Review of Related Literature

A. Coronavirus Impact on the Philippines

Coronavirus disease exhibited changes to household income as the impact of the

pandemic hit employment harder than real wages. The likelihood of employment declined

substantially in 2020 by 11.2% but recovered to 11.8% in the following year. Wages right when

the pandemic in 2020 declined by 3.3% but improved by 2% in the following year

(Debuque-Gonzale et al., 2023) It did not continue well for the Philippines as prices also would

increase due to the pandemic, with inflation increasing above 4% during 2021 (Philippine

Statistics Authority, 2022). In this scenario, Maslow’s Hierarchy of Needs connects to the

economic cycle; this exhibits that consumers adjust their consumption to prioritize their essential

needs (Tariga et al., 2021). It implies that households would change their consumption to be able

to fulfill their needs and maximize their budget. This is evidenced by the change in the

household final consumption expenditure (HFCE) trends by expenditure group. According to the

Facts In Figures written by (Congressional Policy and Budget Research Department, 2022). In

2020, alcoholic beverages, tobacco, clothing, household equipment, and other non-need

expenditure groups greatly contracted, while needs like food, housing, water, and electricity

maintained similarly or minimally decreased from 2019. Households gravitated towards

spending their wages on what was only needed at the time, especially when there was a lack of

jobs and a lowered income already. The pandemic would also incite regional changes as different

local government units (LGUs) responded to the health crisis; LGUs deployed strict physical

distancing, wearing of facemasks, and keeping everyone stationed at home not to leave until the

government allowed to (Talabis et al., 2021). With that, households in other non-capital regions

would also change their consumption in a similar sense to the National Capital Region (NCR).
Rural areas already exhibit different diets compared to urban areas, as higher-income households

replace their rice-dominant diet with nutrient-dense food products (Bairagi et al., 2022).

Nutrition and Income

B. Increase in the awareness of food security, nutrition, and health.

Table 1: During pandemic food eating habit in Philippines (Tariga et al., 2021)

With the changes to the landscape during the pandemic, the study finds that there would

also be a change in food consumption. According to the survey's findings from Tariga et al., 98%

of the participants prepared their own meals daily during the pandemic. 78% of respondents said

they preferred to buy organic food, with the remaining respondents preferring non-organic food.

98% prefer fresh meat, vegetables, and fish; 39% prefer processed food; 20% prefer

made-to-order noodle delivery; 18% prefer fast food delivery; 10% prefer dining out; and 1%

prefer other combinations. Fresh produce, fruits, and meats make up the majority of food

purchases during a pandemic, making up 84% of the total. Similarly, groceries account for 34%,

breads and pastries for 28%, ready-to-eat items for 24%, and frozen dinners for 20%. According

to the data, 48% of respondents agree, and 29% strongly agree that changes in food choices tend
to be healthier. Table 1 shows the respondents' dietary habits during the pandemic. (Tariga et al.,

2021)

C. Shifts in Non-Essential to Essential Goods.

Table 2: Likely change in income-induced (due to COVID-19) consumption expenditure during

2020-21 (Srivastava & Sivaramane, 2020)

According to Table 2, the projected expenditure elasticities of food groups and non-food

costs vary depending on the commodity, suggesting that changes in income have varying effects

on the consumption of various commodities. Cereals showed the lowest expenditure elasticity

value (0.37) of all the food groups, although it was still positive. Thus, cereal consumption will

fluctuate in response to changes in income, but only slightly. Vegetables, Pulses, and Edible oils

are comparatively more elastic. However, their consumption will alter less than proportionally in

the event of an income shift. Elasticity scores for non-vegetarian and milk products are closer to

1. Fruits and other foods have elastic expenditure elasticities, meaning that a change in

household income will affect the consumption of these goods beyond a proportionate amount.

Overall, food's average weighted (with expenditure share) elasticity is 0.80 (inelastic), implying
that food is necessary for consumers. According to estimates, non-food spending elasticity is

1.23, meaning that families will alter their non-food expenditures more than proportionally in

response to changes in income. These findings suggest that the effect of income change on

consumption will vary depending on the commodity and elasticity value.

