2015 Bakery and Cereals Market PDF

Consumer and Market Insights: Bakery and Cereals Market in Philippines
CS1901MF
March 2015
1
Report scope
This report brings together multiple data sources to provide a comprehensive overview of the Bakery and Cereals
sector in Philippines as part of our global coverage of the sector. This report draws on market data, analyzing value
and volume data and category and channel distribution breakdown, also highlighting which categories are
witnessing the biggest growth. Brand and Private Label analysis is also provided. It also contains top line
foodservice transaction figures highlighting where the most opportunistic channels are for industry players in the
country. Detailed packaging analysis is also provided, analyzing category trends and also packaging material and
type. The report also contains qualitative analysis of the most influential consumer trends driving consumption
occasions in the category, analyzing how these trends will evolve and highlighting best practice product examples to
show how manufacturers are targeting the trend.
Market data coverage: The overall market value and volume data included in the report is for the period 2014-
2019.
Category coverage: This report provides information on 11 categories including Bread & Rolls, Cakes, Pastries &
Sweet Pies, Cookies (Sweet Biscuits), Morning Goods and Breakfast Cereals.
More extensive brand coverage: The report provides more extensive brand share coverage. Brand share data is
also validated by inputs from industry experts.
Distribution channel: The Distribution data included in the report covers 11 distribution channels including Cash &
Carries & Warehouse Clubs, “Dollar Stores”, Variety Stores & General Merchandise Retailers, Hypermarkets &
Supermarkets, Convenience Stores
Time period: The report provides overall market value and volume data, including category level data for the period
2009-2019. Distribution channel and brand share data is included for the year 2014.
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Table of Contents
• Country Context
• Market Overview
• Retail Landscape and Key Distribution Channels
• Packaging
• Brand Share
• Consumer trends
• Examples of new product development
• Appendix
3
Large base of young consumers and rising GDP per capita levels makes Philippines an
attractive Bakery and Cereals market
An increase in the size of the middle class population coupled with a growing disposable income and a large
proportion of young consumers will drive the demand for consumer packaged goods.
GDP Per Capita Population
100 2.5%
140,000 14%
GDP Per Capita (PHP)
120,000 12% 98
Annual growth (%)
Population (Million)
2.0%
Annual Growth (%)

100,000 10% 96
80,000 8% 1.5%
94
60,000 6%
1.0%
40,000 4% 92
20,000 2% 0.5%
90
0 0%
2009 2010 2011 2012 2013 2014 88 0.0%
2009 2010 2011 2012 2013 2014
GDP per capita in the Philippines has been increasing The population in the Philippines has been increasing
in absolute value terms since 2009, however there was year on year, reaching 99.0 million in 2014.
a decline in the growth rate during 2010-2011.
Consumer Price Index Age Profile
125 80+
Consumer Price Index
70 - 79
120
60 - 69
115 50 - 59
40 - 49
110
30 - 39
105 20 - 29
100 10 - 19
2009 2010 2011 2012 2013 2014 0-9
The CPI increased by 20.4% during 2009-2014, to reach The Philippines has a large young population base with
120.4 basis points in 2019. approximately 61.1% of the population aged below the
age of 30.
4
The Retail and Foodservice markets in Philippines: an overview
This slide provides an overview of the retail and foodservice markets in Philippines, in which industry
players in the Bakery and Cereals sector operate:
Retail Foodservice
Country indicator Units Value Profit Sector

Total number of transactions in the Profit
Total value of Food market, US$ Sector, 2014: 4,670.1 million
27,572.7
2014 millions
Largest channel in the Profit Sector and
Total volume of Food market, Millions of transactions, 2014: Restaurants, 3,825.6
7,351.1
2014 Kg million
Total Food volume growth

CAGR 3.8% Cost Sector
2009-2014
Proportion of Bakery and Total number of transactions in the Cost

Cereals as part of overall food % 4.8% Sector, 2014: 1418.9 million
volume, 2014
Largest channel in the Cost Sector and
Biggest category within the Bread & transactions, 2014: Education, 681.7 million
Bakery and Cereals market as % Rolls ,
part of overall volume 38.1%
Figures for overall food 2014 are forecasts.
5
Table of Contents
• Country Context
• Market Overview
• Packaging
• Brand Share
• Consumer trends
• Appendix
6
The Filipino Bakery and Cereals market will register higher growth both in value and
volume terms during 2014-2019 compared to 2009-2014
•The Bakery and Cereals market in Philippines witnessed strong growth both in value and volume terms during
2009-2014. While it grew at a of CAGR 4.4% in terms of value, volume growth during 2009-2014 was recorded
at CAGR 3.8%. It is forecast to register a CAGR of 4.8% in value terms and volume growth will be registered at
a CAGR of 4.2% during 2014-2019.
•The volume consumption of Bakery and Cereals is forecast to grow from 349.2 Kg million in 2014 to 429.6 Kg
million in 2019.
Market value of Philippines's Bakery and Market volume of Philippines's Bakery and
Cereals market, 2009-2019 Cereals market, (Millions of Kg), 2009-2019
PHP million US$ million

429.6
349.2
2009 54,836.3 1,150.1 289.1
2014 67,954.1 1,530.5
2019 85,710.9 1,875.4

2009 2014 2019
CAGR 2009-2014 4.4% 5.9%
CAGR 2014-2019 4.8% 4.1% CAGR 2009-2014 3.8%

CAGR 2014-2019 4.2%
7
The Bakery and Cereals market will register more than 4% growth both in value and
volume terms during the forecast period
The Bakery and Cereals market in Philippines was worth PHP67,954.1 million (US$1,530.5 million) in 2014 and is
forecast to reach PHP85,710.9 million (US$1,875.4 million) by 2019, growing at a CAGR of 4.8% in local currency
terms during 2014-2019. Volume consumption will grow at a CAGR of 4.2% during the same period.
In US$ terms, the market registered volatile growth during 2009-2014 due to fluctuations in exchange rates.
However the market is forecast to register stable growth during 2016-2019, due to stabilization of exchange rates
post 2015.
Market value (PHP million and US$ million) and volume growth of Bakery and Cereals market, 2009-2019
12%
10%
Growth Rate (%)
8%
Value (PHP)
6%
Value (US$ m)
4% Volume kg m
2%
0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
-2%
-4%
8
Filipino consumers are trading down to value for money products in the Bakery and
Cereals market
In 2014, the value of the Bakery and Cereals market grew by 4.5% and volume grew by 4.0%. The Bakery and
Cereals market prices saw a rise of 0.5% whereas food inflation stood at 5.8%. Increasing food inflation in
Philippines has resulted in consumers trading down to value for money products in the market. Filipino consumers
are price sensitive and are increasingly preferring such Bakery and Cereals products that are of low cost.
Extent to which consumers are trading up or down in Philippines’s Bakery and Cereals market
12%
10%
2014 Annual Change %
8%
-5.3%
5.8%
6%
0.5%
4%
2% 4.5% 4.0%
0%
Change in Sales Value Change in Sales Volume Change in Average Price Food Price Inflation Trading Up or Down
9
Bread & Rolls is the leading category in terms of volume consumption of Bakery and
Cereals products in Philippines
The Bread & Rolls category leads the volume

consumption of Bakery and Cereals products in
Market volume of Philippines's Bakery and
Philippines accounting for 38.1% of the market in
Cereals market, (Millions of Kg), 2014, by
terms of volume in 2014. The Cookies (Sweet
category
Biscuits) category is forecast to register fastest
growth in the Bakery and Cereals
1.5 0.6 market, registering a CAGR of 4.6% during 2014-
1.0 Bread & Rolls
9.1
0.6 2019.
11.2 Cookies (Sweet Market Volume, forecasted Compound Annual
0.4 Biscuits)
14.4 Cakes, Pastries & Growth Rate , 2014-2019
132.9 Sweet Pies
Savory Biscuits Market Volume CAGR
(Kg m) 2014 2014-2019
Dough Products
66.9 Bread & Rolls 132.9 4.4%
Breakfast Cereals Cookies (Sweet Biscuits) 110.7 4.6%
Baking Mixes Cakes, Pastries & Sweet
66.9 3.4%
Pies
Morning Goods Savory Biscuits 14.4 4.5%
Energy Bars Dough Products 11.2 3.9%
Baking Ingredients
Breakfast Cereals 9.1 3.7%
110.7
Baking Mixes 1.5 2.6%
Cereal Bars
Morning Goods 1.0 3.8%
Energy Bars 0.6 4.4%
Baking Ingredients 0.6 2.3%
Cereal Bars 0.4 2.1%
10
The Breakfast Cereals category is forecast to witness fastest growth during the
period 2014-2019
Cookies (Sweet Biscuits) is the largest category by value and is forecast to register fastest growth at a CAGR of
5.2% during 2014-2019 in the Filipino Bakery and Cereals market. It was valued at PHP24,375.4 million (US$549.0
million) in 2014, accounting for 35.9% of the market share. This will be followed by Cakes, Pastries & Sweet Pies
and Bread & Rolls categories with 25.7% and 25.5% share respectively.
Market value of categories in Philippines's Bakery and Cereals market
7%
2014–2019 Category Value in PHP CAGR (%)
6%
Cookies (Sweet Biscuits)
Cakes, Pastries & Sweet Pies
5%
Bread & Rolls
Dough Products
4%
Savory Biscuits
Breakfast Cereals
3%
Energy Bars
Baking Mixes
2% Morning Goods
Cereal Bars
1% Baking Ingredients
0%
0% 1% 2% 3% 4% 5% 6% 7%
2009–2014 Category Value in PHP CAGR (%)
*Bubble Size = 2014 Category value
11
Cookies (Sweet Biscuits) is the largest category in terms of value in the Filipino
Bakery and Cereals market
Market value of categories in the Bakery and Cereals market
Cookies (Sweet Biscuits) – US$ Cookies (Sweet Biscuits) – PHP
800 15% 40,000 6%
Annual Growth (%)

Value (US$ Million)
Value (PHP Million)

Annual Growth (%)
5%
600 10% 30,000
4%
400 5% 20,000 3%
2%
200 0% 10,000
1%
0 -5% 0 0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$) Annual Growth (%) Value (PHP) Annual Growth (%)
The Cookies (Sweet Biscuits) category is forecast to grow at a CAGR of 5.0% during 2009-2019 from PHP19,274.9 million
(US$404.3 million) in 2009 to PHP31,394.6 million (US$686.9 million) in 2019 with Chocolate Cookies being the largest
segment, accounting 24.9% of the share.
Cakes, Pastries & Sweet Pies – US$ Cakes, Pastries & Sweet Pies – PHP
500 15% 25,000 5%
Value (US$ Million)
Value (PHP Million)

Annual Growth (%)
Annual Growth (%)

