Condiments and sauces are among the country’s essential food products. In a country where eating and dining is an important social activity, these products are constantly profitable and will continue to experience high levels of demand as the population increases. In this regard, the Philippine condiments industry can enhance its competitiveness in specialty products, as well as explore other export markets in order to increase sales and accelerate growth.
Philippine-made vinegar, soy sauce, ketchup, and fish sauces are some of the more competitive products of the domestic industry, with the United States, United Arab Emirates, and Saudi Arabia as its largest markets. Its competitiveness is attributed to its relatively low export prices, availability of technologies in the production of condiments and sauces, and relatively low labor costs in urban and rural areas.
While there are about 1,000 manufacturers of condiments and sauces in the country, only 50% are approved by the Philippine Food and Drug Administration (FDA), which means that there is still untapped potential for increasing supply if the remaining 500 companies are supported through additional investments.
Through proper investments and government support, the Philippine condiments industry can further develop or expand production of more specialty products, such as fish sauces, oyster sauces, hot pepper sauces, sour soup (sinigang) mixes, chili sauces, and even inputs to ready-to-cook meals.
Finally, overseas demand from key markets (such as the United States) and overseas Filipino workers in other countries, low prices of raw materials, growing consumption by Filipinos of food services, and prevailing preference of consumers for quick-cook food products provide a positive outlook for the Philippine condiments and sauces industry both for the domestic and foreign markets.
The manufacture of condiments as a commercial processing activity can be considered among the preferred activities listed in the IPP. Commercial processing of agricultural products should involve the use of domestically-produced raw or semi-processed agricultural products, unless these inputs are not locally available (NLP) or are not in sufficient quantity (NISQ).
If using imported raw or semi-processed agricultural products that are locally-produced (LP) or in sufficient quantity (ISQ), the project may qualify for registration, provided that the finished/final product is for export, or the project qualifies for pioneer status.
Shared Service Facilities (SSF) Project
The Shared Service Facilities (SSF) Project is a major component of the MSME Development (MSMED) Program of the DTI and aims to improve the productivity and competitiveness of MSMEs by providing them with machinery, equipment, tools, systems, skills, and knowledge under a shared system.
The SSF Project seeks to address processing and manufacturing gaps and bottlenecks in the value chain of priority industry clusters, particularly those in agribusiness.