Amid COVID-19, home-cooking has become a trend in the Philippines seasonings, dressings & sauces market in recent years. Consequently, the Filipino seasonings, dressings & sauces market is projected to grow from PHP57bn ($1.1bn) in 2021 to PHP73.9bn ($1.4bn) by 2026 at a compound annual growth rate (CAGR) of 5.3 % over the five-year period of 2021–2026, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Philippines Seasonings, Dressings & Sauces – Market Assessment and Forecasts to 2026’ reveals that the market growth will mainly be driven by the tomato pastes and purées category, which is forecast to register the fastest value CAGR of 6.3% during 2021–2026, followed by the dressings category with a projected CAGR of 6.2%.

Bhavin Naik, Consumer Analyst at GlobalData, says: “The seasonings, dressings & sauces sector has been one of the biggest benefactors of the surge in home-cooking following the onset of COVID-19 in 2020. The Philippines market continues to witness a spate of new product launches with traditional and innovative flavors in convenient formats that reduce time and effort in meal prep.

“Also, the pandemic has made Filipino consumers more health conscious, and cautious about what goes into their food and drink. Accordingly, consumers are looking for seasonings, dressings & sauces with natural ingredients and low sodium/sugar formulations. They are reducing the use of flavorings such as monosodium glutamate (MSG), which have been linked to diseases.”

Convenience stores was the leading distribution channel in the Filipino seasonings, dressings & sauces market in 2021, followed by ‘hypermarkets & supermarkets’ and food & drinks specialists.

The per capita expenditure (PCE) on seasonings, dressings & sauces in the Philippines increased from $4.3 in 2016 to $5 in 2021, and is expected to reach $5.8 by 2026. The PCE is markedly lower than the global average of $11.4 and the regional average of $7.4 in 2021, indicating that there is ample room for expansion in the market.

​Unilever, Ajinomoto Group, and Go! Salads were the top three companies in the Filipino seasonings, dressings & sauces market by value in 2021, and Lady`s Choice and Ajinomoto were the leading brands.

Naik concludes: “While Filipino consumers are looking for traditional and modern cooking and dry sauces to make home-cooking easier, they are price sensitive due to the prevailing economic uncertainty, and thereby drawn to ‘value-for-money’ brands and private labels. Products with claims such as natural, organic, free from chemical additives, low/no-sugar/salt will gain more appeal. Additionally, sustainable packaging is becoming a key priority for Filipinos.”