400 10% 20,000 4%
300 15,000 3%
5%
200 10,000 2%
100 0%
5,000 1%
0 -5% 0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Cakes, Pastries & Sweet Pies category is forecast to grow at a CAGR of 4.0% during 2009-2019 from PHP14,455.9 million
(US$303.2 million) in 2009 to PHP21,397.7 million (US$468.2 million) in 2019 with Frozen Cakes & Pastries being the largest
.
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Sandwich Slices is the largest segment in the Bread & Rolls category

Bread & Rolls – US$ Bread & Rolls – PHP
600 15%
25,000 6%
Annual Growth (%)

500
Value (US$ Million)
Value (PHP Million)

10% 20,000 5%
Annual Growth (%)

400 4%
15,000
300 5% 3%
200 10,000
2%
0%
100 5,000 1%
0 -5% 0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Bread & Rolls category is forecast to grow at a CAGR of 4.7% during 2009-2019 from PHP13,966.8 million (US$292.9
million) in 2009 to PHP22,029.2 million (US$482.0 million) in 2019 with Sandwich Slices being the largest
segment, accounting for 20.5% of the market share.
Dough Products – US$ Dough Products – PHP

100 15% 4,000 5%
Annual Growth (%)

Value (US$ Million)
Value (PHP Million)

80 4%
Annual Growth (%)
10% 3,000
60 3%
5% 2,000
40 2%
0% 1,000
20 1%
0 -5% 0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Dough Products category is forecast to grow at a CAGR of 4.2% during 2009-2019 from PHP2,472.6 million (US$51.9
million) in 2009 to PHP3,728.7 million (US$81.6 million) in 2019 with Frozen Dough Products being the largest
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Savory Biscuits is one of the fastest growing categories in the Filipino Bakery and
Cereals market
Savory Biscuits – US$ Savory Biscuits – PHP
80 15% 4,000 6%
Annual Growth (%)

Value (US$ Million)
Value (PHP Million)

Annual Growth (%)
5%
60 10% 3,000
4%
40 5% 2,000 3%
2%
20 0% 1,000
1%
0 -5% 0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Value (PHP) Annual Growth (%)
Value (US$) Annual Growth (%)
The Savory Biscuits category is forecast to grow at a CAGR of 4.9% during 2009-2019 from PHP2,084.2 million (US$43.7
million) in 2009 to PHP3,366.6 million (US$73.7 million) in 2019 with Cheese-Flavoured Crackers being the largest
Breakfast Cereals – US$ Breakfast Cereals – PHP
70 15% 3,000 5%
Annual Growth (%)

Value (US$ Million)
Value (PHP Million)

60 2,500 4%
Annual Growth (%)
50 10%
2,000
40 3%
5% 1,500
30 2%
1,000
20 0%
500 1%
10
0 -5% 0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Breakfast Cereals category is forecast to grow at a CAGR of 4.1% during 2009-2019 from PHP1,901.7 million (US$39.9
million) in 2009 to PHP2,830.0 million (US$61.9 million) in 2019 with Ready-to-Eat Cereals being the largest
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The Energy Bars category is forecast to witness strong growth during 2009-2019

Energy Bars – US$ Energy Bars – PHP
7 15% 300 6%
Annual Growth (%)

Value (US$ Million)
Value (PHP Million)

Annual Growth (%)
6 250 5%
5 10%
200 4%
4
5% 150 3%
3
100 2%
2 0%
1 50 1%
0 -5% 0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Energy Bars category is forecast to grow at a CAGR of 4.8% during 2009-2019 from PHP164.8 million (US$3.5 million)
in 2009 to PHP263.1 million (US$5.8 million) in 2019.
Baking Mixes – US$ Baking Mixes – PHP

5 10% 250 2%
Annual Growth (%)

Value (US$ Million)
Value (PHP Million)

200
Annual Growth (%)
4 5%
3 150
0% 1%
2 100
1 -5% 50
0 -10% 0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Baking Mixes category is forecast to grow at a CAGR of 2.8% during 2009-2019 from PHP153.8 million (US$3.2 million)
in 2009 to PHP203.4 million (US$4.4 million) in 2019 with Pancake Mixes being the largest segment, accounting 18.4% of the
share.
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Toaster Pastries is the largest segment in the Morning Goods category

Morning Goods – US$ Morning Goods – PHP
5 15% 250 5%
Annual Growth (%)

Value (US$ Million)
Value (PHP Million)

Annual Growth (%)
4 200 4%
10%
3 150 3%
5%
2 100 2%
0%
1 50 1%
0 -5% 0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Morning Goods category is forecast to grow at a CAGR of 4.2% during 2009-2019 from PHP141.8 million (US$3.0
million) in 2009 to PHP214.3 million (US$4.7 million) in 2019 with Toaster Pastries being the largest segment, accounting
9.9% of the share.
Cereal Bars – US$ Cereal Bars – PHP
4 10% 200 3%
Value (US$ Million)
Annual Growth (%)

Value (PHP Million)
Annual Growth (%)
3 5% 150
2%
2 0% 100
1%
1 -5% 50
0 -10% 0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$) Annual Growth (%)
Annual Growth (%)
The Cereal Bars category is forecast to grow at a CAGR of 2.5% during 2009-2019 from PHP115.4 million (US$52.4 million)
in 2009 to PHP147.0 million (US$3.2 million) in 2019 with Granola/Muesli/Yogurt Bars being the largest segment, accounting
68.4% of the share.
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Baking Ingredients is the smallest category by value in the Filipino Bakery and
Cereals market
Baking Ingredients – US$ Baking Ingredients – PHP
4 10% 150 4%
Annual Growth (%)

Value (US$ Million)
Value (PHP Million)

Annual Growth (%)
3 5% 3%
100
2 0% 2%
50
1 -5% 1%
0 -10% 0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Baking Ingredients category is forecast to grow at a CAGR of 2.7% during 2009-2019 from PHP104.4 million (US$2.2
million) in 2009 to PHP136.4 million (US$3.0 million) in 2019 with Dessicated Coconut being one of the leading
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Cookies (Sweet Biscuits), Bread & Rolls, and Savory Biscuits will gain market share
during 2014-2019
Change in market share (in value terms) in the Bakery and Cereals market
Winners Losers
Change in market Change in market

Category Category
share, 2014–2019 share, 2014–2019
0.6%
1 Cookies (Sweet Biscuits) 0.8% 1 Cakes, Pastries & Sweet Pies -0.8%
The Cookies (Sweet Biscuits) category is forecast to The Cakes, Pastries & Sweet Pies category will lose
gain market share, growing from 35.9% in 2014 to market share, declining from 25.7% in 2014 to 24.9% in
36.7% in 2019. 0.1% 2019.
2 Bread & Rolls 0.2% 2 Breakfast Cereals -0.1%
The Bread & Rolls category is forecast to gain market The Breakfast Cereals category will lose market
share, growing from 25.5% in 2014 to 25.7% in 2019. share, declining from 3.4% in 2014 to 3.3% in 2019.
3 Savory Biscuits 0.1% 3 Dough Products -0.1%
The Savory Biscuits category is forecast to gain The Dough Products category will lose market
market share, growing from 3.8% in 2014 to 3.9% in share, declining from 4.4% in 2014 to 4.3% in 2019.
2019.
18
Category level pricing
Average category level prices (PHP) in the Filipino Bakery and Cereals market, 2014
Category Average Price/ Kg (PHP) 2014 Average Price/Kg (USD) 2014
Cookies (Sweet Biscuits) 220.2 5.0
Cakes, Pastries & Sweet Pies 261.5 5.9
Bread & Rolls 130.6 2.9
Dough Products 268.2 6.0
Savory Biscuits 182.2 4.1
Breakfast Cereals 251.9 5.7
Energy Bars 350.2 7.9
Baking Mixes 118.2 2.7
Morning Goods 170.6 3.8
Cereal Bars 343.3 7.7
Baking Ingredients 213.2 4.8
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Chocolate Cookies segment will gain maximum share in the Cookies (Sweet Biscuits)
category during 2014-2019
Segment’s share of the overall category by value and change in market share in Philippines’s Bakery and Cereals
market, 2014
Segment‟s Share,
Category Segment Change 2014/2019
2014
Chocolate Cookies 24.9% 1.0%

Assortments 15.1% -0.2%
Plain Cookies 14.2% -0.3%
Other Cookies 12.2% -0.6%
American Cookies 10.8% 0.0%
Butter-Based Cookies 7.4% 0.0%
Wafer Biscuits 7.0% 0.0%
Cream Filled 5.4% -0.1%
Artisanal Cookies 2.9% 0.0%
Egg-Based 0.0% 0.0%
Frozen Cakes & Pastries 32.7% 0.7%
Cakes, Pastries & Sweet Cakes 26.4% -0.6%
Pies
Pastries 21.2% -0.8%
Sweet Pies 19.7% 0.8%
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Sandwich Slices will register fastest growth in the Bread & Rolls category during
2014-2019
Segment’s share of the overall category by value and change in market share in Philippines’s Bakery and
Cereals market, 2014
Segment‟s Share, Change
Category Segment
2014 2014/2019
Sandwich Slices 20.5% 0.7%
Rolls 20.5% 0.3%
Loaves 20.2% 0.2%
Ciabatta 10.1% 0.1%

Bread & Rolls
Baguettes 9.7% -0.3%
Burger Buns 8.9% -1.0%
Other Breads 8.1% 0.1%
Frozen Bread & Rolls 2.0% 0.0%
Frozen Dough Products 27.9% -0.9%
Pie & Pastry Shells 26.4% 0.3%

Dough Products
Prepared Pastry (other) 24.3% 0.3%
Pizza Bases 21.4% 0.3%
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The Cheese-Flavored Crackers segment is forecast to register fastest growth in the
Savory Biscuits category
Category Segment
2014 2014/2019
Cheese-Flavoured Crackers 37.0% 1.6%

Bread Substitutes 27.8% -1.2%
Savory Biscuits
Plain Crackers 25.1% -0.3%
Other Crackers 10.1% -0.1%
Ready-to-Eat Cereals 62.5% -0.9%
Breakfast Cereals
Hot Cereals 37.5% 0.9%
Energy Bars Energy Bars 100.0% 0.0%
Pancake Mixes 18.4% 0.7%
Other Baking Mixes 17.5% -0.4%
Bread Mixes 16.3% 1.7%
Dessert Mixes 16.0% -1.6%
Baking Mixes
Muffin Mixes 11.3% -0.5%
Brownie Mixes 9.0% 0.2%
Cake Mixes 8.9% 0.0%
Rolls/Biscuit Mixes 2.6% 0.0%
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The Pain Au Raisan segment will gain maximum share in the Morning Goods
category
Category Segment
2014 2014/2019
Toaster Pastries 9.9% 0.0%
Dohnuts 9.2% 0.2%
Buns & Teacakes 8.9% -0.1%
Scones 8.5% -0.5%
Pain Au Chocolate 8.5% -0.5%
Waffles 8.2% 0.2%
Pain Au Raisan 7.3% 0.4%
Morning Goods Madeleines 7.3% 0.3%
Pancakes 7.2% 0.2%
Muffins 6.3% 0.2%
Breakfast Cakes 5.2% 0.2%
Croissants 4.4% -0.6%
Other (Morning Goods) 4.0% 0.0%
Crumpets 3.0% 0.0%
Frozen Morning Goods 2.0% 0.0%
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The Granola/Muesli/Yogurt Bars segment will gain market share in the Cereal Bars
category

