PHO Oils Market
PHO Oils Market (Type: Palm Oil, Soy Oil, Groundnut Oil, Coconut Oil, Rapeseed Oil, Sunflower Oil, and Cottonseed Oil) - Philippines Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021-2031
Press Release :
Can PHO Oils Increase Risk of COVID-19 in Patients with Comorbidities?
Recently, in October 2020, a Bill on trans fats elimination in the Philippines has been filed by the House Representatives Alfred Delos Santos and Ronnie Ong, owing to the potentially harmful effects of oil on consumers. Consumers with comorbidities such as heart diseases are more likely to contract coronavirus. This is anticipated to increase business challenges for companies in the Philippines PHO oils market such as food manufacturing giant Nestle Philippines who is requesting clear legislation terms for the Bill.
Since ASEAN neighbors such as Singapore and Thailand are taking proactive measures to limit the consumption of trans fatty acid (TFA) products, representatives of the Bill are unwilling to make Philippines a dumping ground for such products. Such trends are likely to affect business in the Philippines PHO oils market during the ongoing COVID-19 outbreak.
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Unhealthy Consequences of PHOs Involving Bad Cholesterol Affect Market Growth
The revenue of Philippines PHO oils market is expected to decline from US$ 94.9 Mn in 2020 to US$ 45.5 Mn by the end of 2031. This is evident since most nutritionists tend to agree on unhealthy consequences of partially hydrogenated oils (PHO) or trans fats. PHO oil is found to increase bad cholesterol, while lowering good cholesterol, which increases the risk for heart diseases. Hence, companies should adapt their manufacturing capabilities for PHO-free alternatives such as palm kernel oil, since the latter provides similar structural integrity including PHOs.
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Manufacturers Anticipated to Adapt Production toward PHO-free Alternatives for New Income
Since transition from PHOs to healthy alternatives is a time-consuming and ongoing process, manufacturers in the Philippines PHO oils market should gradually shift from PHOs to PHO-free alternatives to create new income sources. Stratas Foods LLC - a global supplier of fats, oils, sauces, and dressings to the foodservice industry, is gaining recognition for introducing its Golden Flex donut frying shortening formulated from soybean to replace PHO oils. Manufacturers in the Philippines PHO oils market are taking cues from such manufacturers.
In order to sustain in the F&B industry, companies are maintaining steady supply chains for PHO oils in pastry, cookie, and frosting applications. Many manufacturers still use PHO oils to produce spreads, cakes, and biscuits. One of the main advantages of PHO oils that manufacturers are capitalizing on is its ability to increase the shelf life of food products and maintain flavor stability.
Companies Supply PHOs for Bakery Products
Bakery products such as rusks, crackers, pies, and wafers, among others, are helping manufacturers in the Philippines PHO oils market sustain production and supply chains in the upcoming years. However, this trend is estimated to decline, as an increasing number of consumers is gaining awareness about the unhealthy consequences of PHOs such as risk of developing ovarian cancer and heart diseases. Since producers are gradually transitioning toward PHO-free alternatives, products including French fries, soup powders, breakfast cereals, and snacks still demand PHO oils.
While unlocking growth opportunities in alternate income sources, companies in the Philippines PHO oils market are taking efforts to meet demands for peanut butter and bakery products.
Palm Oil Shortenings Replacing PHO Oil in Bakery Products
Companies in the Philippines PHO oils market are taking cues from Cargill, an American privately held global food corporation, has introduced its PHO-free palm shortening that gives bakers a smoother, creamier, and more temperature-tolerant product. Manufacturers are catering to multiple bakery performance needs by increasing their R&D in developing PHO-free palm shortenings that overcome transportation and storage drawbacks of conventional palm shortenings.
Manufacturers in the Philippines PHO oils market are boosting their output capacities for palm oil shortenings, as its gaining popularity as a preferred replacement for PHO oils in bakery products. They are gaining a strong research base in shortenings that mimic the properties of PHO oils.
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Bad cholesterol associated with PHO oils has compelled consumers to opt for clean labels in food products to avoid contraction of COVID-19, especially in individuals with comorbidities. The Philippines PHO oils market is slated to clock a disappointing CAGR of -6.3% during the assessment period. This is evident since the FDA (Food and Drug Administration) no longer recognizes PHO oil as safe for consumers and has demanded all food companies to phase out artificial trans fats from products. Hence, manufacturers in Philippines are adapting their production capabilities for PHO-free alternatives such as palm oil shortenings that are gaining prominence in bakery products.
Philippines PHO Oils Market: Overview
- The PHO oils market value in the Philippines is estimated to be US$ 87.1 Mn in 2021, finds Transparency Market Research (TMR) in a recent study. According to the report, the market in the Philippines is expected to reach US$ 45 Mn by 2030, at a CAGR of -6.3%. With changing preferences of consumers regarding food products, the PHO oils market is expected to witness a negative impact during the forecast period.
- Consumers are inclining toward healthy food and ingredients, which have health benefits. With increasing complexities in consumer dynamics, owing to professional and personal commitments, along with stressful lifestyles, consumers are seeking healthy food products that are trans-fat-free and contain essential nutrients. Thus, all these factors are projected to restrain the growth of the PHO oils market in the Philippines.
- PHO oils are widely used in food products and baked goods such as pies, cakes, frozen pizza, cookies, crackers, and margarine and butter-like spreads. The increasing use of PHO oils in food products is significantly contributing to the growth of the PHO oils market.
- With rising health consciousness among consumers, manufacturers are focusing on the development of innovative food products, which contain the minimum amount of trans-fat or trans-fat-free products. Increasing awareness regarding health concerns associated with PHO oils has negatively impacted the growth of the market in the Philippines market.
