The Philippine homestyle and holiday decor industry is projecting a brighter 2026 after facing a significant revenue drop this year. Industry leaders are optimistic that orders from recent international trade exhibitions will fuel next year's recovery.
Trade Fairs as Catalysts for Recovery
According to Romeo Balderrama Jr., president of both the Philippine Homestyle and Holiday Decor Association Inc. (PHILHHDA) and Philexport Southern Tagalog Association Inc. (PHILSTAI), the sector's export performance in 2026 hinges on orders secured from major trade shows. These include the October 2025 housewares and decor event in Hong Kong and the prestigious Manila Fame, the country's leading home, fashion, and lifestyle trade exhibition.
"The samples and inquiries usually come in January and February next year," Balderrama explained, speaking in a mix of English and Filipino. He noted a positive trend of buyers returning, having seen Philippine exhibitors in Hong Kong. "We had other buyers before, it seems like they're back again because they saw us in Hong Kong as they don't come here anymore."
Market Focus and Competitive Strategy
The United States continues to dominate as the primary export destination, representing approximately 60 percent to 70 percent of the sector's overseas sales. Other important markets include Italy, Brazil, and Japan.
Balderrama emphasized that consistent participation in global trade fairs is crucial for promotion and order generation. However, he stressed that product development is the main key to standing out. "Buyers always want something new, something indigenous, something sustainable – that's our niche," he stated. He highlighted that having a unique selling proposition is essential, as Philippine producers cannot compete with China on price alone.
Challenges of 2025 and the Path Forward
The industry expects its export earnings for 2025 to fall sharply, likely declining by 30 percent to 40 percent compared to previous years. Balderrama attributed this downturn partly to the strengthening of the Philippine peso against the US dollar, which has made prices less competitive. "It's not like before, it's sluggish, even the local market. Prices are high because of the strong dollar," he remarked.
Securing firm commitments from international buyers is a process that requires patience, often needing two to three trade show participations to yield results. Balderrama elaborated, "In our first participation in the international show, you cannot still gauge if sales will increase, if buyers will order. So maybe we will wait for another year or two for sales to really pick up after the buyers see this is not a fly-by-night business, we are here." This long-term view underscores the industry's commitment to establishing enduring relationships and a reliable presence in the global market.