Category Segment
2014 2014/2019
Granola/Muesli/Yogurt Bars 68.4% 1.0%

Cereal Bars
Other Cereal Bars 31.6% -1.0%
Other Baking Ingredients 15.4% 0.2%
Dessicated Coconut 13.6% -0.2%
Baking Chocolate Chips & Morsels 12.3% 0.2%
Fruit Pectins and Glazed Fruit 11.6% 0.5%
Baking Ingredients Cake Decorations & Icing 10.2% -0.1%
Dry Yeast 10.2% -0.1%
Non-Chocolate Baking Chips 10.0% -0.2%
Baking Powder/Soda 8.2% -0.3%
Cocoa-Baking 5.3% 0.1%
Corn & Potato Starch 3.3% -0.1%
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Table of Contents
• Country Context
• Market overview
• Packaging
• Brand Share
• Consumer trends
• Appendix
25
Profiles of selected Grocery Retailers
Leading retailers in the Filipino Food retail market, 2014
Leading retailers, Philippines
Company Name Overview

The Robinsons Retail Group is the largest multi-channel retailer in the
The Robinsons
Philippines. Robinsons operates through 11 formats, 21 retail brands, and
Retail Group
runs approximately 950 stores in the country.
SM Supermarket is the second largest supermarket in the Filipino food

SM Supermarket retail industry, operating around 145 stores, including Hypermarkets &
Supermarkets, and Convenience Stores.
Rustan is one of the largest diversified retailers in the Philippines. Rustan

Rustan Supercenters, Inc. is the operator of Rustan‟s Supermarkets, Shop wise,
and the Wellcome chain of hypermarkets.
Metro is a private family corporation primarily engaged in the retail

Metro business. It owns and operates a chain of 17 stores in department store
and supermarket formats.
26
Hypermarkets & Supermarkets is the leading distribution channel in the Filipino
Food market
Leading distribution channels in Filipino Bakery and Cereals market, 2014
Leading distribution channels–Overall Food Leading distribution channels – Bakery and Cereals
9%
16 Hypermarkets &
Supermarkets
14
14%
Value (US$ billion)
12 2010 Food & Drinks

10
2013 Specialists
8 44%
6
Convenience Stores
4
2
0
Others
Hypermarkets & Food & Drinks Convenience Others 33%
Supermarkets Specialists Stores
Bakery and Cereals as a percentage of overall Food:

Bakery and Cereals accounted for 5.6% of total food The Bakery and Cereals market in Philippines followed
retail consumption in Philippines in 2013. a similar trend with Hypermarkets & Supermarkets
Hypermarkets & Supermarkets is the leading retailer for accounting for 44.0% of the market share in 2014.
food sales in the Philippines, accounting for 53.3% of This was followed by Food & Drinks Specialists and
the market share in 2013, followed by Food & Drinks Convenience Stores with a market share of 33.2% and
Specialists with a 24.3% share. Convenience Stores 14.0% respectively during the same year.
registered fastest growth at a CAGR of 6.2% during
2010-2013 in comparison to the other retail formats.
27
Food & Drinks Specialists is the leading distribution channel for Cakes, Pastries &
Sweet Pies and Bread & Rolls categories
Leading distribution channels by category in the Bakery and Cereals market, 2014
Key distribution channels – Cookies (Sweet Key distribution channels – Cakes, Pastries &
Biscuits) Sweet Pies
4% 3%
12% Hypermarkets & Food & Drinks
17%
Supermarkets Specialists
Food & Drinks Hypermarkets &
Specialists 43% Supermarkets
Convenience Stores Convenience Stores
22%
62%
Others
Others
37%
Key distribution channels – Bread & Rolls Key distribution channels – Dough Products
Food & Drinks 3% Hypermarkets &

23% 6%
Specialists Supermarkets
Hypermarkets & Convenience Stores

Supermarkets
50%
8% Convenience Stores 33% Food & Drinks
58% Specialists
Others
Others
19%
28
Convenience Stores is the second largest distribution channel for Breakfast
Cereals, Energy Bars, and Baking Mixes categories
Key distribution channels – Savory Biscuits Key distribution channels – Breakfast Cereals
3%
5% 11% Hypermarkets &
Hypermarkets &
Supermarkets
18% Supermarkets
Food & Drinks Convenience Stores
Specialists
24% Food & Drinks
Convenience Stores
56% Specialists
62%
20% Others Others
Key distribution channels – Energy Bars Key distribution channels – Baking Mixes
3% 5% 3%
10% Hypermarkets & Hypermarkets &
Supermarkets Supermarkets
Convenience Stores Convenience

27% Stores
24%
Food & Drinks
Food & Drinks
Specialists
Specialists
63% 65%
Others
Others
29
Hypermarkets & Supermarkets is the leading distribution channel for Morning
Goods, Cereal Bars, and Baking Ingredients categories
Key distribution channels – Morning Goods Key distribution channels – Cereal Bars
2% 3%
20% Hypermarkets & Hypermarkets &

Supermarkets 23% Supermarkets
Food & Drinks Convenience Stores

Specialists 50%
54% Convenience Stores Food & Drinks
Specialists
Others Others
24%
24%
Key distribution channels – Baking Ingredients
3% 3%
Hypermarkets &
Supermarkets
29% Convenience Stores
Food & Drinks

Specialists
65% Others
30
Table of Contents
• Country Context
• Market Overview
• Packaging
• Brand Share
• Consumer trends
• Appendix
31
Flexible Packaging is the most used packaging material while Film is the most
commonly used container type in the Bakery and Cereals market
Overview of Philippines’s Bakery and Cereals market by type of packaging in 2014
Key Packaging Materials Key Packaging Materials by category
Flexible Packaging Rigid Plastics Others
Flexible
82.1%
Packaging 13% 4% 3% 6%
7% 1% 2%
17% 0% 6%
2% 14% 13%
Rigid 6%
14.4% 34%
Plastics 93% 98% 100% 96% 100% 88%
81% 100% 84% 83%
49%
Paper &
2.4% Baking Baking Mixes Bread & Rolls Breakfast Cakes, Pastries Cereal Bars Cookies (Sweet Dough Energy Bars Morning Goods Savory Biscuits
Board Ingredients Cereals & Sweet Pies Biscuits) Products
Flexible Packaging is the most commonly used Breakfast Cereals and Cereal Bars used Flexible
packaging material in the Bakery and Cereals market Packaging materials while Rigid Plastics is mainly used for
in Philippines followed by Rigid Plastics. the packaging of Cakes, Pastries & Sweet Pies.
Key Container Types Key Container Types by category
Film Bag/Sachet Others
Film
2%6%
3% Bag/Sachet 6% 4% 17% 13%
2%
10% Tray 21% 11% 22%
52% 8% 37%
Clamshell 59% 100% 100% 54% 54%
16% 79% 89% 94%
62% Foil 70% 59%
39% 48% 34%
29%
Others
Baking Baking Mixes Bread & Rolls Breakfast Cakes, Pastries Cereal Bars Cookies (Sweet Dough Energy Bars Morning Goods Savory Biscuits
Ingredients Cereals & Sweet Pies Biscuits) Products
Film is the most commonly used container type in the

Bakery and Cereals market and accounted for 62.1% of Cereal Bars and Energy Bars mainly used Film containers
containers used in 2014. while Bag/Sachet is most commonly used for the
packaging of Break Cereals and Baking Mixes.
32
Box is the most commonly used outer type while Plastic Tie is the most used closure
type
Overview of Philippines’s Bakery and Cereals market by packaging closure/outers used in 2014
Key Packaging Closures Key Packaging Closures by category
Plastic Tie Film Others
1 Plastic Tie 6.3%

2%
2 Film 3.3%
55%
4%
3 Prize Off 2.2% 19% 20% 5% 5% 5%
7% 1%
Baking Ingredients Baking Mixes Bread & Rolls Cakes, Pastries & Cookies Morning Savory Biscuits
Sweet Pies (Sweet Biscuits) Goods
Plastic Tie closures are the most commonly used Plastic Tie closures are most commonly used for the
closures and accounted for 6.3% of the market share in packaging of Bread & Rolls category while Film
2014, followed by Film closures with 3.3%. closures are used for Cakes, Pastries & Sweet Pies.
* Data for Bakery and Cereals using Closures.
Key Packaging Outers Key Packaging Outers by category

Box Shrink Wrap Others
1 Box 8.7%
2 Shrink Wrap 2.5% 73%
2% 4% 1%
8% 49% 6%
5% 2%
11% 8% 9%
Baking Baking Mixes Breakfast Cakes, Pastries Cereal Bars Cookies (Sweet Dough Products Morning Goods Savory Biscuits
Ingredients Cereals & Sweet Pies Biscuits)
Box are the most commonly used outers for Box outers are mainly used for the packaging of Baking
Bakery and Cereals in Philippines and accounted Mixes while Shrink Wrap outers are used for packaging
for 8.7% of the total outers used in 2014. of Cakes, Pastries & Sweet Pies
* Data for Bakery and Cereals using outers.
33
Plastic Tie will continue to be the most commonly used closure type and is forecast
to register fastest growth during 2014-2019
Overview of Philippines’s Bakery and Cereals market by type of packaging in 2019
Key Packaging Materials Key Container Types
3,000 2014 2019
2014 2019
2,500 2,000
Million Units
2,000
Million Units
1,500
1,500
1,000
1,000
500 500
0 0
Flexible Packaging Rigid Plastics Paper & Board Film Bag/Sachet Tray Clamshell
Flexible Packaging will continue to be the most The use of Film containers is forecast to grow at a
commonly used packaging material and will register CAGR of 4.8% during 2014-2019, to reach 1,835.0
fastest growth at a CAGR of 4.9% during 2014-2019. million units in 2019.
Key Packaging Closures Key Packaging Outers
200 2014 2019 2014 2019
300
Millions Units
Millions Units
150
200
100
100
50
0
0
Plastic Tie Film Prize Off
Box Shrink Wrap
Plastic Tie closures is forecast to grow at a CAGR of Box will continue to be the most commonly used
4.3% during 2014-2019, to reach 183.4 million units by packaging outers while Bag is forecast to register
2019 . fastest growth at a CAGR of 4.0% during 2014-2019.
34
Table of Contents
• Country Context
• Market Overview
• Packaging
• Brand Share
• Consumer trends
• Appendix
35
Artisanal Producers hold the dominant share in the Cakes, Pastries & Sweet Pies and
Bread & Rolls categories
Cookies (Sweet Biscuits) – Brand share Cakes, Pastries & Sweet Pies – Brand share
Leading brands – market share Leading brands – market share

