The widespread financial hardship that was seen among the Philippine population during 2020 placed huge pressure on demand for food preparation appliances, resulting in strong volume sales declines being seen in the category. The interruption to economic activity in key sectors of the Philippine economy resulted in widespread layoffs, a spike in unemployment and pay cuts for many of those who managed to hold onto their jobs.
Another factor limiting sales declines in food preparation appliances during 2020 was the emergence of a new breed of informal foodservice entrepreneurs among the Philippines’ urban population. With many people having lost their jobs due to the adverse impact of the COVID-19 pandemic on the country’s economy, and with the country’s labour market in a moribund state for much of the year, many recently unemployed Filipinos chose to take matters into their own hands.
While a fairly substantial shift in category sales was noted towards e-commerce during 2020, e-commerce remained a peripheral distribution channel for food preparation appliances as the big winners to emerge from the COVID-19 situation were supermarkets and department stores. While most Filipinos are more inclined to purchase small appliances via e-commerce than they are to purchase major appliances online, there is still a strong preference among the population for shopping for these items in stores.
The forecast period is expected to see sales of food preparation appliances increase substantially, with the increased focus on at-home living that emerged among the Philippine population over the course of 2020 expected to remain a positive influence on category sales for the foreseeable future. Many Philippine households are expected to retain the frugal and conservative spending habits that they were forced to adopt as their incomes come under pressure during 2020, even after the economic situation improves and their incomes return to pre-COVID-19 levels.
The spike seen in demand for food preparation appliances among the many Filipinos who sought to position themselves as informal foodservice entrepreneurs during 2020 is unlikely to remain a major positive impact on demand for food preparation appliances during the forecast period. With the spread of the COVID-19 virus expected to have been brought under control by the end of 2021, the country’s consumer foodservice industry is unlikely to continue suffering from the negative impact of the pandemic situation over the longer term.
Although only a slight shift towards sales of food preparation appliances via e-commerce was seen over the course of 2020, and despite the peripheral status of e-commerce as a distribution channel in the category, the forecast period is expected to see increasing numbers of Filipinos become more comfortable with buying food preparation appliances online. Crucial to this trend is likely to be the improvements seen in the delivery services of the country’s leading e-commerce retailers during 2020 as the COVID-19 pandemic prevented them from selling such products in stores.
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Understand the latest market trends and future growth opportunities for the Food Preparation Appliances industry in Philippines with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Food Preparation Appliances research and analysis database.
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