Foodservice profile – Philippines

September 2019

Executive summary

The Philippines, with a population of approximately 106.2 million, is the fourth largest foodservice market in the Association of Southeast Asian Nations (ASEAN) region. With rising incomes amongst the growing middle class and changes in lifestyles, the foodservice sector in the Philippines grew at a Compound Annual Growth Rate (CAGR) of 4.7% from 2015 to 2018, reaching US$13.2 billion sales in 2018. The Philippines' foodservice sector is projected to grow at a CAGR of 5.4% from 2019 to 2022, reaching US$16.2 billion in 2022. This forecast projects the Philippines to be the fastest growing foodservice market in the ASEAN region.

Restaurants are the Philippines' largest foodservice subsector, reaching US$4.4 billion in 2018, with a CAGR of 3.9% from 2015 to 2018, the third largest growth rate in the ASEAN market. It is expected to reach US$5.1 billion by 2022, with a forecasted CAGR of 3.6%. Educational institutions ranked as the second biggest in value sales (US$1.4 billion) in 2018, followed by workplace cafés (US$1.1 billion), pubs, clubs and bars (US$959 million) and mobile operators (US$643.5 million). All subsectors grew well from 2015 to 2018 and are expected to grow steadily from 2019 to 2022.

Canada's agri-food and seafood exports to the Philippines grew at a CAGR of 11.0% from 2014 to 2018 with a value of US$252.5 million in 2018.

Filipino customers spent US$1.5 billion on alcoholic beverages, US$6.5 billion on food and US$1.7 billion on non-alcoholic beverages in 2018. Each category grew at a CAGR of 7.7%, 3.2% and 3.0%, respectively.

The top five Phillipines foodservice companies in 2017 were Jollibee, McDonald's, Chowking, Mang Inasal and Mister Donut. Most of these companies are local franchises.

Market overview

Association of Southeast Asian Nations market

Canada's agri-food and seafood exports to the ASEAN market were valued at US$1.5 billion in 2018, representing 2.9% of Canada's total exports to the world (US$51.9 billion). The export values from Canada increased by a CAGR of 4.1% from 2014 to 2018, the ASEAN region remains an emerging market for Canadian agri-food and seafood exporters. Canada's agri-food and seafood exports to the Philippines also grew at a CAGR of 11.0% from 2014 to 2018 with a value of US$252.5 million. In November 2018, the Philippines surpassed Vietnam to become the second largest market in the ASEAN for Canadian agri-food products, next to Indonesia.

Canada's exports to Association of Southeast Asian Nations (ASEAN) partners in agri-food and seafood (HS6), in US$ millions
Country 2014 2015 2016 2017 2018 CAGR* % 2014-2018
ASEAN 1,286.9 1,531.7 1,157.8 1,677.6 1,510.7 4.1
Indonesia 515.9 528.5 368.0 496.4 606.3 4.1
Philippines 166.3 291.8 147.9 254.9 252.5 11.0
Viet-Nam 221.5 284.3 203.0 475.6 243.2 2.4
Malaysia 136.0 158.4 166.3 175.2 142.3 1.1
Thailand 122.4 177.3 133.5 129.4 139.2 3.3
Singapore 119.8 76.7 99.7 100.3 71.3 −12.2
Cambodia 0.5 8.2 21.9 27.5 45.4 213.4
Myanmar 4.0 5.9 17.1 17.8 9.4 23.7
Brunei 0.51 0.54 0.35 0.41 0.58 3.3
Laos 0.00 0.05 0.13 0.07 0.37 94.9[a]

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

a: CAGR 2015-18

The Philippines is a net agri-food and seafood importer from Canada at a value of US$103.5 million as Canada's agri-food and seafood imports from the Philippines was US$149.0 million compared with Canada's exports to the Philippines at a value of US$252.5 million in 2018.

Canada's agri-food and seafood imports from Association of Southeast Asian Nations (ASEAN) in US$ millions
Country 2014 2015 2016 2017 2018 CAGR* % 2014-2018
ASEAN 1,555.9 1,496.8 1,501.3 1,564.7 1,617.8 1.0
Thailand 613.0 588.2 579.5 581.2 589.2 −1.0
Viet-Nam 395.7 371.1 368.8 410.1 448.1 3.2
Indonesia 182.5 169.5 205.0 215.2 208.3 3.4
Malaysia 181.6 171.3 165.2 162.6 163.6 −2.6
Philippines 154.6 168.6 143.2 162.8 149.0 −0.9
Singapore 20.1 18.5 21.4 20.8 50.6 25.9
Myanmar 7.2 8.7 9.5 10.5 6.4 −2.9
Cambodia 0.6 0.5 8.0 1.0 1.3 22.7
Laos 0.1 0.1 0.3 0.3 1.1 78.0
Brunei 0.5 0.3 0.5 0.4 0.2 −14.8

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate.

