THE Philippine household goods sector is poised for steady growth over the medium term, a Fitch Group unit said, with spending expected to show a more stable trajectory.

BMI Country Risk & Industry Research forecasts spending growth of 7.5 percent this year to P270.4 billion, supported by a technologically savvy urban middle class experiencing a rise in disposable income.

Growth is expected to average 7.1 percent over the next three years, hitting P354 billion by 2028.

"Improvements in the housing market and increasing numbers of households in the middle- and upper-income brackets will encourage expenditure on aspirational products, such as consumer electronics and home furnishings," BMI said in a report on Tuesday.

Demand for electronics, in particular, was forecast to continue growing "barring economic improvements or innovation."

"Over the medium term, the market will average steady growth, with all segments apart from leisure items outperforming," it added.

The Philippine market, BMI noted, is composed of a mix of local and international retailers that offer a wide range of products, from electronics to white goods, through physical stores and online platforms.

Domestic chains like SM Home compete with global rivals like IKEA and Japan Home Centre and retail formats are also diverse, ranging from superstores, city-center display stores, and a thriving online sales sector.

For luxury household goods, BMI listed homegrown Furnitalia and Philux and France's Roche Bobois, which have one, six, and two stores, respectively, while for the mass market, it cited Sweden's IKEA (one store), Hong Kong's Japan Home Center (over 200), and local chain SM Home (50).

For toys and sporting goods, it listed France's Decathlon (9 stores) and the United States' Toys R Us (90 stores) and for appliances, SM Appliances (50), Abenson (140-plus), and Robinsons Appliances (53).

All retailers, it noted, have both brick-and-mortar and online stores.

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