Strong growth potential for US pork, poultry to the Philippines

The Philippines is the 8th largest market for US agricultural exports and the top market in Southeast Asia

 

By: USDA Foreign Agricultural Service

via The Poultry Site - 1 August 2022

 

Already a longstanding and reliable trading partner, the Philippines continues to offer many opportunities for exporters because of its young and growing population and rising household income. The Philippine food and beverage sector has grown significantly over the past decade, and while the usual consumption patterns have been forced to accommodate pandemic restrictions in recent years, the sector has been resilient. The United States saw a record year in 2021 for agricultural exports to the Philippines, but the path to achieving annual records will likely be through diversification, especially in consumer-oriented products. The strong trade relationship and consumer trust in U.S. products built over decades can be an important asset for exporters.

 

Macroeconomic Perspective

 

The Philippines boasts one of the world’s fastest growing economies, a young and growing population, and a steadily rising number of high-income households. Gross domestic product growth averaged 6.4 percent between 2010 and 2019, making the Philippines the 19th fastest growing economy in the world during that period.1 Quarantine measures and global disruptions due to the COVID-19 pandemic caused the Philippine economy to contract by 10 percent in 2020, but 5.7 percent growth in 2021 and projected 6.7 percent growth in 2022 are signs of strong recovery.2 Within the next few years, the Philippines is expected to become an upper-middle-income economy, currently defined by the World Bank as having a gross national income per capita between $4,096 and $12,695.

 

The Philippines is the 12th most populous country in the world at nearly 115 million people in 2022.3 Population growth has been moderately high in recent years, averaging 1.6 percent annually between 2010 and 2019. This is higher than the world average of 1.2 percent annually, and notably higher than most other large population countries, which tend to have lower growth rates. The Philippines also has a particularly young population, with a median age of 24.1 compared to the world median of 31 and the U.S. median of 38.5 in 2022. More than half of the country’s population is under the age of 25.

 

The Philippines has experienced high household income growth in recent years, and this trend is expected to continue. The number of households with annual income more than $20,000 (an indicator of households that likely have access to and can afford imported food) increased by 68 percent between 2010 and 2019 to 2.8 million. IHS Markit projects that the number of households in this income group will reach 4.6 million by 2030.

 

Consumption Trends ...

 

Agricultural Trade ...

 

Best Prospects ...

 

Trade Policy ...

 

more, including charts, table 

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