Global market

The Philippines's total agri-food and seafood imports from the world were valued at US$12.9 billion in 2018, of which US$284.5 million was from Canada, representing 1.9% of the Philippines' total agricultural imports. The gap between the Philippines' imports from the world and Canada was US$12.6 billion in 2018.

Canada's gross export gap to the Philippines in agri-food and seafood (HS6), in US$ millions
Import supplier 2014 2015 2016 2017 2018 CAGR* % 2014-2018
The Philippines' imports from the world 8,412.7 8,303.5 10,106.0 11,346.2 12,919.7 11.3
The Philippines' imports from Canada 126.3 197.3 159.6 223.5 284.5 22.5
Gross export gap with Canada 8,286.4 8,106.2 9,946.4 11,122.7 12,635.2 11.1

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate.

The Philippines' top imported products from the world in 2018 were wheat (US$1.7 billion), oilcake (US$1.1 billion), semi-milled or wholly milled rice (US$701.7 million) and food preparations (US$671.1 million). Imports of preparations with a basis of extracts, concentrates of coffee (US$429.9 million in 2018) grew the fastest with a CAGR of 30.6% from 2014 to 2018.

Philippines' top 10 agri-food and seafood import from world, in US$ millions, 2014-2018
HS6 code Description 2014 2015 2016 2017 2018 CAGR* % 2014-2018
World total 8,412.7 8,303.5 10,106.0 11,346.2 12,919.7 11.3
100199 Wheat and meslin (excluding seed for sowing, and durum wheat) 1,669.3 N/C[1]
230400 Oilcake and other solid residues 969.4 707.2 936.6 983.7 1,124.2 3.8
100630 Semi-milled or wholly milled rice 426.5 412.0 171.5 322.2 701.7 13.3
210690 Food preparations, n.e.s.[2] 495.3 528.3 688.9 721.3 671.1 7.9
151800 Animal or vegetable fats and oils and their fractions 337.3 336.0 610.4 768.4 570.6 14.1
210112 Preparations with a basis of extracts, concentrates of coffee 147.7 131.1 280.6 242.6 429.9 30.6
020230 Frozen, boneless bovine meat 323.7 316.0 314.1 371.2 407.9 6.0
040210 Skim milk powder <= 1.5% fat 399.0 270.9 349.7 343.0 296.8 −7.1
020714 Frozen chicken cuts 160.6 167.3 214.4 235.7 267.1 13.6
230990 Preparations of a kind used in animal feeding 204.5 182.4 170.6 262.3 263.3 6.5

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

1: not calculable.

2: not elsewhere specified

The Philippines' agri-food and seafood imports from Canada grew at a CAGR of 22.5% from 2014 to 2018 with a value of US$284.5 million in 2018. The Philippines' top imported products from Canada in 2018 were wheat and meslin (US$82.3 million), followed by frozen meat of swine (US$52.8 million), frozen chicken cuts (US$21.4million) and french fries (US$17.5 million). Canada's dried, shelled peas accounted for 52.8% of the Philippines' total imports from the world. Canada's frozen ham accounted for 36.3% of the Philippines' total imports of that product from the world. Frozen french fries had the largest import growth with a CAGR of 56.0% from 2014 to 2018; while skim powder milk was in decline with a CAGR of −17.7% over the same period. Note worthy is wheat and meslin that had a sudden spike in 2018 at US$82.3 million with imports of zero the previous year.

