Market Research Reports - Ken Research Philippines Cooking Oil Market Research Report

Philippines Cooking Oil Market is expected to be driven by Rising Number of Hotels and
Restaurants and Growing Health Conscious Population: Ken Research
Rising number of households, growing hospitality sector, and enhancing food products
manufacturing sector have aided the demand for cooking oil in Philippines.
Ken Research in its latest study, Philippines Cooking Oil Market by Type (Palm, Coconut,
Soyabean, Canola, Corn and Others), by Region (Luzon, Visayas and Mindanao) - Outlook to
2021 suggests that the Philippines cooking oil market is expected to grow at a robust CAGR on
the back of the growth of food manufacturing industry which is expected to reach USD 42
billion by 2021.
As of 2016, the Philippines are one of the largest exporters of coconuts and coconut oil in the
world. However, coconut oil has now become a more export oriented commodity and is used
less for domestic consumption purposes. It is gradually being replaced by palm oil in the recent
years. In the observed period 2011-2016, there has been a shift in preference from the use of
coconut oil to palm oil in the country. The major reason for the shift in the preference is that
the coconut has been subject to large scale fluctuation in its prices while the price fluctuations
in the palm are comparatively less. Moreover, palm oil is considerably cheaper compared to
coconut oil.
Over the past years, traditional markets including wet markets have dominated the sales of
cooking oil in Philippines. But over the past five years the share for these traditional markets
seems declining as the supermarkets emerge as the go-to places instead of these traditional
markets. The main reason for this change in trend is the strict government regulations against
adulteration. The traditional markets sell products which are often adulterated with used oils
and not of the desired quality. Moreover, these markets remain very dirty and there is an issue
of contamination thus these traditional markets are losing the market share due to the strict
government regulations. The government has also banned the sale of used oil which further
discourages the existence of wet markets and sari-sari stores. Major retail outlets such as
Seven-Eleven have been increasing their number of outlets at a rapid pace which has
considerably affected the share of traditional markets in the sales of cooking oil.
Furthermore, an increasing number of health conscious consumers in the age bracket 25-45
years combined with growing awareness about food contents with trans-fats, partially
hydrogenated oils (PHOs), and cholesterol that are responsible for various chronic diseases are
factors that have been fueling demand for cooking oils in Philippines. The cooking oil
manufacturers are adapting new processing technique such as cold pressing and new edible oils
products are introduced in the market, which are healthier and have a balanced fatty acid
profile. This makes them preferred choice of health conscious consumers, in turn driving