Fid Uferiñ

Chocolate Confectionery in the
Philippines
Euromonitor International
June 2021
This sample report is for illustration

purposes only.
Some content and data have been
changed.
To purchase a full version, please visit

www.euromonitor.com
CHOCOLATE CONFECTIONERY IN THE PHILIPPINES Passport i
LIST OF CONTENTS AND TABLES

Chocolate Confectionery in the Philippines - Category Analysis .................................................. 1
KEY DATA FINDINGS.................................................................................................................. 1
2021 DEVELOPMENTS ............................................................................................................... 1
Chocolate confectionery showing signs of recovery backed by strong performance from
Universal Robina Corp .............................................................................................................. 1
New product launches continue to surface despite the challenges presented by COVID-19 ... 2
Kinder Joy creates A digital universe to increase the attraction of its products ........................ 2
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Chocolate confectionery set for bright future driven by economic recovery and new product
development ............................................................................................................................. 2
Could healthier options gain A foothold in chocolate confectionery over the forecast period? . 3
E-commerce set for further gains.............................................................................................. 3
Summary 1 Other Chocolate Confectionery by Product Type: 2021 ............................... 4
CATEGORY DATA ....................................................................................................................... 4
Table 1 Sales of Chocolate Confectionery by Category: Volume 2016-2021 ............ 4
Table 2 Sales of Chocolate Confectionery by Category: Value 2016-2021 ............... 4
Table 3 Sales of Chocolate Confectionery by Category: % Volume Growth
2016-2021 .................................................................................................... 4
Table 4 Sales of Chocolate Confectionery by Category: % Value Growth
2016-2021 .................................................................................................... 5
Table 5 Sales of Chocolate Tablets by Type: % Value 2016-2021 ........................... 5
Table 6 NBO Company Shares of Chocolate Confectionery: % Value 2017-
2021 ............................................................................................................. 5
Table 7 LBN Brand Shares of Chocolate Confectionery: % Value 2018-2021 .......... 6
Table 8 Distribution of Chocolate Confectionery by Format: % Value 2016-
2021 ............................................................................................................. 7
Table 9 Forecast Sales of Chocolate Confectionery by Category: Volume
2021-2026 .................................................................................................... 7
Table 10 Forecast Sales of Chocolate Confectionery by Category: Value 2021-
2026 ............................................................................................................. 8
Table 11 Forecast Sales of Chocolate Confectionery by Category: % Volume
Growth 2021-2026 ....................................................................................... 8
Table 12 Forecast Sales of Chocolate Confectionery by Category: % Value
Growth 2021-2026 ....................................................................................... 8
Snacks in the Philippines - Industry Overview ............................................................................ 10
EXECUTIVE SUMMARY ............................................................................................................ 10
Snacks in 2021: The big picture ............................................................................................. 10
Key trends in 2021 .................................................................................................................. 10
Competitive landscape ........................................................................................................... 11
Channel developments ........................................................................................................... 11
What next for snacks? ............................................................................................................ 12
Chart 1 Snacks Value Sales Growth Scenarios: 2019-2026 ................................... 12
Chart 2 Snacks Impact of Drivers on Value Sales: 2019-2026 ............................... 13
MARKET DATA .......................................................................................................................... 14
Table 13 Sales of Snacks by Category: Volume 2016-2021 ..................................... 14
© Euromonitor International
CHOCOLATE CONFECTIONERY IN THE PHILIPPINES Passport ii
Table 14 Sales of Snacks by Category: Value 2016-2021 ........................................ 14

Table 15 Sales of Snacks by Category: % Volume Growth 2016-2021 .................... 15
Table 16 Sales of Snacks by Category: % Value Growth 2016-2021 ....................... 15
Table 17 NBO Company Shares of Snacks: % Value 2017-2021 ............................. 15
Table 18 LBN Brand Shares of Snacks: % Value 2018-2021 ................................... 16
Table 19 Distribution of Snacks by Format: % Value 2016-2021 .............................. 17
Table 20 Forecast Sales of Snacks by Category: Volume 2021-2026 ...................... 18
Table 21 Forecast Sales of Snacks by Category: Value 2021-2026 ......................... 18
Table 22 Forecast Sales of Snacks by Category: % Volume Growth 2021-2026...... 18
Table 23 Forecast Sales of Snacks by Category: % Value Growth 2021-2026......... 18
DISCLAIMER ............................................................................................................................. 19
SOURCES.................................................................................................................................. 19
Summary 2 Research Sources ...................................................................................... 19
CHOCOLATE CONFECTIONERY IN THE PHILIPPINES Passport 1
CHOCOLATE CONFECTIONERY IN
THE PHILIPPINES - CATEGORY
ANALYSIS
KEY DATA FINDINGS
▪ Sales are set to see stronger growth in 2021 supported in part by the expansion of e-
commerce
▪ Chocolate confectionery is expected to see current value growth of 5% and retail volume
growth of 4% in 2021 with sales reaching PHP23.3 billion and 37,000 tonnes
▪ Countlines is set to be the most dynamic category in 2021 with current value growth of 6%
▪ The category’s average unit price is expected to rise by 1% in 2021
▪ Universal Robina Corp leadsContent removed
with a value from
share of 39% sample
in 2021
▪ Over the forecast period, chocolate confectionery is projected to increase at a 9% current
value CAGR (5% 2021 constant value CAGR) to reach PHP35.1 billion in 2026
2021 DEVELOPMENTS
Chocolate confectionery showing signs of recovery backed by strong