Philippines' top 10 agri-food and seafood imports from Canada in US$ millions and Canada's share, 2014-2018
HS6 code Description 2014 2015 2016 2017 2018 CAGR* % 2014-2018 Canada's share % in world 2018
Canada total 126.3 197.3 159.6 223.5 284.5 22.5 1.9
100199 Wheat and meslin (excluding seed for sowing, and durum wheat) 0.0 0.0 0.0 0.0 82.3 N/C[1] 6.6
020329 Frozen meat of swine (excluding hams, with bone in) 13.5 16.0 20.5 37.2 52.8 40.7 24.5
020714 Frozen chicken cuts 17.7 9.7 17.0 25.7 21.4 4.8 8.8
200410 Frozen potatoes (French fries) 3.0 3.5 12.8 18.6 17.5 56.0 11.6
020322 Frozen hams 4.9 7.9 12.9 16.8 15.2 32.4 36.3
210690 Food preparations, n.e.s.[2] 11.4 13.1 8.9 13.6 12.6 2.6 1.9
071310 Dried, shelled peas 8.5 7.7 9.9 11.7 12.6 10.4 52.8
020649 Frozen edible offal of swine (excluding livers) 16.7 14.0 10.8 10.0 12.5 −7.0 6.8
230110 Flours, meals and pellets, of meat or offal, unfit for human consumption; 0.02 2.9 5.5 3.7 9.6 49.0[a] 4.2
040210 Skim milk powder <= 1.5% fat 17.5 6.1 10.0 9.1 8.0 −17.7 3.1

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

1: not calculable

2: not elsewhere specified

a: CAGR 2015-18

Consumer behavior

Consumer trends

Within the foodservice sector, Filipino customers spent US$1.5 billion on alcoholic beverages, US$6.5 billion on food and US$1.7 billion on non-alcoholic beverages in 2018. Each category grew at a CAGR of 7.7%, 3.2% and 3.0%, respectively.

Food service: consumer expenditure by industry, in US$ millions, 2014-2018
Category 2014 2015 2016 2017 2018 CAGR* % 2014-2018
Alcoholic beverages 1,084.4 1,131.9 1,274.0 1,290.7 1,457.5 7.7
Food 5,751.4 5,929.2 6,106.9 6,310.8 6,512.3 3.2
Non-alcoholic beverages 1,497.4 1,550.1 1,682.1 1,729.6 1,684.6 3.0
Total 41,426.9 39,891.6 38,089.4 41,779.5 43,709.9 3.7

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

Consumers primarily visit various distribution services operator channels for drink-based occasions. Among those surveyed, of the consumers who visited solely for a drink, 86% had an alcoholic drink. While food options are also widely available in the foodservice channels, they are mostly restricted to snacks, desserts or fast food. Thus encouraging consumers to purchase more food during pub, club and bar visits is important to raising transaction values in foodservice channels.Footnote 1

The continued traffic and congestion issues in major cities like Manila are increasing commuting times and forcing consumers to demand more convenient foods, especially in drive-throughs, where consumers can pick up food on the way home.Footnote 1

The overall foodservice market

The Philippines' is the twelfth most populous country in the world and second most populous in the ASEAN region. The key consumer demographics are firstly, frugal convenience-seekers, who are mostly young to pre-mid-lifers and busy workers. They perceive eating out as an inescapable part of their daily routine, often more adventurous and willing to try new things when they eat out. Frugal convenience seekers in the Philippines are also more likely than average to be living on an upper-middle class income. They account for 29% of the Filipino population yet 32% of Filipino foodservice transactions.Footnote 1

The second most popular counsumers are, time-poor experimenters, who are early to young adults, where most of these consumers are busy at work and feel that eating out is a treat. Quality is the most important factor over price, along with convenience while choosing the place to eat or drink out of home and they always aim to seek the healthiest food or drink options. They account for 15% of the Filipino population yet 17 % of the Filipino foodservice transactions.Footnote 1

Filipino cities are growing rapidly: The urban areas of Metro Manila, Davao and Cebu are hugely over represented in the country's foodservice market, reflecting their greater need for convenience. Overall revenue in the profit sector foodservice market increased at a CAGR of 4.8% between 2016 and 2018, in line with growth in the country's wider economy, driven by rising consumer confidence. Overall revenue growth is forecast to accelerate at a strong CAGR of 5.3% into 2023.Footnote 1

The Philippines, with a population of approximately 106.2 million, is the fourth largest foodservice market in the ASEAN region. With rising incomes amongst the growing middle class and changes in lifestyles, the foodservice sector in the Philippines grew at a CAGR of 4.7% from 2015 to 2018, reaching US$13.2 billion sales in 2018. The Philippines' foodservice sector is projected to grow at a CAGR of 5.4% from 2019 to 2022, reaching US$16.2 billion in 2022. This projects the Philippines to be the fastest growing foodservice market in the ASEAN region.

