The Philippines’ private label retail sector is projected to see greater growth in 2025, driven by the projected five-percent increase in grocery food and beverage sales, according to the United States Department of Agriculture (USDA).

In its report issued on Jan. 15, the USDA-Foreign Agricultural Service (FAS) Manila office forecasts that the country’s overall grocery sales would reach $12.8 billion, or P749.6 billion, this year.

Of this amount, $896 million, or P52.5 billion, is expected to come from private label products, which are dominated by the country’s three major conglomerates—SM Markets, Puregold Price Club, and Robinsons Retail.

“In the past five years, private label products have made up an average of seven to ten percent of grocery food and beverage sales in the Philippines, higher than the Asia Pacific average of six percent,” the report read.

Under SM Markets, its private label brand is the SM Bonus which is available across the firms’ umbrella of grocery brands.

Puregold Price Club, meanwhile, utilizes two private label brands: Pure Basics for Puregold stores and S&R, Member's Value, and Fresh Pick brands for S&R stores.

Robinsons Retail offers the traditional Robinsons and SureBuy brands, alongside the Healthy You brand which targets health and wellness themes.

The FAS Manila identified that these private label brands place heavy emphasis on fresh produce, frozen meats, oils, condiments, and spices, with growth in gourmet, free-from, and ready-to-eat products.

With an industry that is expected to gain a stronger foothold, the FAS Manila noted that American exporters may take advantage of this situation by leveraging their products' place of origin.

“U.S. food and beverage products have a reputation for good quality among Filipino consumers. Notably, grocers leverage the origin when describing U.S. fresh and dried fruit…often using terms like 'USA,' 'Washington,' and 'California' under their own private label brands,” it said.

The agency explained that Filipino consumers are drawn to these products as they perceive them as a “balance of quality and affordability”.

Citing trade interviews, the FAS Manila said American exporters’ ideal trade products include baby food, gourmet products, baked goods, dairy products, specialty coffee, cocktail mixes, and ready-to-eat foods.