Packaged Food in the Philippines

Increased spending power supports faster value growth of packaged food in 2019

Packaged food recorded slightly faster value growth in 2019 versus 2018 as value sales in all categories – snacks, dairy, cooking ingredients and meals and staple foods – improved over the year. Packaged food was met with challenges in 2018, such as high inflation and African swine fever.

Along with other packaged food developments, a plethora of new products are introduced to meet demand for convenient, healthy, interesting and indulgent food

Aside from significant expansion of manufacturing and distribution of packaged food, new joint ventures and increased investment in Philippine packaged food companies, 2018-2019 saw a plethora of new products responding to demands for convenient, healthy, interesting and/or indulgent food. Recognising the great popularity of Dreamcakes in metal tins, several small local players started offering their own versions of the original, which is basically chocolate cake topped with a creamy chocolate icing, and Jim’s Recipe opened an outlet in Bay City, Pasay to generate high demand for its popular Malaysian version of sponge cake.

While Universal Robina maintains its overall lead, the competitive landscape sees significant expansion and other new developments in 2018-2019

Universal Robina Corp continues to hold the highest value share in packaged food, largely due to its strength in snacks, where it maintains a wide product portfolio united under the umbrella brand Jack ‘n’ Jill. However, the competitive landscape saw 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

Modern grocery retailers dominated sales of packaged food in 2019, with supermarkets maintaining the leading value share. That channel maintains its growth with the continuous expansion of the leading chains, which makes supermarket outlets with their wide brand and product assortments more accessible to households across the country.

Ongoing demand for healthier, convenient and indulgent food will ensure continued growth for packaged food in the Philippines

Over the forecast period, retail growth of packaged food is set to register a slightly higher current value CAGR than it did over the review period, as unit price growth is set to be slightly higher and retail volume sales will only slightly slow down. In general, products perceived as healthier, such as meat substitutes, drinking yoghurt and soy drinks are expected to continue seeing strong growth, not only due to higher health consciousness but because they still have plenty of room to grow.

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