13.9% Peanut Butter Artisanal
Sandwich 41.0% Producers
Magic Creams Marby
12.5%
Rebisco - Choco Gardenia
Voice Lemon Square-

Others
12.2% Others Others
6.1%
10.4% 6.6% 9.3%
Bread & Rolls – Brand share Savory Biscuits – Brand share

25.8% Magic Flakes

47.3% Breadstix
Artisanal Producers
44.7% Hansel
Gardenia
Fita
Others
Others
20.3%
4.2%
8.0% 9.9%
36
Quaker is the leading brand in the Breakfast Cereals category
Breakfast Cereals – Brand share Energy Bars – Brand share
Quaker 20.7%
31.6% Quaker-Chewy
Koco Krunch Duo
Others
Koco Krunch
Corn Flakes
(Nestlé) 79.3%
8.1%
Others
7.4% 7.5%
Baking Mixes – Brand share Morning Goods – Brand share

0.6%
18.8%
White King
Dowee
Ferna
12.0% Others
Others
69.2%
99.4%
37
Nature Valley is the leading brand in the Cereal Bars category
Cereal Bars – Brand share Baking Ingredients - Brand share
18.7%
26.0%
Nature Valley Ferna
Others Others
81.3% 74.0%
38
Peanut Butter Sandwich and Magic Creams are the leading brands in the Cookies
(Sweet Biscuits) category
Brand shares in the Bakery and Cereals market, 2014
Cookies (Sweet Biscuits) Cakes, Pastries & Sweet Pies
Brand Share of category, 2014 Brand Share of category, 2014
Peanut Butter Artisanal Producers 41.0%
13.9%
Sandwich Marby 9.3%
Magic Creams 12.5% Gardenia 6.6%
Rebisco - Choco 12.2% Lemon Square-
6.1%
Voice 10.4% Others
Arnott's 4.2% Regent 0.8%
Chips Ahoy! 3.2% Mini Keyk 0.8%
Cupp Keyk 0.8%
Fibisco 2.5%
Jam Bites 0.8%
Chips Delight 2.5%
Others 33.8%
Oreo 2.3%
Hansel Premium 1.7%
Breads & Rolls
Rebisco - Others 1.6%
Loacker - Others 0.9% Brand Share of category, 2014
Eggnog 0.9% Artisanal Producers 47.3%
Frootees 0.8% Gardenia 8.0%
Bingo 0.8% Others 44.7%
Hello Panda 0.7%
Dough Products
Nissin Cubee 0.6%
Brand Share of category, 2014
Others 28.3%
Others 100.0%
39
Magic Flakes is the leading brand in the Savory Biscuits category
Breakfast Cereals Savory Biscuits

Quaker 31.6% Magic Flakes 25.8%
Koco Krunch Duo 8.1% Breadstix 20.3%
Koco Krunch 7.5% Hansel 9.9%
Corn Flakes (Nestlé) 7.4% Fita 4.2%
Cookie Crisp 5.0% Sky Flakes 3.1%
Golden Oats 2.1% Sunflower 0.9%
Milo 1.7% Prima Toast 0.8%
Kellogg's - Others 1.3% Others 35.1%
Honey Stars 1.0%
Oishi-Others 0.9%
Nestlé Corn Flakes 0.8%
Koko Krunch 0.8% Energy Bars
Australia Harvest 0.5% Brand Share of category, 2014
Others 31.4% Quaker-Chewy 20.7%
Others 79.3%
40
White King is the leading brand in the Baking Mixes category
Baking Mixes Morning Goods

White King 18.8% Dowee 0.6%
Ferna 12.0% Others 99.4%
Others 69.2%
Cereal Bars Baking Ingredients

Nature Valley 18.7% Ferna 26.0%
Others 81.3% Others 74.0%
41
Table of Contents
• Country Context
• Market Overview
• Packaging
• Company and Private Label Share
• Consumer Trends
• Examples of New Product Development
• Appendix
42
Canadean has identified nine mega-trends that drive consumers and these can be broken
down into 20 sub-trends
Better Value MEGA-TRENDS:

Changing Age Structures
Trust CHANGING
Changing Lifestages LIFESTAGES
Personal Space & Time New Gender CONNECTIVITY

Behaviours
Individualism CONVENIENCE
Urbanization &
Migration
ETHICS
Health
Aspiration
EXPERIENCE &
ENJOYMENT
Beauty
Connection HEALTH &
WELLNESS
Quality Seeking
INDIVIDUALITY
Media
Indulgence
TRUST
Technology
Fun & Enjoyment
Busy Lives VALUE
Experience Seeking
Ethics
43
An explanation of the sub-trends
Sub-trend Explanation
The trend towards consumers having more aspirational desires and wanting this reflected in the products
Aspirations
that they consume.
The trend towards consumers being increasingly interested in their beauty and grooming and, as a result,
Beauty
seeking to achieve more of their beauty aims and ambitions.
Particularly important in the current economic environment, this trend reflects growing consumer desire,
particularly in Western economies, for Better Value for Money from their purchases. This can cover not
Better Value for Money only trading down to lower priced items, but also trading up to higher priced ones when a consumer feels
there is value in doing so.
The trend for consumers increasingly fitting more activities into the same amount of time in a day. Working
hours are increasing for certain groups, but many consumers similarly have increasingly Busy Lives as
Busy Lives they attempt to juggle work, home life, personal ambitions, and the desire to be close to friends and family.
As highlighted below, for this trend we also identify specific consumer groups.
A socio-demographic trend, the age structures of many countries are evolving, having a significant impact
Changing Age on the marketing landscape. It‟s not just the aging of populations in Western, developed countries either,
Structures the rapid increase in younger generations in developing countries also challenges pre-conceptions about
who the main consumers for products are.
Another socio-demographic trend, and one related to Changing Age Structures. Combined with altering
Changing age group dynamics, the marketing landscape is altered in many countries as people increasingly delay
Life Structures settling down, marriage, and childbirth. The traditional pattern of life-stages is evolving and, as a result, so
are the sizes of these groups and their needs from CPG purchases. As highlighted below, for this trend we
also identify specific consumer groups.
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Flexible labor markets, increased work and pleasure travel, Busy Lives and the breakup of traditional family
structures in many countries leaves many people with a growing desire to rectify the downturn in the types of
personal connections those in previous generations had. The desire to be close to friends, family, or those
Connection with similar interests combines with evolving technologies to create an explosion in the desire for people to
feel somehow “connected” to what‟s important to them. Social networking, growth in the desire to spend more
time with family and friends, and the desire to improve the quality of that time, are all manifestations of this
trend.
Increasingly, a growing number of consumers are concerned (even if they don‟t always act upon these
Ethics, Responsibility &
concerns) about their own ethics and spirituality. In turn, many consumers are increasingly critical of the
Spirituality
ethical and related credentials of the products or services they buy, and the providers of them.
Many consumers are seeking to go beyond the “simple” act of owning and consuming products and instead
are seeking to attain greater value by seeking products and services that somehow offer rewarding
Experience Seeking experiences. This can take many forms and can be related to other trends. For example, consuming a very
high quality food or drink may not only satisfy a need for quality, but the act of consumption itself may also
have value as an experience that will not soon be forgotten.
Many consumers, young and old, and not least in these challenging economic times, are seeking additional
Fun & Enjoyment
fun and enjoyment and some will often choose CPG products as a result of these needs.
In almost every country, consumers are increasingly worried about their overall wellbeing and specifically their
health. The wider social effects of growing obesity rates and sedentary lifestyles have led to growth in
Health
consumer concern about their own health and impacted their willingness to choose products and services that
might result in health benefits.
In an age of mass consumerism, global brands, and rules and regulations, many people often seek to express
Individualism their individual identities, personalities, needs, and wants when the opportunity arises. As a result, products
and services can tap into this trend by offering people ways of achieving these desires.
From little rewards to big ones, consumers are increasingly seeking ways in which they can indulge their
Indulgence
desires and achieve the “feel good” this can create, even if only temporary.
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Fragmentation of the Media may mean that any one Media outlet‟s or outlets‟ influence may be declining, but
Media the growth of 24/7 Media access from almost any location means that Media influence continues to extend and
increasingly shape consumers‟ habits – even if they are seeking to react against Media trends.
This trend refers to the blurring of traditional gender roles and behaviors, and is related to the changing nature
of modern life for many people. From stay-at-home dads to career women, the old ways of doing things is
New Gender Behaviors changing and with it so are people‟s views of themselves, and therefore the products and services that meet
their needs. It‟s not all “new age” though as within this trend is also the counter-perspective of people seeking
more traditionally masculine and feminine products.
The pace of modern life and all the demands it brings means that many people are seeking to create their own
Personal Space & Time “bubble” of space and time where they are in control, are able to relax and unwind, and are free from the
constant flow of things to do, even if it is just for five minutes.
This is the trend towards trading up to higher quality products and services, even if in challenging economic
Quality Seeking times this is a “less of the best” approach.
The pace of technological change (not just in communication, but in other areas too) means many are keen to
Technology Uptake try out the latest that‟s on offer and are willing to experiment in order to gain the benefits, and, for some, be
among the first to experience them.
Or often, a growing lack of it, is increasingly important and is also a very broad trend. From the breakdown in
Trust trust in institutions, governments, and companies, to concerns over specific ingredients in consumer goods,
trust is increasingly a major concern for consumers, and therefore marketers as well.
Shifting patterns of urbanization as major economies develop and people move to where the work is plays a
role in fundamentally shaping people‟s needs – especially when it comes to CPG purchases. The packaged
Urbanization & food and drinks needs of the average urban dweller can differ remarkably to those of the rural dweller, shifting
Migration the balance between which types of products are best placed in the market. As highlighted below, for this trend
we also identify specific consumer groups.
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Trend 1: Busy Lives: On-the-go consumption will remain major motivational factors
in the Philippines’ Bakery and Cereals market
How the Busy Lives trend will influence Bakery and Cereals consumption
in The Philippines
• Consumers are trying to fit more activities into the

same amount of time and look for products that help
to manage their hectic lifestyles
Key demographics to target
• Older Young Adults and Pre-mid-lifers, particularly
office workers, are one of the most time-pressed • Both Men and Women
groups and seek quick, convenient, and nutritious • Aged 19-45+
meals • Urban & Rural
Busy Lives
• As the Filipino economy is upbeat and the Key categories to target

