Rising number of households, growing hospitality sector, and enhancing food products manufacturing sector have aided the demand for cooking oil in Philippines.
Ken Research in its latest study, Philippines Cooking Oil Market by Type (Palm, Coconut, Soyabean, Canola, Corn and Others), by Region (Luzon, Visayas and Mindanao) – Outlook to 2021 suggests that the Philippines cooking oil market is expected to grow at a robust CAGR on the back of the growth of food manufacturing industry which is expected to reach USD 42 billion by 2021.
As of 2016, the Philippines are one of the largest exporters of coconuts and coconut oil in the world. However, coconut oil has now become a more export oriented commodity and is used less for domestic consumption purposes. It is gradually being replaced by palm oil in the recent years. In the observed period 2011-2016, there has been a shift in preference from the use of coconut oil to palm oil in the country. The major reason for the shift in the preference is that the coconut has been subject to large scale fluctuation in its prices while the price fluctuations in the palm are comparatively less. Moreover, palm oil is considerably cheaper compared to coconut oil.
Over the past years, traditional markets including wet markets have dominated the sales of cooking oil in Philippines. But over the past five years 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. Moreover, these markets remain very dirty and there is an issue of contamination thus these traditional markets are losing the market share due to the strict government regulations. The government has also banned the sale of used oil which further discourages the existence of wet markets and sari-sari stores. Major retail outlets such as Seven-Eleven have been increasing their number of outlets at a rapid pace which has considerably affected the share of traditional markets in the sales of cooking oil.
Furthermore, 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 cooking oil manufacturers are adapting new processing technique such as cold pressing and new edible oils products are introduced in the market, which are healthier and have a balanced fatty acid profile. This makes them preferred choice of health conscious consumers, in turn driving demand for such products. Also, the rise in health conscious customers in the year 2016 has developed consumer preferences for health-friendly cooking oils such as olive oil, canola oil and palm oil.
The cooking oil manufacturing companies in the country should encourage tie-ups with the major chips, snacks and biscuit manufacturers including Jack ‘n Jill, WL foods, Irvins and others to uplift their cooking oil sale. The large scale tourism in the Luzon and Western Visayas region has increased the number of hotel chains in the country. The cooking oil manufacturers should encourage their tie-up with these hotel chains and restaurants as they purchase cooking oil in bulk quantities ranging between 15-17 Kilo Tins. Moreover, in order to capture such customers these manufacturers can provide a 5%-6% discount on bulk purchases and easier payment terms with better packaging.
Key Topics Covered in the Report:
Export Coconut Oil Philippines
Soybean Oil Exports Philippines
Cooking Oil Market in Philippines
Palm Oil Consumption Philippines
Import Volume Cooking Oil Market
Best Selling Cooking Oil Philippines
Philippines Palm Oil Future
Canola Oil Sales in Philippines
Baguio Oil Coconut Oil Philippines
Spring Cooking Oil Brand Philippines
Coconut Oil Refinery Set up Philippines
For more information on the research report, refer to below link:
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Ankur Gupta, Head Marketing & Communications