Rice, Pasta and Noodles in the Philippines

PROSPECTS

Major changes in rice trade as the government starts to enforce new regulations to make rice more affordable and accessible to consumers

Rice is the staple in the Filipino diet. With the high inflation in 2018, the government implemented changes/new laws to make rice more affordable and accessible to consumers.

New instant noodles products and a new pasta brand generate interest in 2018-2019

Several new products were introduced in this category in 2018-2019, notably in noodles and pasta. In noodles, Lucky Me Mi Goreng added a new flavour to its Lucky Me instant noodles range in 2018 – Mi Goreng (fried noodles); mi goreng is a widely popular Indonesian snack, whether it is sold by a street vendor or at a high-end restaurant, thus the new product could pose a specific threat to the Indonesian brand, Indomie, which is known for its Mi Goreng variant.

Pasta fares better in terms of value and volume growth, as other categories face new challenges

The retail value and volume size of noodles, the largest category within rice, pasta and noodles, is higher than that of rice, since the latter is widely available unpackaged. In 2019 the value and volume growth of pasta, the smallest category, was higher than that of both rice and noodles.

COMPETITIVE LANDSCAPE

Monde Nissin maintains its lead in the category on the strength of its dominance in noodles, the largest category among rice, pasta and noodles

Monde Nissin Corp maintained its leadership in rice, pasta and noodles in 2019 on the strength of its dominant value share within noodles, the largest of the three categories within the Philippines. There was not much new development in the instant noodles category over the year.

New trade regulations prompt SL Agritech to consider lowering its retail price of rice and San Miguel to start importing rice from Southeast Asia

There has been more activity among leading rice players since the government adopted and started to enforce new rules and regulations in 2018-2019. The leading company, SL Agritech Corp, which sells premium brands of packaged rice, faced stiffer competition in 2019, and slightly lost value share in the process.

In other developments, EEI buys a major state in Biotech and brands move from focusing on grain differentiation to rice fortification

There are interesting developments/ innovations in rice from small and/or emerging players. In terms of company movements, back in 2017 Biotech JP Corp introduced a portfolio of convenient and healthy packaged rice products such as Insta Rice (a microwaveable pre-cooked rice) and Rice-to-Go (a ready-to-eat packaged rice) with positive results, and in 2018, the publicly listed company, EEI Corp, bought a 60% stake in Biotech for PHP81 million as part of its diversification strategy.

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