Bakery Report - Philippines.pptx

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Consumer and Market Insights: Bakery and Cereals Market in Philippines
CS1901MF
March 2015

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This report brings together multiple data sources to provide a comprehensive overview of the Bakery and Cereals
sector in Philippines as part of our global coverage of the sector. This report draws on market data, analyzing value
and volume data and category and channel distribution breakdown, also highlighting which categories are witnessing
the biggest growth. Brand and Private Label analysis is also provided. It also contains top line foodservice
transaction figures highlighting where the most opportunistic channels are for industry players in the country.
Detailed packaging analysis is also provided, analyzing category trends and also packaging material and type. The
report also contains qualitative analysis of the most influential consumer trends driving consumption occasions in the
category, analyzing how these trends will evolve and highlighting best practice product examples to show how
manufacturers are targeting the trend.
Market data coverage: The overall market value and volume data included in the report is for the period 2014-
2019.
Category coverage: This report provides information on 11 categories including Bread & Rolls, Cakes, Pastries &
Sweet Pies, Cookies (Sweet Biscuits), Morning Goods and Breakfast Cereals.
More extensive brand coverage: The report provides more extensive brand share coverage. Brand share data is
also validated by inputs from industry experts.
Distribution channel: The Distribution data included in the report covers 11 distribution channels including Cash &
Carries & Warehouse Clubs, “Dollar Stores”, Variety Stores & General Merchandise Retailers, Hypermarkets &
Supermarkets, Convenience Stores
Time period: The report provides overall market value and volume data, including category level data for the period
2009-2019. Distribution channel and brand share data is included for the year 2014.
Report scope

Table of Contents
• Country Context
• Market Overview
• Retail Landscape and Key Distribution Channels
• Packaging
• Brand Share
• Consumer trends
• Examples of new product development
• Appendix 0917 706 4456
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Large base of young consumers and rising GDP per capita levels makes Philippines an
attractive Bakery and Cereals market
The Philippines has a large young population base with
approximately 61.1% of the population aged below the
age of 30.
The population in the Philippines has been increasing
year on year, reaching 99.0 million in 2014.
An increase in the size of the middle class population coupled with a growing disposable income and a large
proportion of young consumers will drive the demand for consumer packaged goods.
GDP Per Capita Population
GDP per capita in the Philippines has been increasing
in absolute value terms since 2009, however there was
a decline in the growth rate during 2010-2011.
Consumer Price Index Age Profile
0-9
10 -19
20 -29
30 -39
40 -49
50 -59
60 -69
70 -79
80+
14%
12%
10%
8%
6%
4%
2%
0%
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2009 2010 2011 2012 2013 2014
GDP
Per
Capita
(PHP)
Annual
growth
(%)
0.0%
0.5%
1.0%
1.5%
2.0%
88
90
92
94
96
98
100 2.5%
2009 2010 2011 2012 2013 2014
Annual
Growth
(%)
Population
(Million)
1 0 5
4
1 1 0
1 1 5
1 2 0
125
1 0 0
2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4
The CPI increased by 20.4% during 2009-2014, to reach
120.4 basis points in 2019.
Consumer
Price
Index

The Retail and Foodservice markets in Philippines: an overview
This slide provides an overview of the retail and foodservice markets in Philippines, in which industry
players in the Bakery and Cereals sector operate:
Retail Foodservice
Profit Sector
Total number of transactions in the Profit
Sector, 2014: 4,670.1 million
Largest channel in the Profit Sector and
transactions, 2014: Restaurants, 3,825.6
million
Cost Sector
Total number of transactions in the Cost
Sector, 2014: 1418.9 million
Largest channel in the Cost Sector and
transactions, 2014: Education, 681.7 million
Country indicator Units Value
Total value of Food market,
2014
US$
millions 27,572.7
Total volume of Food market,
2014
Millions of
Kg 7,351.1
Total Food volume growth
2009-2014 CAGR 3.8%
Proportion of Bakery and
Cereals as part of overall food
volume, 2014
% 4.8%
Biggest category within the
Bakery and Cereals market as
part of overall volume
%
Bread &
Rolls ,
38.1%
Figures for overall food 2014 are forecasts.
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Table of Contents
• Country Context
• Market Overview
• Packaging
• Brand Share
• Consumer trends
• Appendix
6

The Filipino Bakery and Cereals market will register higher growth both in value and
volume terms during 2014-2019 compared to 2009-2014
Market value of Philippines's Bakery and
Cereals market, 2009-2019
Market volume of Philippines's Bakery and
Cereals market, (Millions of Kg), 2009-2019
CAGR 2009-2014 3.8%
CAGR 2014-2019 4.2%
•The Bakery and Cereals market in Philippines witnessed strong growth both in value and volume terms during
2009-2014. While it grew at a of CAGR 4.4% in terms of value, volume growth during 2009-2014 was recorded
at CAGR 3.8%. It is forecast to register a CAGR of 4.8% in value terms and volume growth will be registered at
a CAGR of 4.2% during 2014-2019.
•The volume consumption of Bakery and Cereals is forecast to grow from 349.2 Kg million in 2014 to 429.6 Kg
million in 2019.
PHP million US$ million
2009 54,836.3 1,150.1
2014 67,954.1 1,530.5
2019 85,710.9 1,875.4
CAGR 2009-2014 4.4% 5.9%
CAGR 2014-2019 4.8% 4.1%
289.1
7
349.2
429.6
2009 2014 2019

The Bakery and Cereals market will register more than 4% growth both in value and
volume terms during the forecast period
-2%
-4%
2%
0%
4%
6%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Growth
Rate
(%)
The Bakery and Cereals market in Philippines was worth PHP67,954.1 million (US$1,530.5 million) in 2014 and is
forecast to reach PHP85,710.9 million (US$1,875.4 million) by 2019, growing at a CAGR of 4.8% in local currency
terms during 2014-2019. Volume consumption will grow at a CAGR of 4.2% during the same period.
In US$ terms, the market registered volatile growth during 2009-2014 due to fluctuations in exchange rates.
However the market is forecast to register stable growth during 2016-2019, due to stabilization of exchange rates
post 2015.
Market value (PHP million and US$ million) and volume growth of Bakery and Cereals market, 2009-2019
12%
10%
8%
Value(PHP)
Value (US$ m)
Volume kgm
8

Filipino consumers are trading down to value for money products in the Bakery and
Cereals market
In 2014, the value of the Bakery and Cereals market grew by 4.5% and volume grew by 4.0%. The Bakery and
Cereals market prices saw a rise of 0.5% whereas food inflation stood at 5.8%. Increasing food inflation in
Philippines has resulted in consumers trading down to value for money products in the market. Filipino consumers
are price sensitive and are increasingly preferring such Bakery and Cereals products that are of low cost.
4.5%
9
4.0%
0.5%
5.8% -5.3%
0%
2%
4%
6%
8%
10%
Extent to which consumers are trading up or down in Philippines’s Bakery and Cereals market
12%
Change in Sales Value Change in Sales Volume Change in Average Price Food PriceInflation Trading Up or Down
2014
Annual
Change
%

Bread & Rolls is the leading category in terms of volume consumption of Bakery and
Cereals products in Philippines
Market volume of Philippines's Bakery and
Cereals market, (Millions of Kg), 2014, by
category
The Bread & Rolls category leads the volume
consumption of Bakery and Cereals products in
Philippines accounting for 38.1% of the market in
terms of volume in 2014. The Cookies (Sweet
Biscuits) category is forecast to register fastest
growth in the Bakery and Cereals
market, registering a CAGR of 4.6% during 2014-
2019.
Market Volume, forecasted Compound Annual
Growth Rate , 2014-2019
Market Volume
(Kg m) 2014
CAGR
2014-2019
Bread & Rolls 132.9 4.4%
Cookies (Sweet Biscuits) 110.7 4.6%
Cakes, Pastries & Sweet
Pies
66.9 3.4%
Savory Biscuits 14.4 4.5%
DoughProducts 11.2 3.9%
Breakfast Cereals 9.1 3.7%
Baking Mixes 1.5 2.6%
MorningGoods 1.0 3.8%
Energy Bars 0.6 4.4%
BakingIngredients 0.6 2.3%
CerealBars 0.4 2.1%
132.9
110.7
66.9
14.4
9.1
11.2
1.5
1.0
0.6
0.6
0.4
Bread & Rolls
Cookies (Sweet
Biscuits)
Cakes, Pastries&
Sweet Pies
Savory Biscuits
Dough Products
BreakfastCereals
Baking Mixes
Morning Goods
Energy Bars
Baking Ingredients
Cereal Bars
10

The Breakfast Cereals category is forecast to witness fastest growth during the
period 2014-2019
Cookies (Sweet Biscuits) is the largest category by value and is forecast to register fastest growth at a CAGR of
5.2% during 2014-2019 in the Filipino Bakery and Cereals market. It was valued at PHP24,375.4 million (US$549.0
million) in 2014, accounting for 35.9% of the market share. This will be followed by Cakes, Pastries & Sweet Pies
and Bread & Rolls categories with 25.7% and 25.5% share respectively.
Market value of categories in Philippines's Bakery and Cereals market
0%
1%
2%
3%
4%
5%
6%
7%
0% 1% 6% 7%
2014–2019
Category
Value
in
PHP
CAGR
(%)
2% 3% 4% 5%
2009–2014 Category Value in PHP CAGR (%)
Cookies (Sweet Biscuits)
Cakes, Pastries & SweetPies
Bread & Rolls
Dough Products
Savory Biscuits
Breakfast Cereals
Energy Bars
Baking Mixes
Morning Goods
Cereal Bars
BakingIngredients
11
*Bubble Size = 2014 Category value

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Cookies (Sweet Biscuits) is the largest category in terms of value in the Filipino
Bakery and Cereals market
Market value of categories in the Bakery and Cereals market
The Cakes, Pastries & Sweet Pies category is forecast to grow at a CAGR of 4.0% during 2009-2019 from PHP14,455.9 million
(US$303.2 million) in 2009 to PHP21,397.7 million (US$468.2 million) in 2019 with Frozen Cakes & Pastries being the largest
segment, accounting 32.7% of the share.
Annual
Growth
(%)
Value
(US$
Million)
Annual
Growth
(%)
Value
(PHP
Million)
Cookies (Sweet Biscuits) – US$ Cookies (Sweet Biscuits) – PHP
800 15% 40,000
600 10% 30,000
400 5% 20,000
200 0% 10,000
0 -5% 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
6%
5%
4%
3%
2%
1%
0%
Value (US$) Annual Growth (%) Value (PHP) Annual Growth (%)
The Cookies (Sweet Biscuits) category is forecast to grow at a CAGR of 5.0% during 2009-2019 from PHP19,274.9 million
(US$404.3 million) in 2009 to PHP31,394.6 million (US$686.9 million) in 2019 with Chocolate Cookies being the largest
Cakes, Pastries & Sweet Pies – US$ Cakes, Pastries & Sweet Pies – PHP
-5%
0%
5%
10%
15%
500
400
300
200
100
0
Annual
Growth
(%)
Value
(US$
Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$) Annual Growth (%)
5%
4%
3%
2%
1%
0%
25,000
20,000
15,000
10,000
5,000
0
Annual
Growth
(%)
Value
(PHP
Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (PHP) Annual Growth(%)
.

