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Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.

 

Philippines: Exporters urged to tap Canada抯 ethnic health, specialty care products market

Tuesday, November 03, 2015 > 10:07:43
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(Manila Bulletin)

Manufacturers of ethnic health and personal care products have been urged to explore opportunities for these items in Canada, which has a growing appetite for these kinds of products given its multicultural society.


Steve Tipman, executive director of the Canadian government-funded Trade Facilitation Office (TFO) Canada, talked about the profile of Canadian consumers and their spending habits in a recent “Exporting to Canada” briefing with Filipino exporters.

By analyzing the market, Tipman said domestic entrepreneurs can see where there are gaps in consumer needs as he enumerated the consumption trends in his country.


One of these is the increasing demand for ethnic products including agricultural foods, “halal” foods, and cosmetics. Health products will also find a ready market, particularly those that are certified natural or organic, he said.

Personal care products are a particularly sizable market-and growing. The demand for those made of natural ingredients is growing at 3 percent annually and is forecast to be worth $2 billion by 2018.

Fast-moving goods are likewise enjoying a boom because of the busy lifestyle in the city, and people want products that allow them to “grab-and-go,” said Tipman.

Niche and specialty products are much sought after, too, especially health foods and alcoholic beverages. And because most residents own their homes, they spend a lot on household products such as home décor and furniture.

“Filipino exporters should tap into the Canadian market now because it has a fast-growing consumer population with a big appetite for various consumer goods,” Tipman  said.

He described Canadian consumers as mostly homeowners with double-income households, who are well-informed but demanding (“they are looking for quality products”), and who are affluent but price-conscious (“they seek good value for their money”).

In addition, the population is aging, as one in seven Canadians is a senior citizen aged 65 years or older. This has led to the government opening its doors to immigrants, which in turn has made the country increasingly multicultural, with large immigrant populations from Asia including the Philippines.

Canadians are also health-conscious, socially and environmentally aware, and highly-tech savvy people who increasingly prefer to make their purchases over the Internet or mobile phone.

On household spending, Canadians allot 34 percent of their income for shelter and accommodation, 14 percent for income taxes, 8 percrnt for food, and 20 percent for “discretionary” spending, or the money at their disposal after bills and taxes have been paid, said Tipman.

Canadians put in time for their hobbies, too, and have need for sports products, gardening tools and products, and recreational equipment. Finally, observation of holiday celebrations opens up chances to market seasonal items appropriate for Christmas, Halloween, Valentine’s Day, and similar festivities.

To enter the Canadian market, said Tipman, exporters need to be well familiar with the rules governing food safety(CSR), corporate social responsibility, and environmental management. He added that aspiring distributors will be scrutinized closely by the government to ensure their products pass stringent safety standards and that they operate under fair work conditions with measures in place to protect the environment.

The “Exporting to Canada” briefing was part of the Philippine Export Competitiveness Program of the Department of Trade and Industry’s Export Marketing Bureau, in partnership with the Export Development Council and the Philippine Exporters Confederation, Inc.





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