Thursday, August 8, 2013

An Analysis of the Philippine Food Sector

 
Image Courtesy: www.slideshare.net
Conventional food service and retail formats, specifically dry and wet markets and neighborhood “sari-sari” (“sari” means variety) stores, are places where a lot of Filipino consumers frequent. Modern food service and retailing still needs to grow, but it is quickly making progress. These things, combined with the expanding and big divide between the poor and the rich, result in conflicting food ingestion trends in the Philippines.

Generally speaking, locally manufactured and/or made items and low to average priced products that are imported are consumed through the conventional markets. The medium to high priced merchandise that is imported by the distributor of foods from the Philippines is primarily located in supermarkets that are owned by foreigners or restaurants in five star hotels in the heart of capital cities like Manila.

Most of the food that is consumed in this country is mass produced by local corporations, These 11,000 (including companies like the RFM Corporation and San Miguel) manufacture food across all the main food sectors, like snack foods, dairy products, vegetables and fruits, processed meats (beef, pork and poultry), and noodles. These mass produced foods are paired with rice, meat, vegetables and fresh fruit to make up the staple diet for middle to low class Filipinos who number most in the various consumer segments of the nation.

But then, some of the middle class and high income earners want imported and non-traditional foods that are “ready-to-eat”. This results in the eventual modernization of the food retailing segment in the Philippines. The traditional retail segment is going through major transformations through the rapid growth of convenience stores, hypermarkets and supermarkets, aside from the quality of the products that are being offered.

The laws that restricted international retailers that did business in the country were taken away in the year 2000, so most of the current retailers are local. An example of a distributor of foods from the Philippines is Pricesmart, Rustans, Robinsons and the SM Hypermarkets or Supermarkets.