Naturally Healthy Packaged Food in the Philippines

PROSPECTS

NH high fibre bread drives growth

Naturally healthy packaged food recorded slightly stronger retail value growth in 2017 than in 2016 as all categories recorded improvements in performance, although NH cereal bars continued to contract in 2017 as brand options remained limited. NH high fibre bread, meanwhile, recorded the strongest value growth in 2017 as consumption of leavened bread, in general, is improving, given that it is a convenient option during breakfast or snack time.

NH cereal bars shows signs of recovery

Although NH cereal bars is expected to record a negative retail value CAGR at constant 2017 prices over the forecast period, this is set to be an improvement over its equivalent performance over the review period. Partly assisting its recovery is the entry of Nestlé Philippines into NH cereals bars with its launch of Nestlé Fitnesse Cereal Bar in 2016 and Koko Krunch Cereal Bar in 2017.

Premium options grow

NH honey and NH olive oil are among the smallest categories in naturally healthy packaged food, as these are mostly patronised by affluent consumers due to the availability of affordable substitutes. This seems to have given Fly Ace Corp the confidence to launch its premium German brand, Langnese Honey (Langnese Honig GmbH & Co), in 2017 as NH honey is mostly purchased by consumers with sufficient disposable incomes.

COMPETITIVE LANDSCAPE

Food Industries leads

Food Industries ranked first in naturally healthy packaged food in 2017. It derives its share only from NH nuts, seeds and trail mixes where its Nagaraya brand led in 2017.

Food Industries may be challenged

The three companies trailing Food Industries all compete in NH nuts. As such, the leadership of Food Industries is likely to be challenged by its direct competitors over the forecast period.

Gardenia Bakeries (Philippines) performs strongly

Gardenia Bakeries (Philippines) achieved double-digit retail value growth in 2017, primarily due to the favourable reputation of its Gardenia brand, which allowed it to lead NH high fibre bread in 2017. Apart from being widely distributed and adequately promoted, Gardenia also uses dried fruits such as raisins and cranberries to improve the flavour of its high fibre bread.

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