The way people eat is changing. More consumers are prioritizing health and wellness, scrutinizing food labels, and opting for natural, minimally processed ingredients. The demand for less sugar, whole grains, and clean-label products has transformed the baking industry, requiring businesses to adapt their recipes and sourcing strategies to meet these new expectations.
However, the shift towards healthier, transparent ingredients comes with significant challenges. The rising cost of eggs, sugar, and cooking oil, coupled with potential wage hikes, is putting pressure on bakeries, both large and small. How can the industry keep up with this movement while ensuring baked goods remain accessible and affordable?
This is one of the central questions that will be addressed at the upcoming Bakery Fair 2025: Where Tradition Meets Innovation aims to answer. Taking place from March 6 to 8, 2025, at the World Trade Center Manila, the Filipino Chinese Bakery Association, Inc. (FCBAI) will unite industry leaders, suppliers, and innovators to explore new trends, share cost-effective solutions, and address the pressing concerns of bakers nationwide.
The Clean Label Movement and Its Growing Impact on Baking
Today’s consumers are becoming more conscious of their food choices, prioritizing healthier, simpler, and ethically sourced ingredients over highly processed ones. This shift has fueled the rise of the clean label movement, where baked goods are made with recognizable, minimally processed ingredients, free from artificial additives, preservatives, and refined sugars. As a result, many traditional bakery staples no longer align with consumer expectations, prompting a significant shift in industry practices.
People are actively avoiding products containing artificial preservatives, colors, flavors, high-fructose corn syrup, refined sugars, bleached flours, and synthetic emulsifiers. Instead, they are gravitating toward baked goods made with whole grains, alternative flours like almond, coconut, and quinoa, natural sweeteners such as honey and monk fruit, and fermented sourdough-based breads that promote better digestion. The demand for plant-based and dairy-free options is also increasing, pushing bakeries to reformulate recipes to accommodate dietary preferences. However, these changes come at a cost. Reformulating recipes to replace processed ingredients with healthier alternatives requires sourcing more expensive ingredients while ensuring that the quality, taste, and texture of baked goods remain appealing. This presents a major challenge for bakers as they work to balance consumer demands with production costs.
The Pricing Dilemma: Rising Costs in the Baking Industry
While consumer interest in cleaner, healthier baked goods continues to grow, bakery owners are facing significant financial pressures due to rising ingredient costs. Essential baking staples such as eggs, sugar, and cooking oil have seen substantial price increases over the past year, making it increasingly difficult for bakeries to maintain competitive pricing. As of February 12, 2025, the price of eggs in Metro Manila ranges from ₱7 to ₱9 per piece, compared to ₱5.70 to ₱8.50 in early 2024. Similarly, the cost of washed sugar has risen to ₱75 to ₱90 per kilogram, up from ₱65 to ₱85 per kilogram the previous year. These cost increases are particularly challenging for bakeries, as these ingredients form the foundation of bread, pastries, and cakes.
Adding to the financial strain is the proposed ₱200 wage hike, which could further impact bakery operations. FCBAI President Chris Ah has suggested that if this increase is approved, it should be implemented gradually to allow businesses time to adjust without significantly disrupting financial stability.
In an interview with the media, Ah emphasized the need for a phased approach, stating, “We are optimistic, we are okay as long as the government supports us and if the whole baking industry helps each other.”
As inflation, higher labor costs, and evolving consumer preferences continue to reshape the industry, bakeries must adopt innovative strategies to keep their products affordable while remaining competitive in the market. Finding ways to streamline production, optimize ingredient use, and leverage cost-effective alternatives will be crucial for sustaining long-term growth in the ever-changing baking landscape.
BIGGER BAKERY FAIR 2025
A major highlight of Bakery Fair 2025 will be its exhibitor showcases, where attendees can explore innovative ingredient alternatives, natural preservatives, and improved flour blends designed to enhance nutrition while keeping costs manageable. Experts from both local and international baking communities will be present to share insights on how to reformulate recipes, source high-quality ingredients at better prices, and leverage modern technology to optimize production and reduce waste. A town hall meeting will also be held, giving industry stakeholders an opportunity to openly discuss the challenges they face and propose strategies for long-term growth.
The fair will also shine a spotlight on the latest advancements in AI-driven baking technology, precision mixing systems, and automated dough fermentation techniques, all of which can help businesses streamline production and minimize costs while maintaining the integrity of their products. By embracing these innovations, bakers will be able to meet the growing demand for clean-label, health-conscious baked goods without compromising affordability.
Liberty Bakery: A Legacy of Tradition and Innovation
Chris Ah, is not only the President of FCBAI but also a part of Liberty Food Mart Inc., formerly known as Liberty Bakery—a historic bakery in Tondo, Manila, founded before World War II.
Liberty Bakery was established by Ah Nam, a Chinese trader, and became a household name by offering bread, biscuits, and traditional pastries. In the 1970s, his son Henry Ah introduced modern baking techniques, studying at the American Institute of Baking and Wilton School of Baking.
Today, Liberty Bakery continues to thrive, balancing heritage with innovation, and adapting to new health trends by introducing sourdough and clean-label baked goods.
With Chris Ah leading FCBAI, his vision for Bakery Fair 2025 reflects the same commitment to industry collaboration, innovation, and sustainability that has kept Liberty Bakery at the forefront of Philippine baking.
A key figure leading this transformation is Chris Ah, who not only serves as President of FCBAI but is also part of Liberty Food Mart Inc., formerly known as Liberty Bakery. This historic establishment in Tondo, Manila, founded before World War II, has long been a cornerstone of the Philippine baking industry. Liberty Bakery was started by Ah Nam, a Chinese trader, and gained recognition for producing traditional breads, biscuits, and pastries. In the 1970s, Henry Ah, son of Ah Nam, introduced modern baking techniques after training at the American Institute of Baking and the Wilton School of Baking. Today, Liberty Bakery continues to evolve, incorporating clean-label innovations while preserving its rich heritage.
Chris Ah’s leadership in both FCBAI and Liberty Bakery reflects his commitment to fostering industry collaboration, innovation, and sustainability. His efforts will be instrumental in shaping the discussions at Bakery Fair 2025, where the focus will be on ensuring that bakers—whether small-scale entrepreneurs or large-scale manufacturers—have the tools and knowledge needed to adapt to changing consumer preferences while remaining financially viable.
Rise and Shine: Baking at Dawn
For those passionate about baking, whether professionals or enthusiasts, Bakery Fair 2025 offers a unique opportunity to learn, network, and grow. In addition to expert talks and interactive showcases, the event will feature highly anticipated competitions, including the “Flour Masters: Bread Baking Competition” and the “Grand Regal Tiers Wedding Cake Display Competition,” where winners can take home cash prizes and gain industry recognition. Beyond being a trade exhibition, the fair serves as a movement towards a healthier, more sustainable, and more affordable future for the baking industry.
The baking landscape is changing, but with the right support and strategic planning, it remains an industry full of opportunities. By attending Bakery Fair 2025, bakers and entrepreneurs can gain valuable insights into the latest trends, discover cost-effective solutions, and take part in shaping the next era of Philippine baking.
Mark your calendars: March 6-8, 2025, at the World Trade Center Manila. For more information follow the Filipino Chinese Bakery Association, Inc. (FCBAI) on Facebook for the latest updates.
