Consumer spending to rise with easing inflation

By Komfie Manalo

The easing inflation sends encouraging sentiments in the business sector as consumer spending is forecasted to improve in the coming months, even in the fast-moving consumer goods (FMCG) segment.

Unilever Philippines' Nutrition Business lead, Marinelle Villanueva, said the company expects the sales performance of its food unit to improve in the second half of the year as the inflation rate eases, giving consumers more room to spend.

"We have seen people returning to adding more and different formats to the basket. (In) Quarter 1, we saw them making adjustments, they may choose a more affordable format. But we've seen pick up in Quarter 2," she said.

Villanueva said Unilever's Nutrition business began in 2024 slow due to the elevated inflation rate in the year's first quarter.

She added that the frequency of dish preparation also increases in the second half due to the holidays towards the end of the year. 

Villanueva said Unilever Philippines Nutrition's business unit would bring new products into the country in the next two to three years.

She added that these new formats would be manufactured in the company's Cavite plant.

Villanueva said the Knorr brand leads the complex seasoning market in the Philippines, accounting for more than half the market share. 

Meanwhile, on Thursday, Unilever Philippines Nutrition launched its goal of reaching 15 million Filipinos by 2030 through its nutrition education campaign, such as the Knorr "Nutri-Sarap" program and the "Makulay ang Buhay" program.

For the past 22 years, Unilever's Knorr brand has been advocating for nutritious, delicious, and affordable food to address malnutrition in the count.