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Sandwich Slices is the largest segment in the Bread & Rolls category
Bread & Rolls – US$
Bread & Rolls – PHP
-5%
0%
5%
10%
15%
600
500
400
300
200
100
0
Annual
Growth
(%)
Value
(US$
Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
6%
5%
4%
3%
2%
1%
0%
25,000
20,000
15,000
10,000
5,000
0
Annual
Growth
(%)
Value
(PHP
Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (PHP) Annual Growth (%)
0%
2%
1%
4%
3%
Annual
Growth
(%)
Value
(PHP
Million)
10% 3,000
5% 2,000
0% 1,000
-5% 0
0
40
20
80
60
The Bread & Rolls category is forecast to grow at a CAGR of 4.7% during 2009-2019 from PHP13,966.8 million (US$292.9
million) in 2009 to PHP22,029.2 million (US$482.0 million) in 2019 with Sandwich Slices being the largest
segment, accounting for 20.5% of the market share.
Dough Products – US$ Dough Products – PHP
100 15% 4,000 5%
Annual
Growth
(%)
Value
(US$
Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Dough Products category is forecast to grow at a CAGR of 4.2% during 2009-2019 from PHP2,472.6 million (US$51.9
million) in 2009 to PHP3,728.7 million (US$81.6 million) in 2019 with Frozen Dough Products being the largest

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Savory Biscuits is one of the fastest growing categories in the Filipino Bakery and
Cereals market
The Savory Biscuits category is forecast to grow at a CAGR of 4.9% during 2009-2019 from PHP2,084.2 million (US$43.7
million) in 2009 to PHP3,366.6 million (US$73.7 million) in 2019 with Cheese-Flavoured Crackers being the largest
Breakfast Cereals – US$ Breakfast Cereals – PHP
-5%
0
Annual
Growth
(%)
Value
(US$
Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
6%
5%
4%
3%
2%
1%
0%
Savory Biscuits – US$ Savory Biscuits – PHP
80 15% 4,000
60 10% 3,000
40 5% 2,000
20 0% 1,000
0
Annual
Growth
(%)
Value
(PHP
Million)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
-5%
0%
5%
10%
15%
70
60
50
40
30
20
10
0
Annual
Growth
(%)
Value
(US$
Million)
0%
1%
2%
3%
4%
5%
3,000
2,500
2,000
1,500
1,000
500
0
Annual
Growth
(%)
Value
(PHP
Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Breakfast Cereals category is forecast to grow at a CAGR of 4.1% during 2009-2019 from PHP1,901.7 million (US$39.9
million) in 2009 to PHP2,830.0 million (US$61.9 million) in 2019 with Ready-to-Eat Cereals being the largest
.

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The Energy Bars category is forecast to witness strong growth during 2009-2019
Energy Bars – US$
Energy Bars – PHP
The Baking Mixes category is forecast to grow at a CAGR of 2.8% during 2009-2019 from PHP153.8 million (US$3.2 million)
in 2009 to PHP203.4 million (US$4.4 million) in 2019 with Pancake Mixes being the largest segment, accounting 18.4% of the
-5%
0%
5%
10%
15%
7
6
5
4
3
2
1
0
Annual
Growth
(%)
Value
(US$
Million)
6%
5%
4%
3%
2%
1%
0%
300
250
200
150
100
50
0
Annual
Growth
(%)
Value
(PHP
Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Energy Bars category is forecast to grow at a CAGR of 4.8% during 2009-2019 from PHP164.8 million (US$3.5 million)
in 2009 to PHP263.1 million (US$5.8 million) in 2019.
Baking Mixes – US$ Baking Mixes – PHP
-10%
-5%
0%
5%
10%
5
4
3
2
1
0
Annual
Growth
(%)
Value
(US$
Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
0%
1%
2%
250
200
150
100
50
0
Annual
Growth
(%)
Value
(PHP
Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (PHP) Annual Growth(%)
share.

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Toaster Pastries is the largest segment in the Morning Goods category
Morning Goods – US$
The Cereal Bars category is forecast to grow at a CAGR of 2.5% during 2009-2019 from PHP115.4 million (US$52.4 million)
in 2009 to PHP147.0 million (US$3.2 million) in 2019 with Granola/Muesli/Yogurt Bars being the largest segment, accounting
-5%
0%
5%
10%
0
2
1
4
3
5
Annual
Growth
(%)
Value
(US$
Million)
0%
2%
1%
4%
3%
5%
0
100
50
200
150
Morning Goods – PHP
15% 250
Annual
Growth
(%)
Value
(PHP
Million)
3 5%
2 0%
1 -5%
0 -10%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Annual
Growth
(%)
Value
(US$
Million)
0%
1%
2%
0
50
100
150
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Morning Goods category is forecast to grow at a CAGR of 4.2% during 2009-2019 from PHP141.8 million (US$3.0
million) in 2009 to PHP214.3 million (US$4.7 million) in 2019 with Toaster Pastries being the largest segment, accounting
9.9% of theshare.
Cereal Bars – US$ Cereal Bars – PHP
4 10% 200 3%
Annual
Growth
(%)
Value
(PHP
Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Annual Growth(%)
68.4% of theshare.

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Baking Ingredients is the smallest category by value in the Filipino Bakery and
Cereals market
The Baking Ingredients category is forecast to grow at a CAGR of 2.7% during 2009-2019 from PHP104.4 million (US$2.2
million) in 2009 to PHP136.4 million (US$3.0 million) in 2019 with Dessicated Coconut being one of theleading
Annual
Growth
(%)
Value
(PHP
Million)
Annual
Growth
(%)
Value
(US$
Million)
Baking Ingredients – US$ Baking Ingredients – PHP
4 10% 150 4%
3 5% 3%
100
2 0% 2%
50
1 -5% 1%
0 -10% 0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 20182019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value(US$) Annual Growth (%)

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Cookies (Sweet Biscuits), Bread & Rolls, and Savory Biscuits will gain market share
during 2014-2019
Winners Losers
Change in market
share, 2014–2019
Category
Change in market
share, 2014–2019
Category
Change in market share (in value terms) in the Bakery and Cereals market
The Cookies (Sweet Biscuits) category is forecast to
gain market share, growing from 35.9% in 2014 to
36.7% in 2019.
1 1 Cakes, Pastries & Sweet Pies
The Cakes, Pastries & Sweet Pies category will lose
market share, declining from 25.7% in 2014 to 24.9% in
2019.
-0.8%
0.6%
0.8%
2 Breakfast Cereals
The Breakfast Cereals category will lose market
share, declining from 3.4% in 2014 to 3.3% in 2019.
-0.1%
3 Dough Products
The Dough Products category will lose market
share, declining from 4.4% in 2014 to 4.3% in 2019.
-0.1%
Bread & Rolls
The Bread & Rolls category is forecast to gain market
share, growing from 25.5% in 2014 to 25.7% in 2019.
2 0.2%
Savory Biscuits
The Savory Biscuits category is forecast to gain
market share, growing from 3.8% in 2014 to 3.9% in
2019.
3 0.1%

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Category level pricing
Average category level prices (PHP) in the Filipino Bakery and Cereals market, 2014
Category Average Price/ Kg (PHP) 2014 Average Price/Kg (USD) 2014
Cookies (Sweet Biscuits) 220.2 5.0
Cakes, Pastries & Sweet Pies 261.5 5.9
Bread & Rolls 130.6 2.9
Dough Products 268.2 6.0
Savory Biscuits 182.2 4.1
Breakfast Cereals 251.9 5.7
Energy Bars 350.2 7.9
Baking Mixes 118.2 2.7
Morning Goods 170.6 3.8
Cereal Bars 343.3 7.7
Baking Ingredients 213.2 4.8

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0
2
0
2
0
2
0
2
0
2
0
Chocolate Cookies segment will gain maximum share in the Cookies (Sweet Biscuits)
category during 2014-2019
Segment’s share of the overall category by value and change in market share in Philippines’s Bakery and Cereals
market, 2014
Category Segment
Segment‟s Share,
2014 Change 2014/2019
Chocolate Cookies 24.9% 1.0%
Assortments 15.1% -0.2%
Plain Cookies 14.2% -0.3%
Other Cookies 12.2% -0.6%
American Cookies 10.8% 0.0%
Butter-Based Cookies 7.4% 0.0%
Wafer Biscuits 7.0% 0.0%
Cream Filled 5.4% -0.1%
Artisanal Cookies 2.9% 0.0%
Egg-Based 0.0% 0.0%
Pies
Frozen Cakes & Pastries 32.7% 0.7%
Cakes 26.4% -0.6%
Pastries 21.2% -0.8%
Sweet Pies 19.7% 0.8%

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2
1
2
1
2
1
2
1
Sandwich Slices will register fastest growth in the Bread & Rolls category during
2014-2019
Segment’s share of the overall category by value and change in market share in Philippines’s Bakery and
Cereals market, 2014
Category Segment
Segment‟s Share,
2014
Change
2014/2019
Bread & Rolls
Sandwich Slices 20.5% 0.7%
Rolls 20.5% 0.3%
Loaves 20.2% 0.2%
Ciabatta 10.1% 0.1%
Baguettes 9.7% -0.3%
Burger Buns 8.9% -1.0%
Other Breads 8.1% 0.1%
Frozen Bread & Rolls 2.0% 0.0%
Dough Products
Frozen Dough Products 27.9% -0.9%
Pie & Pastry Shells 26.4% 0.3%
Prepared Pastry (other) 24.3% 0.3%
Pizza Bases 21.4% 0.3%