Association of Southeast Asian Nations (ASEAN) foodservice value sales by country, in US$ millions, 2015-2022
Country 2015 2018 CAGR* % 2015-2018 2019 2022 CAGR* % 2019-2022
Indonesia 43,773.7 49,510.6 4.2 51,349.2 56,730.3 3.4
Malaysia 17,342.5 20,068.1 5.0 20,985.3 23,796.3 4.3
Philippines 11,504.9 13,190.9 4.7 13,847.3 16,205.1 5.4
Singapore 8,600.1 9,788.7 4.4 10,150.9 11,485.7 4.2
Thailand 28,035.8 30,910.2 3.3 31,625.7 33,475.8 1.9

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

Note: No data available for the other five ASEAN countries (Vietnam, Brunei, Cambodia, Burma, Laos)

Restaurants are the Philippines' largest foodservice subsector, reaching US$4.4 billion in 2018, with a CAGR of 3.9% from 2015 to 2018, the third largest growth rate in the ASEAN market. It is expected to reach US$5.1 billion by 2022, with a CAGR of 3.6%. Educational institutions ranked as the second biggest in value sales (US$1.4 billion) in 2018, followed by workplace cafés (US$1.1 billion), pubs, clubs and bars (US$959 million) and mobile operators (US$643.5 million). All subsectors grew well from 2015 to 2018 and are expected to grow steadily from 2019 to 2022.

Value sales and growth of Philippines' foodservice by subsector, in US$ millions, historical and forecast
Subsector 2015 2018 CAGR* % 2015-2018 2019 2022 CAGR* % 2019-2022
Accommodation 70.2 81.5 5.1 85.2 95.9 4.0
Complementary service 8.5 8.7 0.8 9.0 9.6 2.1
Education 1,272.6 1,411.5 3.5 1,457.2 1,590.5 3.0
Healthcare 103.5 115.6 3.8 119.7 131.4 3.2
Leisure 293.3 313.4 2.2 325.7 355.9 3.0
Military and civil defence 145.6 167.4 4.8 174.5 194.9 3.7
Mobile operator 611.7 643.5 1.7 665.2 721.3 2.7
Pub, club and bar 779.7 959.0 7.1 1,014.5 1,162.6 4.6
Restaurant 3,961.8 4,449.8 3.9 4,623.1 5,136.1 3.6
Retail 58.8 66.9 4.4 69.7 78.9 4.2
Travel 28.1 31.7 4.0 33.0 36.3 3.2
Welfare and services 250.7 277.9 3.5 287.2 314.6 3.1
Workplace cafe 1,037.5 1,138.9 3.2 1,173.5 1,274.2 2.8
Total 8,622.2 9,665.9 3.9 10,037.6 11,102.3 3.4

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

Within the restaurant subsector, fast food restaurants recorded the highest sales of US$3.4 billion in 2018, followed by full service restaurants (US$889.1 million). These top two outlets accounted for 96.1% of the total sales within the restaurant subsector (US$4.4 billion). Both outlets grew well at a CAGR of 3.8% and 4.6%, respectively from 2015 to 2018. These outlets are forecast to grow at a CAGR of 3.5% and 3.8%, respectively from 2019 to 2022. Coffee and tea shops performed well at a CAGR of 4.2% from 2015 to 2018, reaching sales of US$137.4 million in 2018 and is expected to lead the restaurant sector with the highest CAGR of 4.0% from 2019 to 2022.

Within the workplace cafe subsector, "industrial" workplaces recorded the highest sales of US$554.6 million in 2018, followed by retail and financial institutions (US$415.3 million). These top two outlets accounted for 85.2% of the total sales within the workplace subsector (US$1.1 billion). Both outlets grew at a CAGR of 3.3% and 3.0%, respectively from 2015 to 2018. These outlets are forecast to grow at a CAGR of 2.9% and 2.7%, respectively from 2019 to 2022.

Within the accommodation subsector, hotels and motels recorded the highest sales of US$54.6 million in 2018, followed by guest house (US$13.8 million). These top two outlets accounted for 83.9% of the total sales within the accommodation subsector (US$81.5 million). Both outlets grew at a CAGR of 5.4% and 4.8% respectively from 2015 to 2018 and are forecast to grow at a CAGR of 4.1% and 3.9%, respectively from 2019 to 2022. Hotels and motels lead in CAGR percentages for both the historic and forecasted data.