performance from Universal Robina Corp
Chocolate confectionery saw slower growth in current value and retail volume terms in 2020
compared with the previous year, as it was negatively affected by COVID-19. Initially, Metro
Manila was placed on lockdown from the middle of March, but the quarantine was soon
extended to cover the entire Luzon region until the middle of May. People were mandated to
stay home, public transportation was suspended and companies were urged to work from home.
Only establishments providing basic necessities related to food and health were allowed to
operate, with social distancing in place. Although the initial lockdown was eased, more
lockdowns were seen as rates of infection spiked again, further hampering growth. Although the
government made efforts to ensure that the supply of food was not adversely affected during the
lockdowns, with manufacturing allowed to continue, albeit with social distancing, some supply
disruptions, especially of imported brands, were still experienced. In addition, with self-isolation
and transport problems, some local companies suffered manpower shortages. Another factor
Content removed from sample
hampering growth was that a general sentiment of fear was created by COVID-19, making
consumers more likely to prioritise their budgets for basic necessities and forego indulgence
products such as chocolate confectionery.
Despite these challenges, chocolate confectionery continued to record growth in 2020 and the
category is expected to see stronger growth in current value and retail volume terms in 2021.
The category’s ability to ride the storm better than other areas of snacks is partly down to the
efforts of leading player Universal Robina Corp which not only offers affordable products but has
also taken steps to ensure there have been no significant supply shortages seen for its products
during 2020/2021. One reason behind the expected improvement in 2021 compared to 2020 is
the increased participation of grocery retailers in e-commerce, as well as third-party delivery
services such as Grab food. This has made chocolate confectionery accessible even to those
who are isolating. Another factor behind the expected improvement is that after the stress and
boredom created by the COVID-19 pandemic many consumers have now started looking for
some excitement and indulgence in their lives, with chocolate confectionery able to fill this hole,
especially with foodservice outlets continuing to be disrupted.
New product launches continue to surface

Content removed despite
from the challenges
sample
presented by COVID-19
As a result of the challenges presented by COVID-19 many players within chocolate
confectionery have focused on ensuring their most popular packaged food lines remain
accessible, with some focusing their manufacturing capabilities on these lines to the detriment of
others. Nevertheless, despite this, chocolate confectionery is not seen as a staple food and as
such some companies continue to focus on new product development and new launches, with
one eye on the future. As such, there have been several new product launches seen in the
market since the outbreak of COVID-19, with these continuing to be seen in 2021.
In September 2020, for example, Hershey Philippines Inc launched three new flavours in its
range of tablets which are inspired by ice cream: Cookies n’ Mint, Strawberries n’ Crème and
Sprinkles n’ Crème. Similarly, Universal Robina Corp launched a peanut butter flavour under its
Jack 'n' Jill Cloud 9 brand of countlines during the same month. The new product was marketed
as a welcome distraction from the home seclusion created by COVID-19, with the brand already
being hugely popular in the country. Another interesting launch at the end of 2020 saw
Mondelez Philippines Inc introduce a collaboration between its popular Cadbury Dairy Milk
brand of tablets and the Chips Ahoy cookies brand. This launch looked to tap into the search for
indulgent tastes. In January 2021, Universal Robina Corp added another new range this time
under its Jack 'n' Jill Nips brand of chocolate pouches and bags. The new dark chocolate flavour
buys into the current trend for more sophisticated bitter flavours and is expected to help the
company build on its already strong category share.
Kinder Joy creates A digital universe to increase the attraction of its

products
With schools going online as a result of COVID-19, many children are using gadgets such as
tablets, laptops and smartphones far more than before the pandemic. Some companies appear
to have looked to capitalise on this trend and have created mobile applications to capture the
attention of children and their parents. One example is Kinder Joy which launched a new free
mobile app in 2021.
Applaydu is an edutainment app which the whole family can use and enjoy, with it offering
digital activities for learning andContent
playing, such as building
removed yoursample
from own avatar and reading digital
story books. The app can also be used with the brand’s products. For example, when a
consumer buys a Kinder Joy product there is a leaflet inside with a QR Code. The QR Code can
be scanned using the Applaydu app to bring the physical toy to life in the Applaydu virtual world.
In effect, the Applaydu makes the surprise toy inside Kinder Joy more fun as you can interact
with the toy and use it as a supporting character in games etc. The app can also be used even
without an internet connection.
PROSPECTS AND OPPORTUNITIES
Chocolate confectionery set for bright future driven by economic

recovery and new product development
Chocolate confectionery has proven to be a fairly resilient category in the face of the
challenges thrown up by COVID-19 and as such it is projected to have a fairly bright future. It is
still seen to have plenty of room to grow and therefore once COVID-19 is brought under control
and the country’s economy starts to recover then this should be reflected in strong gains for
chocolate confectionery. Due to the high level of new product development within tablets and
countlines and their more accessible prices, they are set to remain the largest categories, with
both expected to see strong growth over the forecast period.
Nevertheless, there is danger of a backlash against sugary food and drinks in the forecast
period, which could hamper the growth of chocolate confectionery. This started with the Quezon
City Anti-Junk Food and Sugary Drinks Ordinance of 2017, which bans the sale and advertising
of a range of products, including chocolate confectionery, within 100m of school premises. A list
of prohibited and allowed foods was released by the Quezon City Health Department in June
2018. This was then followed by the implementation of similar ordinances in other localities,
including Pasig City, Cebu City, Davao City and Muntinlupa City. This prompted the Philippine
Chamber of Food Manufacturers to ask the national government for common standards which
are clear and harmonised to avoid confusion. Although the Department of Education has
already circulated a list of what products can be sold in schools, should it introduce common
standards then this could have an even more significant impact on sales of chocolate
confectionery. Even if common standards are not introduced, all the discussion surrounding the
subject is raising consumer awareness of the health impact of eating too many sugary products,
which could hamper growth within chocolate confectionery.
Could healthier options gain A foothold in chocolate confectionery over

the forecast period?
With the growing concerns around healthy eating, there is likely to be a growing presence of
healthy alternatives within chocolate confectionery over the forecast period as major brands look
to influence the direction of new product development over the next five years. Nestlé, for
instance, is reported to have developed a vegan version of its popular Kit Kat brand of
countlines (called Kit Kat V) which is scheduled to be launched in several countries. While there
is no news yet if Kit Kat V will be introduced locally, news of the new product has already been
reported on local websites. It is likely that vegan chocolate confectionery and other healthier
alternatives will grow in number over the forecast period to make indulgence products more
appealing to the growing number of health-conscious
Content removedindividuals.
from sampleFor example, Nestlé also
developed a new recipe for chocolate confectionery towards the end of the review period which
only uses cocoa beans and cocoa pulp as ingredients. It uses a patented technique which does
not require the addition of refined sugar. Innovations such as these offer huge scope for
development if manufacturers are able to successfully balance the use of natural and healthier
ingredients with a tasty and indulgent flavour and texture.
E-commerce set for further gains