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2
2
2
2
2
2
2
2
2
2
The Cheese-Flavored Crackers segment is forecast to register fastest growth in the
Savory Biscuits category
Category Segment
Segment‟s Share,
2014
Change
2014/2019
Savory Biscuits
Cheese-Flavoured Crackers 37.0% 1.6%
Bread Substitutes 27.8% -1.2%
Plain Crackers 25.1% -0.3%
Other Crackers 10.1% -0.1%
Breakfast Cereals
Ready-to-Eat Cereals 62.5% -0.9%
Hot Cereals 37.5% 0.9%
Energy Bars Energy Bars 100.0% 0.0%
Baking Mixes
Pancake Mixes 18.4% 0.7%
Other Baking Mixes 17.5% -0.4%
Bread Mixes 16.3% 1.7%
Dessert Mixes 16.0% -1.6%
Muffin Mixes 11.3% -0.5%
Brownie Mixes 9.0% 0.2%
Cake Mixes 8.9% 0.0%
Rolls/Biscuit Mixes 2.6% 0.0%

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2
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2
3
The Pain Au Raisan segment will gain maximum share in the Morning Goods
category
Category Segment
Segment‟s Share,
2014
Change
2014/2019
Morning Goods
Toaster Pastries 9.9% 0.0%
Dohnuts 9.2% 0.2%
Buns & Teacakes 8.9% -0.1%
Scones 8.5% -0.5%
Pain Au Chocolate 8.5% -0.5%
Waffles 8.2% 0.2%
Pain Au Raisan 7.3% 0.4%
Madeleines 7.3% 0.3%
Pancakes 7.2% 0.2%
Muffins 6.3% 0.2%
Breakfast Cakes 5.2% 0.2%
Croissants 4.4% -0.6%
Other (Morning Goods) 4.0% 0.0%
Crumpets 3.0% 0.0%
Frozen Morning Goods 2.0% 0.0%

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2
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2
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2
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The Granola/Muesli/Yogurt Bars segment will gain market share in the Cereal Bars
category
Category Segment
Segment‟s Share,
2014
Change
2014/2019
Cereal Bars
Granola/Muesli/Yogurt Bars 68.4% 1.0%
Other Cereal Bars 31.6% -1.0%
Baking Ingredients
Other Baking Ingredients 15.4% 0.2%
Dessicated Coconut 13.6% -0.2%
Baking Chocolate Chips & Morsels 12.3% 0.2%
Fruit Pectins and Glazed Fruit 11.6% 0.5%
Cake Decorations & Icing 10.2% -0.1%
Dry Yeast 10.2% -0.1%
Non-Chocolate Baking Chips 10.0% -0.2%
Baking Powder/Soda 8.2% -0.3%
Cocoa-Baking 5.3% 0.1%
Corn & Potato Starch 3.3% -0.1%

Table of Contents
• Country Context
• Market overview
• Packaging
• Brand Share
• Consumer trends
• Appendix
25

Profiles of selected Grocery Retailers
Leading retailers in the Filipino Food retail market, 2014
Leading retailers, Philippines
Company Name Overview
The Robinsons
Retail Group
The Robinsons Retail Group is the largest multi-channel retailer in the
Philippines. Robinsons operates through 11 formats, 21 retail brands, and
runs approximately 950 stores in the country.
SM Supermarket
SM Supermarket is the second largest supermarket in the Filipino food
retail industry, operating around 145 stores, including Hypermarkets &
Supermarkets, and Convenience Stores.
Rustan
Rustan is one of the largest diversified retailers in the Philippines. Rustan
Supercenters, Inc. is the operator of Rustan‟s Supermarkets, Shop wise,
and the Wellcome chain of hypermarkets.
Metro
Metro is a private family corporation primarily engaged in the retail
business. It owns and operates a chain of 17 stores in department store
and supermarket formats.
26

Bakery and Cereals as a percentage of overall Food:
Bakery and Cereals accounted for 5.6% of total food
retail consumption in Philippines in 2013.
Hypermarkets & Supermarkets is the leading retailer for
food sales in the Philippines, accounting for 53.3% of
the market share in 2013, followed by Food & Drinks
Specialists with a 24.3% share. Convenience Stores
registered fastest growth at a CAGR of 6.2% during
2010-2013 in comparison to the other retail formats.
Hypermarkets & Supermarkets is the leading distribution channel in the Filipino
Foodmarket
Leading distribution channels in Filipino Bakery and Cereals market, 2014
Leading distribution channels–Overall Food Leading distribution channels – Bakery and Cereals
9%
Hypermarkets&
Supermarkets
14%
Food &Drinks
44%
Specialists
ConvenienceStores
Others
33%
The Bakery and Cereals market in Philippines followed
a similar trend with Hypermarkets & Supermarkets
accounting for 44.0% of the market share in 2014.
This was followed by Food & Drinks Specialists and
Convenience Stores with a market share of 33.2% and
14.0% respectively during the same year.
16
14
12
10
8
6
4
2
0
Hypermarkets & Food & Drinks
Supermarkets Specialists
Convenience
Stores
Others
Value
(US$
billion)
2010
2013
27

Food & Drinks Specialists is the leading distribution channel for Cakes, Pastries &
Sweet Pies and Bread & Rolls categories
Leading distribution channels by category in the Bakery and Cereals market, 2014
Key distribution channels
Biscuits)
– Cookies (Sweet
4%
12% Hypermarkets&
Supermarkets
Food &Drinks
Specialists
22%
ConvenienceStores
62%
Others
Key distribution channels – Bread & Rolls
23%
Food &Drinks
Specialists
Hypermarkets&
Supermarkets
8%
50%
ConvenienceStores
Others
19%
Key distribution channels – Cakes, Pastries &
Sweet Pies
3%
17% Food & Drinks
Specialists
43%
Hypermarkets&
Supermarkets
ConvenienceStores
Others
37%
Key distribution channels – Dough Products
33%
6% 3%
58%
Hypermarkets &
Supermarkets
ConvenienceStores
Food &Drinks
Specialists
Others
28

Convenience Stores is the second largest distribution channel for Breakfast
Cereals, Energy Bars, and Baking Mixes categories
Key distribution channels – Savory Biscuits
5%
Hypermarkets&
18% Supermarkets
Food &Drinks
Specialists
56%
ConvenienceStores
20% Others
Key distribution channels – Energy Bars
24%
10%
3%
63%
Hypermarkets &
Supermarkets
ConvenienceStores
Food & Drinks
Specialists
Others
Key distribution channels – Breakfast Cereals
3%
11% Hypermarkets&
Supermarkets
ConvenienceStores
24%
Food &Drinks
62% Specialists
Others
Key distribution channels – Baking Mixes
27%
5% 3%
65%
Hypermarkets&
Supermarkets
Convenience
Stores
Food &Drinks
Specialists
Others
29

Hypermarkets & Supermarkets is the leading distribution channel for Morning
Goods, Cereal Bars, and Baking Ingredients categories
Key distribution channels – Morning Goods
2%
20% Hypermarkets&
Supermarkets
Food &Drinks
Specialists
54% ConvenienceStores
24%
Others
Key distribution channels – Baking Ingredients
29%
3% 3%
65%
Hypermarkets &
Supermarkets
ConvenienceStores
Food &Drinks
Specialists
Others
Key distribution channels – Cereal Bars
3%
23%
Hypermarkets&
Supermarkets
ConvenienceStores
50%
Food &Drinks
Specialists
Others
24%
30

Table of Contents
• Country Context
• Market Overview
• Packaging
• Brand Share
• Consumer trends
• Appendix
31

Flexible Packaging is the most used packaging material while Film is the most
commonly used container type in the Bakery and Cereals market
Film is the most commonly used container type in the
Bakery and Cereals market and accounted for 62.1% of
containers used in 2014.
Cereal Bars and Energy Bars mainly used Film containers
while Bag/Sachet is most commonly used for the
packaging of Break Cereals and Baking Mixes.
Breakfast Cereals and Cereal Bars used Flexible
Packaging materials while Rigid Plastics is mainly used for
the packaging of Cakes, Pastries & Sweet Pies.
Key Container Types by category
Overview of Philippines’s Bakery and Cereals market by type of packaging in 2014
Key Packaging Materials Key Packaging Materials by category
Flexible Packaging is the most commonly used
packaging material in the Bakery and Cereals market
in Philippines followed by Rigid Plastics.
Key Container Types
82.1%
14.4%
2.4%
Flexible
Packaging
Rigid
Plastics
Paper &
Board
62%
16%
3%2%6%
10%
Film
Bag/Sachet
Tray
Clamshell
Foil
Others
6%
13% 7% 1% 2% 4% 3% 6%
2% 17%
6%
81% 93% 98%
100
34%
%
49%
100
%
14%
84%
96% 100
%
13%
83% 88%
Baking Baking Mixes Bread & Rolls Breakfast Cakes, Pastries Cereal Bars Cookies(Sweet Dough Energy Bars Morning Goods SavoryBiscuits
Ingredients Cereals & Sweet Pies Biscuits) Products
Flexible Packaging Rigid Plastics Others
39% 48%
100%
70% 59%
100%
29% 34%
79% 89%
59% 94%
37%
54% 54%
21% 11%
2%
52% 8%
22%
17% 13%
Baking
Ingredients
Baking Mixes Bread &Rolls Breakfast Cakes, Pastries Cereal Bars Cookies (Sweet
Cereals & Sweet Pies Biscuits)
Dough
Products
Energy Bars Morning Goods SavoryBiscuits
Film Bag/Sachet Others
6% 4%
32

Box is the most commonly used outer type while Plastic Tie is the most used closure
type
Box are the most commonly used outers for
Bakery and Cereals in Philippines and accounted
for 8.7% of the total outers used in 2014.
Overview of Philippines’s Bakery and Cereals market by packaging closure/outers used in 2014
Key Packaging Closures Key Packaging Closures by category
Plastic Tie closures are the most commonly used
closures and accounted for 6.3% of the market share in
2014, followed by Film closures with 3.3%.
Key Packaging Outers
1
1
Plastic Tie closures are most commonly used for the
packaging of Bread & Rolls category while Film
closures are used for Cakes, Pastries & Sweet Pies.
* Data for Bakery and Cereals using Closures.
Box 8.7%
2 Shrink Wrap 2.5%
6.3%
3.3%
2.2%
3
Plastic Tie
2 Film
Prize Off
55%
20%
5% 5%
19%
7%
4%
5%
1%
Baking Ingredients Baking Mixes Bread &Rolls Cakes, Pastries&
SweetPies
Cookies
(SweetBiscuits)
Morning
Goods
SavoryBiscuits
Plastic Tie Film Others
2%
8%
73%
49%
5%
6% 2% 4%
2%
1%
Baking BakingMixes
Ingredients
Breakfast Cakes, Pastries Cereal Bars
Cereals & SweetPies
11% 8% 9%
Cookies (Sweet Dough Products Morning Goods Savory Biscuits
Biscuits)
Key Packaging Outers by category
Box ShrinkWrap Others
33
Box outers are mainly used for the packaging of Baking
Mixes while Shrink Wrap outers are used for packaging
of Cakes, Pastries & Sweet Pies
* Data for Bakery and Cereals using outers.

