PH e-commerce sales seen hitting $24B
The Philippine e-commerce sector is expected to generate higher sales in two years, the United States Department of Agriculture (USDA) said.
"Half of the more than 70 million online users in the country participate in CBE (cross-border e-commerce), with purchases (mostly non-food products) accounting for a fourth of the e-commerce market," said USDA-FAS.
The agency added that the growth in B2C (business to consumers) CBE purchases of food and beverage products can be tracked down post-pandemic, which they said introduced new ways for Filipino consumers to directly acquire a variety of imported goods.
The USDA-FAS also noted that there is a growing number of Filipino consumers turning to online stores and platforms to order US food and beverage products that are not available locally.
"As more Filipino consumers become aware of CBE, the number of purchases could quadruple within two years," the agency said.
It also forecasted that purchases of food and beverage products through CBE will increase to $5 million in 2025.
According to the report, purchases of imported food and beverage products amounted to almost $1 million in 2022 from zero in 2019.
CBE local service providers estimated that there were more than 12,000 individual shipments with an average net weight of 2.2 kilograms and an average FOB (freight in board) value of $70.
Almost 60 percent of purchases were shipped from the United States; followed by the European Union with 15 percent; and the Association of Southeast Asian Nations with 7 percent.
Other sources of food and beverage products include Japan, China, Australia, New Zealand, and Canada.
The agency also identified other top products in 2022, including food supplements, baked goods, chocolates, confectionery, whey protein powder, pet food, coffee and tea, flavored energy drinks, wine, beer, spirits, prepared vegetables, fruits, nuts, dairy products (infant milk, flavored milk, and cheeses), honey, and olive oil.
The emergence of freight forwarders and virtual platforms were some of the factors attributed by the agency that encouraged Filipino consumers to import food and beverage products for personal consumption.
Moreover, USDA-FAS noted that "Filipino consumers are constantly on the lookout for new and unique products, and have a strong affinity for US products."
The agency said that this presents an excellent opportunity for US exporters to cater to the growing demand by promoting food and beverage products online.
Source: Manila Times