Philippine online sales growth to outpace rest of Southeast Asia, says Forrester

US-based Forrester expects that online retail sales growth in the Philippines will outpace the rest of Southeast Asia through 2028, matching that of neighboring Vietnam.

In its Global Retail E-Commerce Forecast, 2024 to 2028, the market research and advisory firm said the Philippines is expected to see a compound annual growth rate (CAGR) of over 20%, the highest in the region. 

Overall, Southeast Asia's top six countries—Indonesia, Thailand, Vietnam, Malaysia, the Philippines, and Singapore—will see e-commerce sales grow from $93 billion in 2023 to $193 billion by 2028, capturing 17.4% of total retail sales, it said. 

The Forrester study highlighted the rapid adaptation to smartphone adoption and mobile commerce as key drivers of this growth, transforming the e-commerce landscape in emerging markets.

Accelerating changes in retail

Jitender Miglani, principal forecast analyst at Forrester, believes the growth of online marketplaces over the next five years will be dramatic.

The report emphasized that retailers must invest in “omnichannel” strategies to provide a seamless shopping experience as online sales soar.

This, in turn, presents new opportunities for businesses and consumers in the Philippines and beyond.