Plastic Tie will continue to be the most commonly used closure type and is forecast
to register fastest growth during 2014-2019
The use of Film containers is forecast to grow at a
CAGR of 4.8% during 2014-2019, to reach 1,835.0
million units in 2019.
Key Packaging Outers
Flexible Packaging will continue to be the most
commonly used packaging material and will register
fastest growth at a CAGR of 4.9% during 2014-2019.
Key Packaging Closures
Overview of Philippines’s Bakery and Cereals market by type of packaging in 2019
Key Packaging Materials Key Container Types
3,000
2,500
2,000
1,500
1,000
500
0
FlexiblePackaging RigidPlastics Paper &Board
Million
Units
2014 2019
500
0
1,000
2,000
1,500
Film Bag/Sachet Tray Clamshell
Million
Units
2014 2019
0
50
100
150
200
Plastic Tie Film Prize Off
Plastic Tie closures is forecast to grow at a CAGR of
4.3% during 2014-2019, to reach 183.4 million units by
2019 .
Millions
Units
2014 2019
0
100
200
300
Box Shrink Wrap
Box will continue to be the most commonly used
packaging outers while Bag is forecast to register
fastest growth at a CAGR of 4.0% during 2014-2019.
Millions
Units
2014 2019
34

Table of Contents
• Country Context
• Market Overview
• Packaging
• Brand Share
• Consumer trends
• Appendix
35

Artisanal Producers hold the dominant share in the Cakes, Pastries & Sweet Pies and
Bread & Rolls categories
Cookies (Sweet Biscuits) – Brand share Cakes, Pastries & Sweet Pies – Brand share
Leading brands – market share
Bread & Rolls – Brand share Savory Biscuits – Brand share
13.9%
12.2%
10.4%
PeanutButter
Sandwich
MagicCreams
12.5%
Rebisco -Choco
Voice
Others
Artisanal
41.0% Producers
Marby
Gardenia
Lemon Square-
Others
Others
6.1%
6.6%
9.3%
44.7%
8.0%
47.3%
ArtisanalProducers
Gardenia
Others
25.8% MagicFlakes
Breadstix
Hansel
Fita
Others
20.3%
4.2% 9.9%
36

Breakfast Cereals – Brand share
Quaker is the leading brand in the Breakfast Cereals category
Energy Bars – Brand share
Baking Mixes – Brand share
Quaker
31.6%
Koco KrunchDuo
KocoKrunch
CornFlakes
8.1% (Nestlé)
Others
7.4% 7.5%
79.3%
20.7%
Quaker-Chewy
Others
Morning Goods – Brand share
0.6%
99.4%
Dowee
Others
69.2%
18.8%
12.0%
WhiteKing
Ferna
Others
37

Cereal Bars – Brand share
Nature Valley is the leading brand in the Cereal Bars category
Baking Ingredients - Brand share
81.3%
18.7%
NatureValley
Others
74.0%
26.0%
Ferna
Others
38

Peanut Butter Sandwich and Magic Creams are the leading brands in the Cookies
(Sweet Biscuits) category
Brand shares in the Bakery and Cereals market, 2014
Breads & Rolls
Brand Share of category, 2014
Artisanal Producers 47.3%
Gardenia 8.0%
Others 44.7%
39
Cakes, Pastries & Sweet Pies
Artisanal Producers 41.0%
Marby 9.3%
Gardenia 6.6%
Lemon Square-
Others
6.1%
Regent 0.8%
Mini Keyk 0.8%
Cupp Keyk 0.8%
Jam Bites 0.8%
Others 33.8%
Peanut Butter
Sandwich
13.9%
Magic Creams 12.5%
Rebisco - Choco 12.2%
Voice 10.4%
Arnott's 4.2%
Chips Ahoy! 3.2%
Fibisco 2.5%
Chips Delight 2.5%
Oreo 2.3%
Hansel Premium 1.7%
Rebisco - Others 1.6%
Loacker - Others 0.9%
Eggnog 0.9%
Frootees 0.8%
Bingo 0.8%
Hello Panda 0.7%
Nissin Cubee 0.6%
Others 28.3%
Dough Products
Others 100.0%

Magic Flakes is the leading brand in the Savory Biscuits category
Energy Bars
Quaker-Chewy 20.7%
Others 79.3%
40
Savory Biscuits
Magic Flakes 25.8%
Breadstix 20.3%
Hansel 9.9%
Fita 4.2%
Sky Flakes 3.1%
Sunflower 0.9%
Prima Toast 0.8%
Others 35.1%
Breakfast Cereals
Quaker 31.6%
Koco Krunch Duo 8.1%
Koco Krunch 7.5%
Corn Flakes (Nestlé) 7.4%
Cookie Crisp 5.0%
Golden Oats 2.1%
Milo 1.7%
Kellogg's - Others 1.3%
Honey Stars 1.0%
Oishi-Others 0.9%
Nestlé Corn Flakes 0.8%
Koko Krunch 0.8%
Australia Harvest 0.5%
Others 31.4%

White King is the leading brand in the Baking Mixes category
Morning Goods
Dowee 0.6%
Others 99.4%
41
Baking Mixes
White King 18.8%
Ferna 12.0%
Others 69.2%
Cereal Bars
Nature Valley 18.7%
Others 81.3%
Baking Ingredients
Ferna 26.0%
Others 74.0%

Table of Contents
• Country Context
• Market Overview
• Packaging
• Company and Private Label Share
• Consumer Trends
• Examples of New Product Development
• Appendix
42

Canadean has identified nine mega-trends that drive consumers and these can bebroken
down into 20 sub-trends
Aspiration
Beauty
Better Value
Busy Lives
Changing Age Structures
Changing Lifestages
Connection
Experience Seeking
Fun & Enjoyment
Individualism
Indulgence
Media
Technology
Trust
Urbanization &
Migration
New Gender
Behaviours
Personal Space & Time
QualitySeeking
Health
Ethics
MEGA-TRENDS:
CHANGING
LIFESTAGES
CONNECTIVITY
CONVENIENCE
ETHICS
EXPERIENCE &
ENJOYMENT
HEALTH &
WELLNESS
INDIVIDUALITY
TRUST
VALUE
43

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An explanation of the sub-trends
Sub-trend Explanation
Aspirations The trend towards consumers having more aspirational desires and wanting this reflected in the products
that theyconsume.
Beauty
The trend towards consumers being increasingly interested in their beauty and grooming and, as a result,
seeking to achieve more of their beauty aims and ambitions.
Better Value forMoney
Particularly important in the current economic environment, this trend reflects growing consumer desire,
particularly in Western economies, for Better Value for Money from their purchases. This can cover not only
trading down to lower priced items, but also trading up to higher priced ones when a consumer feels there is
value in doing so.
Busy Lives
The trend for consumers increasingly fitting more activities into the same amount of time in a day. Working
hours are increasing for certain groups, but many consumers similarly have increasingly Busy Lives as they
attempt to juggle work, home life, personal ambitions, and the desire to be close to friends and family. As
highlighted below, for this trend we also identify specific consumer groups.
Changing Age
Structures
A socio-demographic trend, the age structures of many countries are evolving, having a significant impact
on the marketing landscape. It‟s not just the aging of populations in Western, developed countries either, the
rapid increase in younger generations in developing countries also challenges pre-conceptions about who
the main consumers for productsare.
Changing
LifeStructures
Another socio-demographic trend, and one related to Changing Age Structures. Combined with altering age
group dynamics, the marketing landscape is altered in many countries as people increasingly delay settling
down, marriage, and childbirth. The traditional pattern of life-stages is evolving and, as a result, so are the
sizes of these groups and their needs from CPG purchases. As highlighted below, for this trend we also
identify specific consumergroups.

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Connection
Flexible labor markets, increased work and pleasure travel, Busy Lives and the breakup of traditional family
structures in many countries leaves many people with a growing desire to rectify the downturn in the types of
personal connections those in previous generations had. The desire to be close to friends, family, or those with
similar interests combines with evolving technologies to create an explosion in the desire for people to feel
somehow “connected” to what‟s important to them. Social networking, growth in the desire to spend more time
with family and friends, and the desire to improve the quality of that time, are all manifestations of this trend.
Ethics, Responsibility&
Spirituality
Increasingly, a growing number of consumers are concerned (even if they don‟t always act upon these
concerns) about their own ethics and spirituality. In turn, many consumers are increasingly critical of the ethical
and related credentials of the products or services they buy, and the providers of them.
Experience Seeking
Many consumers are seeking to go beyond the “simple” act of owning and consuming products and instead
are seeking to attain greater value by seeking products and services that somehow offer rewarding
experiences. This can take many forms and can be related to other trends. For example, consuming a very
high quality food or drink may not only satisfy a need for quality, but the act of consumption itself may also
have value as an experience that will not soon be forgotten.
Fun & Enjoyment Many consumers, young and old, and not least in these challenging economic times, are seeking additional
fun and enjoyment and some will often choose CPG products as a result of these needs.
Health
In almost every country, consumers are increasingly worried about their overall wellbeing and specifically their
health. The wider social effects of growing obesity rates and sedentary lifestyles have led to growth in
consumer concern about their own health and impacted their willingness to choose products and services that
might result in health benefits.
Individualism
In an age of mass consumerism, global brands, and rules and regulations, many people often seek to express
their individual identities, personalities, needs, and wants when the opportunity arises. As a result, products
and services can tap into this trend by offering people ways of achieving these desires.
Indulgence From little rewards to big ones, consumers are increasingly seeking ways in which they can indulge their
desires and achieve the “feel good” this can create, even if only temporary.

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Media
Fragmentation of the Media may mean that any one Media outlet‟s or outlets‟ influence may be declining, but
the growth of 24/7 Media access from almost any location means that Media influence continues to extend and
increasingly shape consumers‟ habits – even if they are seeking to react against Media trends.
New Gender Behaviors
This trend refers to the blurring of traditional gender roles and behaviors, and is related to the changing nature
of modern life for many people. From stay-at-home dads to career women, the old ways of doing things is
changing and with it so are people‟s views of themselves, and therefore the products and services that meet
their needs. It‟s not all “new age” though as within this trend is also the counter-perspective of people seeking
more traditionally masculine and feminine products.
Personal Space & Time
The pace of modern life and all the demands it brings means that many people are seeking to create their own
“bubble” of space and time where they are in control, are able to relax and unwind, and are free from the
constant flow of things to do, even if it is just for fiveminutes.
QualitySeeking
This is the trend towards trading up to higher quality products and services, even if in challenging economic
times this is a “less of the best” approach.
Technology Uptake
The pace of technological change (not just in communication, but in other areas too) means many are keen to
try out the latest that‟s on offer and are willing to experiment in order to gain the benefits, and, for some, be
among the first to experiencethem.
Trust
Or often, a growing lack of it, is increasingly important and is also a very broad trend. From the breakdown in
trust in institutions, governments, and companies, to concerns over specific ingredients in consumer goods,
trust is increasingly a major concern for consumers, and therefore marketersas well.
Urbanization&
Migration
Shifting patterns of urbanization as major economies develop and people move to where the work is plays a
role in fundamentally shaping people‟s needs – especially when it comes to CPG purchases. The packaged
food and drinks needs of the average urban dweller can differ remarkably to those of the rural dweller, shifting
the balance between which types of products are best placed in the market. As highlighted below, for this trend
we also identify specific consumer groups.

