Despite high tariffs, total wine exports to the Philippines will reach as much as $70 million by 2025, according to the United States Department of Agriculture (USDA).
In a report dated December 8, the agency said such volume is expected to be achieved despite tariffs and taxes inflate the final price of wines in the country by as much as 75 percent.
The USDA said even with weaker Philippine peso and supply chain setbacks, traders still forecast total wine exports to the Philippines will reach $60 million this year, up by 5 percent from 2021’s $57 million.
The US is the leading supplier of wines to the Philippines with a 36 percent market share as of 2021 followed by France, 20 percent; Australia, 17 percent; Spain, 7 percent, Italy, 6 percent and Chile, 5 percent.
In 2021, the Philippines was also the largest US wine market in Southeast Asia, surpassing major transshipment destinations such as Singapore and Vietnam.
US wine exports to the Philippines in 2021 reached a record $20 million equivalent to 3.8 million liters at an average cost of $5.20 per liter as consumers temporarily traded up to more expensive wines during the pandemic related lockdown.
However, the USDA sees US wine export sales to the Philippines this year to level off at $17 million equivalent to 4.8 million liters at an average cost of $3.50 per liter which is still 2 percent higher than export sales in 2019, before the pandemic.
