MARKET ACCESS SECRETARIAT

Global Analysis Report

Market Overview
Philippines
June 2014

MARKET SNAPSHOT
The Philippines registered a total gross domestic product
(GDP) of US$167.5 billion in 2013. Real GDP growth is
estimated at 6.5% for 2014, slightly lower than the previous
year.
According to Euromonitor, the Philippines is the 18th-most
populous country in the world with an estimated 98.4 million
people in 2013. The population is expected to grow to
105.2 million by 2017, and then to 110.4 million by 2020.
The Philippines had one of the worlds youngest populations
with a median age of 23 years in 2013. Euromonitor predicts
that by the year 2030, the fastest growing age group will be
60+, but the Philippines will still remain one of the youngest
countries with 71.4% of the population under the age of 40.
Annual per capita consumer expenditure was US$2,061 in
2013. Spending on food and non-alcoholic beverages
represents US$874.7, or approximately 42.4% of that total,
higher than the Asia Pacific average of 22.7%, and also higher
than Canadas proportion of 9.6%.
The foodservice industry is expanding as income levels
improve, and is forecasted to reach total value sales of
US$10.7 billion by 2014.
As the population continues to become more health conscious,
sales of health and wellness products will continue to rise.
Sales in the health and wellness category are expected to
grow by 6.5% from 2013 to 2015 to reach a total of
US$6.2 billion.
The agriculture sector employs 32% of the work force and is
estimated at 11.2% of GDP (World Factbook, 2014).

CONTENTS
Market Snapshot .............................1
Production .......................................2
Trade ...............................................3
Consumer Foodservice ...................4
Retail Sales .....................................4
Resources .......................................6

PRODUCTION
As shown in the table below, sugar cane, rice paddy and coconuts are the top domestic crops in the
Philippines, with the leading positions in terms of volume production for the 2008 to 2012 period.
However, there was no increase in sugar cane volume production from 2011 to 2012, and it actually
decreased by 3.1% over the 2008 to 2012 period. In contrast, rice paddy production increased by
8.1% in 2012 from the 2011 total, but only increased by 1.8% over the entire review period.
Maize production recorded the second best volume growth in 2012 with 6.3%, while fresh vegetables
made up ground from their loss in 2010. Across the whole period, cassava, currently the Philippines
ninth-largest crop, registered the strongest growth in volume production with 3.4% over the review
period.
Crop Production and Livestock in the Philippines
Top ten crops
(tonnes)

2008

2009

2010

2011

2012

Sugar cane

34,000,000

32,500,000

28,000,000

30,000,000

30,000,000

Rice, paddy

16,815,548

16,266,417

15,772,319

16,684,062

18,032,422

Coconuts

15,319,500

15,667,565

15,510,283

15,244,609

15,862,386

Bananas

8,687,624

9,013,186

9,101,341

9,165,043

9,225,998

Maize

6,928,220

7,034,033

6,376,796

6,971,221

7,406,830

Vegetables, fresh nes

4,450,922

4,382,808

4,842,200

4,800,000

5,000,000

Fruit, tropical fresh nes

3,200,000

3,300,000

3,341,600

3,300,000

3,300,000

Pineapples

2,209,336

2,198,497

2,169,233

2,246,806

2,397,628

Cassava
Mangoes,
mangosteens, guavas

1,941,580

2,043,719

2,101,454

2,209,684

2,223,144

884,011

785,510

843,508

800,551

783,225

Meat indigenous
(tonnes)

2008

2009

2010

2011

2012

Pork

1,606,609

1,605,560

1,629,336

1,649,696

1,678,195

Chicken

811,946

825,955

868,194

905,568

947,274

Beef

182,226

187,129

193,301

193,629

191,971

Buffalo

101,607

98,644

105,245

104,683

101,317

53,321

54,420

55,373

54,608

52,950

Goat

Livestock
(head)
Pigs

2008

2009

2010

2011

2012

13,070,120

13,596,400

13,397,800

12,303,100

11,863,021

Goats

4,174,000

4,222,000

4,177,700

3,881,500

3,715,228

Buffaloes

3,338,570

3,321,000

3,270,400

3,075,300

2,963,800

Cattle

2,566,490

2,586,000

2,570,900

2,518,400

2,493,157

235,000

240,000

240,000

240,000

242,000

Horses

Source for all: FAOSTAT Agricultural Production, March 2014

Page | 2

TRADE
The Philippines is a net importer of agri-food and seafood products. In 2012, the countrys agri-food
and seafood trade deficit was C$1.93 billion with imports valued at C$6.75 billion, and
C$4.82 billion in exports. The Philippines agri-food and seafood imports have been growing at a
compound annual growth rate (CAGR) of 10.8% since 2007.
The Philippines top agri-food and seafood imports in 2012 were wheat, soybean oilcake, food
preparations, rice, and concentrated milk and cream. Key supplying countries were the United States,
Australia, China, Vietnam and Malaysia. Canada was the thirtieth-largest supplier of total agri-food and
seafood products to the Philippines in 2012, with a 1.66% share.
Philippines Top Agri-Food & Seafood Imports from the World, 2012 (HS 6)
Commodity

Import Value
C$ millions

Wheat (other than durum)

879.3

Soybean oilcake

627.7

Rice

375.3

Food Preparations Nesoi

374.9

Milk and Cream,

concentrated, <1.5%
Meat of bovine, boneless,
frozen
Animal or vegetable fats,
oils

311.0
216.9
195.32

Animal feed

181.8

Ethyl alcohol and other

spirits

156.7

Tobacco

105.5

Top Suppliers and Market Share

1

United States
54.00%
United States
70.33%
Vietnam
84.68%
Singapore
17.55%
United States
46.64%
India
40.37%
Malaysia
78.10%
United States
19.47%
Thailand
67.54%
China
26.39%

Australia
41.03%
Argentina
26.94%
India
7.68%
Thailand
15.63%
New Zealand
35.07%
Australia
35.54%
Indonesia
10.47%
Thailand
11.46%
Vietnam
9.28%
Brazil
14.34%

India
2.22%
India
1.43%
Pakistan
2.95%
Malaysia
14.40%
Australia
12.95%
New Zealand
13.88%
Singapore
4.70%
China
10.31%
Singapore
8.11%
Belgium
11.04%

Canadas
Share

1.70%
0.00%
0.00%
1.33%
0.69%
0.67%
0.05%
4.35%
0.00%
0.00%

Source: Global Trade Atlas, March 2014

The Philippines processed food imports were valued at C$4.79 billion. Canadas share was 1.77%
(C$84.8 million). Philippines processed food imports registered a CAGR of 9.3% from 2007 to 2012.
Canadas agri-food and seafood exports to the Philippines were valued at C$253.4 million in 2013.
Top exports were meat, wheat, food waste, concentrated milk and cream, and pulses. In 2013,
Canada registered an agri-food and seafood trade surplus of C$102.2 million with the Philippines, with
Canada importing C$151.2 million.

Page | 3

CONSUMER FOODSERVICE
The good economic performance that the Philippines experienced in 2012 had a positive impact on
their foodservice industry, with Filipinos spending more of their disposable income on eating out. The
foodservice consumers in this market are also very interested in trying new offerings, and are looking
for better ways to experience their favourite food. Despite the rise in income in most urban areas,
Filipinos remain value-conscious and gravitate to brands that can give them more for less
(Euromonitor International, 2013).
The foodservice industry in the Philippines grew in value sales by 4.2% from 2008 to 2012. Further
growth of 5.4% is projected to 2014. The 100% home delivery/takeaway and fast food categories
showed the most growth over the period of 2008 to 2012 with 10.3% and 8.1%, respectively. These
two categories are expected to remain the best performers, each recording total sales growth of just
over 7% until 2014.
The Philippine foodservice industry is dominated by independent and home-grown operators, which
account for 78% of total outlets, 63% of total transactions, and 58% of total value sales. Chain
operators are dominated by domestic brands such as Jollibee Foods Corp (Jollibee, Chowking) which
control a larger portion of the foodservice industry then their multinational counterparts (Euromonitor
International, 2013).