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Trend 1: Busy Lives: On-the-go consumption will remain major motivational factors
in the Philippines’ Bakery and Cereals market
Busy
Lives
Key demographics to target
• Both Men and Women
• Aged 19-45+
• Urban & Rural
Key categories to target
• Breakfast Cereals
• Bread & Rolls
• Energy Bars
• Cereal Bars
• Morning Goods
• Savoury Biscuits
Rate at which the trend will
evolve
• Fast
• Consumers are trying to fit more activities into the
same amount of time and look for products that help
to manage their hectic lifestyles
• Older Young Adults and Pre-mid-lifers, particularly
office workers, are one of the most time-pressed
groups and seek quick, convenient, and nutritious
meals
• As the Filipino economy is upbeat and the
outsourcing sector is poised to grow at a brisk
pace, the working population is expected to grow.
These busy consumers look for Bakery and Cereals
products that are convenient, save time, and are
suitable for a quick meal fix
• Increasingly busy lives have consequently led to sit-
down, home-made meals being replaced by instant
meals. For instance, Quaker‟s range of instant
oatmeal that takes minimal preparation time and is
wholesome and nutritious can help to achieve this
aim.
How the Busy Lives trend will influence Bakery and Cereals consumption
in The Philippines

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4
8
4
8
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Trend 2: Health: Whole wheat Breads with nutritive ingredients are in demand by
the health conscious Filipinoconsumers
Health
• Fast
How the Health trend will influence Bakery and Cereals consumption in The
Philippines
• The wider social effects of growing obesity rates and
sedentary lifestyles have led to growing consumer
concerns about health
• Filipino consumers are increasingly evaluating their
diet, which is creating opportunities for low fat, low
calorie, and wholegrain products. These products are
considered to offer health benefits such as high fiber,
protein or rich with minerals and vitamins
• Marketers are also exploring gluten free and
functional product lines to meet the individual dietary
requirements of adult and ageing population
• For example, Companies such as Gardenia has
offered a whole product line of healthy Breads - Slim
n Fit Wheaten Bread, High Fiber Wheat Raisin Loaf ,
High Fiber Whole Wheat Bread. These appeal to
health conscious consumers and provide with fiber,
• Aged 19-65+
• Urban & Rural
• All categories
evolve
proteins, and essential nutrients

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Trend 3: Indulgence: Indulgence remains as a key motivation for Bakery products
such as Cakes, Pastries & Sweet Pies, Cookies, and Morning Goods
Indulgence
• Indulgence is the key motivator driving consumption
in the Bakery and Cereals market. Taste is important
for consumers in Philippines and they are looking for
snacks that provide an indulgent hunger fix
• The desire to seek out new flavors and taste
experiences among Filipino consumers is driving the
launch of indulgent Bakery products
• Therefore, manufacturers have introduced Bakery &
Cereal products with better taste, flavor and filling
using exclusive and quality ingredients with premium
packaging, that offer a rewarding experience to
consumers
• Jack „n Jill introduced Magic Junior Condensada in
the year 2015. The product is a Cream filled Cracker
sandwich that contains sweet condensed milk
pressed between crisp Crackers and appeals to
How the Indulgence trend will influence Bakery and Cereals consumption
in The Philippines
• Aged 25-45+
• Urban
• Cakes, Pastries & Sweet Pies
• Cookies (sweet biscuits)
• Bread & Rolls
• Cereal Bars
• Morning Goods
evolve
• Fast
consumers seeking newer tastes with creamy filling

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5
0
5
0
5
0
Trend 4: Personal Space & Time: Filipinos reward themselves with products such as
Cakes, Muffins and Rolls during a busy day
Personal
Space
&
Time
How the Personal Space & Time trend will influence Bakery and Cereals
consumption in The Philippines
• Consumers will continue to seek Bakery & Cereal
products that help them relax and enjoy personal
space. Cookies (Sweet Biscuits), Morning
Goods, Cakes and Savory Biscuits provide tasty
snacking options that can be enjoyed during the work
day or accompany moments of fun, such as parties
• In addition, small portion snacks allows consumers
with quick special moments of „me-time‟. Marketers
are introducing packs of Cakes, Biscuits, and Cookies
to target these snacking occasions that help relax and
unwind
• For example, Gardenia has introduced Cream Rolls
and Muffins in small pack sizes in a variety of flavors.
The Muffin range has three flavors - Banana
Choco, Blueberry and Chocolate and appeal to those
consumers who seek a quick moment of relaxation in
• Aged 19-45+
• Urban
• Breakfast Cereals
• Bread & Rolls
• Energy Bars
• Cereal Bars
• Morning Goods
evolve
a busy day
• Fast

154/4/15/20154/1515/04//2020/20151515 51 5
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Convenient and breakfast based Bakery and Cereal products aimed at the young
population will drive growth
Canadean predicts that the following drivers will rise in importance over the next five years to
become increasingly influential motivators of consumption within the market.
Greater demand for Bakery and
Cereals products for Breakfast
Due to friendly government policies
and manpower supply, the service
sector is expected to grow rapidly in
the coming years. With a rising
employment rate and growing per
capita income, lifestyle changes will
be the prime motivating factor for
driving growth in the Philippines
Bakery and Cereals market. Busy
lives and staying away from family
will drive on-the-go eating and
consumption of instant breakfast
products among the working
Filipinos. Major bakery
manufacturers and marketers in the
Philippines have noticed this trend
and have focused on products such
as Oats, muesli, other
Cereals, Buns and Muffins as
Breakfast products.
Increased competition between
Artisanal Bakery and brands
Artisanal producers currently hold
the largest market share in major
Bakery and Cereals categories such
as Bread & Rolls and
Cakes, Pastries & Sweet Pies. While
the popularity of Artisanal products
can be attributed to their wide
variety, freshness, and unique
taste, the added advantage is
greater market penetration through
local bakeshops and sari-sari stores
(convenience stores). In
response, the major bakery
companies such as JBC Food and
QAF Ltd have launched campaigns
highlighting better hygienic
packaging that also preserves the
natural freshness of the product.
This competition will provide added
advantage to the consumers.
Demand for convenient
products to grow
Of Filipino consumers, 61.6% are
below 30 years of age. This age
group has specific snacking needs
due to their busy lifestyles and
prefer snacks that offer on-the-go
consumption and are available in
exciting new flavors and varieties.
Manufacturers are targeting this
consumer segment with products
specifically designed to provide a
convenient hunger fix. For
example, Bread maker Gardenia
has introduced a dates and walnut
Bread loaf that not only has the
nutrition, but also is wholesome
while satisfying the sweet cravings
of consumers. It is aimed at young
consumers seeking convenient and
filling snacking options on-the-go
with tasty flavors.

52
Table of Contents
• Country Context
• Market Overview
• Packaging
• Company and Private Label Share
• Consumer Trends
• Examples of New Product Development
• Appendix

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Examples of new product development in The Philippines Bakery and Cereals market
Brand: Gardenia
Manufacturer: Gardenia
Gardenia recently introduced
its Muffin range in three
flavors - Banana Choco,
Blueberry, and Chocolate.
These appeal to those
consumers who wish to
unwind for a few moments.
Trend alignment: : Personal
Space & Time
Brand: Quaker
Manufacturer: Quaker Oats
Quaker offers its instant
range of oatmeal in a variety
of flavors and ingredients
such as fruit & nuts, banana
bites, tropical fruits. These
appeal to busy consumers
who do not have time for a
complete sit-in meal.
Trend alignment: Busy Lives
Brand: Jack n Jill
Manufacturer: Universal
Robina
In 2015, Jack „n Jill Magic
Junior Condensada. The
product is a Cream filled
Cracker sandwich that
contains sweet condensed
milk pressed between crisp
Crackers.
Trend alignment: Indulgence
Brand: Slim n Fit
Manufacturer: Gardenia
Gardenia has offered its
range of healthy Breads that
contains L-Carnitine. This
nutrient helps the body turn
fat into energy. The Bread
may also reduce the risk of
heart diseases and is a
source of fiber.
Trend alignment: Health

Table of Contents
• Country Context
• Market Overview
• Packaging
• Brand Share
• Consumer trends
• Appendix
54

Appendix - Country Context
Year 2009 2010 2011 2012 2013 2014
Total (Millions) 92.2 92.3 94.0 95.7 97.4 99.0
Annual Growth (%) 2.0% 0.2% 1.8% 1.8% 1.7% 1.7%
Year 2009 2010 2011 2012 2013 2014
GDP Per Capita(PHP) 87,082.3 97,505.8 103,244.9 110,413.5 118,596.8 128,699.6
Year 2009 2010 2011 2012 2013 2014
Index 100 103.8 108.6 112.1 115.4 120.4
Age Group 0 to9 10 to 19 20 to 29 30 to 39 40 to 49 50 to 59 60 to 69 70 to 79 80+
Total (Millions) 22.8 20.4 17.3 14.2 10.1 7.2 4.3 2.1 0.7
GDP Per Capita(PHP)
Population
Consumer Price Index
Age Profile (Millions of Persons)
Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
US$-PHP Exchange
Rate (Annual Average) 47.7 45.1 43.3 42.2 42.4 44.4 45.5 45.6 45.7 45.8 45.7
Exchange Rates: US$-PHP , 2009–2019
55

2010 2013
Hypermarkets & Supermarkets 11.9 14.7
Food & drinks specialists 5.4 6.7
Convenience Stores 4.1 5.2
Others 1.3 1.0
Philippines’s Food sales Distribution (US$Billion)
Appendix – Sector Overview
2013-2014 Year –On –Year (%)
Food Price Inflation 5.8%
Change in Sales Value 4.5%
Change in Sales Volume 4.0%
Change in Average Price Paid 0.5%
Trading Down -5.3%
56
Components of change

