Instant Noodle Market: An Economic Indicator in the Philippines Essay

INTRODUCTION Background of the Study With the Philippines’ worsening economy, people are becoming more concerned with their expenditures and are shifting their consumption to cheaper alternatives. Such an alternative for food is instant because these instant noodles are not only tasty and filling, but also very cheap. These three qualities have made it very popular among consumers who are tightening their budget. This paper aims to show that the increasing popularity and sales of this instant noodles are directly related to the worsening condition of the Philippines’ economy. When consumers experience lower income and lower level of spending power they tend to substitute cheaper, lower quality goods for relatively more expensive, higher quality goods. In this light, instant noodles are becoming an indicator of the country’s economic performance. Additionally, this increased consumption of instant noodles brings about many health and economic implications. Statement of the Problem In the current deteriorating state of the Philippine economy, instant noodles, because of their affordability and convenience, are slowly replacing traditional food staples and at the same time, becoming an economic indicator. In this research, the author focus on how instant noodles are gaining popularity in the Philippines in relation to this product’s characteristics and the influences of the economy and income per capita. The paper would also solve the following questions: how the consumption level of instant noodles is indicative of the country’s economic activity? What are the implications that the growing consumption of instant noodles may have on the Philippine economy and the health of the population? Importance of the study More knowledge on this topic could prove useful to understanding how the instant noodle market could become an effective gauge of a country’s performance and the state of living. In addition, by delving into the subject, more information may be made available and would allow future studies to look more closely on how instant noodles may be improved to further benefit the general population. Also, the growing industry may be prove to be useful as a mechanism of providing labor and other forms of economic benefits for the country. As poverty continues to be rampant and resources remain scarce, instant noodles may prove to be a solution to some of the problems faced by the Philippines today. Scope and Limitation of the Study The research will focus on the consumer activity of households with relatively low income and how it would relate to the economy. The survey for this paper will be conducted with 30 respondents at Brgy. 617, a relatively impoverished urban community situated in Sampaloc, Manila. The interview will also take place in the said barangay. Subject: Accounting Subject of Topic: Instant Noodles Topic: The effects of noodles to those family who has low income Purpose: The purpose of this research is to further increase the understanding of how the economic state of a country affects its consumers’ behaviors towards instant noodles or even similar products. Title: Instant Noodles Becoming a Replacement for Traditional Food Staples in Brgy. 617 Sampaloc, Manila and an Indicator of the Philippine Economy.