The Philippines’ baby food sector is projected to decline to PHP 42 billion (USD 826.7 million) by 2028, registering a negative compound annual growth rate (CAGR) of 4.5 percent over 2023-2028, according to GlobalData.
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The Philippine government’s efforts to improve public access to contraceptives and family planning are behind a decline in childbirth rates, which is expected to lead to a decrease in the overall volume and value of sales of baby food in the country, the analytics firm said.
“Demographic changes taking place with respect to the baby population and live birth rates, and the government’s measures to restrict the number of births coupled with an increase in the number of working women will contribute to a decline in the Philippines’ baby food market,” said Shraddha Shelke, Consumer Analyst at GlobalData.
The company said that baby milk was the largest category in terms of value and volume in 2022, with all categories forecast to decline in value and volume terms over 2022–28.
Hypermarkets and supermarkets were the leading distribution channel in the Philippines baby food market in 2022, followed by convenience stores and drugstores & pharmacies. Nestlé, Mead Johnson (Reckitt Benckiser), and Abbott Laboratories were the top three leading companies in the country’s baby food sector in 2022.
However, the improving economic status of Filipinos could see a rise in more high-end baby food in the nation.
“The Philippine baby food market’s growth is tied to the economic fortunes of the country,” added Shelke. “The rising disposable income of Filipino families with babies will stimulate sales of premium and organic baby food products. To build a stable consumer base in the country amid changing demographic conditions, manufacturers should focus on offering affordable premium baby food products with value-added benefits.”