As of 2016, Philippines are the one of the
largest coconut oil producer in the world. However, in the recent years there
is a shift in preference for coconut oil in the country. Coconut oil now is majorly exported from the
country and is used less for consumption purposes. The shift in preference of
cooking oil is has been on account of palm oil being cheaper and superior in
nutrient content in comparison to the coconut oil.
Over the years there has also been a shift in
preference in the purchase point of cooking oil in the market. The preference
of purchasing cooking oil has shifted towards supermarkets from traditional
markets.
Also, the trend of using healthy cooking oil
with low cholesterol level has emerged giving way to the use of other cooking
oils including canola oil, soybean oil and corn oil.
Philippines produce coconut oil domestically
but are dependent on its imports for palm oil, canola oil, soybean oil, corn
oil and others.
The residential sector in Philippines purchase
cooking oil from the traditional markets (sari-sari stores/mom & pop
stores, wet markets) and supermarkets On the other hand, the hotel chains
purchase cooking oil from the distributors while the food manufacturers
purchase cooking oil in bulk quantity from cooking oil manufacturers directly.
The major types of cooking oil used in
Philippines include palm oil, coconut oil, soybean oil, canola oil and corn.
Palm oil is the most popularly used cooking oil in Philippines on account of
being less expensive than the other cooking oils in the Philippines cooking oil
market. The increase in the market for packaged food products from USD ~
million in 2011 to USD ~ million in 2016 has led the growth of cooking oil in
the country. Consumption of cooking oil in Philippines has amplified from ~
thousand tons in 2011 to ~ thousand tons in 2016.
How Have
Different Segments in the Market Performed?
By Type of Cooking Oil: 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 palm oil has gathered
the largest share of ~% in the Philippines Cooking oil Market with a
consumption of ~ Thousand Metric Tons in 2016. Philippines have been one of the
largest producers of coconut oil globally but its share in the domestic
consumption remains lower to around ~% during 2016.
Canola oil is only preferred by high income
customers which are extremely health conscious as it is expensive than other
oils. Canola oil and corn oil have captured a consumption volume share of ~%
and ~% respectively during 2016.
By Distribution Channel: These traditional
markets have accounted for the share of ~% in the consumption volume during
2016 as they provide products at lower prices than those in supermarkets. The
direct sale by manufacturers/traders and distributors has accounted for the
second largest share of ~% in the total volume sales of cooking oil in
Philippines. On the other hand, Supermarkets and hypermarkets have gathered a
volume share of ~%. Online channels have accounted for the lowest share of ~%
in the total volume sales in Philippines during 2016.
By End User: The end-users in the Philippines
palm oil market include the commercial and the residential sector. The cooking
oil consumption from commercial sector includes the Manufacturers of packaged
foods, Hotel Chains and Hawkers. The Commercial Sector has accounted for the
lion’s share in the total consumption volume of cooking oil in Philippines
during 2016. This has been on account of the bulk purchases made by these entities.
The cooking oil consumption from residential sector includes the consumption of
the households. The Residential Sector has comprised of a minor share of only
~% in the total consumption volume of cooking oil in Philippines during 2016.
As of December 31st, 2015, there are ~ households in Philippines (Philippines
Statistics Authority)
By Region: The Luzon region in Philippines has
gathered the largest share of ~% 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. As of
4th December 2017, there are ~ hotels, ~ guest houses, ~ specialty lodging and
~ holiday rental units. Visayas and Mindanao on the other hand have gathered a
consumption share of ~% and ~% in 2016 respectively.
