Philippines Food Ingredients Market is dominated by flavors and Sweeteners accounting for almost 75% of the Total Market in terms of Revenues: Ken Research

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The demand in Philippines food ingredients market basically comprises of various types of food ingredients such as functional food ingredients, sugar substitutes, flavors, specialty starches, preservatives, acidulants, enzymes, F&B starter cultures, and food emulsifiers. Robust demand for the packaged foods owing to the changing lifestyle, and the purchasing power of customers has majorly fueled growth for the food ingredients market in the Philippines.

The beverage industry in Philippines witnessed growth owing to consumer shift from traditional drinks to carbonated energy drinks and caffeinated beverages thus, driving the demand for flavor enhancers in the Philippines food ingredients market.

The flavors segment in the country dominated the Philippines food ingredients market. It has been observed that people in Philippines became bolder in their culinary adventures owing to increasing speed at which consumers are adopting new flavors. On the other hand, food colors, preservatives, fragrance and food ingredients such as acidulants, cultures, proteins, emulsifiers and co-emulsifiers, minerals, botanicals, carotenoids, cocoa liquor and powder, flavor enhancers, modified flour, PH / controlled salt, Polysaccharides & Oligosaccharides, raising agents and reducing agents collectively captured the remaining revenue share.

The adaptation of western lifestyle influenced by the food and processing services within the Philippines led to an increase in their import values from major destinations such as Europe, US and Japan. A young population heavily influenced by modern habits and food culture coupled with increasing demand for convenience can improve the quality of domestic food ingredients, hence leading to higher export values in near future.

The processed foods segment including meal replacement and packaged foods collectively dominated Philippines food ingredients market. Artificial sweeteners, synthetic Trans’ fats, artificial flavors, Monosodium Glutamate (MSG), artificial colors, high-fructose corn syrup and preservatives were majorly used in processed foods in the country. In 2016, the demand for clean label and natural/organic flavors and flavors free of artificial ingredients such as high sugar witnessed an increase owing to growing awareness regarding health and wellness among the Filipinos.

Natural, functional and convenient products that can deliver nutritional benefits without sacrificing taste continue to tap into major trends currently driving the thriving healthy beverage market in the Philippines. Flavor innovation coupled with the right message and aesthetic appeal, can provide the impetus to boost a stagnating category, create interest in an emerging sector and even drive a successful market entry for new or existing manufacturers in the Philippines.

Artificial sweeteners are low-calorie or calorie-free chemical substances that are used instead of sugar to sweeten foods and drinks. Philippines sweeteners market attained its highest revenues in the year 2016. Concerns about obesity and other health related issues plus sugar taxes in many countries including the Philippines have encouraged the market for non-caloric sweeteners. The food trend toward whole foods and natural products have also resulted in a growing demand for natural sweeteners made from herbs such as coconut sugar within the country.

Food colors play a significant role in the Philippines food additives market. They are often used in foods and beverages to incorporate a desired shade of color and improve consumer’s visual perception towards them. In 2016, the average price for food coloring such as egg yellow, green, strawberry red, chocolate brown, coffee brown, blue and orange was observed to be USD 3.0 per kg approximately; hence termed as affordable in the Philippines. Colors also affect the apparent level of sweetness. For instance, Filipino population perceives a strongly red-colored strawberry-flavored drink to be sweeter than a less strongly colored version.

Growing demand for processed foods, changing food consumption patterns and increasing disposable income are the major factors driving the demand for food preservatives in the Philippines. Food preservatives are used across beverages, snacks, bakery items, meat products are others during processing and packaging. A growing trend of consumer preference towards natural preservatives over synthetic preservatives was witnessed owing to the growing demand for natural and dietary foods and beverages, confectionery items.

Philippines food ingredients market is highly concentrated with the presence of manufacturers such as BNC Ingredients Corporation Philippines, TNC Chemicals Philippines Inc, Actron Industries Inc, NECO Chemicals Philippines Inc, Versa Group Philippines Corporation, DU Pont Philippines, New Flavor House Inc, SBS Philippines Corporation, Kerry Food Ingredients Philippines Inc and other players such as Achievers Food & Bakery Ingredients Corp and Applied Food Ingredients. Players operating in the food ingredients market which compete on the basis of pricing, brand value, production capacity, domestic manufacturing / import and others. Local tastes and modern interpretations of Filipino dishes has led to growing popularity of Filipino cuisines over the globe, thus, driving the demand for mostly used food ingredients such as food flavors, sweeteners, food colors, preservatives and fragrance. Moreover, consumer shift from synthetic man-made to natural extracts / food ingredients led to high imports coupled with emergence of several natural food ingredients manufacturers in this sector.

For more information on the market research report please refer to the link below:

https://www.kenresearch.com/food-beverage-and-tobacco/general-food/philippines-food-ingredients-market/142452-11.html

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