Bakery Industry in the Philippines: An Overview

July 31, 2019
Bread has become a staple fare in the Filipino’s local dining table. Baked goods, like pan de sal, are consumed for breakfast or as a snack. Special occasions are celebrated with cakes. Thus, there's no doubt that Baking in the Philippines has grown into a large industry that provides greater business and employment opportunities. Here at World Trade Center Metro Manila, we have hosted events like Bakery Fair, showcasing different baking techniques and the delicious art of baking.   Facts about the Baking Industry in the Philippines One-third of the population is made up of millennials. This significant market sector dictates the food trends this decade, which applies to the baking industry. A lot of millennials refuse to consume preservatives or processed food, and may opt to consume more organic products that are locally available. Other factors affecting the baking industry in the Philippines are convenience, health-consciousness (vegan and gluten-free food), and waste reduction (opting to buy fresh products instead of pre-packed products). Hypermarkets & supermarkets are the leading channels for the distribution of bakery & cereals products in the country. Flexible packaging is the most commonly used pack material in the sector, while rigid metal is expected to register the fastest growth during 2018-2023. Magic Creams, Gardenia and Fudgee Barr are the top three brands in the Filipino bakery & cereals sector.   Innovations in the Philippine Baking Industry Distribution of baked goods is expected to continuously expand over the forecast period. The holding firm, All Value Holdings Corp., for instance, plans to increase the number of outlets for its bakery brand, Bake My Day, alongside its supermarket brand, All Day Supermarket. The Philippine Baking Industry is beginning to embrace innovation as a tool for growth. The Department of Science and Technology through the Small Enterprise Technology Upgrading Program (SETUP) helps micro, small, and medium enterprises to acquire the upgrading it needs. The program enables bakeries to address their technical problems through technology transfer and technology interventions.   Gardenia Bakeries' Success Gardenia Bakeries (Philippines) Inc. retained its leadership in baked goods in 2018, gaining value share as its leading brand. Gardenia also gained ground in packaged leavened bread (the largest category in baked goods.) Its success can be partly traced to its wide product line as it offers sliced bread loaves in plain, flavored and wheat variants. Despite the increasing challenge inside the baked goods industry, Gardenia Bakeries has great prospects to keep up its administration. While Gardenia Bakeries is the greatest single organization in baked products, distinctive players are emerging.   Starting a Bakery Business in the Philippines Starting a bakery business in the Philippines is ideal for full-time entrepreneurs with experience in baking either through a previous job in a bakery or paid hands-on training with an initial investment of P150,000. There are many pros to this kind of business: if you are to open a bakery business in the country, bread and beverage is the perfect combo to sell, you have ready buyers regardless of the social class you’re trying to target, and Filipinos want a quick way to satisfy their cravings, so with bread, they can easily buy it from a bakery and bring it wherever they go. Some of the downsides, however, are the fact that it's more demanding than food cart business or other food businesses that require smaller capital and you have to invest a lot of your time, dedication, and patience to see it through the tough times. Here are the steps on how to start a bakery business in the Philippines: 1: Evaluate the reason why you want to open a bakery business. 2: Take up baking courses. 3: Perform basic market research. 4: Find a good location. 5: Decide whether to franchise or go on your own. 6: Secure the required permits and certifications. 7: Start small. 8: Buy baking equipment. 9: Know your ingredients. 10: Price your products strategically. 11: Hire employees. 12: Learn how to innovate. Provided that all the aspects of the bakeshop are taken care of, hard work is what will make the business last.

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