Business remains resilient in the Philippines. Despite the country’s gross domestic product growth at 5.6% in 2024, just a tad below the government’s target of 6%, there are other indicators and promising sectors that point to continued growth as we enter a new calendar year.

In 2024, new business name registrations and renewals were on an upward trend. Just before closing out the year, the Department of Trade and Industry reported over 1 million filings from January to November—beating out the full-year figure of 984,330 for 2023.

And if you’re looking for profitable business ideas to explore, this post is for you.

Consider these suggestions in the thriving industries of information technology, retail/e-commerce, and renewable energy.

Content Summary

🎯Setting up a Philippine-based BPO/KPO company within an in-demand niche area remains a lucrative investment.

🎯Gourmet groceries and specialty food shops are in vogue as people look for something beyond the usual supermarket fare.

🎯Women’s health products are very diverse. This competitive sector will require in-depth market research and a compelling value proposition.

🎯With car ownership consistently rising, expect increased demand for car parts from DIY enthusiasts, repair shops, and professional mechanics.

🎯The upfront costs in the renewable energy business are significant, but long-term returns will likely be well worth it.

Information Technology

1. Custom software solutions

Initial capital: ₱500,000–₱5 million

Costs to consider: Office rental, IT infrastructure, employees, client acquisition

In today’s digital age, many businesses need to build their own technology infrastructure. But it’s incredibly rare to find a one-size-fits-all provider that offers everything—from web hosting, cloud computing, to developing payment channels. 

Luckily, that’s where you can come in. 

If you have the experience or the requisite team/investor background in this space, it’s an opportunity to seriously consider.

Pro tip: As your business takes off, you can keep growing the team by hiring locally. The Philippines has a great talent pool of software engineers and developers that you can tap into.

2. Business/knowledge process outsourcing (BPO/KPO)

Initial capital: ₱1 million–₱15 million

Costs to consider: Office rental, IT infrastructure, employees, client acquisition

The Philippines is known for its top-notch BPO and KPO industry, thanks to Filipinos’ strong English language skills, familiarity with Western culture, and high-quality service. Industry giants like Google and Amazon already outsource many of their functions to the Philippines. 

Pro tip: Find niche areas that align nicely with your team’s expertise and background. You can look into opportunities in telemedicine, financial technology, and e-commerce (also a booming industry on its own). 

If you’re looking for a consistently growing industry to invest in, it’s hard to go wrong with a BPO/KPO business in the Philippines.

3. Game development studio

Initial capital: ₱5 million–₱10 million

Costs to consider: Game development-specific hardware, marketing, distribution channels

The success of the Filipino-produced adventure game, Until Then, is a testament to the creativity and innovation of local creatives. 

If you’re seeing potential in building awesome gaming experiences, this is a good venture to explore. Plus, in the Philippines, there’s a top-tier talent pool to draw from—whether it’s artists, animators, writers, sound designers, and even voice actors.

Pro tip: Alternatively, your business could also focus on outsourced work from big-name developers. Triple A games that received the Filipino magic touch include Cyberpunk 2077, The Last of Us Part 2, Shadow of the Tomb Raider, Halo Infinite, and Assassin’s Creed Valhalla.

💡Set a budget for business registration costs

Registering a business involves the submission of a proposed business name, relevant requirements based on your industry.

Government agencies you’ll need to go through include the Department of Trade and Industry, Securities and Exchange Commission, Bureau of Internal Revenue, and the local government unit. 

Don’t know how to get started? Loft will register your business for you.

Leave those government requirements to us, while you focus on doing business. For existing business owners, Loft also offers business registration renewal services. 

Send us an email at [email protected] or call us at +63-917-899-1111.

Retail and E-Commerce

4. Gourmet grocery/specialty food shop

Initial capital: ₱25 million–₱50 million

Costs to consider: Import/export license, regulatory clearance, location rental, marketing

You’ve probably heard of the luxury grocery chain Erewhon, the new go-to place for celebrities and influencers in the U.S. But underneath the hype, let’s acknowledge what Erowhon is at its core: an upscale supermarket chain offering fresh, organic, natural products to discerning clientele.

The concept of specialty food shops isn’t new, but it’s gaining popularity these days as people become more health-conscious and diets become more specialized.

The trend is picking up as well in the Philippines, but there are few places to shop if you want something better than the usual supermarket fare.

Pro tip: It’s a good idea to be very specific about your target market. For example, you could offer food products with a low glycemic index to appeal to people with diabetes or those who are trying to control their sugar.

As more people seek your business, you can expand to different niche offerings that other target groups are looking for. Finally, consider augmenting your brick-and-mortar location with a user-friendly website. 

5. Craft supplies store

Initial capital: ₱200,000–₱500,000

Costs to consider: Location rental costs, inventory, storage, import/export license, logistics 

Whether it’s an entrepreneur running a small business or a hobbyist unwinding at the end of the day, crafters and do-it-yourself (DIY) enthusiasts all face the same problem: where to get supplies?

