Tag: GlobalData

Manila, Philippines – Alternative payment tools have emerged as mainstream for e-commerce payments in the Philippines and accounted for 30.7% in total e-commerce value in 2021. This was according to the latest data from data and analytics company GlobalData.

According to the data, the share of alternative payments in the total e-commerce payment value in the Philippines stood at 30.7% in 2021, up from 21.0% in 2017. Alternative payments were followed by cash and payment cards, which accounted for 29.8% and 23.5%, respectively.

In addition, the Philippines’ e-commerce payment market is crowded with several domestic and international alternative payment solution providers with GCash, Maya , PayPal, and GrabPay leading the space. According to a previous 2021 financial services consumer survey, GCash alone accounted for 18.2% share of the total e-commerce payment value in 2021.

Nikhil Reddy, payments senior analyst at GlobalData, said, “Although ‘cash on delivery’ continues to remain one of the preferred payment methods for Filipinos, alternative payment solutions have surpassed cash to become the most preferred payment tools for e-commerce purchases over the last few years. This is supported by the rising internet and smartphone penetration, growing consumer preference and rising merchant acceptance.”

He added, “The COVID-19 pandemic has pushed the adoption of e-commerce payments in the country, as wary consumers increasingly favoured online shopping to avoid getting exposed to disease vectors. This has also benefited alternative payment tools, with consumers citing convenience, speed, and reward benefits as key factors.”

The rise of alternative payment methods allows the e-commerce market in the Philippines to grew at a compound annual growth rate (CAGR) of 19.8% between 2017 and 2022, is expected to further grow at a CAGR of 15.8% over 2022-25 to reach PHP495.2b (US$9.7b) in 2025.

“While alternative payment tools lead the Philippines e-commerce payment space, they are also now increasingly being used for in-store payments. With the growing adoption of QR code-based solutions among merchants and government initiatives to push electronic payments, alternative payments are poised to disrupt the country’s overall consumer payments space,” Reddy concluded.

Kuala Lumpur, Malaysia – In terms of which brands in the Malaysian market lead the seasoning, dressings and sauces market, they would be Nestle, Lee Kum Kee and Mars Incorporated. This is according to the latest data released by global data and analytics company GlobalData.

According to the report, the Malaysian seasonings, dressings and sauces market is projected to grow from MYR2.2b (US$527.4m) in 2021 to MYR2.7b (US$664m) by 2026 at a compound annual growth rate (CAGR) of 4.5% over the five-year period of 2021 to 2026.

It also noted that the per capita expenditure on seasonings, dressings and sauces in Malaysia increased from US$6.4 in 2016 to US$7.8 by 2021, and is further forecast to reach US$9.4 by 2026, which will be higher than the regional average of US$9.1, and lower than the global average of US$13.8.

In terms of where these products are distributed, hypermarkets and supermarkets were the leading distribution channel in the Malaysian seasonings, dressings and sauces sector in 2020, followed by convenience stores, and F&B specialists.

For Siddhartha Rodrigues, consumer analyst at GlobalData, the rise in home cooking since the onset of COVID-19 is driving the demand for seasonings, dressings and sauces, which serve as cooking sauces, table sauces, and as ready-to-consume table dips. He added that consumers are looking for high quality products in convenient formats that can easily endow the flavour of restaurant-quality dishes to home-cooked meals and snacks

“As the pandemic wanes, consumers are poised to venture out of their homes more frequently. Owing to their hectic lifestyles, young consumers are seeking healthier seasonings, dressings & sauces with novel flavours in convenient formats that can help them reduce the time spent in preparing and cooking dishes at home,” he said.

Rodrigues added, “They are seeking traditional and innovative flavours that can elevate the taste of home-cooked dishes and snacks and enhance the overall at-home consumption experience. Manufacturers need to expand their product portfolio with multiple flavours to meet the varying demands of consumers.”

Jakarta, Indonesia – The e-commerce market in Indonesia is expected to grow by 23.8% in 2022, and will be valued at IDR420t (around US$30b), according to insights from data and analytics company GlobalData.

According to the data, e-commerce payments in Indonesia are forecasted to rise further at a compound annual growth rate (CAGR) of 22.0% between 2021 and 2025, to reach IDR753t (US$53.8b) in 2025. Part of the forecasted growth’s reason is due to factors such as rising Internet and smartphone penetration, the growing middle class population, and proliferation of online merchants and payment tools.

In addition, the insights also noted that the rise in local e-commerce is also supporting the emergence of new payment models such as buy now pay later. The Indonesian buy now pay later market is crowded with several players including banks and payment service providers offering this service.

Nikhil Reddy, payments senior Analyst at GlobalData, commented, “Online shopping is popular in Indonesia, a trend that has become more prevalent amid the COVID-19 pandemic. The recent outbreak of the Omicron variant has further led to the resurgence of new cases, the highest in the last six months, which is likely to drive online shopping.”

He added, “The COVID-19 outbreak has accelerated consumers’ shift from in-store to online payments. The uptrend in e-commerce sales is likely to continue over the next few years, supported by government initiatives, growing consumer preference and improvements in payment infrastructure.”