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Philippine e-commerce sales are expected to grow at a compound annual growth rate of 9%, hitting $24 billion by 2025
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A market brief by the United States Department of Agriculture-Foreign Agricultural Service sees food and beverage purchases through cross-border e-commerce accounting for a fifth of sales of $5 million in 2025
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Half of the more than 70 million online users in the country participate in cross-border e-commerce, with purchases of mostly non-food products accounting for a fourth of the ecommerce market
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The pandemic spurred new ways for Filipino consumers to acquire a variety of imported goods directly, leading to an explosion in the cross-border ecommerce trade
Philippine e-commerce sales are expected to grow at a compound annual growth rate of 9%, hitting $24 billion by 2025, according to a United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS) market brief.
Half of the more than 70 million online users in the country participate in cross-border e-commerce (CBE), with purchases of mostly non-food products accounting for a fourth of the ecommerce market, the “Market Brief on B2C Cross-border E-commerce for US Food and Beverage Products”, released on August 23, said.
Food and beverage purchases through CBE are seen accounting for a fifth of total sales or $5 million in 2025 from only $1 million in 2022.
“Recent developments in cross-border e-commerce (CBE) expanded Filipino consumers’ access to imported food and beverage products, rising from zero in 2019 to almost $1 million in purchases in 2022,” the market brief highlighted.
“Developments in CBE over the past two years, such as the emergence of freight forwarders and virtual platforms, have encouraged Filipino consumers to import food and beverage products for personal consumption,” it added.
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“The unprecedented growth in B2C cross-border ecommerce purchases of food and beverage products can be traced back to the aftermath of the pandemic, which inadvertently spurred new ways for Filipino consumers to acquire a variety of imported goods directly.”
The market brief noted: “Filipino consumers are constantly on the lookout for new and unique products, and have a strong affinity for US products. These factors present an excellent opportunity for US exporters to cater to this growing demand by promoting food and beverage products online,” said the market brief.
The top products bought by Filipino online consumers in 2022 were food supplements, baked goods, chocolates, confectionery, whey protein powder, pet food, coffee and tea, flavored energy drinks, wine, beer, and spirits, prepared vegetables, fruits, nuts, dairy products (infant milk, flavored milk, and cheeses), honey, and olive oil.
Popular online stores like Amazon offer free shipping to the Philippines on eligible items with a total value of at least $49, and similar platforms provide door-to-door shipping.
Delivery typically takes 12 days from the time of ordering.
USDA-FAS noted Filipino consumers are familiar with FedEx and DHL but find their rates “too high.”
Several freight forwarders offer a low-cost consolidation service, where consumers are assigned a PO box in the US to receive and consolidate their online purchases.