One-stop craft supply shops like Michaels and JOANN in the U.S. and Yuzawaya in Japan are virtually non-existent in the Philippines. If you play your cards right, you can bring the concept here to an appreciative target market. 

Pro tip: Do research on the products that are difficult for Filipino crafters to access, such as American or European brands of yarn (for fiber artists) and Japanese art supplies.

You could even look into partnering with local suppliers to provide blanks of endemic species of wood for the woodworkers and different types of clay for the potters.

6. Perfumery

Initial capital: ₱500,000–₱2 million 

Costs to consider: Location rental, import/export license, regulatory clearance, transport, marketing

If you fancy yourself the next Jo Malone, then a business in perfumery might be your next best move.

In a country as warm and humid as the Philippines, people like the idea of freshening up with a spritz of cologne throughout the day. 

For example, many Filipinos take public transport to get to work, and the commute tends to be an uncomfortable, sweaty experience—especially during the dry season. A perfume to neutralize the jeepney smoke clinging to their clothes or some refreshing face wipes would be a much welcome reprieve. 

Pro tip: There are quite a few ways to go about starting this kind of business. Depending on your research on what’s more profitable, you can appeal to a larger target demographic or to a higher net worth clientele interested in luxury brands. 

7. Health-focused products for women

Initial capital: ₱2 million–₱20 million 

Potential costs to consider: Import/export license, product development, branding, website development

Women’s health products are all the rage right now. Offerings range from vitamins and supplements to shapewear to skincare products.  

Focus on a pressing pain point that the market has not yet addressed. What do you think your business can offer that isn’t already out there?

Pro tip: This is a highly competitive sector, with some major players already present in a particular niche (e.g. luxury skincare, makeup). Not to mention the challenge of hurdling the association with the infamous pink tax.

Think about your value proposition and how your business would consistently deliver on that.

8. Car parts 

Initial capital: ₱800,000–₱10 million

Costs to consider: import/export license, storage, location rental, marketing

You’ll find no shortage of car geeks and DIYers in the Philippines. With increasing car ownership, more repair shops and DIY enthusiasts will need a stable supply of car parts in the years to come.

And here’s another detail that you might have overlooked: the average car has tens of thousands of individual parts. 

So it’s no surprise then that industry observers forecast the parts and accessories market in the Philippines to reach over ₱289 billion in value (US$5 billion) by 2026. 

Pro tip: Start with a specific parts category that has consistent demand, whether it’s in service parts, electrical parts, interior, and so on.

You might also see an opportunity as a wholesale supplier to repair shops and professional mechanics.

Renewable Energy

9. Electric vehicle (EV) charging 

Initial capital: ₱30 million–₱100 million

Costs to consider: Location rental, EV charging equipment, regulatory requirements, technical expertise, emerging technologies

EVs are getting more popular these days as people become more conscious of the carbon footprint that fossil fuels leave behind. As of 2023, there are 16,000 registered EVs in the Philippines, with more being added each day.

Given these, setting up an EV charging station business is a promising venture. It’s still a young industry in the Philippines, so there’s an opportunity to enter a market that isn’t saturated just yet. With the government also aiming for 50% of registered vehicles being EVs by 2040, there may also be financial incentives or subsidies to take advantage of in the future.

Pro tip: The capital needed for this kind of venture will be substantial. Plus, with the industry still in its early days, regulatory requirements may change at the drop of a hat. If you’re ready to deal with all that, though, this may be a worthwhile investment.

10. Solar farm

Initial capital: ₱150 million–₱500 million

Costs to consider: Land acquisition, technical expertise, regulatory requirements, emerging technologies

Did you know? The Philippines was named the second most attractive emerging market for renewable energy investment in BloombergNEF’s 2024 Climatescope report. Proximity to the equator gives the country long days of sunlight all year round, making it a prime location for solar farms. 

A government study found that solar farms in the Philippines can produce an average of 4.5–5.5 kilowatts per hour (1 kWh is equal to 1,000 watts per hour) of electricity per square meter every day.

In addition, solar farms support the government’s push toward achieving 35% renewable energy share on the power grid by 2030, so there will likely be more opportunities for public-private partnerships on the horizon.

Pro tip: The initial investment in renewables will be steep, even more so than starting an EV charging station business. Plus, the energy sector is highly regulated.

But if you can shoulder the hefty capital requirements and navigate the industry well, then the returns will be well worth it.

Launch your business idea in the Philippines with Loft

Planning to pursue any of the ideas we suggested here? First things first: business registration should be on top of your to-dos. We can help with that.

Our team of legal and compliance experts got you covered when it comes to establishing your business presence in the Philippines. 

Complete the form below to breeze through the business registration process. 

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