FOOD service sales in the country could surpass the $14-billion mark this year as the improvement in the purchasing power of Filipinos and worsening traffic in urban areas are pushing them to dine out.
A Global Agricultural Information Network (Gain) report published recently indicated that total food service sales in the Philippines could rise by 8 percent to $14.08 billion, from $13.04 billion last year.
The Gain report, which was prepared by the United States Department of Agriculture Foreign Agricultural Service in Manila, noted that the country’s food service sales last year rose by 8.57 percent, from $12.01 billion in 2016.
“Improved purchasing power, increasing middle class, and growing urbanization, have led to an increasing preference of Filipinos to dine out, thus contributing to the growth of the food service industry,” the Gain report read.
The Gain report also noted that the huge number of Filipino millennials would drive the growth of the local food service industry.
“This group already comprises one-third of the country’s population and they are known to be the biggest spenders,” the report read.
“They are willing to spend more money eating out as long as their dining experience is convenient, fun, exciting, has high quality food and service, and is yet affordable,” it added.
The report also noted that the worsening traffic problems of the country would force Filipinos to eat more outside instead of preparing food at home.
“Likewise, the worsening traffic and transport situation [in Manila and other major cities], increasing time and energy constraints, and prevailing health and fitness trends have encouraged consumers to purchase cooked meals or dine out, instead of preparing food at home,” the report read.
The report said the sustained growth of the local food service industry encourages US-based food and beverage products manufacturers to export more to the Philippines. The US remains the Philippines’s largest supplier for food, beverage and ingredient products, according to the Gain report.
“This growth in the food service industry will provide greater opportunities for exports of US food and beverage products to the Philippines,” it said.
“The Philippines is the largest market in Southeast Asia and the 12th-largest export market in the world for US consumer-oriented food and beverage products, importing a total of $964.3 million in 2017,” it added.
The local food service industry is made up of 86,812 establishments and includes restaurants, fast-food chains, kiosks and counters, cafeterias, hotels, bars, cafés and catering services, according to the Gain report.