Within the pub, club and bar subsector, pubs and bars recorded the highest sales of US$914.1 million in 2018, followed by nightclubs (US$24.6 million) and private clubs (US$20.3 million). These three outlets grew at a CAGR of 7.2%, 6.9% and 6.0%, respectively from 2015 to 2018 and are forecast to grow at a CAGR of 4.7%, 4.7% and 4.2%, respectively from 2019 to 2022. The pub, club and bar subsector boasted the outlets that have historically and are forecasted to have the largest growth rates in the foodservice industry in the Phillipines.

The Philippines' foodservice by subsector and outlet, in US$ millions, historical and forecast
Subsector Outlet 2015 2018 CAGR* % 2015-2018 2019 2022 CAGR* % 2019-2022
Accommodation Bed and breakfast 1.1 1.3 3.6 1.3 1.4 3.4
Guest house 12.0 13.8 4.8 14.4 16.1 3.9
Holiday park 7.8 8.8 4.4 9.2 10.2 3.6
Hostel 1.9 2.2 5.0 2.3 2.5 3.9
Hotel and motel 46.7 54.6 5.4 57.2 64.5 4.1
Others 0.8 0.9 4.6 0.9 1.0 3.5
Leisure Entertainment 208.3 221.4 2.0 229.9 251.0 3.0
Venue 20.2 21.9 2.7 22.7 24.9 3.1
Visitor attraction 64.8 70.2 2.7 73.0 80.0 3.1
Mobile operator Other mobile operators 432.7 454.0 1.6 468.9 507.3 2.7
Vans 178.9 189.5 1.9 196.3 214.0 2.9
Pub, club and bar Nightclub 20.1 24.6 6.9 26.0 29.9 4.7
Private club 17.0 20.3 6.0 21.3 24.1 4.2
Pub and bar 742.6 914.1 7.2 967.2 1,108.7 4.7
Restaurant Coffee/tea shop 121.3 137.4 4.2 143.1 161.0 4.0
Full service restaurant 776.7 889.1 4.6 927.0 1,037.1 3.8
Ice cream parlour 33.3 37.9 4.4 39.4 43.8 3.7
Fast food restaurant 3,030.5 3,385.4 3.8 3,513.7 3,894.1 3.5
Retail Baker 16.7 19.2 4.7 20.1 22.7 4.2
Convenience store 19.0 21.5 4.2 22.4 25.4 4.3
Delicatessen 0.3 0.4 4.7 0.4 0.5 4.2
Department store 1.2 1.4 5.0 1.5 1.7 4.7
Other retail 0.3 0.4 4.7 0.4 0.4 4.5
Service station forecourt 5.1 5.8 4.3 6.0 6.9 4.3
Supermarket, hypermarket 16.0 18.1 4.2 18.8 21.2 4.0
Travel Air 20.2 22.7 4.0 23.7 26.0 3.2
Sea 7.9 8.9 4.1 9.3 10.3 3.3
Workplace cafe Government 154.8 169.1 3.0 173.9 187.9 2.6
Industrial 502.8 554.6 3.3 572.2 623.4 2.9
Retail, financial 380.0 415.3 3.0 427.4 463.0 2.7

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

Foodservice: chain franchises versus independent operators

The number of the chain franchises in the Philippines continues to grow at a faster rate than independent operators, although independent operators occupy bigger shares than the chain franchises within the eight subsectors. This is in line with the expansion of global players into the Filipino foodservice market, and increasing levels of market consolidation across all food and drinks distribution channelsFootnote 1.

Despite the faster growth of the chain franchises, within the restaurant subsector, the independent restaurant sales accounted for 66.1% of the total sales while chain restaurants accounted for 33.9% in 2018. Within the accommodation sector, independent sales accounted for 72% of the total sales, while chain accommodation sales accounted for 28%. Lastly, within the pub, club and bar subsector, independent sales accounted for 95.7% of the total sales, while chain franchise sales accounted for 4.3%.

The other unspecified subsectors have also experienced steady growth within workplace institutions accumulating up to US$1.1 billion in 2018 and within travel service operators (US$128.5 million) with CAGRs of 4.2% and 4.4% respectively from 2015 to 2018. These channels will expectedly experience growth at CAGRs of 3.7% and 3.9% respectively from 2019 to 2022.

