The Philippines could increase its wine imports from the United States by 12 percent to 3.7 million liters this year, from 3.3 million liters in 2015, according to the US Department of Agriculture (USDA).
USDA’s Foreign Agricultural Service (FAS) in Manila said the value of US wine exports to the Philippines could go up to $11 million this year, from $9.8 million in 2015, on the back of its increasing popularity in the country.
“Prospects for growth are exceptionally bright, despite tariffs and taxes that inflate the final price by roughly 25 percent, the strong US dollar, distribution challenges and intense competition,” the report read.
The Philippines is an “exciting” wine market for the US due to its economic growth, its young population, and the fact that wine comprises less than 1 percent of current alcohol consumption.
USDA data showed that the country’s wine imports from the US rose by 35 percent to 3.3 million liters last year.
The report noted that the US has long been the leading supplier of wines to the Philippines, surpassing France in 2000.
Last year the US held a 31-percent market share by volume, and a 25-percent market share by value.
From 2000 to 2015, the volume of total wine exports to the Philippines more than doubled to 10.7 million liters, or 1.1 million cases, while the value quadrupled to $40.4 million.
The Philippines has been the largest market for US wines in Southeast Asia by volume since 2009, surpassing even major transshipment destinations in the region, such as Vietnam and Singapore.
FAS said importers have capitalized on the growing health-awareness among Filipino consumers by emphasizing the reported health benefits of moderate wine consumption through flyers, wine tags and advertorials.
“The industry is reporting the beginnings of a shift in consumer preference from beer and spirits to wine. While the Philippines produces almost no wine, it is a major producer of relatively inexpensive beer and spirits,” the report read.
Although the Philippine climate is tropical, FAS said about 55 percent of wines sold in the market are red.
Wine is produced in areas where grape, tree fruit or berries grow, according to the US-based Agricultural Marketing Resource Center (AMRC).
AMRC noted that the US is the fourth-largest producer of wine and the largest consumer of wine in the world.
The number of wineries in the US has increased to 10,047 in 2015, from 2,230 in 1998.