Food manufacturing in the Philippines is expected to rebound this year from two years of contraction, according to the United States Department of Agriculture (USDA).
A USDA report, citing industry sources, indicates possible a flat growth to as much as 3 percent increase in food manufacturing attributed to measures implemented by local players to cope with the pandemic.
The report did not provide exact figures.
Based on the report released last week, USDA said food manufacturing is fuelled by household consumption expenditures of food and non-alcoholic beverages which recorded a 5.3 percent growth in the fourth quarter of 2020 compared with 2019 numbers.
The agency said direct sales of products to customers through online portals and the rise of resellers as well as small and medium enterprises of food ingredients will continue to drive the food manufacturing sector.
The report also noted the government’s quarantine protocols will be a factor for continued stay-at-home orders which will sustain demand for pantry items like baked goods and mixes, canned goods, cooking oils, milk, snack foods as well as products with larger package sizes and extended shelf-life.
The USDA said the interest of local manufacturers in plant-based meat alternatives and healthier options for snacks and meals is also a rising trend.
