Filipino Bakery & Cereals Market To Reach US$1.5bn In 2024: GlobalData
By Emily Ramirez, Correspondent Philippines
The Filipino bakery & cereals sector is projected to decline from ₱89.1bn (US$1.7bn) in 2019 to ₱80.4bn (US$1.5bn) in 2024 at a declining compound annual growth rate (CAGR) of 2 per cent, says GlobalData.
GlobalData’s report, ‘Philippines Bakery & Cereals – Market Assessment and Forecasts to 2024’ reveals that cookies (sweet biscuits) was the largest category in value terms in 2019. However, the bread & rolls category is forecast to register the fastest value growth at a CAGR of 0.1 per cent, during 2019–2024.
Consumer Analyst at GlobalData, Sanchi Agarwal says: “Rising disposable incomes and increasing urbanization prompted the Filipino consumers to opt for convenient bakery & cereals products which can be consumed while moving or help time-starved consumers to reduce the cooking time.
“However, due to the growing health & wellness trend in the country, the sales of products such as biscuits, bread buns, unfilled bread, plain cupcakes and cornflakes were banned in the schools of the Quezon City that is likely to adversely impact the sector growth in the coming years.”
‘Hypermarkets & supermarkets’ was the leading distribution channel in the Filipino bakery & cereals sector in 2019. It was followed by food & drinks specialists and convenience stores.
The value share of Philippines in the global bakery & cereals sector is expected to decrease from 0.3 per cent in 2019 to 0.2 per cent by 2024. Similarly, the country’s share at regional level is expected to decrease from 1.2 per cent in 2019 to 0.9 per cent by 2024.
QAF Limited, Rebisco Group of Companies and Monde Nissin are the top three companies in the Filipino bakery & cereals sector. Gardenia and Magic Creams are the leading brands in the Filipino bakery & cereals sector in value terms in 2019.
Ms Agarwal concludes: “Given the rising health awareness levels across the country, consumers are paying increased attention to their nutritional intake. Consequently, manufacturers are working to enhance the nutritional quotient of their bakery & cereals products while still maintaining the indulgence aspect for consumers.”