Products related to fried food such as packaged sauce and breading mix have shown high consumption rates this year, according to a study conducted by sari-sari store technology start-up firm Packworks and sociocultural research firm Fourth Wall.
Sari IQ, a business intelligence tool created by Packworks, generated the data sets in the study.
According to Packworks, a comparison data obtained from Sari IQ on December 1 to 14, between 2021 and 2022, showed that among all holiday season products, packaged sauce or “sawsawan” has the highest consumption rate with a “significant increase of 8 percent. This was followed by breading and coating mix with an increase of 7 percent.
Meanwhile, the start-up firm said cooking oil, despite ranking in third place, remained static with a 5 percent increase.
John Brylle L. Bae, Research Director of Fourth Wall explained this “phenomenon,” saying, “At a sociocultural level, Filipinos prefer fried foods because of its association to sawsawan and the culture it breeds. The sawsawan culture epitomizes the communal nature of eating for us, Filipinos—that is, eating is more than just consuming good food, but forging long-lasting connections with others.”
Meanwhile, data from Sari IQ also shows that products related to fruit salad experienced no significant change. Evaporated milk consumption increased by 2 percent, while condensed milk declined by 1 percent.
The business intelligence tool also revealed that other fruit salad-related products have experienced “drastic” declines, with all-purpose cream decreasing by 11 percent and canned fruits by 16 percent. This, Packworks said, suggests that Filipinos are giving up fruit salads on their holiday table this year.
Further, the start-up firm through Sari IQ, divulged that demand for sugar and seasonings has gone low, with sugar declining by 9 percent and seasonings by 33 percent. Packworks said this shows that Filipinos are becoming “more conscious” about their diet even amid the holiday season.
Bae explained the analysis of Fourth Wall, noting that the increase in prices may be a contributing factor to Filipinos’ willingness to forgo fruit salads and sweets.
“The aversion to sugars and salads comes from high inflation, growing concerns on diabetes, and increasing health consciousness. Meanwhile, the propensity for fried foods comes from practical considerations [convenient and economical] but also from a much deeper sociocultural consideration,” the research director noted.
According to the Noche Buena price guide released by the Department of Trade and Industry last November 23, prices of all stock-keeping units (SKUs) of fruit cocktail and cream products, among others, increased.
Prices of fruit cocktail range from P56 to as much as P288, while prices of cream range from P63 to as much as P75.
Andres Montiel, Packworks’ Head of Data, said that Sari IQ platform provides retailers a “clear picture” of the buying trends made by sari-sari stores and their consumers.
“Data generated from the platform can be customized to multiple sari-sari store categories or even specific brands where we can create geographical maps to determine and analyze the consumer behavior of each province, city or region in the Philippines, helping brands understand the customers’ buying needs and focus on areas that have high demand. The conclusion derived from data helps retailers to forecast the demand and accordingly manage the inventory,” Montiel said.
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