The Philippines grows and partially exports cocoa beans, with domestic production averaging 10,000 tons in recent years. Nine of the top ten producing provinces are on the island of Mindanao (especially the Davao region) and one on the island of Luzon. In 2023, cocoa bean exports totaled 2.8 thousand tons. Total shipments of cocoa beans and cocoa products are 5.7 thousand tons.
According to the Department of Agriculture of the Philippines, local chocolate confectionery producers' demand for cocoa raw materials exceeds their production capacity, leading to imports of cocoa powder and other cocoa products from other countries. In 2023, most of the imported cocoa products were chocolate confectionery and chocolate semi-finished products (56.6 thousand tons or 66.0% of the total volume). Cocoa powder imports in 2023 amounted to 26.8 thousand tons (31.3% of cocoa product imports). At the same time, the Philippines imports almost imports almost no cocoa beans, being a net exporter of this product.
Over the period 2019-2023, the consumption of chocolate confectionery products in the Philippines increased by 7.2% to reach 40.2 thousand tons. During the COVID-19 pandemic, the country's residents mostly spent time at home, which supported the increase in consumption of chocolate confectionery as an affordable way to reduce stress levels. However, demand for these products accelerated in 2022 after the removal of anti-epidemiological restrictions, owing to consumers returning to their usual lifestyle. Increasing population in the Philippines will be an important factor supporting the demand for chocolate confectionery products in the medium term.
The Philippines' imports of chocolate confectionery products (excluding chocolate semis) increased from 15.5 thousand tons to 19.9 thousand tons over 2019-2023. Today, Philippine production is not able to fully meet the domestic market demand for these products.
The consumption volume of chocolate confectionery products in 2019-2023 was in the range of 37.5-40.2 thousand tons and increased by 1.8% annually. In 2023, the total volume of product consumption reached the highest value in the last five years and amounted to 40.2 thousand tons, which is 1.3% higher than the level of 2022. With the recovery of demand for chocolate confectionery products from the most active and affluent categories of citizens, snacks in small packages convenient for a quick snack became more in demand.
In 2023, the main share in the structure of chocolate confectionery consumption in the country was occupied by chocolate candies in bar shape, which accounted for 62.4% of the total volume (25.1 thousand tons). Packaged chocolate bars was the second most demanded product with a consumption volume of 6.1 thousand tons (15.2%) in 2023. Packaged chocolate confectionery products are also in demand in the country at 4.7 thousand tons (11.7% of total volume), boxed chocolates at 2.1 thousand tons (5.2%), and chocolate paste at 5.0% (2.0 thousand tons). Other types of chocolate confectionery products such as chocolate lollipops, chocolate-covered marshmallows, and others have a limited presence in the Philippines.
Although chocolate confectionery is considered a common dessert in developed countries, in the Philippines, its consumption is associated with special occasions and is often purchased as a gift. In 2019-2023, the country's consumption of chocolate confectionery products per capita increased at an average annual rate of 0.5% to reach 0.36 kg per person per year at the end of 2023. The consumption of chocolate confectionery in the Philippines is broadly in line with that of other Southeast Asian countries (about 0.39 kg per person per year).
The main packaging for chocolate confectionery in the Philippines is various soft packs. Thus, in 2023, flexible plastic packaging accounted for 70.8% of the sales volume of this type of product in the Philippines in volume terms. Also about 10.8% and 7.2% of sales were generated by chocolate products in aluminum foil and other soft packaging, respectively. Less popular types of chocolate confectionery packaging are rigid cardboard packaging (6.5% of sales) and rigid plastic packaging (3.5%). Other packaging types (e.g. glass jars used for chocolate pastes) accounted for a minimal share of 1.2% of sales in 2023.
The most popular pack size of chocolate confectionery products in the Philippines is the small pack. In 2023, products weighing up to 40g accounted for 45.6% of sales in volume terms), 40-80g accounted for 21.0% and 81-125g accounted for 17.0%. At the same time, the share of sales of products in packs up to 40 g has been gradually increasing over the last five years (in 2019, the indicator value is 42.8%). In the other size groups, retail sales are gradually decreasing. Chocolate products in packages of 200 g and more in 2023 accounted for 14.7% of sales in volume terms, while those weighing 126-200 g accounted for 1.7%.
The major share of the chocolate confectionery market in the Philippines over the last decade has been consistently held by local company Universal Robina (38.6% in 2023). Mondelez International (10.2% of the market in value terms), Ferrero (9.4%), Delfi Limited (7.9%), and Mars (7.2%) were also major suppliers of this type of product to the country's market in 2023. Cumulatively, the top 5 leading suppliers accounted for 73.3% of chocolate products sales in the Philippines in 2023.
In 2023, Philippine imports of chocolate confectionery products totaled 56.6 thousand tons valued at US$233.5 million, down 3.2% in volume terms (-1.9 thousand tons) and up 8.5% in value terms (+$18.3 million) from 2022. In 2019-2023, purchases of chocolate confectionery products on foreign markets grew annually by an average of 13.2% in volume terms and 16.7% in value terms.
Indonesia was the largest supplier of chocolate confectionery products to the Philippines in 2023, accounting for 34.2% or 19.4 thousand tons. The second place in 2023 was occupied by Malaysia, which accounted for 13.6% of Philippine imports of this type of product (7.7 thousand tons). Also among the three main suppliers of chocolate confectionery products was the United States - 8.5% of imports of the category (4.8 thousand tons). In total, the top 10 exporting countries of chocolate confectionery products Philippines accounted for 88.4% of imports of this product category.
In 2023, the Philippines increased its purchases of chocolate confectionery products from Singapore by 44.6% (+1.2 thousand tons) and Turkey by 2.2 times (+1.0 thousand tons) compared to last year's indicator. At the same time, purchases of this type of products from Indonesia (-12.6% or -2.8 thousand tons), China (-20.7% or -794.0 tons) and Australia (-21.7% or -791.0 tons) decreased.
Indonesia was also a major supplier of chocolate confectionery products to the Philippines in value terms in 2023, supplying US$41.8 million (17.9% of imports). Malaysia (17.9%) and Switzerland (10.0%) were also among the top exporters to the Philippine market. Cumulatively, the Philippines' top 10 chocolate confectionery exporting countries accounted for 86.5% of the country's imports.
In 2023, the Philippines increased purchases of chocolate confectionery products from Switzerland by 44.9% (USD +7.3 million), the United States by 45.1% (USD +6.6 million) and Singapore by 69.2% (USD +6.0 million) relative to the 2022 level. At the same time, purchases of this type of products from Indonesia (-15.3% or USD -7.6 million) and Australia (-15.5% or USD -2.9 million) decreased.
In 2023, the average import price of chocolate confectionery products increased by 12.1% to USD 4,128 per ton. The most expensive products came from Switzerland at USD 11,066 per ton (2.7 times the average price), the Netherlands at USD 8,163 per ton (97.8% higher) and India at USD 8,000 per ton (93.8% higher). The most competitive price was fixed for supplies from Turkey - USD 1,638 per ton (60.3% lower than the average price) and Indonesia - USD 2,162 (47.6% lower).