The distribution of chocolate confectionery remains dominated by supermarkets and sari-sari
stores (other grocery retailers) in the Philippines and it is unlikely this situation will change
significantly over the forecast period. Nonetheless, e-commerce is still seen to have some scope
for development having made strong gains in chocolate confectionery during 2020 and 2021.
Online sales have been boosted by the lockdowns and home seclusion seen as a result of
COVID-19, with third-party delivery platforms such as Metromart.com making it more convenient
to shop online, while also enabling smallerremoved
Content grocery retailers
fromtosample
access the online marketplace.
Over the forecast period more retailers are likely to establish or develop their online presence,
all of which should boost online sales of chocolate confectionery. Nonetheless, while e-
commerce is likely to take a larger share of sales within chocolate confectionery over the
forecast period it is unlikely to challenge the dominance of supermarkets and sari-sari stores,
with sales of these products often tied to impulse purchases.
Summary 1 Other Chocolate Confectionery by Product Type: 2021

Product type
Content
Chocolate coated marshmallows removed from sample
Chocolate coated dried fruit
Chocolate lollipops
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
CATEGORY DATA
Table 1 Sales of Chocolate Confectionery by Category: Volume 2016-2021
'000 tonnes
2016 2017 2018 2019 2020 2021
Chocolate Pouches and 3.9 4.1 4.2 4.2 4.2 4.2

Bags
Boxed Assortments 1.7 1.8 1.8 1.8 1.9 2.0
Chocolate with Toys - -Data -
removed from - sample - -
Countlines 20.4 21.4 21.9 22.7 23.5 24.5
Seasonal Chocolate - - - - - -
Tablets 5.1 5.3 5.5 5.8 5.8 6.0
Other Chocolate 0.1 0.1 0.1 0.2 0.2 0.2
Confectionery
Chocolate Confectionery 31.2 32.8 33.6 34.7 35.5 36.9
Table 2 Sales of Chocolate Confectionery by Category: Value 2016-2021
PHP million
2016 2017 2018 2019 2020 2021
Chocolate Pouches and 2,962.5 3,243.9 3,370.4 3,508.6 3,494.7 3,580.6

Bags
Boxed Assortments 2,122.6 2,235.1 2,270.8 2,320.8 2,425.5 2,547.2
Chocolate with Toys - - - - - -
Countlines 9,086.7 9,959.0 10,596.4 11,444.1 12,006.4 12,707.2
Seasonal Chocolate - Data
- removed
- from -sample - -
Tablets 3,471.3 3,690.0 3,940.9 4,220.7 4,270.5 4,439.2
Other Chocolate 52.1 56.4 58.6 62.7 66.1 69.9
Confectionery
Chocolate Confectionery 17,695.2 19,184.4 20,237.2 21,557.0 22,263.3 23,344.1
Table 3 Sales of Chocolate Confectionery by Category: % Volume Growth 2016-2021
% volume growth
2020/21 2016-21 CAGR 2016/21 Total
Chocolate Pouches and Bags 1.5 1.6 8.4

Boxed Assortments 4.1 2.5 13.1
Chocolate with Toys - - -
Countlines 4.3
Data removed 3.8
from sample 20.5
Seasonal Chocolate - - -
Tablets 3.0 3.2 16.8
Other Chocolate Confectionery 4.4 4.3 23.6
Chocolate Confectionery 3.8 3.4 18.0
Table 4 Sales of Chocolate Confectionery by Category: % Value Growth 2016-2021
% current value growth

2020/21 2016-21 CAGR 2016/21 Total

Countlines 5.8 6.9 39.8
Seasonal Chocolate Data -removed from- sample -
Tablets 4.0 5.0 27.9
Table 5 Sales of Chocolate Tablets by Type: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021
Filled 35.7 35.9 36.1 36.3 36.5 36.6

Plain Dark 24.2 24.3 24.4 24.5 24.6 24.7
Plain Milk 36.1 36.0 35.9 35.8
Plain White 4.0
Data
3.8
removed
3.6
from3.4
sample35.7
3.2
35.6
3.1
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 6 NBO Company Shares of Chocolate Confectionery: % Value 2017-2021
% retail value rsp

Company 2017 2018 2019 2020 2021
Universal Robina Corp 36.2 36.0 36.7 37.9 38.6

Mondelez Philippines Inc 10.6 10.7 10.8 10.8 10.9
Mars Philippines Inc 8.7 9.2 9.0 8.3 8.2
Delfi Foods Philippines 8.8 8.5 8.1 7.4 6.8
Inc
Hershey Philippines Inc Data removed
7.8 from sample
7.2 6.7 6.6 6.6
Ferrero & related parties 5.4 5.4 5.4 5.5 5.5

Nestlé Philippines Inc 5.1 5.4 5.6 5.5 5.4
August Storck KG 2.2 2.3 2.3 2.3 2.3
Commonwealth Foods Inc 1.2 1.2 1.2 1.2 1.2
Chocoladefabriken Lindt 0.2 0.2 0.2 0.3 0.3
& Sprüngli AG Data removed from sample
Morinaga & Co Ltd 0.1 0.2 0.2 0.2 0.2
Kraft Foods - - - - -
(Philippines) Inc
Arcor do Brasil Ltda - - - - -
Others 13.5 13.7 13.8 13.9 13.9
Total 100.0 100.0 100.0 100.0 100.0
Table 7 LBN Brand Shares of Chocolate Confectionery: % Value 2018-2021
% retail value rsp

