Report

The Philippines e-commerce market reached approximately USD 15.64 Billion in 2024. The market is projected to grow at a CAGR of 16.50% between 2025 and 2034, reaching a value of around USD 72.03 Billion by 2034.

Philippines E-Commerce Market Growth

The Philippines has more than 85.16 million internet users, with the digital economy growing by about 55% in 2020. The Philippines has a rapidly growing e-commerce sector in Southeast Asia because of its thriving economy and a significant population that is technologically adept.

As per the Philippines e-commerce market report, the major product categories purchased by the population via online websites include beauty, electronics, fashion, furniture, health, and household care. Moreover, consumer products from Asia-Pacific markets that have free trade agreements with the Philippines are also available for purchase on local e-commerce platforms like Shopee, Lazada, Zalora, and BeautyMNL.

The working population in the Philippines, particularly those aged 25-44, actively engages with e-commerce platforms using both desktop and mobile devices. Moreover, Filipinos spend a substantial amount of time on social media, averaging 10 hours of daily usage throughout the week. Some of the popular social media platforms used by Filipino consumers are Facebook (80.3 million users), YouTube (61 million users), Instagram (17.6 million users), and Twitter (11.8 million users). The changing consumer behaviour patterns and the increasing social media use are catering to increasing purchases from online channels, further contributing to the growth of e-commerce market in Philippines.

Key Trends and Recent Developments

Rising smartphone penetration, 5G expansion, increased retail spending and investment in merging ecommerce startups are increasing the Philippines e-commerce market value.

August 2023

Ecommerce platform Temu announced its launch in Philippines to compete with major Asian e-commerce giants such as Shopee and Lazada. It will further expand to other Southeast Asian countries in the coming years. The platform was founded in 2022 in Boston and is projected to record a sale of USD 166 billion by 2026 as per industry reports.

July 2023

The Philippine E-Commerce Platform (PEP) owned by the National Development Company (NDC) was launched at the National MSME Summit 2023. It was the first government omnichannel that was created to promote Filipino businesses and help them expand online. It prioritised Filipino products and onboarding of Filipino businesses officially registered with DTI and other agencies.

March 2023

Prosperna, the leading Fillipino eCommerce software announced an upgraded version of its platform, designed to help entrepreneurs and small business owners create online stores without any technical skills. This was made possible by the use of tools necessary to create and launch an online store, including an in-app setup guide, product catalogs, payment gateways, shipping options, and many more.

July 2022

The Filipino owned IT company LBTEKSystems announced that it would launch the first ever all Fillipino ecommerce platform by the second quarter of 2023. It would help online buyers and sellers address the issues of scamming and customer dissatisfaction faced on many ecommerce platforms with its advanced features.

Rising Smartphone Penetration is Aiding the Philippines E-commerce Market Expansion

Smartphone penetration is rapidly increasing in the Philippines, providing a flourishing ground for the expansion of ecommerce market. According to the World Bank, the country had recorded an overall cellphone subscriber base at 144 per 100 inhabitants which indicated the use of more than one cellphone per user. As this number grows further, ecommerce retailers will be able to reach a broader audience, facilitating seamless transactions by users.

5G Expansion Efforts are Fuelling the Philippines E-commerce Market Revenue

Public and private players in the Philippines are contributing significantly towards the expansion of 5G network, which is expected to revolutionise the e-commerce experience for Fillipinos by providing faster internet speeds and more reliable connections. In a similar effort, Globe Telecom announced the launch of 256 new 5G sites across the country in the first half of 2024. Its enhanced connectivity will enable smoother browsing, quicker downloads, and better user experiences on e-commerce platforms, encouraging more consumers to shop online.

Growing Retail Spending Accelerating the Philippines E-commerce Market Development

Increased retail spending, driven by rising disposable incomes and a growing middle class, is significantly contributing to the growth of ecommerce market in the Philippines. According to the Asian Development Bank, the country recorded a per capita retail spending of around USD 60.3 in 2022, one of the highest among major Asian economies. This indicates that consumers are willing to spend more on a variety of goods, encouraging both local and international retailers to capitalise on the trend through online offerings.

Increased Investments in Ecommerce Startups Leading to Growth of Philippines E-commerce Market

Major Fillipino ecommerce startups are receiving plenty of funds from national and international investors, fuelling their long-term growth and market stability. For instance, Philippines-based e-commerce platform enabler Etaily, which helps global brands use its end-to-end solutions to increase their ecommerce sales, received USD 17.8 million in Series A funding in November 2023 led by Chinese and Taiwanese PE firm SKS Capital. This influx of investment will not only foster competition but also drives technological advancements among ecommerce retailers in the country.

Philippines E-Commerce Industry Segmentation

"Philippines E-Commerce Market Report and Forecast 2025-2034" offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

- Business to Consumer (B2C)
- Business to Business (B2B)

Market Breakup by Industry

- Beauty and Personal Care
- Fashion and Apparel
- Consumer Electronics
- Food and Beverage
- Health and Wellness
- Home Decor
- Household Consumables
- Others

Philippines E-Commerce Market Share

Between 2019 and 2022, the number of visits to the 163 B2C e-commerce marketplaces in the Philippines surged from 960 million to 1.7 billion. Generic B2C marketplaces account for the majority (62%) of the total, while specialised marketplaces make up the remaining 38%. Among the 62 specialised platforms, 29% focus on fashion, accessories, and footwear, capturing 18% of the total traffic. Another 29% specialise in automotive parts, which draw 51.5% of the visits to specialised marketplaces in the country.

Leading Companies in Philippines E-Commerce Market

Market players are organising double-digit monthly promotions, mega campaigns, and campaign packages for participating retail companies to gain customers and increase their sales.

- Shopee Pte. Ltd.
- Lazada Group
- eBay Inc
- Ubuy Co.
- Global Fashion Group (ZALORA)
- BeautyMNL
- Sephora Digital SEA Pte Ltd
- Carousell-PH, Inc
- Kimstore Enterprise Corp.
- Others