Philippines soups market to grow at 6.2% CAGR over next five years, forecasts GlobalData

The Philippines soups market is projected to grow at a compound annual growth rate (CAGR) of 6.2% from PHP3.4bn (US$65.1m) in 2020 to PHP4.6bn (US$85.5m) in 2025, benefitting from the experimental nature of young Filipino consumers, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Philippines Soups Market Assessment and Forecasts to 2025’, reveals that the market is majorly driven by the growth in the ambient soup category, which is forecast to register the fastest value CAGR of 6.3% during 2020-2025. The category will be followed by dried soup (mixes), which is expected to record a CAGR of 6.2% during the same period.

Anjali Singh, Consumer Analyst at GlobalData, says: “A large base of young consumers are driving the growth in the soups market in the Philippines as they are highly experimental in nature, and are often willing to spend and indulge in new and different varieties of food products. Furthermore, the demand of soups increased in 2020 due to rise in at-home consumption amid the COVID-19 restrictions.”

‘Hypermarkets & supermarkets’ was the leading distribution channel in the country in 2020, followed by convenience stores and food & drinks specialists.

The per capita expenditure of soups in the Philippines, which increased from US$0.5 in 2015 to US$0.6 in 2020, is expected to reach US$0.7 in 2025. However, it is way lower than the per capita expenditure, both at the global (US$2.8) and the APAC (US$0.9) level.

​Campbell Soup Company, Unilever, and Ottogi Co Ltd were the top three companies by value in 2020 while Campbell’s and Knorr were the leading brands.

Ms. Singh concludes: “The growing health awareness among consumers and the implementation of junk food tax on products having high sodium and fat levels can pose a challenge to the market and manufacturers will need to reformulate their products.”

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