Brand (GBO) Company (NBO) 2018 2019 2020 2021
Jack 'n' Jill (JG Universal Robina Corp 25.4 25.9 26.8 27.3
Summit Holdings Inc)
Cadbury Dairy Milk Mondelez Philippines Inc 7.0 7.0 7.1 7.1
(Mondelez
International Inc)
Goya (Delfi Ltd) Delfi Foods Philippines 8.5 8.1 7.4 6.8
Inc
Ferrero Rocher Ferrero & related parties 5.4 5.4 5.5 5.5
Hershey's Classic Hershey Philippines Inc 4.1 4.0 3.9 3.8
Bar (Hershey Co, The)
Toblerone (Mondelez Mondelez Philippines Inc 3.7 3.8 3.8 3.8
International Inc)
M&M's (Mars Inc) Mars Philippines Inc 4.2 4.1 3.8 3.8
Kit Kat (Nestlé SA) Nestlé Philippines Inc 3.5 3.7 3.7 3.6
Snickers (Mars Inc) Mars Philippines Inc 3.7 3.5 3.3 3.2
Hershey's Kisses Hershey Philippines Inc 3.1 2.7 2.7 2.7
(Hershey Co, The) Data removed from sample
Merci August Storck KG 2.3 2.3 2.3 2.3
Ricoa Commonwealth Foods Inc 1.2 1.2 1.2 1.2
Butterfinger Nestlé Philippines Inc 0.5 0.5 0.5 0.5
(Nestlé SA)
Maltesers (Mars Inc) Mars Philippines Inc 0.5 0.5 0.5 0.5
Twix (Mars Inc) Mars Philippines Inc 0.5 0.5 0.4 0.4
Lindt Chocoladefabriken Lindt 0.2 0.2 0.3 0.3
& Sprüngli AG
Dars Morinaga & Co Ltd 0.2 0.2 0.2 0.2
Crunch (Nestlé SA) Nestlé Philippines Inc 0.1 0.1 0.1 0.1
Arcor (Arcor SAIC) Arcor do Brasil Ltda - - - -
Goya (Petra Foods Delfi Foods Philippines - - - -
Ltd) Inc
Cadbury (Mondelez Kraft Foods - - - -
International Inc) (Philippines) Inc
Cadbury Dairy Milk Kraft Foods - - - -
(Mondelez (Philippines) Inc
International Inc)
Toblerone (Mondelez Kraft Foods - - - -
International Inc) (Philippines) Inc
Others Others 25.9 26.2 26.6 26.7
Total Total 100.0 100.0 100.0 100.0
Table 8 Distribution of Chocolate Confectionery by Format: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021
Store-Based Retailing 99.8 99.8 99.8 99.1 98.3 97.5

- Grocery Retailers 97.0 97.0 97.0 96.4 95.5 94.7
-- Modern Grocery 56.2 56.3 56.4 56.2 58.3 59.5
Retailers
--- Convenience Stores 4.2 4.2 4.3 4.3 3.8 3.5
--- Discounters - - - - - -
--- Forecourt Retailers 0.4 0.4 0.3 0.3 0.3 0.2
--- Hypermarkets 7.4 7.5 7.5 7.5 8.0 8.3
--- Supermarkets 44.3 44.3 44.3 44.0 46.2 47.4
-- Traditional Grocery 40.8 40.7 40.6 40.2 37.2 35.2
Retailers
--- Food/drink/tobacco 2.2 2.2 2.2 2.2 1.9 1.7
specialists
--- Independent Small 3.1 3.1 Data 3.1
removed 3.1 sample
from 2.8 2.6
Grocers
--- Other Grocery 35.5 35.4 35.3 34.9 32.5 30.9
Retailers
- Non-Grocery Specialists 2.7 2.7 2.7 2.7 2.7 2.7
-- Health and Beauty 2.7 2.7 2.7 2.7 2.7 2.7
Specialist Retailers
-- Other Foods Non- - - - - - -
Grocery Specialists
- Mixed Retailers 0.1 0.1 0.1 0.1 0.1 0.1
Non-Store Retailing 0.2 0.2 0.2 0.9 1.7 2.5
- Vending - - - - - -
- Homeshopping - - - - - -
- E-Commerce 0.2 0.2 0.2 0.9 1.7 2.5
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 9 Forecast Sales of Chocolate Confectionery by Category: Volume 2021-2026
'000 tonnes
2021 2022 2023 2024 2025 2026
Chocolate Pouches and 4.2 4.4 4.6 4.8 5.0 5.3

Bags
Boxed Assortments 2.0 2.1 2.2 2.3 2.5 2.7
Countlines 24.5 25.9
Data removed
27.5
from
29.3
sample
31.2 33.2
Seasonal Chocolate - - - - - -
Tablets 6.0 6.2 6.6 6.9 7.3 7.7
Other Chocolate 0.2 0.2 0.2 0.2 0.2 0.2
Confectionery
Chocolate Confectionery 36.9 38.7 41.0 43.5 46.2 49.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 10 Forecast Sales of Chocolate Confectionery by Category: Value 2021-2026
PHP million
2021 2022 2023 2024 2025 2026
Chocolate Pouches and 3,580.6 3,687.6 3,835.5 4,013.1 4,209.7 4,419.8

Bags
Boxed Assortments 2,547.2 2,678.2 2,839.4 3,021.7 3,219.0 3,433.4
Countlines 12,707.2 13,351.5 14,115.2 14,966.3 15,885.3 16,868.6
Seasonal Chocolate - Data
- removed
- from -sample - -
Tablets 4,439.2 4,581.7 4,769.6 4,986.6 5,222.9 5,480.4
Other Chocolate 69.9 72.8 75.8 78.6 81.3 83.9
Confectionery
Chocolate Confectionery 23,344.1 24,371.8 25,635.4 27,066.3 28,618.2 30,286.0
trade sources
Table 11 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth

2021-2026
% volume growth
2021/22 2021-26 CAGR 2021/26 Total

Seasonal Chocolate
Data- removed from- sample -
Tablets 4.5 5.4 29.8
trade sources
Table 12 Forecast Sales of Chocolate Confectionery by Category: % Value Growth 2021-

2026
% constant value growth

2021/2022 2021-26 CAGR 2021/26 Total

Seasonal Chocolate Data -removed from- sample -
Tablets 3.2 4.3 23.5
trade sources
SNACKS IN THE PHILIPPINES -