Historical and forecast sales of The Philippines' foodservice: chain franchises versus independent operators, in US$ millions
Chain vs Independent Subsector 2015 2018 CAGR* % 2015-2018 2019 2022 CAGR* % 2019-2022
Chain Accommodation 103.6 124.8 6.4 132.2 154.6 5.4
Independent 272.0 321.7 5.7 338.2 388.3 4.7
Chain Leisure 122.2 143.5 5.5 150.6 172.2 4.6
Independent 239.0 278.7 5.3 291.7 332.1 4.4
Chain Mobile operator 24.2 26.4 2.9 27.1 29.3 2.7
Independent 384.1 416.6 2.7 427.4 460.8 2.5
Chain Pub, club and bar 70.2 78.1 3.6 80.8 88.9 3.2
Independent 1,615.8 1,757.9 2.8 1,805.8 1,949.9 2.6
Chain Restaurant 2,504.3 2,949.6 5.6 3,134.3 3,826.8 6.9
Independent 4,980.6 5,742.4 4.9 6,052.9 7,226.4 6.1
Chain Retail 56.7 66.7 5.5 70.1 81.1 5.0
Independent 89.0 102.8 4.9 107.8 124.6 5.0
Unspecified Travel 112.9 128.5 4.4 133.6 149.9 3.9
Workplace 930.1 1,053.2 4.2 1,094.8 1,220.2 3.7
Total for above 11,504.9 13,190.8 4.7 13847.3 16205.1 5.4
Total for chain franchises 2,881.4 3,389.2 5.6 3595.0 4352.9 6.6
Total for independent operators 7,580.5 8,620.0 4.4 9023.7 10482.1 5.1

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

In the Philippines' foodservice sector, the highest value per transaction in 2018 occurred in independent night clubs (US$16.9), followed by hotel and motel chains (US$13.6) and pub and bar chains (US$7.6). Ice cream parlours recorded the highest CAGR at 1.7% (chain) and 1.2% (independent) from 2015 to 2018. Ice cream parlours are expected to grow at a CAGR of 4.8% (chain) and 4.1% (independent), respectively from 2019 to 2022; which is the fastest growth of all chain and independent outlets.

Value per transaction in chain and independent foodservices by outlet, in US$, historical and forecast
Subsector Chain vs independent Outlet 2015 2018 CAGR* % 2015-2018 2019 2022 CAGR* % 2019-2022
Accommodation Independent Bed and breakfast 2.6 2.7 0.4 2.8 3.1 3.6
Guest house 2.4 2.4 0.2 2.5 2.8 3.3
Chain Holiday park 7.0 7.1 0.4 7.4 8.2 3.5
Independent Holiday park 5.6 5.6 0.2 5.8 6.4 3.4
Hostel 1.7 1.7 0.3 1.8 2.0 3.4
Chain Hotel and motel 13.6 13.6 0.1 14.1 15.5 3.3
Independent Hotel and motel 7.7 7.7 −0.1 7.9 8.7 3.1
Others 2.0 1.8 −2.3 1.9 2.0 1.5
Leisure Chain Entertainment 2.8 2.8 −0.3 2.9 3.1 2.9
Independent 2.4 2.4 −0.5 2.5 2.7 2.7
Chain Venue 5.8 5.7 −0.5 5.9 6.4 2.8
Independent 4.7 4.6 −0.7 4.7 5.1 2.8
Chain Visitor attraction 2.0 2.0 0.0 2.1 2.3 3.3
Independent 1.8 1.8 −0.1 1.9 2.1 3.3
Mobile operator Chain Other mobile operators 1.0 .9 −2.5 1.0 1.0 1.3
Independent .9 .9 −2.5 .9 .9 1.3
Chain Vans 1.1 1.0 −2.5 1.0 1.0 1.4
Independent 1.0 .9 −2.5 .9 1.0 1.4
Pub, club and bar Independent Nightclub 16.8 16.9 0.2 17.6 19.7 3.8
Chain Private and social club 5.7 5.5 −1.5 5.6 6.0 2.3
Independent 7.3 7.0 −1.5 7.2 7.7 2.3
Chain Pub and bar 8.0 7.6 −1.6 7.8 8.3 2.3
Independent 7.2 6.8 −2.1 6.9 7.3 1.9
Restaurant Chain Coffee/tea shop 1.1 1.1 0.9 1.2 1.3 4.2
Independent .9 .9 −0.3 .9 1.0 2.8
Chain Full service restaurant 4.9 4.9 −0.2 5.1 5.8 4.3
Independent 4.2 4.1 −0.3 4.3 4.8 4.1
Chain Ice cream parlour 1.6 1.7 1.7 1.7 2.0 4.8
Independent 1.4 1.5 1.2 1.5 1.7 4.1
Chain Fast food restaurant 2.1 2.1 −0.1 2.2 2.5 4.2
Independent 1.8 1.8 −0.1 1.9 2.2 4.2
Retail Chain Baker 1.5 1.5 −1.2 1.5 1.7 2.9
Independent 1.4 1.4 0.0 1.4 1.6 4.4
Chain Convenience store 1.6 1.7 0.3 1.7 1.9 3.6
Independent 1.6 1.6 0.2 1.6 1.8 3.6
Delicatessen 1.5 1.5 0.0 1.6 1.8 4.3
Chain Department store 1.8 1.8 −0.2 1.8 2.1 4.1
Independent 1.7 1.7 −0.3 1.7 1.9 3.9
Chain Other retail 1.6 1.6 0.1 1.7 1.9 4.5
Independent 1.5 1.5 0.1 1.6 1.8 4.4
Chain Service station forecourt 1.1 1.1 0.9 1.2 1.3 4.1
Independent 1.0 1.1 0.8 1.1 1.3 4.1
Chain Supermarket, hypermarket 2.3 2.3 1.0 2.5 2.8 4.0
Independent 2.1 2.2 1.0 2.3 2.6 4.0

