Executive Summary

Aug 2019
PROSPECTS
As birth rates fall so does the demand for baby food

Baby food recorded slightly slower current value growth in 2019 compared with the previous year. This was partly due to the gradual decline in the country’s birth rate, which in turn was in part driven by the growing number of women in the workforce.

Increase in paid maternity leave likely to support breastfeeding

In February 2019 the Philippines signed in the 105-day Expanded Maternity Leave Act (Republic Act No 11210) which will enable working mothers to breastfeed for longer. The competition from breastmilk is therefore likely to intensify over the forecast period, with standard milk formula likely to be the most affected.

New organic and all-natural brands enter the market as consumers focus on the ingredients in their children’s food

With parents becoming increasingly conscious of what they feed their children there are a growing number of natural and organic brands and products entering the market. For example, Spanish brand Byba entered the Philippines in 2018 with its range of all-natural ready-to-eat snacks and prepared baby food which has no added sugar and no preservatives.

COMPETITIVE LANDSCAPE
Mead Johnson retains lead with the Milk Code being an obstacle to new entrants

Mead Johnson Philippines Inc continued to hold a strong lead baby food in 2019. It will likely be able to sustain its favourable standing in baby food since it owns a wide portfolio of milk formula brands, which allows it to cater to infants of different age brackets.

Leading players focus on product fortification and organic ranges

Fortification remains a key strategy for many companies. For example, Abbott Laboratories (Phils) Inc reformulated its Similac Gain School line of milk formula, with it now including a blend of nucleotides and 2’-FL HMO, which is a kind of human milk oligosaccharide that helps boost immunity.

New players establish manufacturing facilities in the Philippines

New baby food manufacturers continued to invest in manufacturing facilities in the Philippines towards the end of the review period. For example, Swedish company, AarhusKarlshamn (AAK), built a customisation plant in Batangas in August 2018 which will customise and mix oils and fats into value-added ingredients for use in milk formula, confectionery, chocolates and personal care.

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Baby Food in the Philippines

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Overview

Discover the latest market trends and uncover sources of future market growth for the Baby food industry in Philippines with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Baby food industry in Philippines, our research will save you time and money while empowering you to make informed, profitable decisions.

The Baby food in Philippines market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Baby food in Philippines?
  • What are the major brands in Philippines?
  • How are latest breastfeeding rates impacting retail performance?
  • Are government initiatives to promote breastfeeding constraining market performance?
  • What are market opportunities for higher priced functional, organic and ethically sourced baby food?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Baby Food in the Philippines - Category analysis

HEADLINES

PROSPECTS

As birth rates fall so does the demand for baby food
Increase in paid maternity leave likely to support breastfeeding
New organic and all-natural brands enter the market as consumers focus on the ingredients in their children’s food

COMPETITIVE LANDSCAPE

Mead Johnson retains lead with the Milk Code being an obstacle to new entrants
Leading players focus on product fortification and organic ranges
New players establish manufacturing facilities in the Philippines

CATEGORY DATA

Table 1 Sales of Baby Food by Category: Volume 2014-2019
Table 2 Sales of Baby Food by Category: Value 2014-2019
Table 3 Sales of Baby Food by Category: % Volume Growth 2014-2019
Table 4 Sales of Baby Food by Category: % Value Growth 2014-2019
Table 5 NBO Company Shares of Baby Food: % Value 2015-2019
Table 6 LBN Brand Shares of Baby Food: % Value 2016-2019
Table 7 Distribution of Baby Food by Format: % Value 2014-2019
Table 8 Forecast Sales of Baby Food by Category: Volume 2019-2024
Table 9 Forecast Sales of Baby Food by Category: Value 2019-2024
Table 10 Forecast Sales of Baby Food by Category: % Volume Growth 2019-2024
Table 11 Forecast Sales of Baby Food by Category: % Value Growth 2019-2024

Packaged Food in the Philippines - Industry Overview

EXECUTIVE SUMMARY

Increased spending power supports faster value growth of packaged food in 2019
Along with other packaged food developments, a plethora of new products are introduced to meet demand for convenient, healthy, interesting and indulgent food
While Universal Robina maintains its overall lead, the competitive landscape sees significant expansion and other new developments in 2018-2019
Distribution developments include new players, acquisitions and some drop-outs, while modern grocery retailers continue to dominate sales
Ongoing demand for healthier, convenient and indulgent food will ensure continued growth for packaged food in the Philippines

FOODSERVICE

Sales to Foodservice
Beyond Meat’s plant-based meat substitutes, currently sold by bulk/wholesale only, are gaining traction in restaurants seeking to capitalise on demand for healthy and environmentally friendly products
Arla Pro, a dairy foodservice concept created for professionals, is launched at a major event featuring renowned chefs from throughout Southeast Asia demonstrating the use and versatility of Arla products
Sysu International hosts Taste Setters workshop to generate interest among foodservice players and food manufacturers in spicy up their menus and products with Tabasco dry mixes
Consumer Foodservice
Despite inflationary environment and related uncertainties, consumers with higher disposable incomes still choose to dine out, as some but not all foodservice operators choose not to raise their prices
Convenience stores limited-services restaurants are performing well, drive by ongoing rollouts of new concept stores, widening selection of ready meals, snacks and other food and increased dining space
Use of food delivery mobile apps continues to drive rapid growth of home delivery
Category Data
Table 12 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 13 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 14 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 15 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 16 Sales of Packaged Food by Category: Volume 2014-2019
Table 17 Sales of Packaged Food by Category: Value 2014-2019
Table 18 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 19 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 20 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 21 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 22 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 23 Penetration of Private Label by Category: % Value 2014-2019
Table 24 Distribution of Packaged Food by Format: % Value 2014-2019
Table 25 Distribution of Packaged Food by Format and Category: % Value 2019
Table 26 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 27 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 28 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 29 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources