Opportunities for U.S. Agricultural Products in the Philippines

Executive Summary

The United States continues to be the largest supplier of agricultural products to the Philippines, which was its ninth-largest export market in 2024. Consumer preferences have recently changed to include more health awareness, convenience foods, and products for different lifestyles. Products that have the greatest potential for expansion in the Philippine market include dairy, poultry, ethanol (non-beverage), pork, beef, processed potatoes, confectionery and snack foods, and seafood.

Macroeconomic Perspective of the Philippines: Strong Growth Amid External Challenges

Just behind Vietnam and Cambodia, the Philippines is the third-fastest-growing economy in the Association of Southeast Asian Nations (ASEAN), with real gross domestic product (GDP) growth at 5.7 percent in 2024.¹ Robust industrial output, stronger export growth, rising private consumption, and increased government spending drove this growth.² Based on International Monetary Fund (IMF) data, GDP per capita for the Philippines was $4,300, relatively stable against the U.S. dollar, ranging between 54 and 56 pesos/U.S. dollar in 2025.³ The Philippines' inflation rate also eased to 3.2 percent in 2024, down from 6 percent the previous year. Looking ahead, the IMF projects the Philippine economy to remain resilient, with real GDP growth of 5.4 percent and the inflation rate declining further to 1.6 percent in 2025. Nonetheless, the Philippine economy continues to face risks from geopolitical tensions and trade policy uncertainties.

Demographics and Income Inequality

Based on U.S. Census data, the Philippines is the 13th-most-populous country in the world, with a population of 114.0 million people in 2025 and an average growth rate of 2 percent. The Philippines is the second-most-populated ASEAN nation, following Indonesia's population of 284.0 million. The Philippine population is on trend to grow by 14.0 million people (12 percent) by 2035 and 38.0 million (32 percent) by 2050. The median age is 25.9, the second youngest in ASEAN after Laos. According to the Central Intelligence Agency's World Factbook, the Philippine population is concentrated in areas with fertile farmland; Manila, the capital, holds one-eighth of the national population.

Income inequality in the Philippines has shown signs of improvement, according to World Bank data. As of 2023, approximately 18.0 million Filipinos lived in poverty, including the 5.0 million who could not afford the basic food basket. However, for the first time in 2023, the Gini index dropped below 40, the threshold for classifying high-inequality countries.^4. Movement of low-productivity workers to wage employment and faster income growth for poorer households were drivers of the decrease of the Gini index. Between 2010 and 2023, real income growth averaged 3.1 percent for the poorest 40 percent of Filipinos, exceeding the median and top 20 percent.⁵

Agricultural Trade Overview

In 2024, ASEAN collectively was the largest supplier of agricultural products to the Philippines, benefitting from tariff advantages and lower shipping costs. However, the United States remained the top single-country supplier, with a market share of 18 percent despite facing logistical and tariff disadvantages. The European Union (EU) followed with a market share of 12 percent, while China and Brazil accounted for 11 percent and 8 percent of the market, respectively.

Prospects for U.S. Exports to the Philippines

The Philippines was the ninth-largest U.S. agricultural export market in 2024, buying $3.5 billion of agricultural goods. The following are some selected products with solid potential for growth in the Philippine market.

Dairy Products

Dairy products were the third-largest U.S. agricultural export to the Philippines in 2024 at a value of $365.0 million. Given limited domestic production, the Philippines imports nearly all dairy products consumed by the population. The Philippine dairy market remains competitive, with the EU reporting $412.0 million in exports in 2024 (a market share of 23 percent) and New Zealand at $386.0 million (a market share of 21 percent), followed by the United States with a market share of 20 percent. Middle-class households spend a higher percentage of their income on dairy products. According to Philippine Statistics Authority surveys, as incomes grow among the middle class, spending can increase up to nine times for milk and dairy products.⁶

Poultry Meat and Products

Poultry meat and products were the fourth-largest U.S. agricultural export to the Philippines at $187.0 million in 2024. The United States was the second-largest supplier of poultry meat to the Philippines, accounting for 38 percent of total poultry meat imports. U.S. shipments primarily consist of frozen chicken leg quarters. Import growth continues as domestic production is unable to fulfill demand. Trade is expected due to rising incomes as well as greater food service demand. The competitive price of imported chicken products compared to domestically produced chicken remains very attractive, especially for food service and institutional buyers seeking to maintain specific price points.

Ethanol (non-beverage)

Ethanol was the fifth-largest U.S. agricultural export to the Philippines in 2024, reaching the highest value in a decade at $138.0 million. U.S. ethanol exports to the Philippines nearly doubled in 2024 due to increased consumption and reduced export competition. In 2024, ethanol consumption in the Philippines grew, predominantly due to increased gasoline consumption paired with an E10 mandate, with small additional gains on voluntary E20 blending. Exports from the United States also benefitted from reduced competition from Brazil, the Philippines's second-largest ethanol supplier, as domestic consumption outgained production growth, limiting exportable supplies in 2024.

Beef and Beef Products

Beef and beef products were the sixth-largest U.S. agricultural export to the Philippines in 2024, reaching $132.0 million. The value of U.S. beef exports to the Philippines increased by 58 percent from 2023 to 2024, amid economic and population growth, which continued to fuel broad consumption of food products such as processed meat products and imported beef.⁷ The United States is the second-largest supplier of beef to the Philippines ($129.0 million) with a 16-percent market share. Brazil is the largest supplier with $335.0 million (42-percent share), and Australia is the third-largest supplier at $129.0 million (16-percent market share).

Pork and Pork Products

Pork and pork products were the seventh-largest U.S. agricultural export to the Philippines at $120.0 million in 2024. The extension of lower tariffs on imported pork until the end of 2024 helped drive imports, benefitting U.S. pork exporters. In June 2024, the Philippines further extended the lower duties imposed on pork imports through 2028.⁸ The Philippines continues to face a challenging pork production situation due to African swine fever, which led to the decline in local supply. Accordingly, U.S. pork exports helped augment domestic supply to meet growing demand for pork in the Philippines.

Processed Vegetables

Processed vegetables were the eighth-largest U.S. export to the Philippines at $118.0 million in 2024. The top products were processed potatoes, prepared or preserved olives, and onion powder. In 2024, the United States was the second-largest supplier to the Philippines with a market share of 17 percent, following China (37 percent). U.S. processed vegetables with the best prospects are non-locally produced varieties, including frozen and dehydrated potatoes, freeze-dried vegetables, prepared tomatoes, vegetable juices, and plant-based infant foods. Additionally, cooking staples like garlic and onions, which are susceptible to price shocks, and those that offer convenience and wellness, present excellent opportunities.

Confectionery and Snack Foods

U.S. confectionery exports to the Philippines were $7.0 million, and U.S. baked snack foods were $14.0 million in 2024. Upper- and upper-middle-income shoppers are the primary consumers of imported snack foods in the Philippines. In 2024, the Philippines imported $277.0 million of baked snack foods from the world, such as pastries and pretzels. Despite regional competitors benefiting from zero-tariff trade agreements, the United States was the fifth-largest supplier to the Philippines, with a market share of 5 percent, following Indonesia (36 percent), China (18 percent), Malaysia (17 percent), and Thailand (8 percent). The United States' reputation as a reliable supplier, along with its wide array of products, provides U.S. exporters with a considerable advantage in this market.

Seafood Products

U.S. exports of seafood products to the Philippines were $8.2 million in 2024. The top U.S. seafood products were frozen squid fillet, fish fats and oil, fish pastes, and frozen sea bass. The Philippines represents a $1.0 billion market for imported seafood products, based on the average during the past 5 years.Despite strong demand, U.S. seafood accounts for less than 1 percent of the market. The dominance of regional suppliers is driven by attractive prices, largely resulting from lower shipping costs and tariff advantages from free trade agreements (FTAs).⁹ The top suppliers to the Philippines were China ($221.0 million), Vietnam ($134.0 million), and Papua New Guinea ($109.0 million) in 2024. President Donald J. Trump's administration has prioritized seafood exports through an executive order issued in April 2025, and some of the U.S. Department of Agriculture's cooperator organizations are exploring opportunities in the Philippines.¹⁰

Market Trends

High-income preferences are trending toward plant-based, organic, better-for-you, and 'free-from' products marketed as high-quality and healthy food products. The Philippines has a young population that is seeking new flavors and experiences, which is an important prospect that U.S. suppliers can take into consideration to promote their products. Sustainability and premium products are two of the top measures to attract Filipino customers.

The Philippines has a wide range of online platforms for shopping, which is a convenient way for consumers to get their products. However, consumer-oriented products are mostly sold through traditional retail channels, such as hypermarkets and convenience stores. Consumers increasingly value online marketplaces, such as Shopee and Lazada, because of the exclusive deals and promotions. This category will also benefit from the efforts of retailers such as SM Supermarket and Robinsons Group, who are looking to improve their online shopping services.¹¹

Trade Policy

The Philippines is included in the ASEAN Free Trade Area. The Philippines also has FTAs as a member of ASEAN with the Republic of Korea (South Korea), Australia, China, India, Japan, and New Zealand. In 2008, the Philippines and Japan established the Japan-Philippines Economic Partnership Agreement. In addition, the Regional Comprehensive Economic Partnership entered into force in the Philippines in June 2023 and is expected to deepen existing economic integration within the broader region and attract more investment and trade opportunities.

As the Philippines is a member of the World Trade Organization, imports from the United States are subject to its most-favored nation tariff rates. The Philippines has a tariff-rate quota (TRQ) program, known as the minimum access volume (MAV) system. As part of the MAV system, the Philippines has scheduled TRQs on selected agricultural products, including sugar, corn, coffee, chipping potatoes, pork, and poultry products. Products subject to MAV but imported outside the MAV are taxed at a higher out-of-quota rate. In 2024, President Marcos Jr. issued Executive Order No. 62 (EO 62), which implemented the comprehensive tariff schedule for various products through 2028 to augment supply, manage prices, and address inflationary pressures. EO 62 extends the lower tariffs imposed for some MAV products, including imported pork at 15 percent in-quota and 25 percent out-of-quota, and corn at 5 percent in-quota and 15 percent out-of-quota.

The Philippine Department of Agriculture (DA) requires importers to obtain an import permit, known as a sanitary and phytosanitary import clearance (SPSIC), prior to the shipment of any agricultural products to the Philippines. SPSICs are valid for 20 to 90 days, depending on the commodity. The limited validity period adds costs and complicates the timing of exports, among other factors. Additionally, the Philippine DA regularly uses the certificate of necessity to import (CNI), the SPSIC system, or both, to enact unscheduled quantitative restrictions. The CNI guidelines, issued by the Philippine DA, prescribe the fish species and volumes for imports. President Marcos Jr., through Administrative Order No. 20 of 2024, directed the DA to review and revise existing fishery import rules and regulations that impose quantitative restrictions on fish and restrict the species allowed for importation.

Conclusion

Market dynamics in the Philippines, including growing incomes and new dietary preferences, provide opportunities for U.S. exporters of agricultural products. With its rapid population growth, the Philippines has a young population that increasingly demands imported agricultural products. The United States is the top supplier of several bulk commodities; however, there is opportunity to expand with more consumer-oriented products. Healthy products that offer "free-from" or organic options with new flavors will attract Filipino customers.

¹ International Monetary Fund

² S&P Global Market Intelligence

³ USDA Economic Research Service's Agricultural Exchange Rate Data Set

⁴ World Bank Poverty and Equity Brief: Philippines (October 2025)

⁵ World Bank Publication: Running Uphill: Growth, Jobs, and the Quest for Productivity. Philippines Growth and Jobs Report (July 2025)

⁶ GAIN, Philippines Dairy Products Annual, RP2025-0052, November 25, 2025

⁷ GAIN, Philippines: Livestock and Products Annual, RP2025-0038, September 19, 2025.

⁸ GAIN, Philippines: Livestock and Poultry Update 2023, RP2023-0040, June 15, 2023.

⁹ GAIN, Philippines: Seafood Products Market Brief, RP2025-0057, November 24, 2025.

¹⁰ EO "Restoring American Seafood Competitiveness", April 17, 2025

¹¹ Euromonitor International