A United States Department of Agriculture (USDA) report on Monday showed that Philippine cross-border e-commerce (CBE) purchases could grow by at least 9 percent, reaching $24 billion by 2025.
The USDA-Foreign Agricultural Service (FAS) Manila said that half of the more than 70 million online users in the country participate in CBE, with purchases (mostly non-food products) accounting for a fourth of the e-commerce market.
“In the past two years, Filipino consumers have encouraged to import food and beverage products for personal consumption,” the report read.
Purchases amounted to almost $1 million in 2022.
Moreover, USDA FAS said the CBE local service providers estimated that there were more than 12,000 individual shipments with an average net weight of 2.2 kg, and an average FOB (free on board) value of $70.
Almost 60 percent of purchases were shipped from the US, it added.
“As more Filipino consumers become aware of CBE, the number of purchases could quadruple within two years,” the report added.
USDA FAS forecasts the purchases of food and beverage products through CBE will increase to $5 million in 2025.
The top products in 2022 were food supplements, baked goods, chocolates, confectionery, whey protein powder, pet food, coffee and tea, flavored energy drink, wine, beer and spirits.
Also part of the top products were prepared vegetables, fruits, nuts, dairy products (infant milk, flavored milk, and cheeses), honey, and olive oil, the report said.
In July, USDA projected the growth in the Philippine food and beverage sector to slow to 6 percent this year with the end of the “revenge spending” cycle.
“Strong domestic demand anchored to sustained food and beverage spending should lead to increased food and beverage retail sales,” the USDA said.
The 2023 projection marks a slowdown from the “unexpected” 8-percent growth last year with sales reaching $33 billion.
“With lower unemployment rates this year, household income growth is set to outpace consumer price inflation,” the report added.
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