NEWS
US MINISTRY SEES PHILIPPINES AS ONE OF MOST EXCITING MARKETS FOR WINE EXPORTS
By Siulan Law Mathews DipWSET
15-12-2022
Credit: Myk Miravalles/Unsplash
The Philippines is one of the most exciting wine markets for wine producers in the United States, according to a report by the US Department of Agriculture (USDA).
The Philippines Is the largest wine market for wines from USA in Southeast Asian, surpassing major shipment destinations such as Singapore and Vietnam.
The USA has been the Philippines’ leading wine supplier in the past two decades, export value is expected to reach USD70 million in 2025, driven by the increase in consumption among young people in the country.
“Continued growth in wine consumption is presaged by the country’s young, fast growing, and highly urbanised population, with increasingly sophisticated tastes and ever-growing access to supermarkets and online stores,” said USDA.
“Despite tariffs and taxes that inflate the final price by 75 percent, the weak peso, and supply chain setbacks, traders forecast total wine exports to the Philippines will reach USD60m in 2022, and will increase 5 percent annually over the next three years to USD70m,” the USDA said in a report.
The 2022 export figure represents an increase of 27 percent from the pre-pandemic level of USD55m in 2019.
According to USDA, at least 20 million people who earn Peso706,148 (USD12,700) annually have sufficient income to purchase wines occasionally.
It is expecting the average price of wines to increase by 20 to 30 percent in the coming years because of increased sales of mid-priced and premium wines.
“Traders are capitalising on the growing health awareness among consumers by emphasising the reported health benefits of moderate wine consumption,” it said.
“The industry is reporting 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,” it added.
The USDA sees the Philippines one of the “most exciting wine markets” worldwide with substantial potential for growth. Wine consumption currently accounts for less than 1 percent of roughly 2.7 billion litres of alcohol consumed annually in the country.
(the writer can be contacted at: info@thewinechronicle.com)
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