How to Start a Frozen Food Business in the Philippines

How to Start a Frozen Food Business in the Philippines:

Having flexibility, getting to call the shots, and selling what you want to sell are merely three of the numerous benefits to start your own business. But they’re certainly enough to get you thinking about what businesses are profitable in the Philippines.

Among the list, the food industry always lands a spot among profitable pursuits because people will always eat, no matter what their financial situation is like. In addition, selling frozen food is now part of the Philippines’ top 10 business ideas as more households are now shifting to dual-income setups and less time is dedicated to preparing homecooked meals.

If you’re interested, here we’ll share valuable tips on how to start a frozen food business in the Philippines, and we’ll list some viable frozen food business ideas & opportunities as well.

How to Start a Frozen Food Business in the Philippines?

Conduct a market research

Unfortunately, “passion” and “gut feeling” are not good reasons to start a frozen food business in the Philippines. While it can be profitable, there are many elements at play that will influence the business’ applicability to your setting.

Knowing how to conduct market research will help you get a better grasp of the venture’s appropriateness. For starters, here are some questions to give you the lay of the land:

Who are your customers?

Is there a demand for frozen food among people in the locality? What frozen food items do people buy most? Is the population mostly composed of busybodies who can’t prepare homecooked meals?

What are their shopping habits?

Do they make their way to wet markets to buy fresh food items? Do they prefer frozen foods from supermarkets? Are they keener to have frozen food delivered to their doorstep?

What is the market like?

Is having a physical store better? Will a virtual or online marketplace work?

Who are your competitors?

Are there nearby wet markets where both fresh and frozen food are sold? Are there existing frozen food sellers in the locality? If so, is there a demand for products they’re not selling?

Knowing your market will remove the fog of confusion on what business is profitable in the area and will keep you from blindly pursuing an entrepreneurial venture.

Evaluate your capital

The next step in how to start a frozen food business in the Philippines is evaluating your capital. Depending on the result of your market research, you may either need to stretch your budget or spend as little yet still earn competitively.

If you like to test the waters and start small, a ₱5000-₱10,000 budget is good enough to sell frozen food items to friends and workmates. You can store your stock in your personal fridge and bring the frozen food orders to your workplace. You may also set up a social media marketplace to sell your items.

Conversely, if you’re market research revealed that setting up a physical store is more feasible when starting a frozen food business then you will need a bigger starting budget, typically a minimum of ₱100,000 depending on how much inventory you’d like to begin with.

Here are some payables needed when setting up a frozen food store in the Philippines:

Paying fees for obtaining the required documents and business permits.
Securing a location for the store.
Stocking up on various frozen food products.
Buying various equipment needed when handling frozen food like generators, freezers, and weighing scales.

Search for suppliers

If you don’t plan on making your own set of products, finding suppliers is the next step on how to start a frozen food business in the Philippines. Since frozen food is a big industry, looking for suppliers is not quite as hard. Depending on what products and which company you want to retail from, there are some exclusive perks you can get.

For example, if you decide to sell CDO products, they lend a free freezer which you can use to store the food items. The same perks apply when you decide to sell ice cream, say, from Selecta.

We’ll discuss more on finding suppliers later!

Create your own products

If you want to share an old family recipe with the world, you can always choose to create your own products like homemade longganisa, ready-to-cook lumpia, etc.

One benefit of making your product is that you control the selling price and the cost of preparing each item. Another is that you can supply to various retailers looking to sell your line of products.

Find the best location

Selling ready-to-cook frozen food is typically a popular business in cities. Unlike in provinces and villages where access to raw and fresh food products is within reach, cities are filled with busy people searching for easy-cook meals. But that’s not always the case, the point is, a good location can make the difference whether you sell frozen foods in rural or urban areas in the Philippines.

Here are some pointers on how to choose a location for your frozen food business in the Philippines:

If you’re limited on budget, consider a home-based business for the time being. As long as you have the amenities like a freezer to store an ample amount of stocks, you’re good to go. Read up on the 5 Types of Budgeting methods you can incorporate for your business to thrive.
Go where there is demand. You want your business to be in the center of high public demand for frozen goods, so renting a commercial business space would be ideal. Otherwise, if you’re a home-based business, you may choose to deliver orders in that area if your budget permits it.
Find a commercial business space within the budget. More than the rent, leave some room for utility upgrades, renovations, and minimum wage requirements (for employees, if any).
Steer clear from areas with high competition for frozen food products or if there are nearby wet markets that sell fresh food (unless demand for frozen food is also competitive — again, market research!).

Devise a good marketing strategy

Any business can be profitable, all it takes is good marketing. According to Indeed, marketing is important because it can help increase brand awareness, improve consumer engagement, and scale sales through promotional campaigns.

Here are some tips to market your frozen food business in the Philippines:

Create a dedicated social media page

Create a Facebook page for your business where you can post updates or announce new products you’re selling in your business. If you have a faithful community, inviting them to a Facebook group is also a good option.

Sell in online marketplaces

Facebook offers a marketplace category where you could upload your frozen food products and wait for buyers in your locality to reach out.

Join frozen food groups

There are online groups where members buy frozen food products. Your presence there may result in a sale.

Word of mouth

You’ll be surprised how quickly news travels especially in localities here in the Philippines. Ask workmates to inform their relatives about your business, some customers might turn up. For rural area sellers, create a buzz in your local community.

Be sure to check out our 20 Effective Ways to Promote & Market Your Business in the Philippines to gain more exposure.

What are some Frozen Food Business Ideas in the philippines?

Aside from selling pre-packaged meat products, thorough market research will reveal what business venture and what products are the most profitable to sell in your locality. But if you’re bent on selling frozen food in the Philippines, here are the top frozen food business ideas and opportunities:

Longganisa
Hotdogs/Footlong
Siopao
French Fries
Siomai
Yogurts and ice cream
Poultry products
Seafood
Salads
Vegetables
Ready-to-oven pizza

Where to Find Suppliers for Frozen Food Business in the Philippines?

Finding suppliers is the hardest part of starting a business. With the online market swarming with people looking for the cheapest available price, you might end up consuming your own frozen food products when you sell a smidge above the public’s perceived acceptable markup.

Here are some suppliers you may contact if you want to start a frozen food business in the Philippines. Feel free to contact them so they may send a representative to attend to your needs:

Frozen ready-to-cook/pre-packaged food
Fresh food items & ingredients
- Binondo Street
Ice cream
Yogurt
- Pasteurized Pascual Yogurt

Another way of finding suppliers in the Philippines for frozen food is by joining Facebook locator groups. There are tons of groups, sometimes with registration fees, before you can access their full list of popular and local brands that accept product retailers. Just make sure to legit check before committing to avoid being scammed.

Related Post: How To Find A Business Partner In The Philippines

Is A Frozen Food Business Profitable in the Philippines?

Yes, but that depends on what and where you decide to sell.

A frozen food business in the Philippines will thrive provided there is a good amount of market research suggesting that it’s an in-demand business in your locality. If your target market is populated with frozen food sellers or the demand for frozen food is low, getting into the scene won’t be as profitable as you thought it would.

At the end of the day, frozen food is a good business in the Philippines. If you plan to try selling other frozen foods such as siomai, check out our article on How to Start a Siomai Business in the Philippines. In the right setting along with good empirical research, it can be the key to your financial freedom! For more related posts about business, check out our articles below.