Philippines Consumer Foodservice at a Glance

Consumer Foodservice
Sales (US$ millions)
Outlets
Transactions (000)
Average Sales/Outlet
Average Sales/Transaction
Source: Euromonitor International, 2014

2010
8,843.8
79,437
3,517,685
$111,331
$2.51

2012
9,686.4
80,813
3,644,124
$119,862
$2.66

2014
10,760.4
82,159
3,710,912
$130,970
$2.90

2016
11,996.7
83,603
3,770,199
$143,496
$3.18

F= forecast

RETAIL SALES
The Philippine packaged food industry is dominated by domestic manufacturers, but multinational
companies are gaining access to the market by partnering or acquiring domestic companies
(Euromonitor International, 2013). As a result of the positive economic performance and increase in
consumer spending, packaged food sales increased by 5.5% over the period of 2009 to 2013. Further
sales increases of 6.3% are forecast for the packaged food category to 2015 (Euromonitor
International, 2013). Within this category, one of the best performing growth segments was pasta,
registering a CAGR of 10.2% between 2009 and 2013; however value sales are lower than the main
segments such as dairy, bakery, oils and fats and dried processed foods.
The Philippine government, along with manufacturers, are trying to encourage a healthier lifestyle
among consumers. They are promoting this through health talks, fun runs and sporting activities, and
publishing material on the risk of various diseases. As a result of their efforts, an increasing number of
consumers are becoming aware of the importance of living a healthier lifestyle. Consumers are
becoming more active and getting involved in sports. In response to this, manufacturers continued to
introduce more health and wellness products to the market (Euromonitor International, 2013).

Page | 4

Agri-Food Retail Sales in the Philippines

Historic in US$ Millions, Fixed 2013 Exchange Rate
Category

Health and Wellness by Type

Better For You (BFY)
Food Intolerance
Fortified/Functional (FF)
Naturally Healthy (NH)
Packaged Food
Baby Food
Bakery
Canned/Preserved Food
Chilled Processed Food
Confectionery
Dairy
Dried Processed Food
Frozen Processed Food
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Sauces, Dressings and Condiments
Snack Bars
Soup
Spreads
Sweet and Savoury Snacks
Hot Drinks
Soft Drinks

2009

4,400.3
176.1
25.0
3,431.8
767.5
11,038.8
912.7
1,545.5
805.3
429.6
863.2
1,812.4
791.4
732.6
245.0
46.0
578.3
1,184.7
72.2
77.0
604.0
0.4
36.6
109.9
955.7
873.7
3,407.0

2010

4,841.8
196.4
28.0
3,807.1
810.3
11,728.5
948.3
1,628.8
863.2
451.1
889.2
2,009.9
846.2
776.7
256.1
53.9
616.3
1,257.1
84.1
82.5
636.4
0.4
39.5
111.7
999.0
967.9
3,866.5

2011

4,951.7
209.4
29.3
3,883.4
829.6
12,338.0
967.5
1,728.2
928.2
475.9
890.7
2,084.1
903.4
843.4
267.1
58.1
661.1
1,348.3
88.3
88.7
671.9
0.2
42.7
110.0
1,060.6
1,056.1
3,838.0

2012

5,177.1
218.9
30.7
4,048.9
878.7
12,996.4
988.5
1,841.9
996.3
504.4
900.6
2,159.8
969.0
905.2
282.1
61.6
707.2
1,439.3
98.4
96.0
710.2
0.0
46.2
107.8
1,129.1
1,173.1
4,044.3