Appendix – Sector Overview
2014 Value
(US$ Million)
2009–2014
CAGR (%)
2014–2019
CAGR (%)
2014 Value
(PHPMillion)
2009–2014
CAGR (%)
2014–2019
CAGR (%)
Cookies (Sweet Biscuits) 549.0 6.3% 4.6% 24,375.4 4.8% 5.2%
Pies
393.8 5.4% 3.5% 17,482.6 3.9% 4.1%
Bread & Rolls 391.0 5.9% 4.3% 17,361.6 4.4% 4.9%
Dough Products 67.8 5.5% 3.8% 3,009.0 4.0% 4.4%
Savory Biscuits 59.2 6.2% 4.5% 2,626.3 4.7% 5.1%
BreakfastCereals 51.7 5.3% 3.7% 2,297.2 3.9% 4.3%
Energy Bars 4.6 6.1% 4.4% 206.4 4.6% 5.0%
BakingMixes 3.9 4.1% 2.5% 174.9 2.6% 3.1%
Morning Goods 3.9 5.5% 3.8% 172.9 4.0% 4.4%
Cereal Bars 2.9 3.8% 2.0% 129.6 2.3% 2.6%
Baking Ingredients 2.7 4.0% 2.3% 118.2 2.5% 2.9%
57
Philippines’s Bakery and Cereals market Value by Category (US$ Million and PHPMillion)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 404.3 447.2 487.7 524.3 547.1 549.0 562.7 590.2 619.5 650.7 686.9
Growth(%) -2.8% 10.6% 9.1% 7.5% 4.3% 0.3% 2.5% 4.9% 5.0% 5.0% 5.6%
Value (PHPMillion) 19,274.9 20,171.7 21,125.9 22,141.2 23,223.0 24,375.4 25,601.6 26,911.0 28,309.9 29,801.9 31,394.6
Growth(%) 4.6% 4.7% 4.7% 4.8% 4.9% 5.0% 5.0% 5.1% 5.2% 5.3% 5.3%
Cookies (Sweet Biscuits) MarketValue
Bread & Rolls MarketValue
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 292.9 322.9 350.9 376.0 391.0 391.0 399.6 417.8 437.3 458.0 482.0
Growth(%) -3.1% 10.2% 8.7% 7.1% 4.0% 0.0% 2.2% 4.6% 4.7% 4.7% 5.2%
Growth(%) 4.2% 4.3% 4.4% 4.4% 4.5% 4.6% 4.7% 4.8% 4.9% 5.0% 5.0%
Appendix – Category Data
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 303.2 332.6 359.6 383.1 396.1 393.8 399.7 415.1 431.3 448.3 468.2
Growth(%) -3.6% 9.7% 8.1% 6.5% 3.4% -0.6% 1.5% 3.8% 3.9% 4.0% 4.4%
Growth (%) 3.7% 3.8% 3.8% 3.9% 3.9% 4.0% 4.0% 4.1% 4.1% 4.2% 4.2%
58
Cakes, Pastries & Sweet Pies MarketValue

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 51.9 56.9 61.6 65.7 68.1 67.8 68.9 71.7 74.7 77.9 81.6
Growth(%) -3.5% 9.8% 8.2% 6.7% 3.6% -0.4% 1.7% 4.1% 4.2% 4.2% 4.7%
Growth(%) 3.8% 3.8% 3.9% 4.0% 4.1% 4.2% 4.2% 4.3% 4.4% 4.5% 4.5%
Dough Products MarketValue
Breakfast Cereals Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 39.9 43.7 47.2 50.3 52.0 51.7 52.6 54.6 56.8 59.2 61.9
Growth(%) -3.7% 9.6% 8.1% 6.5% 3.4% -0.6% 1.6% 4.0% 4.0% 4.1% 4.6%
Growth(%) 3.6% 3.7% 3.8% 3.9% 3.9% 4.0% 4.1% 4.2% 4.3% 4.4% 4.4%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 43.7 48.3 52.7 56.6 59.0 59.2 60.6 63.5 66.6 69.9 73.7
Growth(%) -2.8% 10.5% 9.0% 7.4% 4.3% 0.3% 2.4% 4.8% 4.9% 4.9% 5.4%
Growth (%) 4.5% 4.6% 4.7% 4.7% 4.8% 4.9% 4.9% 5.0% 5.1% 5.2% 5.2%
59
Savory Biscuits Market Value

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 3.5 3.8 4.2 4.5 4.6 4.6 4.8 5.0 5.2 5.5 5.8
Growth(%) -3.0% 10.4% 8.9% 7.3% 4.1% 0.1% 2.3% 4.7% 4.8% 4.8% 5.3%
Value (PHPMillion) 164.8 172.2 180.0 188.3 197.0 206.4 216.3 227.0 238.3 250.4 263.1
Growth(%) 4.4% 4.4% 4.5% 4.6% 4.7% 4.7% 4.8% 4.9% 5.0% 5.1% 5.1%
Energy Bars MarketValue
Morning Goods MarketValue
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 3.0 3.3 3.5 3.8 3.9 3.9 4.0 4.1 4.3 4.5 4.7
Growth(%) -3.5% 9.8% 8.3% 6.7% 3.6% -0.4% 1.7% 4.1% 4.2% 4.2% 4.7%
Growth(%) 3.8% 3.9% 4.0% 4.0% 4.1% 4.2% 4.3% 4.3% 4.4% 4.5% 4.5%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 3.2 3.5 3.7 3.9 4.0 3.9 4.0 4.1 4.2 4.3 4.4
Growth(%) -4.9% 8.2% 6.8% 5.2% 2.2% -1.7% 0.4% 2.7% 2.8% 2.9% 3.4%
Growth(%) 2.3% 2.4% 2.5% 2.6% 2.7% 2.8% 2.9% 3.0% 3.1% 3.2% 3.2%
60
Baking Mixes MarketValue

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 2.4 2.6 2.8 2.9 3.0 2.9 2.9 3.0 3.1 3.1 3.2
Growth(%) -5.0% 8.1% 6.5% 5.0% 1.9% -2.1% 0.0% 2.3% 2.3% 2.4% 2.9%
Growth(%) 2.2% 2.3% 2.3% 2.3% 2.4% 2.4% 2.5% 2.5% 2.6% 2.6% 2.6%
Cereal Bars Market Value
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Value (US$ Million) 2.2 2.4 2.5 2.7 2.7 2.7 2.7 2.7 2.8 2.9 3.0
Growth(%) -4.9% 8.2% 6.7% 5.2% 2.1% -1.8% 0.3% 2.6% 2.7% 2.8% 3.2%
Growth (%) 2.3% 2.4% 2.4% 2.5% 2.6% 2.7% 2.7% 2.8% 2.9% 3.0% 3.0%
61
Baking Ingredients MarketValue

Market Share by Segment byValue
Appendix – Segment data
Category Segment Segment’s Share,2014 Segment’s Share,2019
Chocolate Cookies 24.9% 25.9%
Assortments 15.1% 15.0%
Plain Cookies 14.2% 13.9%
Other Cookies 12.2% 11.6%
American Cookies 10.8% 10.8%
Butter-BasedCookies 7.4% 7.5%
WaferBiscuits 7.0% 7.0%
Cream Filled 5.4% 5.3%
Artisanal Cookies 2.9% 2.9%
Egg-Based 0.0% 0.0%
Cakes, Pastries & SweetPies
Frozen Cakes &Pastries 32.7% 33.3%
Cakes 26.4% 25.8%
Pastries 21.2% 20.4%
Sweet Pies 19.7% 20.5%
62

Bread & Rolls
Sandwich Slices 20.5% 21.2%
Rolls 20.5% 20.7%
Loaves 20.2% 20.5%
Ciabatta 10.1% 10.2%
Baguettes 9.7% 9.4%
Burger Buns 8.9% 7.9%
Other Breads 8.1% 8.2%
Frozen Bread & Rolls 2.0% 2.0%
Dough Products
Frozen Dough Products 27.9% 27.0%
Pie & Pastry Shells 26.4% 26.6%
Prepared Pastry (other) 24.3% 24.7%
Pizza Bases 21.4% 21.7%
63

Savory Biscuits
Cheese-Flavoured Crackers 37.0% 38.6%
Bread Substitutes 27.8% 26.6%
Plain Crackers 25.1% 24.8%
Other Crackers 10.1% 10.0%
BreakfastCereals
Ready-to-Eat Cereals 62.5% 61.7%
Hot Cereals 37.5% 38.3%
Energy Bars Energy Bars 100.0% 100.0%
BakingMixes
Pancake Mixes 18.4% 19.0%
Other Baking Mixes 17.5% 17.1%
Bread Mixes 16.3% 18.0%
Dessert Mixes 16.0% 14.4%
MuffinMixes 11.3% 10.8%
Brownie Mixes 9.0% 9.2%
Cake Mixes 8.9% 8.9%
Rolls/BiscuitMixes 2.6% 2.6%
64

Morning Goods
Toaster Pastries 9.9% 9.9%
Dohnuts 9.2% 9.4%
Buns & Teacakes 8.9% 8.8%
Scones 8.5% 8.0%
Pain Au Chocolate 8.5% 8.0%
Waffles 8.2% 8.5%
Pain Au Raisan 7.3% 7.8%
Madeleines 7.3% 7.7%
Pancakes 7.2% 7.4%
Muffins 6.3% 6.5%
BreakfastCakes 5.2% 5.4%
Croissants 4.4% 3.8%
Other (Morning Goods) 4.0% 3.9%
Crumpets 3.0% 3.0%
Frozen Morning Goods 2.0% 2.0%
65

Cereal Bars
Granola/Muesli/Yogurt Bars 68.4% 69.5%
Other Cereal Bars 31.6% 30.5%
Baking Ingredients
Other Baking Ingredients 15.4% 15.7%
Dessicated Coconut 13.6% 13.4%
Baking Chocolate Chips & Morsels 12.3% 12.5%
Fruit Pectins and Glazed Fruit 11.6% 12.0%
Cake Decorations &Icing 10.2% 10.1%
DryYeast 10.2% 10.1%
Non-Chocolate Baking Chips 10.0% 9.8%
Baking Powder/Soda 8.2% 7.9%
Cocoa-Baking 5.3% 5.4%
Corn & PotatoStarch 3.3% 3.3%
66

