13 May 2020
Posted in Consumer
Philippines seasonings, dressings & sauces market to grow at CAGR of 4.7% through 2019–24, says GlobalData
The Philippines seasonings, dressings & sauces sector is expected to grow at a compound annual growth rate (CAGR) of 4.7% from PHP34.5bn (US$661.8m) in 2019 to PP43.6bn (US$811.2m) in 2024, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Philippines Seasonings, Dressings & Sauces – Market Assessment and Forecasts to 2024’, reveals that ‘condiment sauces’ was the largest category in terms of value and volume sales in 2019 while ‘bouillons & stocks’ category is forecast to record the fastest CAGR of 3.71% in volumetric terms for the period 2019–2024. The condiment sauces category is expected to gain maximum market share in terms of volume during 2019–2024.
Bobby Verghese, Consumer Analyst at GlobalData, says: “The per capita expenditure of Filipinos on seasonings, dressings & sauces stood at US$6.13 in 2019, which was significantly lower than both the global and the regional levels. High food-price inflation compelled Filipino consumers to opt for value for money products in the seasonings, dressings & sauces sector, thereby laying the onus on the manufacturers to roll out products at competitive prices.”
‘Convenience stores’ was the leading distribution channel with a value share of 65% in 2019, followed by the hypermarkets and supermarkets channel. The convenience stores channel is expected to witness the highest share gain over the forecast period of 2019–2024.
The Philippines seasonings, dressings & sauces market is relatively fragmented with the top five companies together accounting for 31.4% of the overall market value in 2019. Unilever was the biggest player in terms of value share in 2019, followed by the Ajinomoto Group and Sysu International Inc. In terms of volume sales, the Ajinomoto Group took the lead with a market share of 24.5% in 2019. Private labels account for only a small share of the market.
Verghese concludes: “Products, particularly in the condiments sauces category, with health and wellness attributes such as ‘food minus’, ‘naturally healthy’ and ‘free from’ are expected to contribute significantly to the growth of the seasonings, dressings and sauces sector in the Philippines over the period 2019–2024.”