Bakery sector faces rising costs, looks to innovation

Bakery sector faces rising costs, looks to innovation
BAKERS URGED TO ADAPT. Bien Enrico Ah, past president of the Filipino Chinese Bakery Association and the International Federation of Chinese Bakery and Confectionery Association, calls for greater creativity and collaboration among bakery businesses as the industry confronts rising costs and a slowdown in business activity. With him is Kelie Ko, chair of the Bakery World 2026. / KATLENE O. CACHO-LAUREJAS
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THE Philippine bakery industry is facing mounting pressure from a strong dollar, higher logistics costs and inflation, prompting industry leaders to call for greater innovation, efficiency and collaboration to keep businesses resilient.

Bien Enrico Ah, past president of the Filipino Chinese Bakery Association and the International Federation of Chinese Bakery and Confectionery Association, said the industry has experienced a slowdown this quarter and could face tougher conditions in the coming months.

“We need to promote more, and we need to be creative in how we can collaborate with other suppliers and our partners,” Ah said during the press conference for Bakery World 2026, on Thursday, Sept. 10, 2026.

He said the coming Christmas season presents an opportunity for businesses to become more creative despite the challenging environment.

Bakery World 2026 chair Kelie Ko said innovation and efficiency will be critical as businesses seek to manage costs while maintaining product quality.

“If we continue to do things the way we do, we will not be able to help solve the problem,” Ko said, emphasizing the need for businesses to find more efficient ways of operating.

The call came as Bakery World 2026, a three-day industry event organized by the Mandaue Chamber of Commerce and Industry, as part of Mandaue Business Month (MBM), opened with 73 exhibitors occupying 122 booths at the grand ballroom of Waterfront Cebu Hotel and Casino.

Ko said the expo has expanded its focus this year to include more packaging suppliers and coffee companies, recognizing that bakery businesses increasingly need solutions beyond ingredients and equipment.

The event is also positioning the bakery sector as part of a larger food and business ecosystem.

MBM 2026 chairperson Marvic Alcantara said the bakery industry involves not only bakers but also manufacturers, suppliers, packaging companies, farmers, retailers, restaurants, hotels and logistics providers.

“Strengthening the bakery industry is also strengthening the entire business ecosystem,” Alcantara said.

U.S. government and industry representatives also reaffirmed their support for the Philippine bakery sector.

Herpin Rochet Jateng, agricultural attaché and deputy to the U.S. agricultural counselor, said the United States wants to continue strengthening its partnership with the Philippines by providing products and ingredients that can be adapted to Filipino food and baking traditions.

Joseph Blippert, regional director for South and Southeast Asia of U.S. Wheat Associates, meanwhile, said the organization plans to expand its resources for training and other industry programs.

He said U.S. Wheat Associates, with support from the U.S. Department of Agriculture’s Foreign Agricultural Service, is committed to providing more training and activities to help the industry navigate changing market conditions while maintaining the quality consumers expect.

“We are committed to increase our resources” for more programs and training, Blippert said.

Organizers said the expo offers seminars, demonstrations and industry talks throughout the three-day event.

The event also features the Cake Masters competition, which has attracted 48 contestants, including pastry chefs, students and homemakers from Cebu and other parts of the country.

New competitions include a birthday cake category and an illusion cake challenge, alongside a live cake-decorating competition.

Despite the difficult business environment, Ko said the continued participation of returning exhibitors, along with new entrants, provides encouragement for the sector.

The event runs until Sept. 12 under the MCCI’s Mandaue Business Month theme, “Navigating Change and Rising Stronger.” / KOC

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