Food sales in the Philippines seen rising 5% in 2025
The Philippines’ food sales are projected to grow by 5 percent this year, fueled by sustained demand and the growth of digital platforms outside the metropolis.
This is according to a report from the US Department of Agriculture-Foreign Agricultural Service (USDA-FAS). The USDA-FAS estimated food and beverage retail sales in the Philippines to reach $110 billion in 2025, an increase from $104 billion last year.
The report said food sales have been steadily increasing since 2022.
The foreign agency said the expected growth is “fueled by strong demand, an improving labor market, the expansion of modern retail stores into rural areas and the rise of e-commerce.”
“However, cautious consumer spending and reduced mobility due to typhoons are expected to slow growth compared to 2024, which was a strong year for retailers, especially convenience stores,” it added.
The report also said prices of other goods remain elevated even though inflation is easing for certain items, including rice, a household staple.
“Higher employment rates and an increase in overseas workers continue to support household spending on food and beverages, helping offset higher utility costs, including electricity,” it added.
The USDA-FAS said traditional retailers comprise the majority of the market and remain relevant in rural and low-income areas.
However, the report said the modern retail sector provides a robust distribution network, driven by the expanding reach of e-commerce platforms.
“Driven by urbanization and e-commerce, supermarkets, hypermarkets, convenience stores and warehouse clubs are outperforming traditional retailers in food and beverage sales,” it added.
The USDA-FAS said the Philippines provides “significant growth opportunities” for US food and beverage products given the increasing disposable incomes, urbanization and a strong consumer preference for such products.
The Philippines, it said, is the leading destination for US consumer-oriented exports in Southeast Asia and ranks 9th globally.
Key US exports are pork, poultry, beef, canned soups and vegetables, snacks, frozen meals, milk, cheeses, ice cream, frozen fries and instant coffee.
Other American products include condiments, sauces, seasonings, chocolate, candies, apples, cherries, strawberries, tree nuts, wines and pet food.
Per the report, US exports remain competitive despite higher tariffs, logistics costs and limited market access compared to exports from Asean countries, China, Australia and New Zealand.
