Luxury Goods in the Philippines

Luxury goods in 2025: The big picture

In 2025, luxury goods in the Philippines experienced significant developments, shaped by a blend of socioeconomic and macroeconomic factors. Despite the ongoing urbanisation trends that continued to enhance consumer spending and purchasing power, the market faced challenges from rising inflation rates, which constrained discretionary spending and impacted overall luxury goods consumption. Shifts in international tourism also significantly influenced consumer demand and sales in the Philippines. As travel rebounded, affluent tourists, particularly from neighbouring Asian countries, contributed to increased spending in airports, duty-free outlets, and luxury retail hubs such as Makati and Cebu.

2025 key trends

The industry was significantly shaped by a heightened focus on sustainability and personalisation in 2025. Consumer preferences increasingly leaned towards luxury products that adhered to ethical practices and utilised eco-friendly materials, reflecting a global trend towards environmentally-conscious luxury consumption. A strong example of how luxury brands in the Philippines are aligning with health, wellness, and sustainability goals is Golden Goose’s “Fioreria Golden” pop-up at Greenbelt 5, launched in February 2025. This initiative combined luxury retail with ESG-focused experiences, offering sneaker customisation using recycled materials and artisanal techniques. Golden Goose also promoted conscious consumerism through its Forward Stores, which offer sneaker repair and upcycling services. The brand’s emphasis on longevity, reuse, and co-creation reflects a broader shift in luxury fashion towards sustainability and lifestyle integration, resonating with Filipino consumers who value authenticity and environmental responsibility. While local brands such as Rags2Riches and HaloHalo do not have a luxury positioning, they are leading sustainability efforts in the country by using upcycled materials and supporting artisan communities. Global players such as LVMH are enhancing transparency through blockchain-based traceability systems, demonstrating a commitment to ESG goals and climate action.

Competitive landscape

In 2024, the highly fragmented competitive landscape of luxury goods in the Philippines continued to be led by a mix of established global car manufacturers, such as Lexus Manila Inc and major names in experiential luxury, such as Shang Properties Inc. In personal luxury, the largest value category overall, LVMH Moët Hennessy Louis Vuitton SA and Kering retained their leadership in value share terms. LVMH's position was supported by its Louis Vuitton brand, which maintained its appeal through a combination of heritage craftsmanship and innovative design. Louis Vuitton resonates particularly well with affluent Filipino consumers seeking status symbols and exclusivity. Kering, on the other hand, leveraged the popularity of Gucci and Yves Saint Laurent, whose contemporary aesthetics and effective marketing campaigns target younger luxury buyers. Both conglomerates looked to navigate inflationary pressures and currency fluctuations by implementing strategic price management and exclusive product drops.

Retail developments

Offline distribution maintains its dominance in the retail of luxury goods in the Philippines, offering premium in-store experiences to affluent consumers. High-end department stores such as Rustan’s and luxury boutiques, particularly in upscale shopping districts such as Makati and Bonifacio Global City, continue to be the focal points of luxury retailing. These locations, known for their established reputation and elite clientele, benefit from exclusive in-store features and personalised services, including private viewing rooms, bespoke consultations, and VIP events, which cater to the discretionary and unique purchasing experiences sought by luxury shoppers. Designer apparel and footwear (ready-to-wear), luxury leather goods, and luxury jewellery are among the most popular product categories sold via these stores, driven by consumers' preference for tactile engagement and immediate ownership through brick-and-mortar settings. Retail developments in the Philippines tend to focus on expansion within existing luxury shopping districts rather than the creation of entirely new high-end shopping centres or villages. This approach reinforces the strategy of enhancing established luxury hubs.

What next for luxury goods?

Over the forecast period, luxury goods is expected to record a 9% current value CAGR (2025 constant value CAGR of 6%) to reach PHP635 billion in 2030, highlighting the industry's resilience and potential for sustained expansion. Among the product categories, personal luxury is projected to remain the largest, accounting for PHP259 billion in 2030. Its strength is underpinned by strong consumer interest in designer apparel and footwear (ready-to-wear), luxury jewellery, and luxury timepieces, which are expected to see significant growth. The most dynamic category, however, is experiential luxury, anticipated to record a 13% current value CAGR (2025 constant value CAGR of 10%), reaching PHP175 billion in 2030. This growth will be driven by the increasing popularity of luxury hotels, which cater to the growing demand for exclusive and high-quality experiences among affluent consumers.