The outlook for food and beverage industry recruitment in the Philippines

The Philippines is one of the Asia-Pacific regions largest food producers, with an important food processing sector buoyed by increasing disposable incomes, a highly urbanised population and a rise in the number of food retail outlets and shopping centres. As a result, the food and beverage industry in the Philippines is become increasingly attractive to overseas investment, ensuring a promising outlook for the sector.

Although the future is undeniably bright, recovery from a slump caused by the Covid-19 pandemic and ongoing issues such as such as logistics problems continue to pose challenges. In this article we’ll look the segment from recruitment perspective, whilst considering what needs to be done to ensure continued growth to ensure food and beverage industry recruiters in the Philippines see consistent demand.

The economic situation in the Philippines

Although the Philippines is one of South-East Asia’s emerging economies, there remains a significant gap between rich and poor. In addition, there is also a north-south split as modernisation, development and economic activity tend to be focused upon Luzon Island, whilst those on the South Island of Mindanao mainly earn a living through farming.

The service industry is the main driver of the economy, accounting from approximately 60 per cent of the country’s total GDP and made up of a range of sectors including software development, tourism and online services. The manufacturing industry account for around 30 per cent of GDP, followed by forestry, agriculture, and fishing. The entire market revenue for the Philippines’ food and beverage industry exceeded USD 100 billion in 2020 and is expected to increase by approximately 7 per cent up to 2027.

The problems faced by the Philippines’ food and beverage industry

Before the Covid-19 pandemic hit, the food and beverage industry in the Philippines was enjoying an upward growth trend which had begun in 2015. Despite this, as with so many countries in the Asia-Pacific region, the impact of the pandemic was huge. The problems caused by the pandemic were exacerbated by a lack of private sector and government collaboration, resulting in losses caused by the implementation of multiple mobility restrictions, put in place to contain the spread of the virus.

Although it is hoped that the worst of the pandemic is now in the past, logistics issues continue to plague the Philippines food and beverage industry, thanks to a lack of the infrastructure required to provision nationwide. Clearly this is in area in which food and beverage industry recruitment specialists in the Philippines such as Peak Recruit, are hoping to see an increase in demand, as the skills of talented individuals with expertise in supply chain management and logistics are urgently required.

Whilst shifting consumer preferences aren’t necessarily a problem for food and beverage manufacturers in the Philippines, when taken into consideration alongside issues including intense competition and pricing issues, they continue to ramp up the pressure on profit margins. As such, the country’s food and drinks industry look set to experience changes.

New trends lead to new growth

As already discussed, the Covid-19 pandemic had a considerable impact on the Philippines’ food and beverage industry as dining out was effectively stopped. But despite this, the market began to see a growth rate in 2020, largely driven by an increase in home cooking, the consumption of hot drinks and direct spending in retail stores. This bounce in the economy can also be attributed to an increase in the reach and market penetration of supermarkets and hypermarkets, domestic and western food chains, and a preference for convenience foods. As a result, companies operating in the Philippines’ food and beverage industry are rapidly adopting new strategies including contactless delivery and manufacturing methods, alongside an increased focus on product packaging and online grocery shopping platforms.

Yet another trend is an increase in consumer consciousness concerning food choices; something which we have seen in other countries across the Asia-Pacific region. Consumers are increasingly inclined towards plant-based, sustainable food and drinks which contain healthy, natural, and immune-boosting ingredients. Furthermore, the trend for home cooking shows no signs of abating, despite the end of pandemic-related lock downs.

Peak Recruit – your food and beverage recruitment consultants in the Philippines

It’s clear that if the Philippines food and beverage industry is to reap the potential of changing market trends, long-standing investment into local interest and requirements is required, along with detailed and well-prepared planning. As such, there’s no doubt that the skills and expertise of talented individuals will be required across the country’s food and beverage industry.

At Peak Recruit we have many years of experience in food and beverage recruitment in the Philippines and throughout the Asia-Pacific region. Thanks to our industry-specific experience, we are uniquely placed to to advise on recruitment on a wide range of niche segments from raw food materials processing, through to packaging and distribution.

The categories we cover include beverages, dairy, seasoning, ingredients, alternative proteins and much more. To find out more about our specialist services for food and beverage recruitment in the Philippines, please get in touch to speak to one of our team.