Why is E-commerce Booming in the Philippines?
Statistics Show Overall Positive Surge
As of the latest statistics of January 2025 and based on 2024 data reported by Satoden, the Philippine e-commerce industry is expected to generate up to $24 billion in revenue this year, showing a compound annual growth rate of 17%. This steady rise is attributed to the country’s increasing internet penetration and digital adoption.
In comparison, the Philippines remains among the top countries in terms of social media usage and time spent online. According to DataReportal’s 2025 report, the country has about 97.5 million internet users, with 90.8 million active on social media, most of whom access platforms through mobile devices (96.5%). A study by Inquirer Tech also revealed that Filipinos now spend an average of 3 hours and 32 minutes per day on social media—ranking fourth worldwide. With this high level of digital engagement, the country continues to be an ideal environment for e-commerce expansion.
For the percentage share of consumers aged 16-64, around 80.2% purchased a product online through any device, and about 89.3% intently searched for a product or service to buy. All categories of e-commerce products, from fashion, appliances to electronics and food, grew positively by an average of 42% as a whole. The only category that significantly dropped is travel, mobility, and accommodation which is understandable due to the COVID-19 pandemic travel restrictions.
Among the top mobile apps downloaded were e-commerce platforms, particularly Lazada and Shopee, each yielding about 30.9m visits and 21.9m visits, respectively. All of this information shows that the overall growth of e-commerce in the Philippines is positive for the next coming years, making it one of the best avenues for businesses to succeed.
The Big Shift of Filipino Consumers and Entrepreneurs to Ecommerce
The explosive surge of e-commerce in the country happened during the height of the Covid-19 pandemic, where most traditional retail stores are mandated closed, and people are forced to undergo quarantine at home. Filipinos' lifestyles are becoming increasingly digital. The market's behavior changed significantly not only by movement limitations but also because of the convenience they realized from shopping online.
Many consumers prefer purchasing over the internet because of multiple reasons such as:
- Diverse payment options
- Access to discounts, vouchers, and reward programs
- Chance to research and review products and services before buying
- Can make multiple transactions in one seating any time of the day
- Purchase items not available in physical stores across different platforms
- Personalized shopping experience with recommendations made for you.
- Real-time customer service
Like consumers, entrepreneurs' way of doing business also changed drastically where they choose to open and expand their businesses digitally. Convenience is also key to why vendors choose to sell online. There are many advantages an entrepreneur can get in going digital compared to selling in a brick-and-mortar store. Some of which are:
- Reduced costs for start-up businesses since there's no construction needed and smaller staffing
- Access to millions of customers anytime, anywhere
- Gain valuable customer and business operation data through built-in analytics
- Convenient communication channels with customers
Philippine Ecommerce Shows No Sign of Slowing Down
The Philippines' e-commerce industry has a lot of opportunities for progress and growth. This is mainly motivated by Filipino customers who live a very digital lifestyle.
Even after the pandemic, the country's e-commerce sector has shown remarkable resilience and expansion. In 2024, the total e-commerce volume in the Philippines reached US$28 billion, with projections indicating it will expand to
US$40.5 billion by 2027. This growth is fueled by increased online grocery shopping and mobile wallet usage, reflecting a shift in consumer behavior towards digital platforms.
"Online shopping and marketing platforms will play a bigger role in the new normal as businesses and consumers increase the use of electronic transactions, including cashless payment systems and other financial technology platforms. Businesses need to innovate and make full use of technology to resume operations and cater to consumer needs and preferences while still managing risks of Covid-19 infection. "Online transactions will now become the new standard for engaging with clients, buyers, and suppliers. Therefore, both public and private sectors need to invest in digital technology."
-Acting NEDA Secretary Karl Kendrick Chua
The government supports expediting eCommerce growth, with efforts guided by initiatives like the developing E-Commerce Philippines 2024-2028 Roadmap, which builds upon previous strategies. A significant step is the Internet Transactions Act of 2023, aimed at fostering trust and security by regulating online transactions, protecting consumers, and standardizing practices through the new E-Commerce Bureau. Current government focus also involves enhancing digital infrastructure, promoting digital payments, improving logistics, and supporting the digital shift for smaller businesses nationwide.
This ongoing government support, combined with the widespread digital adoption among Filipinos, contributes to a positive outlook for the e-commerce industry in 2025. The present thriving situation shows that e-commerce remains one of the best avenues for businesses to succeed, encouraging enterprises to take advantage of the expanding digital market.
Let's Get Started
Thinking of starting your campaign? Let us help.
Our team at LOKAL will help you scope out your web design project, provide analysis on your existing marketing status, or do initial scoping on your long-term marketing campaign.
You can also send us an email at hello@agencylokal.ph.