Consumption Indicators

In 2024, the household disposable income per capita in the Philippines is forecast to amount to US$3.89k.
The total consumer spending in the Philippines is forecast to amount to US$359.00bn in 2024.
The consumer spending per capita on food and non-alcoholic beverages in the Philippines is forecast to amount to US$977.00 in 2024.
The consumer spending per capita on housing in the Philippines is forecast to amount US$752.30 in 2024.
The consumer spending per capita on healthcare in the Philippines is forecast to amount US$66.62 in 2024.
The clothing and footwear consumer spending per capita in the Philippines are forecast to amount to US$65.35 in 2024.
The consumer spending per capita on the household in the Philippines is forecast to amount US$96.43 in 2024.
The consumer spending per capita in hospitality and restaurants sector in the Philippines is forecast to amount US$342.10 in 2024.
The consumer spending per capita in communication in the Philippines is forecast to amount US$78.25 in 2024.
The consumer spending per capita on transport in the Philippines is forecast to amount US$215.40 in 2024.

The Consumption Indicators provide a comprehensive look at past, current, and anticipated consumer spending in a global comparison. The combination of household disposable income and consumer spending by category can give a full picture of current and expected consumption trends. Consumer spendings are organized into the twelve second-level COICOP categories. COICOP (Classification of Individual Consumption by Purpose) is a system used to categorize and classify consumer spending into different groups based on the purpose of the expenditure. The twelve second-level COICOP categories are Food, Alcoholic beverages and tobacco, Clothing, Housing, Furnishings, Health, Transport, Communication, Recreation and culture, Education, Restaurants and hotels, and Miscellaneous goods and services. These categories reflect the diverse spending patterns and consumption habits of individuals, contributing to economic activity and the overall growth of an economy. These indicators help understand household and personal spending changes as well as make both short- and long-term business and policy decisions.

Structure:

The Consumption Indicators covers two focus areas.

The Household Income focus area includes two different measures of household income: total household disposable income and per capita household disposable income in a selected region.
The Household Expenditure focus area includes total consumer spending and consumer spending per capita on the twelve second-level COICOP categories.

These Indicators report the consumer spending per capita at the current value of the US$.

Individual consumption expenditure of households by consumption category
Disposable income

Education spending
Consumer sentiments
Consumer behaviors

Importance of Consumption Indicators: Consumption indicators reveal crucial insights into economic health and purchasing behavior. Consumer spending, driven by disposable income, is a key measure of economic activity and growth. These indicators span sectors like food, housing, healthcare, and education, reflecting how individuals allocate their spending. Understanding these patterns helps assess economic vitality and guides public and private sector decisions.

Sectoral Contributions to Economic Activity: Each sector contributes uniquely to consumption indicators, offering a broad view of economic activity. Spending on essentials like food and housing, along with discretionary items such as healthcare and education, is influenced by disposable income. Analyzing these sectors helps stakeholders understand the interaction between different parts of the economy and the impact of income changes on overall performance.

Monitoring Trends and Market Conditions: Tracking consumption indicators is essential for monitoring trends and assessing market conditions. These indicators guide decisions on resource allocation, market strategies, and economic policies. Trends in disposable income, in particular, provide insights into consumer purchasing power, allowing stakeholders to adapt their strategies to current and future market dynamics.

Challenges in the Consumption Indicators Domain: The consumption indicators domain faces challenges from regulatory factors and evolving trends. The rise of e-commerce, sustainable consumption, demand for personalized experiences, and technological advancements are reshaping consumer behavior. Addressing these challenges is key for stakeholders to stay competitive and meet the changing needs of consumers, especially as disposable income varies in a dynamic market.

Data coverage:

The dataset encompasses data from 152 countries. The charts depict the situation of each country in six different domains. These domains are socioeconomic indicators, macroeconomic indicators, health indicators, digital and connectivity indicators, consumption indicators, as well as logistics and transport indicators. Within these domains, various segments are covered, including demography, economic measures, economic inequality, employment, consumption, health determinants, and much more.

Modeling approach:

The composition of each domain follows a comprehensive approach that combines both top-down and bottom-up methodologies, with each domain and segment being guided by a specific rationale. To evaluate the situation of these six domains within each country, we rely on pertinent indicators and data from reputable international institutions, local national statistical offices, industry associations, and leading private institutions. Additionally, we undertake data processing procedures to address issues such as missing timelines, outliers, and data inconsistency. Our data processing incorporates advanced statistical techniques, including interpolation, exponential moving weighted average, and the Savitzky-Golay filter. These methods contribute to the refinement and enhancement of data quality.

Forecasts:

In our forecasting process, a wide range of statistical techniques is utilized based on the characteristics of the markets. For example, the S-curve function is employed to forecast the adoption of new technology, products, and services, aligning the forecast model with the theory of innovation adoption. Additionally, the data is forecasted using ARIMA with and without seasonality considerations, exponential trend smoothing, and the Compound Annual Growth Rate (CAGR), with the option to incorporate adjustment factors when necessary. These techniques enable accurate and reliable forecast methods tailored to the unique characteristics of the data in each market and country.

Additional notes:

The data is updated twice per year or every time there is a significant change in their dynamics. The impacts of the COVID-19 pandemic and of the Russia/Ukraine war are considered at a country-specific level.

The Philippines are found in Southeast Asia, situated in the archipelago between the Philippine Sea and the South China Sea, with no land borders. The Philippine archipelago has 7,107 islands located in many of Southeast Asia’s waters. It had a population of roughly 105 million inhabitants as of 2017, and it is estimated that the population will increase significantly by another 10 million people by the year 2022. In recent years, the population growth rate of the Philippines slightly fluctuated, but overall, it is on a downward trend. Despite the expected increase in inhabitants, the fertility rate in the country is on a constant decline as well, having decreased by almost 1 percentage point over the last decade. In addition, the death rate increases from year to year at about the same speed.