INDUSTRY OVERVIEW
EXECUTIVE SUMMARY
Snacks in 2021: The big picture

Following the outbreak of COVID-19 overall sales of snacks in the Philippines contracted.
This was down to several factors, including economic pressures, challenges accessing key
distribution channels and a general conservatism among consumers when it came to
purchasing discretionary items. Pre-COVID-19 many products such as gum and sugar
confectionery relied heavily on impulse purchases, but with consumers spending more time at
home both for work and leisure these opportunities were diminished. Nevertheless, after a
difficult year in 2020 there are now signs being seen of a sales recovery in many areas of
snacks in the Philippines. This is partly due to the easing of COVID-19 restrictions and the fact
that consumers are starting to spend more time outside their homes again. However, it also due
to the efforts of retailers and manufacturers to adapt to the new normal.
A key trend has been an increased focus on e-commerce with retailers and snacks producers
looking to find new ways of reaching consumers, especially those who are unable or unwilling to
leave their homes. With consumers spending more time online for work, education, and leisure,
some players introduced apps to help engage with consumers, while others focused on social
media and digital marketing to reach their audience. Unable to eat out and stuck at home, many
consumers have also started looking for greater variety and many players responded by
launching new products during 2020/2021, such as new flavour innovations, or healthier
options. Furthermore, there has been a greater focus on indulgent products in 2021 as
consumers look for ways to unwind and destress from the challenges thrown up by COVID-19.
This has helped to boost demand for products such as chocolate confectionery and ice cream,
which are both seeing steady growth again.
Key trends in 2021

There was a focus on improving access to products in the wake of COVID-19. This included
expanding into e-commerce, offering direct-to-consumer sales, as well as teaming up with
subscription services. A different approach was taken by Unilever RFM Ice Cream Inc, which set
up ice cream pop-up stores after the outbreak of COVID-19. These stores were located closer to
consumers’ homes in order that the company could still reach its core consumer base. Some
foodservice players also branched out into offering snacks for consumption at home as they
looked to compensate for the loss of dine-in sales.
With schools going online due to the pandemic, many children have been using gadgets such
as tablets, laptops and smartphones far more than before the pandemic. Companies were
looking to capitalise on this trend, for example
Content by creating
removed from mobile applications to capture the
sample
attention of children and their parents. For example, a new free mobile app – Applaydu – has
been launched under the Kinder Joy brand in 2021. This is an edutainment app that the whole
family can use and enjoy, with it offering digital activities for learning and playing, such as
building one’s own avatar and reading digital story books. The app can also be used with the
brand’s products. For example, when a consumer buys a Kinder Joy product there is a leaflet
inside with a QR Code. The QR Code can be scanned using the Applaydu app to bring the
physical toy to life in the Applaydu virtual world.
Competitive landscape
Universal Robina Corp, which continues to hold a strong lead in snacks, has come out fighting
in 2021 after suffering losses in 2020. Despite the affordability of its products the company was
hard hit by the home seclusion seen in the wake of COVID-19, with many of its products, such
as its range of sugar confectionery, being heavily reliant on impulse purchases. In order to
sustain consumer interest the company has been focusing on new product development and
innovation as well as expanding its online presence. One example of new product development
from the company was the launch of a milk tea flavour for its popular Jack 'n' Jill XO brand of
boiled sweets. Through this launch the company was looking to capitalise on the popularity of
milk tea in foodservice and to address the cravings of Filipinos for milk tea, by giving them a
convenient option in the form of milk tea flavoured boiled sweets.
Monde Nissin Corp, the leading player in sweet biscuits, snack bars and fruit snacks, plans to
go public and list on the local stock exchange. The company has stated that it will use the funds
raised for capital expenditure, redemption of convertible notes, repayment of loans and general
corporate purposes. It is expected that Monde Nissin will have an improved production capacity
following its launch on the stock exchange, thereby increasing its sales prospects.
Del Monte Philippines entered sweet biscuits with its Del Monte Potato Crisp Biscuit range in
2021. This new range is comprised of thin and crisp biscuits that are baked and not fried and
that are available in original and spicy flavours.
Channel developments
Foodservice sales of snacks were decimated by the outbreak of COVID-19 with outlets forced
to close during the lockdowns and restrictions continuing to limit sales even in 2021.
Nevertheless, foodservice sales only account for a small fraction of total volume sales of snacks
in the Philippines and as such this did not have a significant impact on the overall picture for the
category.
With regard to retail sales of snacks these are accounted for mainly by supermarkets and
sari-sari stores (traditional family-run shops listed under other grocery retailers). Supermarkets
have continued to see growth in sales in 2021, backed by consumers stocking up on snacks to
enjoy while stuck at home. However, in contrast, sari-sari stores have continued to record
declining sales due to the loss of impulse purchases. Nevertheless, the latter has seen a slight
improvement in 2021 as restrictions have started to be eased. Convenience stores were also
hard hit by the loss of impulse sales, although some players have looked to try and address
these losses. For example, 7-Eleven rolled out cash recycling ATMs in some of its stores to try
and encourage footfall.
The big story in terms of the distribution landscape has been the rapid rise of e-commerce.
Prior to the outbreak of COVID-19 e-commerce accounted for a relatively tiny share of sales;
however, with retailers and snacks producers struggling to remain profitable during the COVID-
19 crisis there has since been a sizeable shift online. This has been reflected in the growing
number of grocery retailers now offering e-commerce. Puregold Supermarket, for instance,
launched its own e-commerce site towards the end of 2020, while Robinsons Retailing has been
expanding the retail brands available on its recently created online shop. Other retailers such as
Landmark Supermarket have made their products available through third-party online platforms
such as Metromart.com. Third-party delivery services such as Grab Delivery have also risen to
prominence in the wake of COVID-19, offering to delivery grocery orders to consumers stuck at
home. Added to this, many of the leading players in snacks launched official shops on the
country’s leading e-commerce platforms such as Lazada and Shopee as a way to reach
consumers.
What next for snacks?