Table 3: Expected changes in consumption pattern due to COVID-19-led income shocks

(Srivastava & Sivaramane, 2020)

Decreased household income will impact the amount spent on various commodities at

different rates, and the consumption basket's composition will likely shift. Households will shift

their spending from non-essential to essential goods. While basic commodities like food would

increase their percentage of overall spending, the share of expenditure unrelated to food will

decrease (Table 3). The portion of the food budget allocated to goods with inelastic demand

within the food basket will rise. A decrease in income will result in lower consumer expenditure,

with a household's spending usually limited to needs and consumption limited to staple foods.

The COVID-19 pandemic has negatively impacted most households' incomes and has been
predicted to cause an economic disequilibrium by causing a downward shift in the demand

curves for food and non-food commodities. There are clear repercussions for both economic

growth and food security in India. The estimated expenditure elasticities showed that changes in

income would impact consumption in different ways depending on the commodity and would

result in a change in non-food expenses that is more than proportional. Food expenses are subject

to inelastic demand, meaning that changes in income will affect them less than proportionately.

The study's scenarios are based on specific assumptions and models, which may not

always perfectly reflect real-life situations. While the scenarios provide valuable insights and

projections, it is crucial to consider that real-world outcomes can be influenced by various

unpredictable factors. Therefore, caution should be exercised when directly applying the study's

assumptions to real-life situations without considering additional variables and uncertainties.

D. Changes in the quality of food consumption due to the decrease in household

income.

Changes in income can lead to shifts in food consumption habits. When income levels

decrease, individuals may opt for more affordable but less nutritious food options, such as

processed and fast foods, due to budget constraints. Consumers will maximize their utility with

budget constraints; this can decrease the consumption of fresh and healthy foods, which are

known to be more expensive (Kern et al., 2017). On the other hand, an increase in income may

allow individuals to afford higher-quality and healthier food choices, leading to a shift towards a

more balanced and nutritious diet (Srivastava & Sivaramane, 2020). Therefore, changes in

income can directly impact the quality and variety of food consumed, influencing overall dietary

habits and health outcomes.

 Changes in food consumption due to income loss varied across different countries. In

Slovenia, individuals who lost parts of their income were more likely to increase their

consumption of sweet snacks and alcoholic drinks. In Germany, a loss of income was

significantly related to increased consumption of frozen food and ready-made meals. These

changes in food consumption patterns were influenced by the financial impact of the pandemic

on individuals in each country.

Due to the decrease in household income caused by the COVID-19 pandemic, there were

significant changes in the quality of food consumption. Marginalized workers in Bangkok and

Manila experienced income drops of 20-70%, leading to a reduction in food expenditures by

10%, 15%, and even 20%. This reduction in income affected the affordability of healthy diets,

particularly impacting the consumption of fruits, vegetables, and other healthy foods that were

already under-consumed before the pandemic. The pandemic has aggravated issues of the

unaffordability of healthy foods, with a large proportion of the population unable to afford a

healthy diet. The main effect on the quality of food consumption was reduced incomes of the

poor rather than changes in food prices. Government relief measures were suggested to target

low-income households to help them afford healthy food despite income losses.

Resources

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food basket composition of rural and urban Philippines: Implications for the food supply
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Congressional Policy and Budget Research Department. (2022, January). 2021 Philippine
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https://cpbrd.congress.gov.ph/images/PDF%20Attachments/Facts%20in%20Figures/FF2
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Debuque-Gonzales, M., Epetia, M. C. F., & Corpus, J. P. P. (2023). Effects of the
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Kern, D., Auchincloss, A., Stehr, M., Diez Roux, A., Moore, L., Kanter, G., &
Robinson, L. (2017). Neighborhood prices of healthier and unhealthier foods and
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Philippine Statistics Authority. (2022, January 5). Summary Inflation Report Consumer
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Srivastava, S. K., & Sivaramane, N. (2020). Income-induced effects of COVID-19

on the food consumption pattern of Indian households. AGRICULTURAL ECONOMICS
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Talabis, D. A. S., Babierra, A. L., Buhat, C. A. H., Lutero, D. S., Quindala, K. M., &
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R3XfAd76iOpyOlDguisuNWhT2fZZbdNq_E84POgSinvYfglus0WIACoLac