A large chunk of the household budget of an average Filipino family will be spent on food by average, with major expenditure on meat and poultry products, according to Fitch Solutions Country Risk and Industry Research. The major reason for the rise in spending is attributed to largely disposable incomes.
The Philippines Dietary Shift Analysis released by Fitch Solutions Tuesday has put an estimate of 34.5 percent of the total household budget in a Filipino family on food in 2025. This aggregate has increased by 4.8-percent from a 29.8-percent total share recorded in 2006.
Disposable incomes have particularly changed their food spending patterns over the years, as many are able to afford more expensive food items.
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“Growing wages and disposable income has led to this change in proportion over the past 19 years, enabling the average Filipino household to afford more than just basic food staples,” Fitch Solutions said.
According to the latest industry report, Filipino households will spend bulk of their food budget on poultry products as opposed to beef, due to the significantly higher price and inflation of beef products. The three food commodities will account for more than half of total food spending in 2025.
“Meat and poultry products will account for the largest share at 22.3 percent of total food spending; fish and fish products at 24.2 percent; and bread, rice and cereals at 20.4 percent,” said Fitch Solutions, noting that Filipino households spending on these food categories will increase marginally to 66.9 percent in 2025 from 66.2 percent of total food spending in 2006.
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Meanwhile, Filipino consumers’ spending on carbohydrate staples like bread, rice and cereals will see a sharp fall to 20.4 percent in 2025 from 36 percent as households will instead consume more of animal protein such as meat and fish.
From 2006 to 2025, average Filipino households will spend more on meat and poultry—22.3 percent from 17.5 percent of total food spending, while spending on fish and fish products will increase to 24.2 percent from 12.7 percent between the same period. (AW)
