Philippines - Commercial Guide
Agricultural Sectors

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2020-07-22

The United States continues to be the Philippines’ largest supplier of agricultural products with a twenty-four percent market share.  In 2019, the

Philippines ranked as the ninth largest market in the world for total U.S. agricultural products with export sales amounting to $2.89 billion, almost the same level as the previous year.  The top five exports of U.S. agricultural products in 2019 by value were soybeans & soybean meal (US$841 million); wheat (US$700 million); dairy products (US$273 million); meat  products (US$196 million); and prepared food (US$111 million).  

 

Philippine Market: Quick Facts CY 2019

Population Highlights:

Population: 109 M (July 2020 est.); 1.6% annual growth

Urban population: 2% annual growth, set to overtake rural population in 2028 (currently 47% urbanized)

96% literacy rate;  76% speak English

Agricultural & Related Trade:

Exports: $7.4 billion

Imports: $13.5 billion

Imports of Consumer-Oriented Products: $6.4 billion

- Food preparations

- Candy & confectionery

- Beef

- Apples

- Dairy products

- Poultry

- Coffee

- Sauces, condiments & seasonings

- Pork

- Frozen potatoes

Top Fast Food Chains

Traditional Retail:  more than 42,000 public markets and   1.3 million micro retail stores nationwide

Sources: Euromonitor, Global Agricultural Trade System, International Monetary Fund, The World Factbook, Trade Data Monitor, USDA-FAS Manila research

Growth of Consumer-Oriented Food & Beverage Products

The Philippines continues to be the largest market in Southeast Asia for U.S. consumer-oriented food & beverage products, a sub-sector of total agricultural products.  Export sales in 2019 reached $1.1 billion.  Consumer-oriented food and beverage products remain the best prospects for future export growth fueled by consumer familiarity with American brands.                                      

Leading Sub-Sectors Food Retail Sector

Sales of the Philippine food retail sector in 2019 amounted to roughly $50 billion, with modern retail accounting for half the total.  Retailers with strong digital presence are likely to fare better in 2020 as consumers move towards e-commerce since the start of the COVID-19 outbreak.

Food Service Sector

Primarily driven by the expansion of shopping malls and commercial centers nationwide, Philippine food service sector sales rose to $15 billion in 2019.  Western-style chains have deep penetration across the urban areas of the Philippines.  Dining out is an important aspect of Filipino family bonding and celebrations, but heavily affected by COVID-19.  With consumers shifting away from restaurants to cooking food at home, traders estimate about 70 percent of the food service sales ($10 billion) will go to the food retail sector by the end of 2020. 

Food Processing Sector

The Philippine food processing sector’s gross value-added output reached $35.8 billion in 2019, up 39 percent over the past five years.  Roughly 90 percent of the country’s processed food products are consumed domestically.   

Web Resources: USDA-FAS Manila publishes market and commodity reports available through the Global Agricultural Information Network (GAIN) at https://gain.fas.usda.gov/ including: 

Exporter Guide

Exporter Guide

Food and Agricultural Import Regulations and Standards (FAIRS)

Philippines: Food Service Sector

Philippines: Retail Sector  

Philippines: Food Processing Sector

Further Information and Assistance:
USDA-FAS Manila is ready to help exporters of U.S. food and beverage products achieve their objectives in the Philippines.  For further information or assistance, please contact us at AgManila@usda.gov.