer practical cars, the countrys rich are
keen to expand their portfolios of European cars. Before British luxury vehicle brand Rolls-
Royce opened a local dealership in 2013, wealthier Filipinos were known to buy European car
brands, such as Mercedes-Benz, BMW, Volvo, Audi, Porsche, Lexus, Ferrari, Lamborghini and
Maserati. The local Rolls-Royce dealer has stated that prominent businessmen, including
Manuel Pangilinan, have expressed an interest in acquiring Rolls-Royce cars. The first buyer of
a Rolls-Royce is self-made TV personality Willie Revillame, who has been known to have a
penchant for expensive vehicles. Between 2,000 and 3,000 luxury vehicles are bought in the
Philippines each year.
Table 9 Transport Data 2000, 2005, 2010, 2011, 2012, 2015
2000 2005 2010 2011 2012 2015
Consumer expenditure on 6,629.6 8,862.0 9,023.1 9,099.7 9,259.4 10,342.5

transport services (Ps
per capita, at constant
prices)
- Consumer expenditure 205.2 275.1 279.1 281.1 287.5 322.3
on rail travel (Ps per
capita, at constant
prices)
- Consumer expenditure 1,352.3 1,654.5 1,537.1 1,521.4 1,541.7 1,694.9
on buses, coaches and
taxis (Ps per capita,
at constant prices)
on air travel (Ps per
capita, at constant
prices)
on other travel (Ps per
capita, at constant
prices)
Possession of bicycle 21.4 20.2 25.9 26.8 27.7 30.2
(% of households)
Possession of 12.2 12.5 12.8 12.8 12.9 13.1
motorcycle (% of
households)
Possession of passenger 10.8 9.7 10.6 10.9 11.2 12.0
car (% of households)
Km travelled by air (km 170.7 201.4 219.7 223.7 220.7 n/a
per capita)
Passenger cars in use 764 784 809 813 824 n/a
('000)
Scheduled airlines: 5,756 8,057 21,024 22,582 23,463 n/a
Passengers carried ('000)

Consumer Expenditure on Transport Services 2000-2015

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CONSUMER LIFESTYLES IN THE

LIST OF CONTENTS AND TABLES

Chart 5 Real Growth in Consumer Expenditure Compared with Real Growth

CONSUMER LIFESTYLES IN THE

Workforce Moving To the Provinces

Filipinos Embrace Vertical Living

More Filipinos Can Afford To Travel for Leisure

Fast Smartphone Adoption Makes Up for Low Broadband Penetration

Filipinos Are Becoming More Health Conscious

Babies and Infants

Formula milk still in high demand

Mothers warm up to natural baby products

Kids get hooked on downloadable games and gadgets

Fast-food birthday parties are preferred

From textbooks to iPads and tablets

Growing fashion sense

Teens like and share

Teens look up to Glocal role models

Fewer young Filipinos are getting married

No sign that social media use will slow down

The rise of thirty-something single women

Metrosexual men on the rise

Traditional with money

Forever young mindset

Elderly immigrants return home

2000 2005 2010 2011 2012 2015

Babies/infants (aged 0- 6,071 6,251 6,672 6,674 6,687 6,945

Source: Euromonitor International

HOUSING AND HOUSEHOLDS

Pre-owned properties offer an alternative to vertical living

Condominiums appeal to growing city workers

Manilas young professionals move out of their parents homes

Single-parents lobby for more support

Consumers are still afraid to drink tap water

2000 2005 2010 2011 2012 2015

Total number of 15,272 17,322 19,508 19,954 20,401 21,755

Housing stock ('000) 14,901 16,964 19,107 19,545 19,983 21,315

Chart 2 Number of Households by Disposable Income Bracket 2005, 2010, 2015

Source: Euromonitor International

MONEY AND SAVINGS

Attitudes Toward Payment Methods

Loans and Mortgages

Smartphone craze hits town

Wider credit card use seen

2000 2005 2010 2011 2012 2015

Source: Euromonitor International

EATING AND DRINKING

Filipinos love their sweets

Ramen as the latest food craze

Milk tea anyone?

All-natural juice drink considered a healthier choice

Ps per capita, at constant prices

Food consumer 22,916 25,502 29,309 30,897 32,594 35,886

Chart 4 Real Growth in Consumer Expenditure Compared with Real Growth in

Source: Euromonitor International

GROOMING AND FASHION

The use of BB and CC cream is growing

Young Filipinos embrace Korean-inspired fashion

More fashionable Filipino men

Ps per capita, at constant prices

Personal care consumer 2,550.8 3,064.7 3,185.5 3,490.6 3,539.2 3,900.1

Chart 5 Real Growth in Consumer Expenditure Compared with Real Growth in

Source: Euromonitor International