After the disappointing sales results seen since the outbreak of COVID-19, there is optimism
that as restrictions are eased and as the country rolls out its vaccination programme that snacks
should start to see stronger growth again. The Philippines saw the highest unemployment rates
in 15 years in 2020, but once businesses are able to return to relative normality and tourism and
foodservice can resume then it is expected that things should start to turnaround. This would
spell good news for snacks which are largely seen as non-essential discretionary items.
Indulgent products such as ice cream, chocolate confectionery and sweet biscuits are
expected to bounce back the quickest, with these fulfilling the need for comfort eating, as well as
providing a welcome treat for consumers who are unable to go out to eat. These areas are also
seeing a huge amount of new product development and innovation, with new flavours, formats,
and even healthier options appearing in the market.
E-commerce is also likely to remain a focal point of producers, with consumers likely to
continue shopping online evenContent
after the country
removed entersfrom
a period of normalisation. Companies
sample
are also likely to place a greater focus on digital marketing, securing a strong social media
presence, and even exploring new opportunities to build engagement, such as through
developing mobile apps.
One potential threat to the future of snacks in the Philippines are tax proposals which have
been put forward that would see taxes applied to products which are deemed “junk food”. Many
Filipinos are price sensitive and as such any significant increase in prices would likely limit
demand. Aside from these tax proposals, there are also many consumers who have become
more focused on pursuing a healthier lifestyle in the wake of COVID-19, with the country having
seen a rapid rise in obesity levels during the review period. While this could potentially limit
demand for snacks, it could also inform new product development and offer a new area for
growth, such as plant-based products.
Chart 1 Snacks Value Sales Growth Scenarios: 2019-2026
Data removed from sample
Source: Euromonitor International Industry Forecast Model

Note: C19 Pessimistic 1 represents a modelled scenario with an estimated probability of 25-35% over a 1-year
horizon, factoring in macro drivers including GDP, stock prices, business and consumer confidence rates
alongside infection rates, supply chain and labour supply disruption rates
Chart 2 Snacks Impact of Drivers on Value Sales: 2019-2026
Data removed from sample
Source: Euromonitor International Industry Forecast Model

Note: The above chart shows the growth decomposition split by macro drivers such as GDP per capita and
population alongside soft drivers listed as having a positive (+) or negative (-) impact on the total growth
rate
MARKET DATA
Table 13 Sales of Snacks by Category: Volume 2016-2021
'000 tonnes
2016 2017 2018 2019 2020 2021
Confectionery 89.4 93.0 94.8 98.0 89.4 86.9

Ice Cream and Frozen - - - - - -
Desserts
Savoury Snacks 258.0 272.9
Data removed
283.5
from
295.1
sample
299.6 308.3
Sweet Biscuits, Snack 122.0 132.1 140.8 147.2 150.4 155.4
Bars and Fruit Snacks
Snacks - - - - - -
Table 14 Sales of Snacks by Category: Value 2016-2021
PHP million
2016 2017 2018 2019 2020 2021
Confectionery 35,307.9 37,513.0 39,086.1 41,178.2 39,116.0 39,166.1

Ice Cream and Frozen 16,937.9 18,266.6 19,875.9 20,105.9 18,201.0 18,988.5
Desserts
Savoury Snacks 69,079.8 74,946.8
Data 79,921.9
removed 85,563.8 88,009.7
from sample 91,676.6
Sweet Biscuits, Snack 27,985.4 30,992.1 33,795.7 36,185.4 37,430.9 39,243.4
Snacks 149,311.1 161,718.5 172,679.7 183,033.3 182,757.5 189,074.6
Table 15 Sales of Snacks by Category: % Volume Growth 2016-2021
% volume growth
2020/21 2016-21 CAGR 2016/21 Total
Confectionery -2.7 -0.6 -2.8

Ice Cream and Frozen Desserts - - -
Savoury Snacks 2.9 3.6 19.5
Sweet Biscuits, Snack Bars and Fruit
Data
3.3
removed from
5.0
sample 27.4
Snacks
Snacks - - -
Table 16 Sales of Snacks by Category: % Value Growth 2016-2021
% current value growth

2020/21 2016-21 CAGR 2016/21 Total
Confectionery 0.1 2.1 10.9

Ice Cream and Frozen Desserts 4.3 2.3 12.1
Sweet Biscuits, Snack Bars and Fruit
Data
4.8
removed from
7.0
sample 40.2
Snacks
Snacks 3.5 4.8 26.6
Table 17 NBO Company Shares of Snacks: % Value 2017-2021
% retail value rsp

Company 2017 2018 2019 2020 2021
Universal Robina Corp 25.7 25.1 25.2 25.6 25.8

Monde Nissin Corp 9.8 9.9 10.1 10.5 10.6
Unilever RFM Ice Cream 6.6 7.0 7.2 7.0 7.0
Inc
Republic Biscuit Corp 5.2 5.2 5.3 5.5 5.6
Liwayway Marketing Corp 5.0 5.1 5.3 5.4 5.5
Mondelez Philippines Inc 3.4 3.4 3.5 3.6 3.7
Food Industries Inc 3.0 3.0 3.1 3.3 3.3
Tobi Marketing Inc
Data removed
2.6
from sample
2.7 2.8 2.9 2.9
Nestlé Philippines Inc 4.3 4.2 3.4 2.6 2.6
GFI Enterprises Inc 1.7 1.7 1.7 1.8 1.8
Pepsi-Cola Products 1.6 1.6 1.6 1.7 1.7
Philippines Inc
Delfi Foods Philippines 1.8 1.7 1.7 1.6 1.5
Inc
Leslie Corp 1.3 1.3 1.4 1.4 1.4
JBC Corp 1.9 1.7 1.5 1.4 1.3
Procter & Gamble 1.1 1.1 1.2 1.2 1.2
Philippines Inc
Magnolia Inc 1.2 1.2 1.2 1.2 1.2
Perfetti Van Melle 1.3 1.3 1.4 1.2 1.1

Philippines Inc
Enerlife Philippines Inc 1.2 1.6 1.2 1.1 1.0
Mars Philippines Inc 1.0 1.1 1.1 1.0 1.0
Columbia International 1.3 1.2 1.2 1.0 0.9
Food Products Inc
Hershey Philippines Inc 0.9 0.8 0.8 0.8 0.8
Ferrero & related parties 0.8 0.8 0.8 0.8 0.8
Regent Foods Corp Data removed
0.7 from sample
0.7 0.7 0.7 0.7
SPI Corp 0.9 0.8 0.8 0.7 0.6
Grand Alphatech 0.6 0.6 0.6 0.6 0.6
International Corp
Alliance Global Brands 0.5 0.5 0.5 0.5 0.5
Inc
Joe & Susan Foods Phil 0.4 0.4 0.4 0.4 0.4
Wrigley Philippines Inc 0.5 0.5 0.5 0.4 0.4
Commonwealth Foods Inc 0.3 0.3 0.3 0.3 0.3
August Storck KG 0.3 0.3 0.3 0.3 0.3
Others 13.1 13.0 13.4 13.5 13.5
Total 100.0 100.0 100.0 100.0 100.0
Table 18 LBN Brand Shares of Snacks: % Value 2018-2021
% retail value rsp