2009-13
CAGR %

2013

5,489.1
229.4
32.4
4,252.7
974.6
13,670.3
1,027.1
1,960.5
1,063.2
535.0
925.8
2,219.0
1,033.6
959.0
294.6
64.7
754.8
1,523.8
106.3
103.1
749.2
0.0
49.0
111.3
1,203.0
1,277.9
4,295.4

5.7
6.8
6.7
5.5
6.2
5.5
3.0
6.1
7.2
5.6
1.8
5.2
6.9
7.0
4.7
8.9
6.9
6.5
10.2
7.6
5.5
-48.7
7.6
0.3
5.9
10.0
6.0

Source: Euromonitor, March 2014.

Page | 5

Agri-Food Retail Sales in the Philippines

Forecast in US$ Millions, Fixed 2013 Exchange Rate
Category

Health and Wellness by Type

Better For You (BFY)
Food Intolerance
Fortified/Functional (FF)
Naturally Healthy (NH)
Packaged Food
Baby Food
Bakery
Canned/Preserved Food
Chilled Processed Food
Confectionery
Dairy
Dried Processed Food
Frozen Processed Food
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Sauces, Dressings and Condiments
Snack Bars
Soup
Spreads
Sweet and Savoury Snacks
Hot Drinks
Soft Drinks

2014

5,833.9
242.3
35.0
4,515.5
1,041.2
14,492.5
1,087.6
2,091.0
1,137.9
569.7
962.7
2,324.9
1,109.2
1,019.3
312.5
69.1
809.0
1,616.3
116.3
111.6
790.4
0.0
52.5
115.1
1,286.1
1,370.1
4,509.0

2015

6,229.2
257.4
37.9
4,815.5
1,118.3
15,435.6
1,161.9
2,236.7
1,218.5
607.9
1,010.2
2,458.3
1,195.5
1,084.4
332.6
74.9
870.4
1,722.2
128.0
121.4
835.4
0.0
56.4
119.9
1,376.5
1,468.3
4,725.7

2016

6,667.3
274.3
40.7
5,147.2
1,204.9
16,466.6
1,241.9
2,396.5
1,305.3
649.3
1,063.3
2,608.2
1,286.4
1,156.1
355.5
81.6
934.3
1,835.4
140.5
132.4
883.2
0.0
60.4
125.6
1,477.4
1,572.0
4,965.4

2017

7,146.1
292.9
43.6
5,509.9
1,299.7
17,587.4
1,325.4
2,572.2
1,400.3
694.2
1,122.0
2,770.8
1,383.4
1,233.6
381.0
89.6
1,002.0
1,959.4
154.3
144.7
933.8
0.0
64.9
131.8
1,589.0
1,680.4
5,230.2

2014-18
CAGR %

2018

7,667.6
313.3
46.5
5,903.5
1,404.3
18,798.6
1,412.8
2,763.9
1,503.3
742.2
1,186.1
2,948.1
1,486.5
1,317.6
409.2
98.6
1,073.0
2,094.0
169.5
158.2
987.0
0.0
69.7
138.6
1,709.9
1,791.8
5,509.5

Source: Euromonitor, March 2014.

RESOURCES
Euromonitor International (2014).
Euromonitor International (2013).
Packaged Food Sales in the Philippines (April 2013)
Consumer Foodservice in the Philippines (November 2013)
Health and Wellness in the Philippines (December 2013)
FAOSTAT (2013). Agricultural Production Philippines.
Global Trade Atlas (2014). Import and export statistics Philippines.
World Bank (2014).

Page | 6

7.1
6.6
7.4
6.9
7.8
6.7
6.8
7.2
7.2
6.8
5.4
6.1
7.6
6.6
7.0
9.3
7.3
6.7
9.9
9.1
5.7
1.7
7.3
4.8
7.4
6.9
5.1

Market Overview: Philippines

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represented by the Minister of Agriculture and Agri-Food (2014).
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