Trends and
Developments in Philippines Cooking Oil
The Philippines Cooking Oil Market has
witnessed a shift in preference among the usage of coconut oil to the use of
palm oil over the past five years. The major reason for the shift in the
preference is that the coconut is subject to large scale fluctuation in its
prices while the price fluctuations in the palm are comparatively less. In the
observed period the price of coconut oil fluctuated from PHP ~ per litre in
2011 to very low price of PHP ~ per litre in 2013 to again at PHP ~ per litre
in 2016. On the other hand, the of palm oil initially saw a great decline from
PHP ~ per litre in 2011 to PHP ~ per litre in 2013 but was steady thereafter to
PHP ~ in 2016
The traditional markets in Philippines include
the wet markets, sari-sari stores and mom & pop stores. During 2016, these
traditional markets have accounted for the ~% of the market share by volume
sold as they provide products at lower prices than those in supermarkets. But
over the past five years years(2011-2016) the share for these traditional
markets seems 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. The traditional markets
sell products which are often adulterated with used oils and not of the desired
quality
An increasing number of health conscious
consumers in the age bracket 25-45 years combined with growing awareness about
food contents with trans-fats, partially hydrogenated oils (PHOs), and
cholesterol that are responsible for various chronic diseases are factors that
have been fueling demand for cooking oils in Philippines
The increase in the consumption of packaged
food products in Philippines has also driven the market for cooking oil in
Philippines over the period 2011-2016. The growth of packaged food products
especially
savory snacks including biscuits, potato chips
and puffed snacks had uplifted the market for cooking oil in Philippines. In
the period 2011-2016, the rise in the consumption of packaged food has shown an
upward trend in the consumption of cooking oil by the food manufacturers to
manufacture their products. The retail sales of packaged products displayed a
positive CAGR of ~% in the period 2011 to 2016. The retail sales increased from
USD ~ Million in the year 2011 to USD ~ million in the year 2016. Moreover, the
trend of consuming health-friendly food has increased consumption of healthy
packaged food products made of palm oil, canola oil and corn oil.
As of 2016, it has been evaluated that there
are 350 Million coconut trees in Philippines out of which around 52 to 70
Million are aged coconut trees. These old trees produce very few nuts thus
results in lower oil production in the country. Moreover, the country’s coconut
production decreased by 15% from 14.8 Million Metric Tons in the year 2015 to
12.6 Million Metric Tons in the year 2016. The major reason for the 15% decline
in the coconut production was due to the lingering effects of the typhoon- El
Nino which hit the country in 2016. This has further constrained the coconut
oil industry of the country during 2016.
How is the
Competition Scenario?
The Philippines Cooking Oil Market is
traditionally dominated by the unorganized sector companies on account of
providing the cooking oil at a lower cost than the organised players in the
Industry. The unorganized sector includes the wet markets and mom and pop
stores. The major organised players include Minola, Golden Fiesta, Baguio,
Marca Leon and others. The organised players face tough competition from the
unorganized market entities. These organized players compete majorly on the
basis of price, packaging and types of products offered. The different types of
cooking oils offered by the major players include palm oil/ olein, coconut oil,
soybean oil, canola oil, corn oil and others. The cooking oil is packaged and
distributed various sizes as per the preferences of the end-users and demand.
Future
Outlook of Philippines Cooking Oil Market
It has been anticipated that the consumption
of cooking oil will rise from ~ thousand tons in the year 2017 to ~ Thousand
Tons in the year 2019. 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 ~ Million 2017 to ~ Million
in 2019. In the long term the market for cooking oil in Philippines is anticipated
to increase from ~ thousand tons in the year 2019 to ~ thousand tons in the
year 2021. 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 ~ Million in 2019 to USD ~
Million in 2021. Canola oil and blended
oils will be the upcoming oils in the country. The market for palm oil has been
anticipated to have the highest consumption volume share of ~% in the overall market
by 2021. The share for the coconut oil in the Philippines cooking oil market is
anticipated to decrease to ~% in 2021.
Key Topics
Covered in the Report:
Soybean Oil Exports Philippines
Cooking Oil Market in Philippines
Palm Oil Consumption Philippines
Baguio Oil Coconut Oil Philippines
Philippines Palm Oil Future
Edible Oil Market Philippines
Export Coconut Oil Philippines
For more
information on the research report, refer to below link:
Related
Reports by Ken Research
Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-124-4230204