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

Top 10 foodservice companies in the Philippines

Jollibee was the top foodservice company with a sales value of US$950.9 million in 2017, which accounts for 12.0% share of the foodservice market in the Philippines. It was followed by McDonald's (US$843.2million), Chowking (US$471.0 million), Mang Inasal (US$443.2 million) and Mister Donut (US$357.1 million). Among top five companies, two of them are foreign franchises where as three are local companies (Jollibee, Chowking and Mang Inasal). However, the top 10 companies are split evenly between foreign (mainly United States) and local franchises from the Philippines.

Top 10 foodservice companies in the Philippines by value sales and share, 2017 In US$ millions
Company US$ million Share %
Jollibee 950.9 11.9
McDonald's 843.2 10.5
Chowking 471.0 5.9
Mang Inasal 443.2 5.5
Mister Donut 357.1 4.5
Greenwich 243.6 3.0
Chooks to go 165.9 2.1
Shakey's pizza parlor 165.1 2.1
KFC 142.9 1.8
Pizza hut 102.4 1.3
Others 4,172.1 52.0
Total 8,016.4 100.0
Source: GlobalData, 2019

Opportunities

The Philippines is the world's twelfth most populous nation and second in the ASEAN region, which is a large market opportunity for Canadian exporters. It also surpassed Viet-Nam as the second largest agri-food and seafood importer from Canada in the ASEAN market, with a CAGR of 11.0% from 2014 to 2018, reaching a value of US$525.5 million in 2018.

The Philippines is the fourth largest foodservice market among all ASEAN countries, with US$13.2 billion value sales in 2018 at a CAGR of 4.7% from 2015 to 2018, the second largest growth rate in the ASEAN region. The value sales in the foodservice sector are expected to increase to US$16.2 billion by 2022 at a CAGR of 5.4% from 2019 to 2022, forecasted as the largest growth rate in the region. The Philippines' foodservice market's growth and diversity provides opportunities to the Canadian foodservice industry to expand into the country and to compete with other existing international food franchises, along with local foodservice companies.

Because of the growing middle class and upper class, Filipinos are looking not only for quality, they are looking also for gourmet products. In the last decade the Philippines has experienced a growth in the middle class with more disposable income. That social mobility lets them to explore different foods and try gourmet and more international products. This is a big opportunity for Canada in the foodservice sector, because we have perfect products for that segment of the market such as: ice wine, whisky, cod, salmon, etc.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.

For additional information on Food and Hotel Asia 2020, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and Agri-Food Canada
ben.berry@canada.ca

Resources

Foodservice profile – Philippines
Global Analysis Report

Prepared by: Bliss Morgan, Global analysis (Co-op student)

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2019).

Photo credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada.

To join our distribution list or to suggest additional report topics or markets, please contact:

Agriculture and Agri-Food Canada, Global Analysis
1341 Baseline Road, Tower 5, 3rd floor
Ottawa, Ontario
Canada, K1A 0C5
Email: aafc.mas-sam.aac@canada.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.

Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of Agriculture and Agri-Food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.

Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.

Date modified: