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Health and wellbeing to the Philippines
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(Last updated: 3 Sept 2008)
Trends and opportunities
The market
As a result of poverty, many Filipinos are deficient in iron and vitamin A. The Philippines Government is aware of this problem and has been promoting functional foods as an effective solution. It is now mandatory for manufacturers to fortify staple foods such as wheat flour and rice with iron or vitamin A as per the Food Fortification Act of 2000.
Food manufacturers that voluntarily fortify other food products will be able to use the seal of acceptance (ie. the Sangkap Pinoy Seal) that is issued by the Department of Health.
Such strong support from the government is expected to drive the growth of the nutraceuticals market throughout the forecast period (2006-2012).
The government and non-government organisations in the Philippines have been organising campaigns to help increase consumer awareness and understanding of the benefits of functional food, especially those with vitamins and minerals. This factor is forecast to have a high impact on the growth of the market in the short and medium terms. In the long term, it is expected to have a medium impact on market growth.
The Philippines has the second largest population in South East Asia after Indonesia. With around 85 million people and an annual population growth at the rate of 2.1 per cent, the Philippines present an ideal market for the potential growth of the nutraceuticals industry.
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Tariffs, regulations and customs
The Philippines does not have specific regulations for functional foods. However, the government implemented the Philippine Food Fortification Act in 2000, which made the fortification of certain staple foods (eg. rice) mandatory in order to help combat the problem of malnutrition in the country.
In the Philippines, the accepted definition for functional food is: 'food that satisfactorily demonstrates that it beneficially affects one or more target functions in the body beyond adequate nutritional effects, in a way which is relevant to either an improved state of health and well-being or reduction of risk to disease'.
In the Philippines, the term 'functional foods' includes dietary supplements in pharmaceutical dosage forms. In February 2004, the Bureau of Foods and Drugs of the Department of Health introduced a draft Administrative Order on the 'Rules and Regulations Governing Nutrition and Health Claims of Pre-packaged Food Products Distributed in the Philippines'.
Vitamin and mineral dietary supplements are classified into over-the-counter (OTC) products or food supplements based on their dosage level. Products with dosages of more than 125 per cent of the US recommended dietary intake (RDI) are classified as OTC, while those that have dosage levels less than 125 per cent of the US RDI are classified as food supplements.
OTC products are subjected to rules and regulations that prevent manufacturers from making misleading and exaggerated claims. In terms of food supplements, manufacturers are free to make health claims, but have to include on the packaging the statement: 'No approved therapeutic claim.'
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Marketing your products and services
Market entry
Australian companies wishing to enter the Philippines health and wellbeing sector should consider the following:
- Establish a local presence either through a representative office or by appointing a local agent with a network of contacts in the health and wellbeing industry. You should also make sure to provide your local agent with technical and promotional support.
- The more successful companies in the country are those that value relationships established with local clients over a period of time, as well as those with competitive pricing.
Distribution channels
The main distribution channel for nutraceutical products in the Philippines are pharmacies. Around 90 per cent of the sales of nutraceutical products are carried out in pharmacies. Pharmacies are expected to remain the main distribution channel although supermarkets and hypermarkets are also expected to become significant distribution channels throughout 2006-2012. The distribution of nutraceutical products – especially dietary supplements is dominated by two companies – Zuellig Pharma and Diethelm.
The Internet and multi-level marketing companies are not popular distribution channels in the Philippines, as the number of people that have access to the Internet is low.
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Contact details
The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.
Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.
Austrade:
- Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
- Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
- Administers the Export Market Development Grants scheme.
- Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
- Provides advice to the Australian Government on its trade and investment development activities.
- Delivers consular, passport and other government services in designated overseas locations.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au |
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