Industry Analysis This market report provides market trend and market growth analysis of the Biscuits industry

in Philippines. With this market report, youll be able to explore in detail the changing shape and potential of the industry. The Biscuits in Philippines market research report includes:

Analysis of key supply-side and demand trends Detailed segmentation of local products Historic volumes and values, company and brand market shares

Our market research reports answer questions such as: What is the market size of Biscuits in Philippines? What are the major brands in Philippines? How are biscuits manufacturers balancing consumer demand for both healthy and I indulgent product

Trends The governments Sangkap Pinoy (Philippine ingredients) campaign continued to push manufacturers to fortify their biscuits in order to battle the malnutrition problem among children in the country. The on-going health and wellness trend further highlighted food fortification as seen in new product developments such as Tiger Energy biscuits and Sky Flakes Fit savoury crackers that were launched between mid2009 and 2010.

Competitive Landscape Monde Nissin Corp remained the leading player in biscuits, accounting for a 33% value share in 2009. The company continued to improve its performance due to its strong reputation in savoury biscuits and crackers, filled biscuits, plain biscuits and sandwich biscuits, where its brands are either the leader or in second place. It also benefited from aggressive marketing support, extensive distribution and affordable pricing.

Prospects An influx of fortified biscuits is expected between 2011 and 2015 due to the governments aim to minimise the malnutrition problem, particularly among children from low-income households. It is also anticipated that the health and wellness trend will continue over the forecast period, therefore demand for healthier products among middle- and upper-income groups is expected to rise.

Trends

Sales of foodservice suppliers were rejuvenated in 2010 as the Philippines recovered from the global recession. Filipinos started to dine out on a more frequent basis, with no special occasion in mind, due to better financial security. Mid-range and fine dining restaurants as well as high-end cafs and bars benefited from the improvement of the economy as they were severely affected during the downturn in 2008 and 2009. The economic recovery therefore increased the demand for foodservice products in 2010.

Competitive Landscape San Miguel Pure Foods - Great Food Solutions Inc, the foodservice arm of San Miguel Pure Foods Co Inc, remained the most prominent player in 2009. The success of the company can be attributed to its well-diversified product range, team of food experts, extensive distribution network with satellite offices in key cities, and strong alliances with various foodservice establishments, including fast food chains, fullservice restaurants and low-end eateries.

Prospects Foodservice suppliers are expected to offer more ready-to-use meal solutions to provide convenience and simplify the operations of foodservice establishments. This is anticipated to be beneficial for fast food chains, mid- and low-range full-service restaurants and 100% home delivery/takeaway outlets. Healthier alternatives such as low-fat, less sodium, sugar-free options are also foreseen to be part of the product offerings of suppliers over the forecast period due to the growing number of healthconscious Filipinos.

Trends Economic recovery boosted consumer confidence in 2010. Impulse and indulgence products benefited from the situation as consumers had more financial stability and were more willing to purchase treats. Nevertheless, Filipinos remained price sensitive due to their limited disposable incomes and preferred brands that offered better value for their money.

Competitive Landscape Universal Robina Corp remained the leading company in 2009, accounting for almost 19% of retail value sales. This was mainly due to its well-diversified portfolio of impulse and indulgence products, as well as its strong performance in confectionery and sweet and savoury snacks, where its Jack n Jill products remained market leaders. Furthermore, the extensive distribution and affordable pricing of its products enabled consumers to regularly purchase their brands despite the economic slowdown.

Prospects

Despite the expected recovery of the Philippine economy, both volume and constant value sales are anticipated to improve at a slow pace over the forecast period since consumers will continue to view impulse and indulgence products as nonessential food items, which are usually not at the top of most Filipinos grocery lists. Furthermore, the rising cost of living in urban and rural areas is expected to hinder growth as most consumers have limited disposable incomes and need to prioritise their spending by purchasing more essential products.

Trends Most consumers continued to view nutrition/staples as homogeneous products in 2010, thus putting less importance to the brand name as quality is perceived to be similar for all brands. Price, therefore, played a significant role as most Filipinos remained price conscious despite the economic recovery due to their limited disposable incomes and increasing cost of living in the Philippines. Nevertheless, manufacturers tried to differentiate their products by adding extra nutritional benefits such as vitamins and minerals.

Competitive Landscape Nestl Philippines Inc maintained leadership in nutrition/staples with a value share of 17% in 2009. This was mainly due to its dominance in drinking milk products, where its heritage brands such as Nestl, Bear Brand, Nido and Milo accounted for a combined value share of 61% in 2009. The company was also able to retain its strong lead because it had an extensive distribution network and its nutrition/staples brands were heavily supported with strong marketing and advertising campaigns all year round.

Prospects Commoditisation in nutrition/staples is anticipated to continue over the forecast period. This is expected to result in high levels of price competition where companies are expected to offer promotions such as providing additional volume and price cuts. Nevertheless, a significant number of Filipinos are anticipated to have a different perception of nutrition/staples as they give value to the additional benefits such as fortification, low-fat content, high-fibre, among others as they shift to healthier lifestyles.

Trends In 2010, demand for meal solutions improved in the Visayas and Mindanao regions due to the boom in business process outsourcing (BPO) offices in second- and third-tier cities such as Cagayan De Oro, Davao and Iloilo. Busier lifestyles, unusual work hours and better disposable incomes resulted in higher consumption of these products. The availability of more lower-priced brands and the aggressive expansion

of supermarkets/hypermarkets in untapped provincial areas also assisted in the improvement of household penetration in 2010. Competitive Landscape San Miguel Pure Foods Co Inc remained the leader in meal solutions, accounting for 23% of value sales in 2009. The companys success is due to its well-diversified portfolio, a dominant player in ready meals, frozen processed food and chilled processed food, and a minor participant in canned/preserved food and sauces, dressings and condiments, coupled with its ability to constantly introduce new products based on the changing needs of consumers. Its leadership can also be attributed to its extensive distribution network, which ensures nationwide presence in both traditional and modern retail channels.

Prospects With more dual-income households and longer work hours, there is less time to prepare home-cooked meals from scratch. Demand for meal solutions is expected to increase over the forecast period as consumers lead more fast-paced lifestyles thereby appreciating the convenience these products offer. The expansion of supermarket/hypermarket chains in provincial areas is also expected to support growth due to better availability, making meal solutions accessible to a greater number of Filipinos.