The number of Filipinos in the middle-class sector is expected to rise to 8.4 million by 2030, a report showed.
In a forecast by Euromonitor International, the emerging middle class (EMC) in the country is anticipated to increase by 41.8% in the next 14 years. The optimistic number gives Philippines one of the fastest-growing rates of middle-class households, following the likes of China and Indonesia.
Filipinos are expected to have greater spending power as the average disposable income is eyed to reach P600,000 ($11, 429) in 2030, a 70% increase from the P350,000 (US$6,710) they enjoyed in 2014.
A survey moderated by Eden Strategy Institute, supports the claim as the emerging middle class globally is estimated to hit 3.5 billion by 2030 and 85% of which will come from Asia.
How businesses are preparing
One of the longest-running bakery chains in the country, Red Ribbon has been innovating its products to cater to the evolving tastes of the Filipino market, especially those part of the EMC.
“With the booming number of potential consumers, Red Ribbon is more than ready to serve them,” Zinia Rivera, general manager of Red Ribbon said in a statement snd in response to that Euromonitor International report. “Innovation is important in competing in the cakes and pastry industry, but this must be coupled with consumer and market insight.”
Red Ribbon is part of the Jollibee Foods Corporation after the latter acquired the bakery chain in 2005. It now has over 300 stores nationwide.
Photo from Flickr (Juris Argabioso)