baking industry
Baking has grown over the last century in the Philippines, from a relatively small industry to a large, popular industry. Initially, the island featured mainly independent bakeries that serviced cities and towns and provided employment to the local people. Nowadays, chain bakeries have increased the number of bakeries in the Philippines and have also lowered the prices of bakery products. Due to the increased demand for bakery products from the population in the Philippines, the baking industry has grown, leading to it providing greater employment opportunities both in the bakeries and in central management.
• The baking industry
Most countries with developed economies, as well as a number of developing countries, have strong bakery industries. Bakeries provide necessities to the population in terms of bread and cake products. Almost every household relies on the consumption of staple products such as bread, and so the baking industry is able to thrive with this large, reliable demand. Bakeries require skilled bakers as well as other employees to serve customers, meaning the industry provides significant employment opportunities. Many people in their later teen years take up apprenticeships in bakeries to learn the trade.
• Bakeries in the modern world
It is debatable as to whether or not bakeries will continue to thrive in today's modernized world. This is for the most part down to the rise in the power of supermarket chains. Many supermarkets now provide bread and other bakery products themselves - some even have their own bakeries in-store. This is bad news for independent bakeries who struggle to compete with the supermarkets; they are unable to provide the same level of convenience. That said, in most cases the quality of their goods is significantly higher than those sold in supermarkets. It remains to be seen whether the bakery industry will be able to survive when the major supermarkets have such great monopoly power.
TRENDS
- In 2011, Gardenia Bakeries Philippines opened a new manufacturing plant in Cebu with a daily capacity of 50,000 loaves in order to serve the Visayas and Mindanao regions. This allowed the company to further improve its distribution across the country as it used to concentrate solely on Metro Manila. The decision to invest in other factories to expand its geographical reach and enter unexploited locations will result in Gardenia Bakeries Philippines maintaining its leading position in baked goods in 2011.
COMPETITIVE LANDSCAPE
- Gardenia Philippines continued its lead in baked goods with a 9% value share in 2010. This was due to its strong presence in packaged/industrial bread, where it had a value share of 39% in 2010. The company also benefited from its investments in advertising, which strengthen brand recall, and consistent product quality. Products are made daily and delivered to retail channels.
PROSPECTS
- More Filipinos are expected to purchase packaged/industrial baked goods over unpackaged/artisanal products in the forecast period. As Filipinos increasingly value convenience due to busier lifestyles, greater preference for these types of products was due to the longer shelf-life of packaged/industrial bread, pastries and cakes, which can be bought in bulk as there is no need for immediate consumption.
