How Baby Food Market Is Positioned in the Philippines?
The Philippines, a country located in the Southeast Asia; situated in the western Pacific Ocean is further divided into 3 main geographical divisions from north to south with Manila as the capital city. Filipino and English are the official language of Philippines and, its currency is Philippine peso (PHP). The Philippines Baby Food Market was observed in a growing stage with slow growth pattern during the review period 2013-2018. The increasing awareness among parents for healthier products for their children has encouraged the demand for organic baby food in the country. In the era of increasing digitization and globalization, a shift in sale of baby food items from offline stores to online channels is expected in the near future as type of online channels reduces the time and effort spent in purchasing. The country reported ~ million internet users in 2018. Majority of the products are imported in the Philippines baby food market by international players. International players and domestic players, both are using non-store and store based retailers to connect with the target customers. An average margin prevailing in the industry from a local company to distributer ranges between ~%-~% within Philippines baby food market.
During the review period 2016-2018, decline in growth rate was observed in Philippines baby food market due to high domestic inflations and weak global trades. Despite the decline, the baby food market is expected to recover in 2019. Major growth drivers include rising food / household expenditure, increasing awareness among the parents to provide their babies with healthier food options, rise in the internet retailing and other factors. Combining all the above mentioned factors, the Philippines baby food market grew at a positive five year CAGR during 2013-2018.
Philippines Baby food Market Segmentation
By Food Category (Milk Formula, Dried Baby Food, Prepared Baby Food, and Other Baby Food): Milk formula captured the majority of the market share in Philippines in 2018 owing to its substitution for breastfeeding in the country. The remaining market share was captured by the dried baby food, prepared baby food and other baby food products during 2018. Other baby food segment includes biscuits, rusks, and snacks.
Among milk formula type, growing-up milk formula dominated the Philippines baby food market followed by follow-on milk powdered formula, standard milk powdered formula and special milk formula.
By Age Group (0-6 months, 6-12 months and 12+ months): Age group of 12+ months captured the majority of the market share in Philippines in 2018 owing to higher consumption of growing-up formula products. The remaining market share was collectively captured by 6-12 months and 0-6 months’ age group during the year 2018.
By Type of Distribution Channel (Health and Beauty Specialist Retailers, Supermarkets, Independent Small Grocers, Hypermarkets, Internet Retailing and Convenience Stores): Majority of the baby food sales are made through health and beauty specialist retailers as well as supermarkets majorly due to the high preference for modern stories with popular brands and multiple variants. The remaining distribution channels include independent small grocers, hypermarkets, internet retailing and convenience stores which collectively captured the remaining market share in the year 2018.
By Nature (Inorganic and Organic)
The Philippines baby food market during the year 2018 was majorly dominated by the inorganic baby food segment as it is widely available at a low cost when compared to organic baby foods in the Philippines. However, the growing awareness among the parents to provide healthy food to their babies has given a boost to organic baby food sales in the country.
Decision Making Criteria for Consumers to Purchase Baby Food in the Philippines
Baby food market is one of the highly sensitive markets where parents take good / high care on deciding on a particular product for their babies. Hence, decision making criteria’s plays important role in selection of products. Most important decision making criteria are the advice from Health Experts and word of mouth
Comparative Landscape in Philippines Baby Food Market
Competition within the Philippines baby food market was observed as highly concentrated along with the presence of three major manufacturers of baby food competing on parameters such as product variant, channels of distribution and price. The leading players in the market are two international companies of which one directly imports finished baby food products in Philippines and the other locally manufactures baby food within the Philippines. Domestic companies selling baby food products have negligible market share. In the year 2018, majority of the market share was held by Nestle and Reckitt Benckiser which collectively catered to ~% of the total market in terms of retail sales. Nestle S.A held a market share of ~% whereas the market shares of Reckitt Benckiser captured a market share of ~% in the year 2018. The remaining ~% of the market was captured by companies including Abbott Laboratories, Alaska Milk Corporation and HiPP GmbH & Co and others.
Key Segments Covered:-
By Food Category:-
Growing-Up Milk Formula (Above 12 Months)
Follow on Milk Powdered Formula (6-12 Months)
Standard Milk Powdered Formula (0-6 Months)
Special Milk Formula
Dried Baby Food
Prepared Baby Food
Other Baby Food (Cereal based, snacks and rest)
Inorganic Baby Food
Organic Baby Food
By Age Group:-
By Distribution Channel:-
Health and Beauty Specialist Retailers
Independent Small Grocers
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2019-2023
Nestlé Philippines Inc
Reckitt Benckiser Group Plc (RB)
Other Players (DMK Deutsches Milchkontor GmbH, Holle Baby Food GmbH, United Pharmaceuticals SA and rest)
Brands Covered in the Report:-
Lactum (Reckitt Benckiser Group)
Nido (Nestlé SA)
Enfamil (Reckitt Benckiser Group)
Promil (Nestlé SA)
Nan (Nestlé SA)
Nestogen (Nestlé SA)
Alacta (Reckitt Benckiser Group)
Enfagrow (Reckitt Benckiser Group)
S-26 (Nestlé SA)
Bonamil (Nestlé SA)
Prepared Baby Food Market Philippines
Philippines Baby Food Market
Baby Food Market in Philippines
Baby Food Industry Philippines
Philippines Baby Food Sales Market
Dry Baby Food Market Philippines
Philippines Milk Formula Sales Market
Organic Baby Food Sales Philippines
Philippines Baby food Ingredients
Infant Growth Chart Philippines
Philippines Baby Food Genesis
Cereal Baby Food Revenue Philippines
Cereal Baby Food Market Philippines
Philippines Baby Food Revenue Streams
Hero Group GmbH Baby Food Philippines
Success Factors Philippines Baby Food
Philippines Baby Food Market Analysis
For more information, refer to below link:-
Nigeria Baby Food Market Outlook to 2023 – By Milk Formulae (Standard, Follow-On, Growing-Up Milk Formula), Dried Baby Food (Cereal Based and Others -Meat/Fish, Fruits & Vegetable and Nuts), Prepared/ Ready to Eat Baby Food and Other Baby Food; By Organic Baby Food; By Channel (Supermarkets, Independent Small Grocers, and Online
Turkey Baby Food Market Outlook to 2023 – By Infant Milk Formulae (Standard, Follow-On, Growing-Up and Special Baby Milk Formula), Dried Baby Food, Prepared Baby Food, Milk Formula and Other Baby Food; Organic Baby Food
Ankur Gupta, Head Marketing & Communications