BY DR. JOSEPH LIM
(By Dr. Joseph D. Lim and Dr. Kenneth Lester Lim, BS-MMG, DDM, MSc-OI)
FILIPINO sweet tooth is worth $1.2 billion.
That’s the market in 2023 for confectionary and ice cream both local and imported. It’s expected to see robust growth of 8 percent annually through 2028.
Imports account for one-third of the market, with 6 percent from the United States, according to the Foreign Agricultural Service of the U.S. Department of Agriculture (USDA).
Niche opportunities are open for established brands, private labels, and “free-from” options, it says, pointing out the appetite is driven by Filipinos’ fondness for food indulgences, rising disposable incomes, and increasing urbanization.
Chocolate confectionery dominated the market, accounting for 38 percent of total sales, followed by ice cream (34 percent), sugar confectionery (25 percent), and gum (3 percent).
Under a forecast of 8 percent compound annual growth rate, this market will surpass Asia-Pacific’s 5 percent growth, reaching $1.8 billion by 2028.
The Philippines’ imported confectionery and ice cream market was worth $390 million in 2023. Sugar confectionery accounted for the largest share (49 percent), followed by ice cream (27 percent), chocolate confectionery (23 percent), and gum (1 percent).
Six percent of imports across all categories originated from the United States and amounted to $23 million. America captured a 15 percent share of chocolate confectionery imports.
Local processors get two-thirds of the market share, led by Universal Robina for both chocolate and sugar confectionery.
Mondelez and Delfi Foods are significant competitors in the chocolate confectionery market, while Columbia also holds a strong position in sugar confectionery.
Unilever-RFM, Froneri, and San Miguel Foods are the leading players in the ice cream market. The gum market is led by Mars Wrigley and Columbia.
“Filipinos, particularly those in the upper and upper-middle income brackets, enjoy indulging in imported confectionery and ice cream, not only as after-meal treats but also as popular gift choices,” the USDA report observes.
It says that while price matters, Filipinos prioritize quality and unique flavors, and are willing to pay more for established brands and innovative offerings.
Brick-and-mortar retailers, including supermarkets, hypermarkets, and warehouse clubs, are the dominant distribution channel for imported confectionery and ice cream products, capturing a substantial 65 percent market share.
Convenience stores, with their ubiquitous presence and round-the-clock operation, hold an estimated 15 percent share. They offer convenience for impulse buying.
Theme parks and amusement arcades account for 10 percent of the market, while specialty kiosks and deli shops capture 7 percent. Online stores hold a 2 percent share, indicating significant potential for expansion.
Upscale hotels, a niche market, offer a selection of premium chocolates and sugar confectionery in minibars, as well as during seminars and conferences. Occasionally, airline catering may include ice cream in small containers on their menus.
Filipinos have a strong preference for American brands. Upscale Filipino consumers, with growing disposable income, are driving demand for premium confectionery and ice cream.
American flavor combinations, featuring gourmet ingredients, as well as colorful ice cream swirls, or dual/triple flavor combinations can also cater to Filipino consumers’ adventurous palates that crave constant novelty and exciting sensory experiences.
Filipino consumers enjoy sweet treats, but a growing health consciousness is driving a shift in preferences. This is evident in the increasing demand for “free-from” and “better-for-you” options, particularly those formulated with natural ingredients, superfoods, and functional components.
The Philippines boasts a vibrant gift-giving culture, making confectionery products a mainstay for birthdays, holidays, and family reunions. After the Christmas holiday season, Valentine’s Day and Mother’s Day are coming, rounding up a year-round demand for confectionery items.
All the sweets and the Filipino sweet tooth makes it essential that they brush their teeth after each and every snacks and meals – and visit the dentist at least twice a year.
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Dr. Joseph D. Lim, Ed. D., is the former Associate Dean of the College of Dentistry, University of the East; former Dean, College of Dentistry, National University; Past President and Honorary Fellow of the Asian Oral Implant Academy; Honorary Fellow of the Japan College of Oral Implantologists; Honorary Life Member of the Thai Association of Dental Implantology; and Founding Chairman of the Philippine College of Oral Implantologists. For questions on dental health, e-mail jdlim2008@gmail.com or text 0917-8591515.
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Dr. Kenneth Lester Lim, BS-MMG, DDM, MSc-OI, graduated Doctor of Dental Medicine, University of the Philippines, College of Dentistry, Manila, 2011; Bachelor of Science in Marketing Management, De la Salle University, Manila, 2002; and Master of Science (MSc.) in Oral Implantology, Goethe University, Frankfurt, Germany, 2019. He is an Associate Professor; Fellow, International Congress of Oral Implantologists; and Fellow, Philippine College of Oral Implantologists. For questions on dental health, e-mail limdentalcenter@gmail.com./PN
