The e-commerce market in the Philippines is experiencing rapid growth and is projected to increase by 19.6% in 2024, driven by a rising preference for online shopping and robust internet penetration, according to a report by GlobalData, publishers of EPI.
GlobalData’s E-Commerce Analytics data indicates that the Philippine e-commerce market achieved a compound annual growth rate (CAGR) of 28.6% from 2019 to 2023, reaching PHP1.1 trillion ($20.1 billion) in 2023. The market is anticipated to expand further to PHP1.3 trillion ($24.1 billion) in 2024.
Shivani Gupta, Senior Banking and Payments Analyst at GlobalData, commented, “The Philippines’ e-commerce market is advancing rapidly, supported by a sizable young population, increasing trust in online payments, enhanced logistics infrastructure, and the availability of secure alternative payment solutions.
Special online shopping events such as Black Friday, Cyber Monday, and Single’s Day have also contributed significantly to the overall market growth.”
Government initiatives are also underway to stimulate e-commerce sales. In June 2023, the Department of Trade and Industry launched the One Town One Product Philippines program in collaboration with e-commerce and logistics provider SOMAGO.
This initiative encourages small and medium-sized enterprises (SMEs) to establish an online presence and market their products through the SOMAGO platform.
Additionally, the program facilitates skills enhancement and capacity building for SMEs in online business, offering them opportunities to expand their sales both domestically and internationally through the platform.
In order to capitalize on the burgeoning e-commerce landscape, international brands are entering the market.
For instance, in August 2023, Chinese e-commerce platform Temu commenced its operations in the Philippines, aiming to compete with established players like Lazada and Shopee.
