Purchases of imported food and beverage products via cross-border e-commerce (CBE) in the Philippines is expected to hit $5 million in 2025, according to a report by the United States Department of Agriculture (USDA).
USDA’s report showed that last year, total purchases of imported food and beverage products through (CBE) by Filipino consumers, reached $1 million compared to none in 2019.
Citing data announced by the Department of Trade and Industry, the USDA said overall e-commerce sales in the Philippines are expected to grow at a compound annual growth rate of 9 percent, reaching $24 billion by 2025.
It added half of the more than 70 million online users in the country also participate in CBE with purchases for mostly non-food products and accounts for a fourth of the e-commerce market in the Philippines.
The USDA said due to developments in CBE in recent years, including the emergence of freight forwarders and virtual platforms, Filipino consumers were granted access to import food and beverage products for personal consumption.
The report also said according to CBE local service providers, there were more than 12,000 individual shipments in the Philippines last year with an average net weight of 2.2 kilograms and an average free on board value of $70 with 58 percent of purchases shipped from the United States.
Top products purchased by Filipinos via CBE last year were food supplements, baked goods, chocolates, confectionery, whey protein powder, pet food, coffee, tea, flavored energy drink, wine, beer, alcoholic spirits, prepared vegetables, fruits, nuts, dairy products including infant milk, flavored milk and cheeses as well as honey and olive oil.
USDA said Filipino consumers are turning to online stores and platforms to order US food and beverage products that are not available locally and among the popular stores include Amazon that offers free shipping to the Philippines on eligible items with a total value of at least $49 and iHerb that specializes in supplements and natural products.
The report added that while Filipino consumers are familiar with FedEx and DHL, local buyers find their rates too high which force them to use freight forward services that offer a low-cost consolidation service, where consumers are assigned a post office box in the US to receive and consolidate their online purchases.
To further gain CBE purchases from the Philippines, the USDA encourages American suppliers to expand their reach by leveraging online platforms that promote directly to Philippine consumers through social media and email campaigns. -Jed Macapagal