outsourcing sector is poised to grow at a brisk • Breakfast Cereals
pace, the working population is expected to grow. • Bread & Rolls
These busy consumers look for Bakery and Cereals • Energy Bars
products that are convenient, save time, and are • Cereal Bars
suitable for a quick meal fix • Morning Goods
• Savoury Biscuits
• Increasingly busy lives have consequently led to sit-
down, home-made meals being replaced by instant Rate at which the trend will
meals. For instance, Quaker‟s range of instant evolve
oatmeal that takes minimal preparation time and is • Fast
wholesome and nutritious can help to achieve this
aim.
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Trend 2: Health: Whole wheat Breads with nutritive ingredients are in demand by
the health conscious Filipino consumers
How the Health trend will influence Bakery and Cereals consumption in The
Philippines
• The wider social effects of growing obesity rates and

sedentary lifestyles have led to growing consumer
concerns about health
Key demographics to target
• Filipino consumers are increasingly evaluating their • Both Men and Women
diet, which is creating opportunities for low fat, low • Aged 19-65+
calorie, and wholegrain products. These products are • Urban & Rural
considered to offer health benefits such as high fiber,
protein or rich with minerals and vitamins Key categories to target
Health
• Marketers are also exploring gluten free and • All categories

functional product lines to meet the individual dietary Rate at which the trend will
requirements of adult and ageing population evolve
• For example, Companies such as Gardenia has • Fast

offered a whole product line of healthy Breads - Slim
n Fit Wheaten Bread, High Fiber Wheat Raisin Loaf ,
High Fiber Whole Wheat Bread. These appeal to
health conscious consumers and provide with fiber,
proteins, and essential nutrients
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Trend 3: Indulgence: Indulgence remains as a key motivation for Bakery products
such as Cakes, Pastries & Sweet Pies, Cookies, and Morning Goods
How the Indulgence trend will influence Bakery and Cereals consumption
in The Philippines
• Indulgence is the key motivator driving consumption

in the Bakery and Cereals market. Taste is important
for consumers in Philippines and they are looking for
snacks that provide an indulgent hunger fix Key demographics to target
• Both Men and Women
• The desire to seek out new flavors and taste • Aged 25-45+
experiences among Filipino consumers is driving the • Urban
launch of indulgent Bakery products
Indulgence
Key categories to target

• Therefore, manufacturers have introduced Bakery & • Cakes, Pastries & Sweet Pies
Cereal products with better taste, flavor and filling • Cookies (sweet biscuits)
using exclusive and quality ingredients with premium • Bread & Rolls
packaging, that offer a rewarding experience to • Cereal Bars
consumers • Morning Goods
• Savoury Biscuits
• Jack „n Jill introduced Magic Junior Condensada in
the year 2015. The product is a Cream filled Cracker Rate at which the trend will
sandwich that contains sweet condensed milk evolve
pressed between crisp Crackers and appeals to • Fast
consumers seeking newer tastes with creamy filling
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Trend 4: Personal Space & Time: Filipinos reward themselves with products such as
Cakes, Muffins and Rolls during a busy day
How the Personal Space & Time trend will influence Bakery and Cereals
consumption in The Philippines
• Consumers will continue to seek Bakery & Cereal

products that help them relax and enjoy personal
space. Cookies (Sweet Biscuits), Morning
Goods, Cakes and Savory Biscuits provide tasty Key demographics to target
snacking options that can be enjoyed during the work
• Both Men and Women
Personal Space & Time
day or accompany moments of fun, such as parties

• Aged 19-45+
• In addition, small portion snacks allows consumers • Urban
with quick special moments of „me-time‟. Marketers Key categories to target
are introducing packs of Cakes, Biscuits, and Cookies
to target these snacking occasions that help relax and • Breakfast Cereals
unwind • Bread & Rolls
• Energy Bars
• For example, Gardenia has introduced Cream Rolls • Cereal Bars
and Muffins in small pack sizes in a variety of flavors. • Morning Goods
The Muffin range has three flavors - Banana • Savoury Biscuits
Choco, Blueberry and Chocolate and appeal to those Rate at which the trend will
consumers who seek a quick moment of relaxation in evolve
a busy day
• Fast
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Convenient and breakfast based Bakery and Cereal products aimed at the young
population will drive growth
Canadean predicts that the following drivers will rise in importance over the next five years to
become increasingly influential motivators of consumption within the market.
Greater demand for Bakery and Increased competition between Demand for convenient
Cereals products for Breakfast Artisanal Bakery and brands products to grow
Due to friendly government policies Artisanal producers currently hold Of Filipino consumers, 61.6% are
and manpower supply, the service the largest market share in major below 30 years of age. This age
sector is expected to grow rapidly in Bakery and Cereals categories such group has specific snacking needs
the coming years. With a rising as Bread & Rolls and due to their busy lifestyles and
employment rate and growing per Cakes, Pastries & Sweet Pies. While prefer snacks that offer on-the-go
capita income, lifestyle changes will the popularity of Artisanal products consumption and are available in
be the prime motivating factor for can be attributed to their wide exciting new flavors and varieties.
driving growth in the Philippines variety, freshness, and unique Manufacturers are targeting this
Bakery and Cereals market. Busy taste, the added advantage is consumer segment with products
lives and staying away from family greater market penetration through specifically designed to provide a
will drive on-the-go eating and local bakeshops and sari-sari stores convenient hunger fix. For
consumption of instant breakfast (convenience stores). In example, Bread maker Gardenia
products among the working response, the major bakery has introduced a dates and walnut
Filipinos. Major bakery companies such as JBC Food and Bread loaf that not only has the
manufacturers and marketers in the QAF Ltd have launched campaigns nutrition, but also is wholesome
Philippines have noticed this trend highlighting better hygienic while satisfying the sweet cravings
and have focused on products such packaging that also preserves the of consumers. It is aimed at young
as Oats, muesli, other natural freshness of the product. consumers seeking convenient and
Cereals, Buns and Muffins as This competition will provide added filling snacking options on-the-go
Breakfast products. advantage to the consumers. with tasty flavors.
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Table of Contents
• Country Context
• Market Overview
• Packaging
• Company and Private Label Share
• Consumer Trends
• Examples of New Product Development
• Appendix
52
Examples of new product development in The Philippines Bakery and Cereals market
Brand: Quaker Brand: Gardenia

Manufacturer: Quaker Oats Manufacturer: Gardenia
Quaker offers its instant Gardenia recently introduced
range of oatmeal in a variety its Muffin range in three
of flavors and ingredients flavors - Banana Choco,
such as fruit & nuts, banana Blueberry, and Chocolate.
bites, tropical fruits. These These appeal to those
appeal to busy consumers consumers who wish to
who do not have time for a unwind for a few moments.
complete sit-in meal. Trend alignment: : Personal
Trend alignment: Busy Lives Space & Time
Brand: Jack n Jill Brand: Slim n Fit

Manufacturer: Universal Manufacturer: Gardenia
Robina Gardenia has offered its
In 2015, Jack „n Jill Magic range of healthy Breads that
Junior Condensada. The contains L-Carnitine. This
product is a Cream filled nutrient helps the body turn
Cracker sandwich that fat into energy. The Bread
contains sweet condensed may also reduce the risk of
milk pressed between crisp heart diseases and is a
Crackers. source of fiber.
Trend alignment: Indulgence Trend alignment: Health
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Table of Contents
• Country Context
• Market Overview
• Packaging
• Brand Share
• Consumer trends
• Appendix
54
Appendix - Country Context
Exchange Rates: US$-PHP , 2009–2019
Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
US$-PHP Exchange 47.7 45.1 43.3 42.2 42.4 44.4 45.5 45.6 45.7 45.8 45.7
Rate (Annual Average)
GDP Per Capita (PHP)
Year 2009 2010 2011 2012 2013 2014
GDP Per Capita (PHP) 87,082.3 97,505.8 103,244.9 110,413.5 118,596.8 128,699.6
Population
Year 2009 2010 2011 2012 2013 2014
Total (Millions) 92.2 92.3 94.0 95.7 97.4 99.0

Annual Growth (%) 2.0% 0.2% 1.8% 1.8% 1.7% 1.7%
Consumer Price Index
Year 2009 2010 2011 2012 2013 2014
Index 100 103.8 108.6 112.1 115.4 120.4
Age Profile (Millions of Persons)
Age Group 0 to 9 10 to 19 20 to 29 30 to 39 40 to 49 50 to 59 60 to 69 70 to 79 80+
Total (Millions) 22.8 20.4 17.3 14.2 10.1 7.2 4.3 2.1 0.7
55
Appendix – Sector Overview
Philippines’s Food sales Distribution (US$ Billion)
2010 2013
Hypermarkets & Supermarkets 11.9 14.7
Food & drinks specialists 5.4 6.7
Convenience Stores 4.1 5.2
Others 1.3 1.0
Components of change
2013-2014 Year –On –Year (%)

Food Price Inflation 5.8%
Change in Sales Value 4.5%
Change in Sales Volume 4.0%
Change in Average Price Paid 0.5%
Trading Down -5.3%
56
Appendix – Sector Overview
Philippines’s Bakery and Cereals market Value by Category (US$ Million and PHP Million)
2014 Value 2009–2014 2014–2019 2014 Value 2009–2014 2014–2019

(US$ Million) CAGR (%) CAGR (%) (PHP Million) CAGR (%) CAGR (%)
Cookies (Sweet Biscuits) 549.0 6.3% 4.6% 24,375.4 4.8% 5.2%
Cakes, Pastries & Sweet