Packaging Material 2014 2019
Flexible Packaging 1,920.9 2,436.1
Rigid Plastics 335.9 398.9
Paper & Board 57.3 65.3
Rigid Metal 26.0 30.6
Glass 0.2 0.2
Packaging Materials in 2014 Vs. 2019 (Millions ofPacks)
Appendix – Packaging Data
ContainerTypes 2014 2019
Film 1,453.3 1,835.0
Bag/Sachet 375.8 480.6
Tray 241.8 284.1
Clamshell 74.5 89.8
Foil 49.0 62.6
Pouch 42.8 58.0
Box 37.4 43.1
Tub 27.4 32.8
Specialized Line Item 25.9 30.6
Others 12.3 14.5
Container Types in 2014 Vs. 2019 (Millions ofPacks)
67

Appendix – Packaging Data
Closure Types 2014 2019
PlasticTie 148.5 183.4
Film 76.6 90.5
Prize Off 51.5 62.0
Foil 28.1 32.6
Screw Top 7.9 9.1
Closure Types in 2014 Vs. 2019 (Millions ofPacks)
Outer Types 2014 2019
Bag 1071.7 1202.7
Shrink Wrap 717.7 738.6
Box 544.4 591.3
Outer Types in 2014 Vs. 2019 (Millions of Packs)
68

Category definitions
Category Definition
Bread & Rolls Bread & Rolls - all pre-packed and baked in-store breads and rolls. Includes Malt Loaf.
BreakfastCereals
Cereals - includes all breakfast cereals (whether designed to be eaten hot or cold). Includes porridge oats and
oatmeal.
Pies
Cakes, Pastries and Sweet Pies - all premade cakes and pastries (including those baked on the premisesof
retailers (inc. bakers). Includes flapjacks and brownies.
Dough Products
Dough Products - includes all pre-prepared pastry, pizza bases, pie and pastry shells and frozen dough
products.
Cereal Bars
Cereal Bars - Confectionery/breakfast-replacement bars made from a mixture of cereals and fruitsbound
together by syrup e.g. Nutri-Grain. Does not include energy bars.
Energy Bars
Energy Bars - Includes Protein bars and cereal-based bars which have been nutritionally fortified to give an
energy boost. Example Lucozade Sport Energy Bar.
Cookies (Sweet Biscuits) - all sweet biscuits, including American style cookies (sweetened dough). Includes
chocolate covered cookies/biscuits, filled biscuits (e.g. Oreos), and wafers.
Savory Biscuits Savory Biscuits - includes all crackers, crispbreads (bread substitutes e.g. Ryvita), cheese crackers.
Morning Goods
Morning Goods - Breakfast bakery products such as pain au raisins, croissants, bagels, muffins, crumpetsetc.
Includes morning pastry type products cooked in Toasters (i.e. Pop Tarts). Excludes Malt Loaf.
69

Category definitions
Category Definition
Baking Mixes
These are the packaged mix of ingredients (typically sold in packets or tubs) to which liquid, eggs or other
ingredients are added to produce baked goods like bread, brownie, dessert, cake, muffin, pancake,biscuits
etc.
Baking Ingredients
Baking Ingredients - individual ingredients or combinations of ingredients designed for baking. E.g. baking
fruits, marzipan, baking yeast, icing etc. Also, includes cooking chocolate.
70

Category Definition
Bread & Rolls
Loaves
Bread in a long, round, or square shape that you cut into slices (thin flat pieces) for eating. A slice
d loaf has been cut into slices before it is sold. e.g. Britannia
Baguettes A baguettes is "a long thin loaf of French bread" that is commonly made from basic lean dough.
Rolls
A bread designed to be eaten as a side dish. Its usually a small and round piece of bread. Can be
used as sandwiches or eaten raw with butter and the alikes. For instance Old Country Hoagie
Roll and Bolillo Rolls (USA) and Kingsmill 6 Soft White Rolls (UK)
BurgerBuns A flattish soft white bread roll in which a hamburger is typically served.
Sandwich Slices
Bread sliced into sandwich size. Usually consumed with a filling such as meat or cheese placed
between them.
Ciabatta A flattish, open-textured Italian bread with a floury crust, made with olive oil.
OtherBreads
All other kinds of buns, breads, rolls that can be used as hamburger buns, hot-dog buns, sweet
buns etc. The grain part also differs; it can be a whole-wheat or a multi-grain bread too. For
instance: Oroweat Sandwich Thins Multi-Grain, Kings Hawaiian Sweet Rolls, Bulk Jalapeno
Cheese Focaccia Sandwich Roll, Rolls Kaiser Sesame Rolls
Frozen Bread &
Rolls
All other kind of breads and rolls that require freezing. They have a longer shelf-life when
freezed. For instance: Bridgeford Parker House Rolls
Segment definitions
71

Category Definition
BreakfastCereals
Hot Cereals
Breakfast cereal that requires heating before consumption. Classified as porridges, in that they
consist of cereal grains which are soaked and/or boiled to soften them and make them palatable.
Includes traditional products (e.g. porridge oats), instant mixes (e.g. Ready Brek), and ready-to-
heat products (e.g. Quaker Instant Oatmeal Express)
Ready-to-Eat Cereals
Breakfast cereal that does not require heating. Includes dry cereals and prepackaged cereal/milk
kits e.g Kellog's Cornflakes and Weetabix
Cakes, Pastries&
Sweet Pies
Cakes
A cake that has cheese, cream, jelly, fruit or other filling within its layers. All cakes that are pre-
baked or baked either in a bakery or the retailer's outlet and do not require to be freezed and yet
have a shelf life. Does not include frozen cakes. Examples include: Mr Kipling Battenberg Cake
(UK), Britannia Cake (India), Entenmanns Pound Cake All Butter (USA), Gü After Noon Mango &
Passion Fruit Cheesecakes (USA)
Pastries
Baked products specifically made from ingredients such as flour, sugar, eggs, milk, butter, baking
powder etc. Small cake, tarts and other sweet baked products are also called pastries. Does not
include frozen pastries. Examples include Kelloggs Pop Tarts Toaster Pastries Frosted Cinnamon,
St. Pierre Sliced Chocolate Chip Brioche Loaf.
Frozen Cakes &
Pastries
All Cakes and Pastries that require to be freezed. Does not require without freeze shelf stable
cakes and pastries. Sara Lee Double Chocolate Pound Cake Slices (USA), Jus Rol Shortcrust
Pastry Blocks Frozen (UK)
Sweet Pies
A round or pie shaped baked dish usually that has inredients as that of a pastry dough and is
either covered or made from a filling of various sweet or savoury ingredients. Needs preperation
time. The topping or covering above the pastry layer can be of a fruit, cheese, sauce etc. Example
sinclude Pillsbury Toaster Strudel Boston Creme Pie (USA), Bisto Cottage Pie (UK)
Segment definitions
72

Category Definition
DoughProducts
Pie & Pastry Shells
Pastry shells or pie shells are crust or base made with dough in a shape that can hold pie or
pastry fillings. Examples include Keebler Ready Crust Pie Crusts Graham Cracker
Prepared Pastry (other)
Any other sweet baked pastry that needs dressings or toppings with fruits, nuts or creams.
Examples include Jus-Rol Puff Pastry Block (UK) and Pepperidge Farm Puff Pastry Sheets
(USA)
Pizza Bases
Made of Dough and deliberately treated with bacteria to make a soft and little fluffy round
shaped flat spread. Cannot be eaten raw. Need to be baked and needs preperation time.
Examples include Boboli Italian 12 Inch Bread Shell and Keebler Ready Crust Pie Crusts
GrahamCracker
Frozen Dough Products
Dough products made with flour and yeast that needs to be frozen. They are usually brought
home and decorated with toppings or dressings of choice. Needs preperation time. Examples
include Bridgeford Frozen White Roll Dough, Pillsbury Classic Pizza Crust Pizza Dough
Cereal Bars
Granola/Muesli/Yogurt
Bars
Cereal bars made by rolling of cereal gains like oats, nuts, wheat corn packed together with
fruits or nuts. Example Jordan's Special Fruit Muesli Bar , Kellogg's Elevenses etc.
Other Cereal Bars
Breakfast-replacement bars made from a mixture of cereals and fruits bound togetherby
Honey or Syrup e.g. Nutri-Grain. Does not include energy bars or granola/museli bars.
EnergyBars EnergyBars
Energy Bars - Includes Protein bars and cereal-based bars which have been nutritionally
fortified to give an energy boost. Example Lucozade Sport Energy Bar.
Segment definitions
73

Segment definitions
Category Definition
Cookies (Sweet
Biscuits)
American Cookies A small flat and crisp cookie made from sweet dough e.g Maryland cookies, Chips Ahoy!
Artisanal Cookies Biscuits produced by small local bakeries for sale on their premises.
Assortments
A collection of various types of cookies - usually packaged in metal tins. Examples include
Veno's Danish butter biscuits and Delacre Assorted Biscuits
Butter-BasedCookies
Cookies made and position themselves as butter-based (e.g. Leibniz Butter) or as shortbread
(e.g. Walker'sShortbread).
ChocolateCookies
Cookies coated with chocolate on one or both sides e.g. chocolate digestives. Only includes
products sold in the cookie section of retail outlets: chocolate countlines such as Kit-Kat are
excluded.
Cream Filled
A Cookie filled with cream sandwiched between two and not coated in chocolate e.g. Custard
Creams,Oreos
Egg-Based Biscuit made with an ingredient as egg. popular in eastern Europe. Normally unbranded.
74

