As of 2016, Philippines is one of the largest
exporters of coconuts and coconut oil in the world. However, coconut oil has
now become a more export oriented commodity and is used less for domestic
consumption purposes. It is gradually being replaced by palm oil in the recent
years. The market for cooking oil in Philippines is still at a growing stage as
number of brands in the country is less compared to other Asian countries.
Moreover, blended oil segment still remains an untapped market in the space.
The different type of cooking oil in the Philippines
Cooking Oil market include palm oil, coconut oil, soybean oil, canola
oil, corn oil and others. The most important reason for the largest share of
palm oil is that it is readily available and reasonably priced (average retail
price prevailing in Philippines PHP 30.4 per liter in 2016). Philippines have
been one of the largest producers of coconut oil globally but its share in the
domestic consumption remains lower to 35.3% during 2016. In the past 5 years
the average imports of soybean oil has been over 10,000 tons each year. Canola
oil is only preferred by high income customers which are extremely health
conscious as it is expensive than other oils.
The different distribution channels in the
market include traditional markets, direct Sale by manufactures/traders &
distributors, Supermarkets/hypermarkets and through online websites. The
traditional markets in Philippines include the wet markets and sari-sari
stores/mom & pop stores.
The Luzon region in Philippines has gathered
the largest share in terms of total consumption volume of cooking oil. The
major reason behind this has been that this region comprises of highest number
of hotels, guest houses and households in Philippines.
In the observed period 2011-2016, there has
been a shift in preference from the use of coconut oil to palm oil in the
country. The major reason for the shift in the preference is that the coconut
has been subject to large scale fluctuation in its prices while the price
fluctuations in the palm are comparatively less.
Moreover, it has also been observed in the
recent years that the share for the traditional markets seems to be declining
as the supermarkets emerge as the go-to places instead of these traditional
markets. The main reason for this change in trend is the strict government
regulations against adulteration. Another trend that has been observed in this
market is the increase in the number of health conscious consumers and growth
in the awareness about food contents with trans-fats, partially hydrogenated
oils (PHOs), and cholesterol that are responsible for various chronic diseases.
The major organized players include Minola,
Golden Fiesta, Baguio, Marca Leon and others. The organized players face tough
competition from the unorganized market entities selling products at cheap
prices. These organized players compete majorly on the basis of price,
packaging and types of products offered.
The expected increase in the demand for
cooking oil will be on account of the amplifying number of households in the
country. The total number of households are expected to increase from 24.1
Million 2017 to 25.4 million in 2019. The major growth in the Philippines food
manufacturing industry in the period 2019-2021 will increase Philippines
cooking oil market. The food manufacturing industry is estimated to grow from
USD 33,985.3 Million in 2019 to USD 42,951.8 Million in 2021.
For more
information on the market research report please refer to the below link:
Related
Reports by Ken Research:
Contact Us:
Ken
Research
Ankur
Gupta, Head Marketing & Communications
0124-4230204
No comments:
Post a Comment