393.8 5.4% 3.5% 17,482.6 3.9% 4.1%
Pies
Bread & Rolls 391.0 5.9% 4.3% 17,361.6 4.4% 4.9%
Dough Products 67.8 5.5% 3.8% 3,009.0 4.0% 4.4%
Savory Biscuits 59.2 6.2% 4.5% 2,626.3 4.7% 5.1%
Breakfast Cereals 51.7 5.3% 3.7% 2,297.2 3.9% 4.3%
Energy Bars 4.6 6.1% 4.4% 206.4 4.6% 5.0%
Baking Mixes 3.9 4.1% 2.5% 174.9 2.6% 3.1%
Morning Goods 3.9 5.5% 3.8% 172.9 4.0% 4.4%
Cereal Bars 2.9 3.8% 2.0% 129.6 2.3% 2.6%
Baking Ingredients 2.7 4.0% 2.3% 118.2 2.5% 2.9%
57
Appendix – Category Data
Cookies (Sweet Biscuits) Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 404.3 447.2 487.7 524.3 547.1 549.0 562.7 590.2 619.5 650.7 686.9
Growth (%) -2.8% 10.6% 9.1% 7.5% 4.3% 0.3% 2.5% 4.9% 5.0% 5.0% 5.6%
Value (PHP Million) 19,274.9 20,171.7 21,125.9 22,141.2 23,223.0 24,375.4 25,601.6 26,911.0 28,309.9 29,801.9 31,394.6
Growth (%) 4.6% 4.7% 4.7% 4.8% 4.9% 5.0% 5.0% 5.1% 5.2% 5.3% 5.3%
Cakes, Pastries & Sweet Pies Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 303.2 332.6 359.6 383.1 396.1 393.8 399.7 415.1 431.3 448.3 468.2
Growth (%) -3.6% 9.7% 8.1% 6.5% 3.4% -0.6% 1.5% 3.8% 3.9% 4.0% 4.4%
Growth (%) 3.7% 3.8% 3.8% 3.9% 3.9% 4.0% 4.0% 4.1% 4.1% 4.2% 4.2%
Bread & Rolls Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 292.9 322.9 350.9 376.0 391.0 391.0 399.6 417.8 437.3 458.0 482.0
Growth (%) -3.1% 10.2% 8.7% 7.1% 4.0% 0.0% 2.2% 4.6% 4.7% 4.7% 5.2%
Growth (%) 4.2% 4.3% 4.4% 4.4% 4.5% 4.6% 4.7% 4.8% 4.9% 5.0% 5.0%
58
Dough Products Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 51.9 56.9 61.6 65.7 68.1 67.8 68.9 71.7 74.7 77.9 81.6
Growth (%) -3.5% 9.8% 8.2% 6.7% 3.6% -0.4% 1.7% 4.1% 4.2% 4.2% 4.7%
Growth (%) 3.8% 3.8% 3.9% 4.0% 4.1% 4.2% 4.2% 4.3% 4.4% 4.5% 4.5%
Savory Biscuits Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 43.7 48.3 52.7 56.6 59.0 59.2 60.6 63.5 66.6 69.9 73.7
Growth (%) -2.8% 10.5% 9.0% 7.4% 4.3% 0.3% 2.4% 4.8% 4.9% 4.9% 5.4%
Growth (%) 4.5% 4.6% 4.7% 4.7% 4.8% 4.9% 4.9% 5.0% 5.1% 5.2% 5.2%
Breakfast Cereals Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 39.9 43.7 47.2 50.3 52.0 51.7 52.6 54.6 56.8 59.2 61.9
Growth (%) -3.7% 9.6% 8.1% 6.5% 3.4% -0.6% 1.6% 4.0% 4.0% 4.1% 4.6%
Growth (%) 3.6% 3.7% 3.8% 3.9% 3.9% 4.0% 4.1% 4.2% 4.3% 4.4% 4.4%
59
Energy Bars Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 3.5 3.8 4.2 4.5 4.6 4.6 4.8 5.0 5.2 5.5 5.8
Growth (%) -3.0% 10.4% 8.9% 7.3% 4.1% 0.1% 2.3% 4.7% 4.8% 4.8% 5.3%
Value (PHP Million) 164.8 172.2 180.0 188.3 197.0 206.4 216.3 227.0 238.3 250.4 263.1
Growth (%) 4.4% 4.4% 4.5% 4.6% 4.7% 4.7% 4.8% 4.9% 5.0% 5.1% 5.1%
Baking Mixes Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 3.2 3.5 3.7 3.9 4.0 3.9 4.0 4.1 4.2 4.3 4.4
Growth (%) -4.9% 8.2% 6.8% 5.2% 2.2% -1.7% 0.4% 2.7% 2.8% 2.9% 3.4%
Growth (%) 2.3% 2.4% 2.5% 2.6% 2.7% 2.8% 2.9% 3.0% 3.1% 3.2% 3.2%
Morning Goods Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 3.0 3.3 3.5 3.8 3.9 3.9 4.0 4.1 4.3 4.5 4.7
Growth (%) -3.5% 9.8% 8.3% 6.7% 3.6% -0.4% 1.7% 4.1% 4.2% 4.2% 4.7%
Growth (%) 3.8% 3.9% 4.0% 4.0% 4.1% 4.2% 4.3% 4.3% 4.4% 4.5% 4.5%
60
Cereal Bars Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 2.4 2.6 2.8 2.9 3.0 2.9 2.9 3.0 3.1 3.1 3.2
Growth (%) -5.0% 8.1% 6.5% 5.0% 1.9% -2.1% 0.0% 2.3% 2.3% 2.4% 2.9%
Growth (%) 2.2% 2.3% 2.3% 2.3% 2.4% 2.4% 2.5% 2.5% 2.6% 2.6% 2.6%
Baking Ingredients Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 2.2 2.4 2.5 2.7 2.7 2.7 2.7 2.7 2.8 2.9 3.0
Growth (%) -4.9% 8.2% 6.7% 5.2% 2.1% -1.8% 0.3% 2.6% 2.7% 2.8% 3.2%
Growth (%) 2.3% 2.4% 2.4% 2.5% 2.6% 2.7% 2.7% 2.8% 2.9% 3.0% 3.0%
61
Appendix – Segment data
Market Share by Segment by Value
Category Segment Segment’s Share, 2014 Segment’s Share, 2019

Chocolate Cookies 24.9% 25.9%
Assortments 15.1% 15.0%
Plain Cookies 14.2% 13.9%
Other Cookies 12.2% 11.6%
American Cookies 10.8% 10.8%
Butter-Based Cookies 7.4% 7.5%
Wafer Biscuits 7.0% 7.0%
Cream Filled 5.4% 5.3%
Artisanal Cookies 2.9% 2.9%
Egg-Based 0.0% 0.0%
Frozen Cakes & Pastries 32.7% 33.3%
Cakes 26.4% 25.8%
Cakes, Pastries & Sweet Pies
Pastries 21.2% 20.4%
Sweet Pies 19.7% 20.5%
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Sandwich Slices 20.5% 21.2%
Rolls 20.5% 20.7%
Loaves 20.2% 20.5%
Bread & Rolls Ciabatta 10.1% 10.2%
Baguettes 9.7% 9.4%
Burger Buns 8.9% 7.9%
Other Breads 8.1% 8.2%
Frozen Bread & Rolls 2.0% 2.0%
Frozen Dough Products 27.9% 27.0%
Pie & Pastry Shells 26.4% 26.6%

Dough Products
Prepared Pastry (other) 24.3% 24.7%
Pizza Bases 21.4% 21.7%
63

Cheese-Flavoured Crackers 37.0% 38.6%
Bread Substitutes 27.8% 26.6%

Savory Biscuits
Plain Crackers 25.1% 24.8%
Other Crackers 10.1% 10.0%
Ready-to-Eat Cereals 62.5% 61.7%

Breakfast Cereals
Hot Cereals 37.5% 38.3%
Energy Bars Energy Bars 100.0% 100.0%
Pancake Mixes 18.4% 19.0%
Other Baking Mixes 17.5% 17.1%
Bread Mixes 16.3% 18.0%
Baking Mixes Dessert Mixes 16.0% 14.4%
Muffin Mixes 11.3% 10.8%
Brownie Mixes 9.0% 9.2%
Cake Mixes 8.9% 8.9%
Rolls/Biscuit Mixes 2.6% 2.6%
64

Toaster Pastries 9.9% 9.9%
Dohnuts 9.2% 9.4%

Buns & Teacakes 8.9% 8.8%
Scones 8.5% 8.0%
Pain Au Chocolate 8.5% 8.0%
Waffles 8.2% 8.5%
Pain Au Raisan 7.3% 7.8%
Morning Goods Madeleines 7.3% 7.7%
Pancakes 7.2% 7.4%
Muffins 6.3% 6.5%
Breakfast Cakes 5.2% 5.4%
Croissants 4.4% 3.8%
Other (Morning Goods) 4.0% 3.9%
Crumpets 3.0% 3.0%
Frozen Morning Goods 2.0% 2.0%
65
Granola/Muesli/Yogurt Bars 68.4% 69.5%

Cereal Bars
Other Cereal Bars 31.6% 30.5%
Other Baking Ingredients 15.4% 15.7%
Dessicated Coconut 13.6% 13.4%
Baking Chocolate Chips & Morsels 12.3% 12.5%
Fruit Pectins and Glazed Fruit 11.6% 12.0%
Baking Ingredients Cake Decorations & Icing 10.2% 10.1%
Dry Yeast 10.2% 10.1%
Non-Chocolate Baking Chips 10.0% 9.8%
Baking Powder/Soda 8.2% 7.9%
Cocoa-Baking 5.3% 5.4%
Corn & Potato Starch 3.3% 3.3%
66
Appendix – Packaging Data
Packaging Materials in 2014 Vs. 2019 (Millions of Packs)
Packaging Material 2014 2019
Flexible Packaging 1,920.9 2,436.1

Rigid Plastics 335.9 398.9
Paper & Board 57.3 65.3
Rigid Metal 26.0 30.6
Glass 0.2 0.2
Container Types in 2014 Vs. 2019 (Millions of Packs)
Container Types 2014 2019
Film 1,453.3 1,835.0

Bag/Sachet 375.8 480.6
Tray 241.8 284.1
Clamshell 74.5 89.8
Foil 49.0 62.6
Pouch 42.8 58.0
Box 37.4 43.1
Tub 27.4 32.8
Specialized Line Item 25.9 30.6
Others 12.3 14.5
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Appendix – Packaging Data
Closure Types in 2014 Vs. 2019 (Millions of Packs)
Closure Types 2014 2019
Plastic Tie 148.5 183.4

Film 76.6 90.5
Prize Off 51.5 62.0
Foil 28.1 32.6
Screw Top 7.9 9.1
Outer Types in 2014 Vs. 2019 (Millions of Packs)
Outer Types 2014 2019
Bag 1071.7 1202.7