Brand (GBO) Company (NBO) 2018 2019 2020 2021
Jack 'n' Jill (JG Universal Robina Corp 22.2 22.5 22.9 23.0
Rebisco Republic Biscuit Corp 4.4 4.5 4.7 4.7
Oishi Liwayway Marketing Corp 4.2 4.3 4.4 4.5
Selecta (Unilever Unilever RFM Ice Cream 4.3 4.4 4.3 4.3
Group) Inc
Sky Flakes Monde Nissin Corp 4.0 4.0 4.2 4.2
Nagaraya Food Industries Inc 3.0 3.1 3.3 3.3
Tobi Tobi Marketing Inc 2.5 2.6 2.7 2.8
Cornetto (Unilever Unilever RFM Ice Cream 2.2 2.3 2.2 2.2
Group) Inc
Nissin Monde Nissin Corp 1.8 1.8 1.9 2.0
Growers GFI Enterprises Inc 1.7 1.7 1.8 1.8
Fita Monde Nissin Corp 1.6 1.6 1.7 1.7
Leslie's
Data removed
Leslie Corp
from sample
1.3 1.4 1.4 1.4
Happy (Republic JBC Corp 1.7 1.5 1.4 1.3
Biscuit Corp)
Pringles (Kellogg Co) Procter & Gamble 1.1 1.2 1.2 1.2
Philippines Inc
MY San Grahams Monde Nissin Corp 1.0 1.1 1.1 1.1
Nabati (Nabati Group) Enerlife Philippines Inc 1.6 1.2 1.1 1.0
Oreo (Mondelez Mondelez Philippines Inc 0.8 0.9 0.9 0.9
International Inc)
Cadbury Dairy Milk Mondelez Philippines Inc 0.8 0.8 0.9 0.9
(Mondelez
International Inc)
Frootees Republic Biscuit Corp 0.8 0.8 0.8 0.9
Goya (Delfi Ltd) Delfi Foods Philippines 1.0 1.0 0.9 0.8
Inc
Bingo Monde Nissin Corp 0.7 0.7 0.8 0.8
Lay's (PepsiCo Inc) Pepsi-Cola Products 0.7 0.7 0.8 0.8
Philippines Inc
Mentos (Perfetti Perfetti Van Melle 0.9 0.9 0.8 0.7
Van Melle Group) Philippines Inc
Ferrero Rocher Ferrero & related parties 0.6 0.6 0.7 0.7
Magnolia (San Magnolia Inc 0.7 0.7 0.7 0.7
Miguel Corp)
Knick Knacks (Delfi Delfi Foods Philippines 0.7 0.7 0.7 0.7
Ltd) Inc
Tempura RegentData
Foods removed
Corp from sample
0.6 0.6 0.6 0.6
Chips Delight Grand Alphatech 0.6 0.6 0.6 0.6
International Corp
Tiger (Mondelez Mondelez Philippines Inc 0.5 0.5 0.5 0.6
International Inc)
Granny Goose (JG Universal Robina Corp 0.9 0.7 0.5 0.5
Others Others 30.9 30.4 29.4 29.2
Total Total 100.0 100.0 100.0 100.0
Table 19 Distribution of Snacks by Format: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021
Store-Based Retailing 100.0 100.0 100.0 99.3 98.4 97.7

- Grocery Retailers 97.6 97.6 97.6 96.9 96.1 95.4
-- Modern Grocery 44.7 45.1 45.4 45.2 46.2 47.6
Retailers
--- Convenience Stores 3.6 3.9 4.0 4.1 3.7 3.3
--- Discounters - - - - - -
--- Forecourt Retailers 0.4 0.4 0.4 0.4 0.4 0.3
--- Hypermarkets 6.1 6.2 6.3 6.3 6.6 6.9
--- Supermarkets 34.6 34.7 34.8 34.4 35.5 37.1
-- Traditional Grocery 52.9 52.4 52.1 51.7 49.9 47.8
Retailers
--- Food/drink/tobacco 1.0 0.9 0.9 0.9 0.7 0.6
specialists
--- Independent Small 10.9 10.7Data 10.5
removed 10.3 sample9.7
from 9.2
Grocers
--- Other Grocery 41.0 40.8 40.7 40.5 39.5 38.0
Retailers
- Non-Grocery Specialists 2.4 2.4 2.4 2.4 2.3 2.3
-- Health and Beauty 2.4 2.4 2.4 2.4 2.3 2.3
Specialist Retailers
-- Other Foods Non- 0.0 0.0 0.0 0.0 0.0 0.0
Grocery Specialists
- Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0
Non-Store Retailing 0.0 0.0 0.0 0.7 1.6 2.3
- Vending 0.0 0.0 0.0 0.0 0.0 0.0
- Homeshopping - - - - - -
- E-Commerce 0.0 0.0 0.0 0.7 1.6 2.3
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 20 Forecast Sales of Snacks by Category: Volume 2021-2026
'000 tonnes
2021 2022 2023 2024 2025 2026
Confectionery 86.9 87.2 89.3 92.4 96.2 100.5

Ice Cream and Frozen - - - - - -
Desserts Data removed from sample
Savoury Snacks 308.3 319.1 331.8 346.4 362.8 380.5
Sweet Biscuits, Snack 155.4 162.6 171.2 180.8 191.1 202.0
Snacks - - - - - -
trade sources
Table 21 Forecast Sales of Snacks by Category: Value 2021-2026
PHP million
2021 2022 2023 2024 2025 2026
Confectionery 39,166.1 39,707.2 40,907.7 42,524.5 44,416.8 46,517.7

