Philippines

EXECUTIVE SUMMARY

Modest value growth in 2012

Philippines packaged food value sales are expected to grow modestly in 2012 thanks to stronger economic growth, improved disposable income and the trends of convenience and health and wellness. The value performance will be an improvement on the previous year but is among the lowest of the review period. This was due to slowing volume consumption as a result of slower population growth, low average unit price growth and higher spending on non-food consumer goods.

Higher demand for healthier packaged food products

Many of the new product developments in 2012 highlighted the health benefits that served the needs of the increasing number of health-conscious consumers. These health benefits mainly help consumers with weight management, maintenance of cardiovascular health and supplementation of vitamins and minerals. Similarly, brand manufacturers continuously develop products not only to be healthier but also better-tasting. Among the companies that introduced new products were Nestlé Philippines Inc, Universal Robina Corp, Gardenia Philippines Inc and San Miguel Pure Foods Co Inc.

Domestic manufacturers dominate packaged food

Domestic manufacturers accounted for the majority share of packaged food sales in 2012 due to the large number of local players and the large shares of key domestic manufacturers such as Monde Nissin Corp, Universal Robina Corp, The Purefoods-Hormel Co Inc and San Pablo Manufacturing Corp among others. The local brand manufacturers benefit from having popular and established brands and focusing on providing consumers with value-for-money products. Multinationals, however, are trying to increase presence and share in the local market through partnership with and acquisition of domestic manufacturers.

Supermarkets remains the most important distribution channel

The majority of packaged food sales were generated through supermarkets. The expansion of the major supermarket chains such as SM,...