Shrink Wrap 717.7 738.6
Box 544.4 591.3
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Category definitions
Category Definition
Bread & Rolls Bread & Rolls - all pre-packed and baked in-store breads and rolls. Includes Malt Loaf.
Cereals - includes all breakfast cereals (whether designed to be eaten hot or cold). Includes porridge oats and
Breakfast Cereals
oatmeal.
Cakes, Pastries & Sweet Cakes, Pastries and Sweet Pies - all premade cakes and pastries (including those baked on the premises of
Pies retailers (inc. bakers). Includes flapjacks and brownies.
Dough Products - includes all pre-prepared pastry, pizza bases, pie and pastry shells and frozen dough
Dough Products
products.
Cereal Bars - Confectionery/breakfast-replacement bars made from a mixture of cereals and fruits bound
Cereal Bars
together by syrup e.g. Nutri-Grain. Does not include energy bars.
Energy Bars - Includes Protein bars and cereal-based bars which have been nutritionally fortified to give an
Energy Bars
energy boost. Example Lucozade Sport Energy Bar.
Cookies (Sweet Biscuits) - all sweet biscuits, including American style cookies (sweetened dough). Includes
chocolate covered cookies/biscuits, filled biscuits (e.g. Oreos), and wafers.
Savory Biscuits Savory Biscuits - includes all crackers, crispbreads (bread substitutes e.g. Ryvita), cheese crackers.
Morning Goods - Breakfast bakery products such as pain au raisins, croissants, bagels, muffins, crumpets etc.
Morning Goods
Includes morning pastry type products cooked in Toasters (i.e. Pop Tarts). Excludes Malt Loaf.
69
Category definitions
Category Definition
These are the packaged mix of ingredients (typically sold in packets or tubs) to which liquid, eggs or other
Baking Mixes ingredients are added to produce baked goods like bread, brownie, dessert, cake, muffin, pancake, biscuits
etc.
Baking Ingredients - individual ingredients or combinations of ingredients designed for baking. E.g. baking
Baking Ingredients
fruits, marzipan, baking yeast, icing etc. Also, includes cooking chocolate.
70
Segment definitions
Category Definition
Bread in a long, round, or square shape that you cut into slices (thin flat pieces) for eating. A slice
Loaves
d loaf has been cut into slices before it is sold. e.g. Britannia
Baguettes A baguettes is "a long thin loaf of French bread" that is commonly made from basic lean dough.
A bread designed to be eaten as a side dish. Its usually a small and round piece of bread. Can
Rolls be used as sandwiches or eaten raw with butter and the alikes. For instance Old Country Hoagie
Roll and Bolillo Rolls (USA) and Kingsmill 6 Soft White Rolls (UK)
Burger Buns A flattish soft white bread roll in which a hamburger is typically served.
Bread & Rolls

Bread sliced into sandwich size. Usually consumed with a filling such as meat or cheese placed
Sandwich Slices
between them.
Ciabatta A flattish, open-textured Italian bread with a floury crust, made with olive oil.
All other kinds of buns, breads, rolls that can be used as hamburger buns, hot-dog buns, sweet
buns etc. The grain part also differs; it can be a whole-wheat or a multi-grain bread too. For
Other Breads
instance: Oroweat Sandwich Thins Multi-Grain, Kings Hawaiian Sweet Rolls, Bulk Jalapeno
Cheese Focaccia Sandwich Roll, Rolls Kaiser Sesame Rolls
Frozen Bread & All other kind of breads and rolls that require freezing. They have a longer shelf-life when
Rolls freezed. For instance: Bridgeford Parker House Rolls
71
Segment definitions
Category Definition
Breakfast cereal that requires heating before consumption. Classified as porridges, in that they
consist of cereal grains which are soaked and/or boiled to soften them and make them palatable.
Hot Cereals
Includes traditional products (e.g. porridge oats), instant mixes (e.g. Ready Brek), and ready-to-
heat products (e.g. Quaker Instant Oatmeal Express)
Breakfast Cereals
Breakfast cereal that does not require heating. Includes dry cereals and prepackaged cereal/milk
Ready-to-Eat Cereals
kits e.g Kellog's Cornflakes and Weetabix
A cake that has cheese, cream, jelly, fruit or other filling within its layers. All cakes that are pre-
baked or baked either in a bakery or the retailer's outlet and do not require to be freezed and yet
Cakes have a shelf life. Does not include frozen cakes. Examples include: Mr Kipling Battenberg Cake
(UK), Britannia Cake (India), Entenmanns Pound Cake All Butter (USA), Gü After Noon Mango &
Passion Fruit Cheesecakes (USA)
Baked products specifically made from ingredients such as flour, sugar, eggs, milk, butter, baking
powder etc. Small cake, tarts and other sweet baked products are also called pastries. Does not
Pastries
include frozen pastries. Examples include Kelloggs Pop Tarts Toaster Pastries Frosted Cinnamon,
Cakes, Pastries & St. Pierre Sliced Chocolate Chip Brioche Loaf.
Sweet Pies
All Cakes and Pastries that require to be freezed. Does not require without freeze shelf stable
Frozen Cakes &
cakes and pastries. Sara Lee Double Chocolate Pound Cake Slices (USA), Jus Rol Shortcrust
Pastries
Pastry Blocks Frozen (UK)
A round or pie shaped baked dish usually that has inredients as that of a pastry dough and is
either covered or made from a filling of various sweet or savoury ingredients. Needs preperation
Sweet Pies
time. The topping or covering above the pastry layer can be of a fruit, cheese, sauce etc. Example
sinclude Pillsbury Toaster Strudel Boston Creme Pie (USA), Bisto Cottage Pie (UK)
72
Segment definitions
Category Definition
Pastry shells or pie shells are crust or base made with dough in a shape that can hold pie or
Pie & Pastry Shells
pastry fillings. Examples include Keebler Ready Crust Pie Crusts Graham Cracker
Any other sweet baked pastry that needs dressings or toppings with fruits, nuts or creams.
Prepared Pastry (other) Examples include Jus-Rol Puff Pastry Block (UK) and Pepperidge Farm Puff Pastry Sheets
(USA)
Dough Products
Made of Dough and deliberately treated with bacteria to make a soft and little fluffy round
shaped flat spread. Cannot be eaten raw. Need to be baked and needs preperation time.
Pizza Bases
Examples include Boboli Italian 12 Inch Bread Shell and Keebler Ready Crust Pie Crusts
Graham Cracker
Dough products made with flour and yeast that needs to be frozen. They are usually brought
Frozen Dough Products home and decorated with toppings or dressings of choice. Needs preperation time. Examples
include Bridgeford Frozen White Roll Dough, Pillsbury Classic Pizza Crust Pizza Dough
Granola/Muesli/Yogurt Cereal bars made by rolling of cereal gains like oats, nuts, wheat corn packed together with
Bars fruits or nuts. Example Jordan's Special Fruit Muesli Bar , Kellogg's Elevenses etc.
Cereal Bars
Breakfast-replacement bars made from a mixture of cereals and fruits bound together by
Other Cereal Bars
Honey or Syrup e.g. Nutri-Grain. Does not include energy bars or granola/museli bars.
Energy Bars - Includes Protein bars and cereal-based bars which have been nutritionally
Energy Bars Energy Bars
fortified to give an energy boost. Example Lucozade Sport Energy Bar.
73
Segment definitions
Category Definition
American Cookies A small flat and crisp cookie made from sweet dough e.g Maryland cookies, Chips Ahoy!
Artisanal Cookies Biscuits produced by small local bakeries for sale on their premises.
A collection of various types of cookies - usually packaged in metal tins. Examples include
Assortments
Veno's Danish butter biscuits and Delacre Assorted Biscuits
Cookies (Sweet Cookies made and position themselves as butter-based (e.g. Leibniz Butter) or as shortbread
Butter-Based Cookies
Biscuits) (e.g. Walker's Shortbread).
Cookies coated with chocolate on one or both sides e.g. chocolate digestives. Only includes
Chocolate Cookies products sold in the cookie section of retail outlets: chocolate countlines such as Kit-Kat are
excluded.
A Cookie filled with cream sandwiched between two and not coated in chocolate e.g. Custard
Cream Filled
Creams, Oreos
Egg-Based Biscuit made with an ingredient as egg. popular in eastern Europe. Normally unbranded.
74
Segment definitions
Category Definition
Other Cookies All other sweet biscuit products.
Cookies (Sweet A 'semi-sweet.' Slightly sweet crackers made with whole-wheat flour e.g. McVities' Digestives,
Plain Cookies
Biscuits) Keebler Graham crackers
Wafer biscuit is a crisp, often sweet, very thin, flat, and dry Item, often used to decorate ice
Wafer Biscuits cream. Wafers can also be made into cookies with cream flavoring sandwiched between them.
e.g. Manner.
Dry, thin, biscuits usually used as an alternative to bread, also known as dry wafers e.g. Ryvita
Bread Substitutes
crisp breads
Biscuits that are either salted or savory or both and have a lot of cheese content. Examples
Cheese-Flavoured
include Cheese Nips Baked Snack Crackers Cheddar and Pepperidge Farm Goldfish
Crackers
Crackers Baby Cheddar
Savory Biscuits
Other Crackers All savory biscuits other than cheese, plain crackers, and bread substitutes.
Hard, dry savory biscuits, generally hard or crisp. Can be salted e.g. Ritz or unsalted e.g.
Plain Crackers
Jacobs' Cream Crackers. Does not include cheese flavored crackers.
75
Segment definitions
Category Definition
A flat bread made from a yeast dough with raisins or fruit essence in it, usually eaten toasted and
Buns & Teacakes buttered. The British call it a tea cake. Can be eaten during breakfast or high-tea. Examples include
Wheatfield Bakery Hot Cross Buns 6 Pack and Warburtons Fruit Teacakes (UK)
Breakfast cakes also called as coffee cakes are usually eaten along with coffee or tea and comprises
a part of the breakfsat meal. The cake might necessarily not involve coffee as an ingredient. It is
Breakfast Cakes
generally a single layer cake and can be of any shape. Examples include Entenmanns Coffee Cake
Cheese Crumb (USA) and Tesco Finest Coffee And Walnut Cake (UK)
A French crescent-shaped roll made of sweet flaky yeast dough (pastry) or a puff pastry, eaten for
Croissants breakfast. Exmaple are Pasquier Croissants and Mcvities Mini Croissants Chocolate (UK) and Jimmy
Dean Sausage Egg Croissant (USA)
A savoury cake made of flour, yeast and other customised ingredients with a soft and porous texture.
Crumpets Its thick and flat, usually round in shape and is cooked and toasted on a griddle. Examples include
Warburtons Crumpets (UK)
Morning Goods A ring shaped or round fried cake made of rich and light dough. Also comes with a fruit or chocolate
Dohnuts essence as an ingredient. Is served with a chocolate or fruit sauces. Examples include Entenmanns
Rich Chocolate Frosted Donuts (USA) and Chocolate Filled Doughnut (UK)
These are small butter sponge cakes baked in a delicate seashell shape and have a tender, moist
and sophisticated flavor(Plain, rose, lemon etc). It is served as a snack, or as part of dessert. This
Madeleines
can be of savory and sweet or both flavor.For ex: Entenmann's Madeleines Petite Butter Cakes
(U.S.), Bonne Maman La Madeleine (U.K.).
Muffins are shaped like cup cakes and have filling of chocolate, toffee, lemons, or blueberries. These
are not as sweet as cup cakes and also comes in savory flavor such as cornbread and cheese
Muffins
muffins. For ex: Tesco bluberry muffins (U.K.) and, The Fabulous Bakin' Boys Lemon & White
Chocolate Muffins (U.K.)
These are crossiants filled with chocolate and a famous bakery item in Europe. For example Tesco
Pain Au Chocolate
All Butter Pains au Chocolat (U.K.).
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Segment definitions
Category Definition
All butter croissant pastry round in shape filled with raisins and vanilla crème patissier. It is
Pain Au Raisan
often taken in breakfast.For ex: Tesco Pain Au Raisin
Pancakes are dough based round shape medium sized cakes (little salty in taste), thin in shape
Pancakes and can be rved with sweet and savory dishes. It can be consumed any time in a day and a
famous dish in Europe and U.S. It excludes frozen pancakes
Scones are small round cakes little thick than pancakes and a famous appetizer(normally little
Scones salty) in Scotland and nearby regions. For example Tesco All Butter Scones. It excludes frozen
scones.
These are thin crust pastries normally rectangular in shape. It comes in variety of filled and
Morning Goods Toaster Pastries plain pastries and can be easily heated in toaster before eating. For ex:Nabisco Toastettes
(U.S.), Quaker toastables (U.S.).
Waffles are dough based cake shaped like a waffle and can be eaten in breakfast. These came
Waffles in different stuff flavors suh as strawberry, cherry, etc. These are normally sweet in nature. For
ex. Tesco Finest Butter Waffles.
Other (Morning Goods) All other kinds of morning goods, which are not classified in the above.
Pre-packed frozen breakfast bakery products - includes bagels, croissants (plain and flavored),
Frozen Morning Goods
donuts, muffins, and scones.
77
Segment definitions
Category Definition
Dough mix specifically used to make sandwich breads, containing mix of wheat flour, yeast, and salt.
Bread Mixes
It also comes with different grain mixes.For ex. Hodgson Mill 9 Grain Bread Mix
Brownie as known a mix of cake and cookies have the mix dough of both cake and cookies and is
Brownie Mixes
very famous mix demanded by bakers. For ex: Betty crocker fudge brownies,
All powdered desserts; usually requiring the addition of water and/or milk e.g. Angel Delight. Includes
Dessert Mixes
hot puddings and mousses.
Cake mixes are dough mix contain all necessary ingredients to be mixed with water and milk and is
Cake Mixes
ready to bake after some stirring. For ex: Betty Crocker cake mix (U.S.).
Baking Mixes Same as cake mix muffins mixes are of same type but with more fluffiness and less sugar and have
Muffin Mixes different mixtures depend on the flavors added in the mixes. For ex: Jiffy corn muffin mix (U.S.), and
Betty Crocker muffin mix (U.S.).
Pancakes mixes came in variety and belongs to savory and sweet category. These are readymade
Pancake Mixes mixes in which only water and eggs are required to prepare a liquid dough to be prepared over
frying pans or inside ovens. For ex: Pilsbury Pancake mix, Quaker pan cake mix.
Dough mix which are little tight in nature and require water to be added to make the thick crust either
for rolls (contains sweet and savory both) and biscuits also (sweet and savory both) depend on
Rolls/Biscuit Mixes
added ingredients in the dough mixture. For ex Betty crocker choclated chips mix, Duncan hanes
choclate cookies mix etc.
Others include the mixes which are not specifically covering the above mixes such as buns mixes,
Other Baking Mixes
dohnut mixes, etc.
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Segment definitions
Category Definition
Baking Chocolate These are small tit bits of either cookies or nutty crackers normally added to the baking mixes to
Chips & Morsels enhance the flavors of cakes, cookies, muffins etc. For ex. Nestle Toll House choclates morsels.
Baking powders are additives which are used to add in baking mixes for making the mixture more
Baking Powder/Soda
fluffy and soft. For example, Whigfield baking powder (U.S.).
Cake Decorations & It includes different additives such as whipped creams, cherry's and other products used to beautify
Icing the cake presentations. It basically comes in loose category and doesn‟t cover any brand specifically.
This covers cocoa powder and is used in a large proportion in decorating cakes or giving flavor to the
Cocoa-Baking
cake. For Ex. Hershey's cocoa, Nestle baking cocoa etc.
Baking Ingredients
It is the powder of dried coconut used as a additive in cookies, cakes and other bakery items. It gives
Dessicated Coconut
coconut flavor to the mentioned items. For ex. Wyandra Coconut (Australia).
Corn or potato starch are the powder used for thickening the mixture of pancakes, waffles, cookies
Corn & Potato Starch
and etc. For ex. Brown and Poisons corn flour, Superior potato starch (Holland).
Yeast are microbial organisms, used as a leavening agents in baking mixes where it convert sugar
Dry Yeast into carbon dioxide gas making the dough more fluffy by creating air bubbles in the mixtures. For ex:
Fleischmann's Yeast.
Fruit Pectins and Fruit Pectins are used as a gelling agent and helps in stabilize the food. These are used as a baking
Glazed Fruit ingredient in waffles, muffins etc.
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Segment definitions
Category Definition
Non-Chocolate Baking Non Chocolate chips are of same as chocolate chips but of different flavors, such as
Chips butterscotch morsels etc. For ex. Nestle butterscotch morsels etc.
Baking Ingredients
Other Baking
Other baking ingredients include all the additional products which are not covered above.
Ingredients
80
Channel definitions
Channel Definition
Hypermarkets/mass merchandisers include all sales through retailers with floor area over 2,500 sq m that carry full
Hypermarkets & lines of both grocery and general merchandise (e.g. Wal-Mart). Supermarkets include all sales through retailers with
Supermarkets a floor area of 300 sq. m. -2,500 sq. m. that offer a wide, departmentalized range of groceries, and may carry some
general merchandise lines (e.g. Sainsbury's, Kroger). It also includes hard grocery discounters such as Wal-Mart.
Includes all sales through stores of an area generally less than 300 sq m, that specialize in a limited range of food &
Convenience grocery products designed primarily for consumers with top-up shopping needs. Also includes sales in retail outlets
Stores attached to gas stations, where fuel is the main revenue driver, kiosks, and newsstands. This also includes small
independent retailers, particularly those present in countries such as China and India.
Includes bakers, butchers, delicatessens, drinks specialists, fishmongers, greengrocers, Food & drinks only stores,
Food & Drinks
and single category stores (e.g. stores selling only cheese, or only olives, or only honey, or only Confectionery
Specialists
products) Example: Amul Dairy shops In India.
Includes “Dollar Stores”, Variety Stores & General Merchandise Retailers, Cash & Carries & Warehouse Clubs,
Department Stores, Drug stores & Pharmacies, eRetailers, Vending Machines and other generalist retail channels
Other Retailers
not included in the categories above (e.g. market traders, charity stores, student union stores, direct sales, and Duty
Free shops).
81
Methodology
This report features data derived from market data.
Market Data
In order to create the data for all reports in this series and ensure their robustness, a comprehensive and empirically robust research
methodology has been adopted. This combines both a large-scale program of industry research with the results of extensive primary industry
interviewing and calling. Furthermore, all definitions are standardized across products and countries to ensure comparability.
The two main research methods, secondary research and primary research (the program of interviewing industry contacts), are brought
together and because both sets of research processes have been designed in conjunction with each other they can be combined and
consolidated into the final, integrated data sets.
The secondary research process involves covering publicly available sources, trade associations, specialist databases, company annual
reports, and industry publications. Primary research involves a major program of interviewing leading industry executives for each category
covered in each country – all with local country experts; typically brand, product and marketing managers for major brands within each
country. These processes help analysts in capturing both qualitative and quantitative information about the market.
The final stage of the process is the triangulation of inputs obtained from all the research methods with the analyst‟s own understanding of the
market in order to finalize the data. Once the data is finalized, it goes through various top level quality checks prior to publishing.
82
About Canadean
About Canadean
Canadean is a full-service business information provider with in-house market research capabilities. We specialize in analysis across
the Consumer Markets Value Chain, covering suppliers, producers, distribution and consumers.
Canadean‟s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing,
market research, consulting and advanced statistical expertise. We offer value-added market research, insight and strategic analysis
and our products help companies to make better, more informed, strategic and tactical sales and marketing decisions.
Canadean‟s areas of expertise include online research, qualitative and quantitative research, industry analysis, custom approaches,
and actionable insights. In addition Canadean has built a network of consultants and specialist researchers across more than 60
countries, each with in-depth industry experience and expertise enabling us to conduct unique and insightful research via our trusted
business communities.
Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic,
mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Canadean.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings,
conclusions and recommendations that Canadean delivers will be based on information gathered in good faith from both primary and
secondary sources, whose accuracy we are not always in a position to guarantee. As such, Canadean can accept no liability
whatsoever for actions taken based on any information that may subsequently prove to be incorrect.
83