Ice Cream and Frozen 18,988.5 19,818.6 20,910.6 22,195.2 23,639.2 25,228.1
Desserts
Savoury Snacks 91,676.6 94,415.2
Data 97,808.0
removed101,792.0
from sample
106,388.3 111,377.3
Sweet Biscuits, Snack 39,243.4 40,654.5 42,420.6 44,413.7 46,555.2 48,840.6
Snacks 189,074.6 194,595.6 202,046.8 210,925.4 220,999.4 231,963.7
trade sources
Table 22 Forecast Sales of Snacks by Category: % Volume Growth 2021-2026
% volume growth
2021/22 2021-26 CAGR 2021/26 Total

Ice Cream and Frozen Desserts - - -
Savoury Snacks Data
3.5 removed from
4.3 sample 23.4
Sweet Biscuits, Snack Bars and Fruit 4.6 5.4 30.0
Snacks
Snacks - - -
trade sources
Table 23 Forecast Sales of Snacks by Category: % Value Growth 2021-2026
% constant value growth

2021/2022 2021-26 CAGR 2021/26 Total

Ice Cream and Frozen Desserts 4.4 5.8 32.9
Sweet Biscuits, Snack Bars and Fruit Data
3.6 removed from
4.5 sample 24.5
Snacks
Snacks 2.9 4.2 22.7
trade sources
DISCLAIMER
Forecast and scenario closing date: 14 June 2021
Report closing date: 16 June 2021
Analysis and data in this report give full consideration to consumer behaviour and market
performance in 2021 and beyond as of the dates above. For the very latest insight on this
industry and consumer behaviour, at both global
Content and national
removed level, readers can access
from sample
strategic analysis and updates on www.euromonitor.com and via the Passport system, where
new content is being added on a systematic basis.
SOURCES
Sources used during research include the following:
Summary 2 Research Sources

Official Sources Department of Agriculture
Department of Health
Industrial Technology Development Institute-

Department of Science & Technology
National Dairy Authority
National Statistical Coordination Board
National Statistics Office
Philippine Stock Exchange
Trade Associations Association of Filipino Franchisers Inc
Cámara
Content removed fromOficial
sample Española de Comercio
Industria y Navegacion en Filipinas, Inc
Filipino-Chinese Bakery Association Inc

(FCBAI)
Philippine Amalgamated Supermarkets

Association
Philippine Association of Flour Millers
Philippine Association of Meat Processors Inc
Philippine Chamber of Food Manufacturers Inc
Philippine Coconut Oil Producers Association
Philippine Confectionery, Biscuit & Snack

Association (PCBSA)
Philippine Mango Industry Foundation Inc
Rice Association
Trade Press Business World Online
Manila Times, The
Philippine Daily Inquirer
Source:
Euromonitor International

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LIST OF CONTENTS AND TABLES

Table 14 Sales of Snacks by Category: Value 2016-2021 ........................................ 14

Chocolate confectionery showing signs of recovery backed by strong

New product launches continue to surface

Kinder Joy creates A digital universe to increase the attraction of its

PROSPECTS AND OPPORTUNITIES

Chocolate confectionery set for bright future driven by economic

Content removed from sample

Could healthier options gain A foothold in chocolate confectionery over

E-commerce set for further gains

Summary 1 Other Chocolate Confectionery by Product Type: 2021

Chocolate Pouches and 3.9 4.1 4.2 4.2 4.2 4.2

Table 2 Sales of Chocolate Confectionery by Category: Value 2016-2021

Chocolate Pouches and 2,962.5 3,243.9 3,370.4 3,508.6 3,494.7 3,580.6

Table 3 Sales of Chocolate Confectionery by Category: % Volume Growth 2016-2021

Chocolate Pouches and Bags 1.5 1.6 8.4

Table 4 Sales of Chocolate Confectionery by Category: % Value Growth 2016-2021

% current value growth

Chocolate Pouches and Bags 2.5 3.9 20.9

Table 5 Sales of Chocolate Tablets by Type: % Value 2016-2021

% retail value rsp

Filled 35.7 35.9 36.1 36.3 36.5 36.6

Table 6 NBO Company Shares of Chocolate Confectionery: % Value 2017-2021

% retail value rsp

Universal Robina Corp 36.2 36.0 36.7 37.9 38.6

Ferrero & related parties 5.4 5.4 5.4 5.5 5.5

Table 7 LBN Brand Shares of Chocolate Confectionery: % Value 2018-2021

% retail value rsp

Table 8 Distribution of Chocolate Confectionery by Format: % Value 2016-2021

% retail value rsp

Store-Based Retailing 99.8 99.8 99.8 99.1 98.3 97.5

Table 9 Forecast Sales of Chocolate Confectionery by Category: Volume 2021-2026

Chocolate Pouches and 4.2 4.4 4.6 4.8 5.0 5.3

Table 10 Forecast Sales of Chocolate Confectionery by Category: Value 2021-2026

Chocolate Pouches and 3,580.6 3,687.6 3,835.5 4,013.1 4,209.7 4,419.8

Table 11 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth

Chocolate Pouches and Bags 3.2 4.4 24.3

Table 12 Forecast Sales of Chocolate Confectionery by Category: % Value Growth 2021-

% constant value growth

Chocolate Pouches and Bags 3.0 4.3 23.4

SNACKS IN THE PHILIPPINES -

Snacks in 2021: The big picture

Key trends in 2021

What next for snacks?

Chart 1 Snacks Value Sales Growth Scenarios: 2019-2026

Data removed from sample

Source: Euromonitor International Industry Forecast Model

Chart 2 Snacks Impact of Drivers on Value Sales: 2019-2026

Data removed from sample

Source: Euromonitor International Industry Forecast Model

Confectionery 89.4 93.0 94.8 98.0 89.4 86.9

Table 14 Sales of Snacks by Category: Value 2016-2021

Confectionery 35,307.9 37,513.0 39,086.1 41,178.2 39,116.0 39,166.1

Table 15 Sales of Snacks by Category: % Volume Growth 2016-2021

Confectionery -2.7 -0.6 -2.8

Table 16 Sales of Snacks by Category: % Value Growth 2016-2021

% current value growth

Confectionery 0.1 2.1 10.9

Table 17 NBO Company Shares of Snacks: % Value 2017-2021

% retail value rsp