The Philippines, once known for having one of the highest fertility rate in Asia, is now witnessing a major demographic change. Filipinos are having fewer children due to inflation and other economic challenges.
GlobalData confirmed that the country’s baby food market is expected to decline by 4.5% to only Pesos 42 billion (US$772 million) within 5 years from now.
Shraddha Shelke, Consumer Analyst at GlobalData said, “Demographic changes taking place with respect to the baby population and live birth rates, and the government’s measures to restrict the number of births, coupled with an increase in the number of working women will contribute to a decline in the Philippines’s baby food market.”
GlobalData added that in December 2022, the inflationary pressure was severely felt by all Filipinos with food and energy prices rose to their highest level since 2008.
The per capita expenditure on baby food in the Philippines increased from US$204.1 in 2017 to US$267.1 in 2022, surpassing the global average at US$167.2. Shelke added that with rising disposable income, prices of baby foods, especially premium and organic products, are set to increase, leading to a higher per capita expenditure of US$271.2 by 2027.
Baby food manufacturers should focus on offering affordable premium baby food products to reach out to more Filipinos, as the population dwindled in the near future.
Major players in the baby foods segment in the Philippines include Nestle, Mead Johnson (Reckitt Benckiser) and Abbott Laboratories.