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Consumer and Market Insights: Bakery and Cereals Market in Philippines

• Retail Landscape and Key Distribution Channels

• Examples of new product development

Annual growth (%)

Annual Growth (%)

Country indicator Units Value Profit Sector

Total Food volume growth

Proportion of Bakery and Total number of transactions in the Cost

Figures for overall food 2014 are forecasts.

• Retail Landscape and Key Distribution Channels

• Examples of new product development

PHP million US$ million

2014 67,954.1 1,530.5

2019 85,710.9 1,875.4

CAGR 2014-2019 4.8% 4.1% CAGR 2009-2014 3.8%

The Bread & Rolls category leads the volume

Market value of categories in Philippines's Bakery and Cereals market

2009–2014 Category Value in PHP CAGR (%)

*Bubble Size = 2014 Category value

Annual Growth (%)

Value (PHP Million)

Value (PHP Million)

Annual Growth (%)

Market value of categories in the Bakery and Cereals market

Annual Growth (%)

Value (PHP Million)

Annual Growth (%)

Dough Products – US$ Dough Products – PHP

Annual Growth (%)

Value (PHP Million)

Annual Growth (%)

Value (PHP Million)

Annual Growth (%)

Value (PHP Million)

Market value of categories in the Bakery and Cereals market

Annual Growth (%)

Value (PHP Million)

Baking Mixes – US$ Baking Mixes – PHP

Annual Growth (%)

Value (PHP Million)

Market value of categories in the Bakery and Cereals market

Annual Growth (%)

Value (PHP Million)

Annual Growth (%)

Annual Growth (%)

Value (PHP Million)

Change in market Change in market

2 Bread & Rolls 0.2% 2 Breakfast Cereals -0.1%

3 Savory Biscuits 0.1% 3 Dough Products -0.1%

Category Average Price/ Kg (PHP) 2014 Average Price/Kg (USD) 2014

Cookies (Sweet Biscuits) 220.2 5.0

Cakes, Pastries & Sweet Pies 261.5 5.9

Bread & Rolls 130.6 2.9

Dough Products 268.2 6.0

Savory Biscuits 182.2 4.1

Breakfast Cereals 251.9 5.7

Energy Bars 350.2 7.9

Baking Mixes 118.2 2.7

Morning Goods 170.6 3.8

Cereal Bars 343.3 7.7

Baking Ingredients 213.2 4.8

Chocolate Cookies 24.9% 1.0%