- Based on type, the soy oil segment is expected to hold a major value share, which is more than 50% of the total Philippines PHO oils market
Philippines PHO Oils: Market Frontrunners
- Based on type, soy oil accounts for the highest market value share in 2021, owing to the increasing use of soy oil in food products as well as the foodservice industry
- With increasing number of health concerns related to the consumption of PHO oils, consumers are inclining toward non-PHO alternatives that significantly contribute to the declining sales of the PHO oils in the region. Consumers are increasingly demanding trans-fat-free oil and food products that are beneficial for human health.
- PHO oils are often used for deep frying in restaurants, as they can be used for longer periods than most conventional oils before becoming rancid. The use of different PHO oils can create large variations in trans-fat, which is expected to increase the level of the trans-fat in food and food products. The abuse of the cooling oil is common in street vended food products in developing countries, which increased the risk of health concerns.
Philippines PHO Oils Market: Drivers
- Increasing Application of PHO Oils in Food Products to Drive Global Market: PHO from vegetable oils is used to make margarine, bakes goods, snacks, and other food products, owing to baked foods that require semi-solid fats to suspend solids at room temperature. PHOs have the right consistency and mouthfeel to replace animal fats, such as butter, lard, and tallow at a lower cost. PHO shortenings contain a higher level of trans-fat acids, which is beneficial for the ideal meting properties for high-quality acing. PHO has the right consistency and mouthfeel as butter, lard, and other similar products that are beneficial for maintaining the consistency and quality of food products. PHO oils are cheap as compared to other oils, and have beneficial properties as other animal-based butter and lard. The physiochemical properties of the PHO oils have benefited the growth of the PHO oils market.
- Longer Shelf Life of PHO Oils Benefiting Market: PHO oil has a longer shelf life as compared to fully hydrogenated oils. Functional properties of the PHO oil help to form a stable texture, increase the shelf life of the food, and stabilize the flavor of the food. PHO oils are increasingly used in the food industry and foodservice industry, owing to their functional properties, which help to increase the shelf life and form the desired texture of the food. The increasing use of PHO oils in food products is expected to propel the PHO oils market.
Philippines PHO Oils Market: Strategies
- With increasing health concerns associated with the PHO oil, consumers are inclining toward refined or fully hydrogenated oil, which contains a lower amount of fats. With increasing demand for trans-fat-free oil, manufacturers are reducing the production of the PHO oils and focusing on trans-fat-free oils. Manufacturers are more focused on the research & development and advanced technologies to provide oils with value-added compositions. Manufacturers are also entering into strategic partnerships with players in similar scope to diversify their product portfolio and strengthen their global presence.
Philippines PHO Oils Market: Players
- Some of the prominent market players in the Philippines PHO oils market are
- Bunge Limited
- Cargill Inc.
- Archer-Daniels-Midland Company
- AAK AB
- Ventura Foods
- Apical Group Ltd
- Wilmar International Ltd
- Intercontinental specialty fats sdn. Bhd
- Oleo-Fats Inc.
- IOI Corporation Berhad
- among others
Philippines PHO Oils Market – Scope of the Report
Transparency Market Research (TMR) has recently published a market study on the PHO oils market. It provides a detailed assessment of key market dynamics, including drivers, trends, opportunities & restraints, and detailed information about the PHO oils market structure. The market study presents exclusive information about how the PHO oils market will grow during the forecast period of 2021-2031.
Key indicators of market growth, which include year-on-year (Y-o-Y) growth of the market, value chain, supply chain analysis, and compounded annual growth rate (CAGR) are elaborated in the study in a comprehensive manner. This information is intended to help readers understand the quantitative growth prospects of the PHO oils market during the forecast period.
The study is intended to offer a holistic market overview to stakeholders in the PHO oils market, including manufacturers, suppliers, distributors, cultivators, brands and investors, and to help them develop winning growth strategies. Stakeholders in the PHO oils market, which include investors, industry experts, researchers, and journalists, and business researchers can leverage the information and data presented in TMR’s study.
The study also includes statistics and facts related to the macro as well as microeconomic factors that are impacting expansion of the market. It also offers actionable insights into the future trends in the PHO oils market. Furthermore, small businesses and new entrants in the PHO oils market can make use of the information presented in this study based on which, they can make appropriate business decisions in order to gain momentum in the market.
Key Questions Answered in TMR’s Philippines PHO Oils Market Report
- Which region will continue to remain the most profitable regional market for PHO oils market players?
- Which factors will induce a change in the demand for PHO oils during the assessment period?
- How will the changing trends impact the PHO oils market?
- How can market players capitalize on the low-hanging opportunities in the PHO oils market in regions?
- Which companies are leading the PHO oils market?
- What are the winning strategies of stakeholders in the PHO Oils market to catapult their position in the forefront?
Philippines PHO Oils Market – Research Methodology
In TMR’s study, a unique research methodology is used to conduct extensive research on the growth of the PHO oils market and identify future growth parameters. This research methodology is a combination of primary and secondary research, to help analysts ensure the accuracy and reliability of the conclusions.
Secondary sources referred to by analysts for compiling the PHO oils market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, who contributed to the development of this report as a primary source.
Information acquired from primary resources and secondary resources is compiled in a comprehensive manner. This also acts as a validation from companies in the PHO oils market, which makes TMR’s projections more accurate and reliable.
Philippines PHO Oils Market – Segmentation
TMR’s study on the PHO Oils market offers information divided into important segments — type, and country. This report offers comprehensive data and information about the important market dynamics and growth parameters associated with these categories.