Category Definition
Cookies (Sweet
Biscuits)
OtherCookies All other sweet biscuit products.
Plain Cookies
A 'semi-sweet.' Slightly sweet crackers made with whole-wheat flour e.g. McVities' Digestives,
Keebler Graham crackers
WaferBiscuits
Wafer biscuit is a crisp, often sweet, very thin, flat, and dry Item, often used to decorate ice
cream. Wafers can also be made into cookies with cream flavoring sandwiched between them.
e.g.Manner.
Savory Biscuits
BreadSubstitutes
Dry, thin, biscuits usually used as an alternative to bread, also known as dry wafers e.g. Ryvita
crisp breads
Cheese-Flavoured
Crackers
Biscuits that are either salted or savory or both and have a lot of cheese content. Examples
include Cheese Nips Baked Snack Crackers Cheddar and Pepperidge Farm Goldfish
Crackers Baby Cheddar
Other Crackers All savory biscuits other than cheese, plain crackers, and bread substitutes.
Plain Crackers
Hard, dry savory biscuits, generally hard or crisp. Can be salted e.g. Ritz or unsalted e.g.
Jacobs' Cream Crackers. Does not include cheese flavored crackers.
Segment definitions
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Category Definition
Morning Goods
Buns & Teacakes
A flat bread made from a yeast dough with raisins or fruit essence in it, usually eaten toasted and
buttered. The British call it a tea cake. Can be eaten during breakfast or high-tea. Examples include
Wheatfield Bakery Hot Cross Buns 6 Pack and Warburtons Fruit Teacakes(UK)
BreakfastCakes
Breakfast cakes also called as coffee cakes are usually eaten along with coffee or tea andcomprises
a part of the breakfsat meal. The cake might necessarily not involve coffee as an ingredient. It is
generally a single layer cake and can be of any shape. Examples include Entenmanns Coffee Cake
Cheese Crumb (USA) and Tesco Finest Coffee And Walnut Cake(UK)
Croissants
A French crescent-shaped roll made of sweet flaky yeast dough (pastry) or a puff pastry, eaten for
breakfast. Exmaple are Pasquier Croissants and Mcvities Mini Croissants Chocolate (UK) and Jimmy
Dean Sausage Egg Croissant (USA)
Crumpets
A savoury cake made of flour, yeast and other customised ingredients with a soft and porous texture.
Its thick and flat, usually round in shape and is cooked and toasted on a griddle. Examples include
Warburtons Crumpets (UK)
Dohnuts
A ring shaped or round fried cake made of rich and light dough. Also comes with a fruit or chocolate
essence as an ingredient. Is served with a chocolate or fruit sauces. Examples include Entenmanns
Rich Chocolate Frosted Donuts (USA) and Chocolate Filled Doughnut (UK)
Madeleines
These are small butter sponge cakes baked in a delicate seashell shape and have a tender, moist
and sophisticated flavor(Plain, rose, lemon etc). It is served as a snack, or as part of dessert. This
can be of savory and sweet or both flavor.For ex: Entenmann's Madeleines Petite Butter Cakes
(U.S.), Bonne Maman La Madeleine (U.K.).
Muffins
Muffins are shaped like cup cakes and have filling of chocolate, toffee, lemons, or blueberries. These
are not as sweet as cup cakes and also comes in savory flavor such as cornbread and cheese
muffins. For ex: Tesco bluberry muffins (U.K.) and, The Fabulous Bakin' Boys Lemon & White
Chocolate Muffins (U.K.)
Pain Au Chocolate
These are crossiants filled with chocolate and a famous bakery item in Europe. For example Tesco
All Butter Pains au Chocolat (U.K.).
Segment definitions

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Category Definition
Morning Goods
Pain Au Raisan
All butter croissant pastry round in shape filled with raisins and vanilla crème patissier. It is
often taken in breakfast.For ex: Tesco Pain AuRaisin
Pancakes
Pancakes are dough based round shape medium sized cakes (little salty in taste), thin in shape
and can be rved with sweet and savory dishes. It can be consumed any time in a day and a
famous dish in Europe and U.S. It excludes frozen pancakes
Scones
Scones are small round cakes little thick than pancakes and a famous appetizer(normally little
salty) in Scotland and nearby regions. For example Tesco All Butter Scones. It excludes frozen
scones.
ToasterPastries
These are thin crust pastries normally rectangular in shape. It comes in variety of filled and
plain pastries and can be easily heated in toaster before eating. For ex:Nabisco Toastettes
(U.S.), Quaker toastables (U.S.).
Waffles
Waffles are dough based cake shaped like a waffle and can be eaten in breakfast.These came
in different stuff flavors suh as strawberry, cherry, etc. These are normally sweet in nature. For
ex. Tesco Finest Butter Waffles.
Other (Morning Goods) All other kinds of morning goods, which are not classified in the above.
Frozen Morning Goods
Pre-packed frozen breakfast bakery products - includes bagels, croissants (plain and flavored),
donuts, muffins, andscones.
Segment definitions

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Category Definition
BakingMixes
BreadMixes
Dough mix specifically used to make sandwich breads, containing mix of wheat flour, yeast, and salt.
It also comes with different grain mixes.For ex. Hodgson Mill 9 Grain Bread Mix
Brownie Mixes
Brownie as known a mix of cake and cookies have the mix dough of both cake and cookies and is
very famous mix demanded by bakers. For ex: Betty crocker fudgebrownies,
DessertMixes
All powdered desserts; usually requiring the addition of water and/or milk e.g. Angel Delight. Includes
hot puddings andmousses.
CakeMixes
Cake mixes are dough mix contain all necessary ingredients to be mixed with water and milk and is
ready to bake after some stirring. For ex: Betty Crocker cake mix (U.S.).
MuffinMixes
Same as cake mix muffins mixes are of same type but with more fluffiness and less sugar and have
different mixtures depend on the flavors added in the mixes. For ex: Jiffy corn muffin mix (U.S.), and
Betty Crocker muffin mix(U.S.).
PancakeMixes
Pancakes mixes came in variety and belongs to savory and sweet category. These are readymade
mixes in which only water and eggs are required to prepare a liquid dough to be prepared over
frying pans or inside ovens. For ex: Pilsbury Pancake mix, Quaker pan cake mix.
Rolls/Biscuit Mixes
Dough mix which are little tight in nature and require water to be added to make the thick crust either
for rolls (contains sweet and savory both) and biscuits also (sweet and savory both) depend on
added ingredients in the dough mixture. For ex Betty crocker choclated chips mix, Duncan hanes
choclate cookies mix etc.
Other BakingMixes
Others include the mixes which are not specifically covering the above mixes such as buns mixes,
dohnut mixes, etc.
Segment definitions

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Category Definition
BakingIngredients
BakingChocolate
Chips & Morsels
These are small tit bits of either cookies or nutty crackers normally added to the baking mixes to
enhance the flavors of cakes, cookies, muffins etc. For ex. Nestle Toll House choclates morsels.
Baking Powder/Soda
Baking powders are additives which are used to add in baking mixes for making the mixture more
fluffy and soft. For example, Whigfield baking powder (U.S.).
Cake Decorations&
Icing
It includes different additives such as whipped creams, cherry's and other products used to beautify
the cake presentations. It basically comes in loose category and doesn‟t cover any brand specifically.
Cocoa-Baking
This covers cocoa powder and is used in a large proportion in decorating cakes or giving flavor to the
cake. For Ex. Hershey's cocoa, Nestle baking cocoa etc.
DessicatedCoconut
It is the powder of dried coconut used as a additive in cookies, cakes and other bakery items. It gives
coconut flavor to the mentioned items. For ex. Wyandra Coconut (Australia).
Corn & Potato Starch
Corn or potato starch are the powder used for thickening the mixture of pancakes, waffles, cookies
and etc. For ex. Brown and Poisons corn flour, Superior potato starch (Holland).
Dry Yeast
Yeast are microbial organisms, used as a leavening agents in baking mixes where it convert sugar
into carbon dioxide gas making the dough more fluffy by creating air bubbles in the mixtures. Forex:
Fleischmann's Yeast.
Fruit Pectins and
Glazed Fruit
Fruit Pectins are used as a gelling agent and helps in stabilize the food. These are used as a baking
ingredient in waffles, muffins etc.
Segment definitions

Category Definition
BakingIngredients
Non-Chocolate Baking
Chips
Non Chocolate chips are of same as chocolate chips but of different flavors, such as
butterscotch morsels etc. For ex. Nestle butterscotch morsels etc.
Other Baking
Ingredients
Other baking ingredients include all the additional products which are not covered above.
Segment definitions
80

Channel Definition
Hypermarkets&
Supermarkets
Hypermarkets/mass merchandisers include all sales through retailers with floor area over 2,500 sq m that carry full
lines of both grocery and general merchandise (e.g. Wal-Mart). Supermarkets include all sales through retailers with
a floor area of 300 sq. m. -2,500 sq. m. that offer a wide, departmentalized range of groceries, and may carry some
general merchandise lines (e.g. Sainsbury's, Kroger). It also includes hard grocery discounters such as Wal-Mart.
Convenience
Stores
Includes all sales through stores of an area generally less than 300 sq m, that specialize in a limited range of food &
grocery products designed primarily for consumers with top-up shopping needs. Also includes sales in retail outlets
attached to gas stations, where fuel is the main revenue driver, kiosks, and newsstands. This also includes small
independent retailers, particularly those present in countries such as China and India.
Food & Drinks
Specialists
Includes bakers, butchers, delicatessens, drinks specialists, fishmongers, greengrocers, Food & drinks only stores,
and single category stores (e.g. stores selling only cheese, or only olives, or only honey, or only Confectionery
products) Example: Amul Dairy shops In India.
Other Retailers
Includes “Dollar Stores”, Variety Stores & General Merchandise Retailers, Cash & Carries & Warehouse Clubs,
Department Stores, Drug stores & Pharmacies, eRetailers, Vending Machines and other generalist retail channels
not included in the categories above (e.g. market traders, charity stores, student union stores, direct sales, and Duty
Freeshops).
Channel definitions
81

This report features data derived from marketdata.
Market Data
In order to create the data for all reports in this series and ensure their robustness, a comprehensive and empirically robust research
methodology has been adopted. This combines both a large-scale program of industry research with the results of extensive primary industry
interviewing and calling. Furthermore, all definitions are standardized across products and countries to ensure comparability.
The two main research methods, secondary research and primary research (the program of interviewing industry contacts), are brought
together and because both sets of research processes have been designed in conjunction with each other they can be combined and
consolidated into the final, integrated data sets.
The secondary research process involves covering publicly available sources, trade associations, specialist databases, company annual
reports, and industry publications. Primary research involves a major program of interviewing leading industry executives for each category
covered in each country – all with local country experts; typically brand, product and marketing managers for major brands within each
country. These processes help analysts in capturing both qualitative and quantitative information about the market.
The final stage of the process is the triangulation of inputs obtained from all the research methods with the analyst‟s own understanding of the
market in order to finalize the data. Once the data is finalized, it goes through various top level quality checks prior to publishing.
Methodology
82

About Canadean
Canadean is a full-service business information provider with in-house market research capabilities. We specialize in analysis across
the Consumer Markets Value Chain, covering suppliers, producers, distribution and consumers.
Canadean‟s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing,
market research, consulting and advanced statistical expertise. We offer value-added market research, insight and strategic analysis
and our products help companies to make better, more informed, strategic and tactical sales and marketingdecisions.
Canadean‟s areas of expertise include online research, qualitative and quantitative research, industry analysis, custom approaches,
and actionable insights. In addition Canadean has built a network of consultants and specialist researchers across more than 60
countries, each with in-depth industry experience and expertise enabling us to conduct unique and insightful research via our trusted
business communities.
Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic,
mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Canadean.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings,
conclusions and recommendations that Canadean delivers will be based on information gathered in good faith from both primary and
secondary sources, whose accuracy we are not always in a position to guarantee. As such, Canadean can accept no liability
whatsoever for actions taken based on any information that may subsequently prove to be incorrect.
About Canadean
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