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Food and Beverages

The rapidly growing food and beverage industry of the Philippines is one of the biggest contributors to the nation’s economy, making up about half of its manufacturing sector. With an average annual growth rate of 8-10%, this industry has been identified by the Philippine government as a priority sector for attracting foreign investment under special economic zones.

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One of the largest food producers in Asia

The Philippines is one of Asia’s largest producers of food, with the value of its food processing sector exceeding €24 billion.

Source: Asia Briefing

23-24% of the country’s GDP

The Philippine food and beverage industry is one of the biggest contributors to the nation’s economy contributing about 23-24% of the country’s GDP.

Source: Research and Markets

Annual growth rate of 8-10%

The Philippine food and beverage industry has an average annual growth rate of 8-10%.

Source: Flanders

The rapidly growing food and beverage industry of the Philippines is one of the biggest contributors to the nation’s economy, making up about half of its manufacturing sector [61]. With an average annual growth rate of 8-10%, this industry has been identified by the Philippine government as a priority sector for attracting foreign investment under special economic zones [62]. The performance of the food and beverage sector is shaped by food manufacturing, with beverage production accounting for just 4.2% of the total value added of manufacturing [63]. About 90% of the food and beverage processing industry’s output is consumed domestically, with excellent growth prospects stemming from the country’s resilient economy and strong consumer base [64]. While most of the roughly 500 food and beverage processors registered under the Philippine Food and Drug Administration are micro to medium-sized businesses, food and beverage processors are also among the largest corporations in the country [62].

The food processing industry comprises the following major sectors: fruits and vegetables, fish and marine products, meat and poultry products, flour and bakery products, beverage and confectionery, dairy foods, food condiments and seasonings, food supplements, bottled water, snack foods, and fats and oils [64].

There is one thing that has remained constant in the Philippines drinks market: carbonated soft drinks (CSD) are still way out in front when it comes to consumption of non-alcoholic drinks. According to a report by Euromonitor in June 2020, CSD sales in 2019 comprised 4.86 billion liters, followed by bottled water which comprised 2.86 billion liters. Other beverages that have seen steady growth are ready-to-drink (RTD) tea and coffee, sports and soy drinks. Along with new market products and taste varieties, the industry reacted to the introduction of the sugar tax in 2018 by downsizing product content to minimize sugar tax impact, using different ingredients and producing healthier drinks which created markets in nearly every area. And these are almost literally catching on with customers [65].

According to a 2021 report by the Oxford Economics, the food and beverage manufacturing makes up 46 percent of the agrifood sector’s GDP contribution, and about 4 million jobs coming from direct, indirect and induced employment [66]. The Philippine food and beverage industry revenue has crossed USD 100 billion in 2020 and is expected to grow at a 7.16% CAGR during the forecast period of 2021 to 2027 [67]. The USDA reported that e-commerce of food and beverages surged to $216 million in 2021 from $70 million in 2019 [68].

Opportunities and

  • The Philippines provides preferential access to its market through a number of bilateral and regional trade agreements, including those with ASEAN member countries, the European Free Trade Association, Australia, China, India, Japan, New Zealand, and South Korea [69].

  • Given the Philippine government’s commitment to further develop the country’s food and beverage industry as one of the priority industries and opening it up further to foreign investments, the food and beverage industry has become even more attractive for European SMEs [61].

  • The growing consumption contributes to the rapid production expansion of processed foods and beverages which presents excellent opportunities for raw materials and high-value ingredients [62].

  • Exports are expected to rise as the quality and competitiveness of Philippine processed food and beverage products continue to improve. Prospects for the lucrative East and Southeast Asian markets are especially strong because of the country’s strategic location. The nation’s capital, Manila, is situated within a four-hour trip by air to any major port in the region (six days for cargo vessels). The short transit time makes it an ideal staging area, especially for frozen and chilled products [70].

  • Changes in consumer trends in favor of online shopping, together with the building of new retail channels such as modern supermarkets, convenience stores and shops outside cities are ensuring ever-increasing outreach to the general population [65].

  • Factors that foster the growth of the food sector, covering retail, food service and food manufacturing are population growth, rising middle income earners, increasing number of dual-income families, higher disposable incomes, a young, fast-growing, highly-urbanized population with increasingly sophisticated tastes and ever-growing access to supermarkets and fast changing lifestyle, proliferation of retail and shopping centers, growing demand for healthy, organic, gourmet and convenience foods, increasing frequency of dining out, higher awareness of food quality and safety [62].

Featured Companies

  • Nestlé Philippines, Inc. Over a hundred years after it first started operations in the country, Nestlé Philippines, Inc. (NPI) today is a robust and stable organization, proud of its role in bringing the best food and beverage throughout the stages of the Filipino consumers’ lives [71]. The company employs 3,700 men and women all over the country, and is among the Philippines’ top corporations. Its products are No. 1 or strong No. 2 brands in their respective categories. Although Nestlé products were already available in the Philippines as far back as 1895, it was not until 1911 when The Nestlé and Anglo Swiss Condensed Milk Company was established in the country. Nestlé has manufacturing facilities in Cabuyao (Laguna), Cagayan de Oro, Lipa (Batangas), and Tanauan (Batangas) to meet the growing demand for Nestlé products in the country [72]. Driven by its mission to nurture generations of Filipino families, Nestlé today produces and markets products under some of the country’s well known brands such as Nescafé, Nido, Milo, Nestea, Maggi, Bear Brand, Nestlé, and Purina, among others. Its product range has expanded to include coffee, milk, beverages, non-dairy creamer, food, infant nutrition, ice cream and chilled dairy, breakfast cereals, confectionery, and pet-care [72].

  • Pepsi-Cola Products Philippines, Inc. Pepsi-Cola Products Philippines Inc. (PCPPI) is the exclusive manufacturer of PepsiCo beverages in the Philippines and was established in 1989. PCPPI's principal stockholders are Lotte Corporation, Lotte Chilsung Beverage Co. Ltd., and Quaker Global Investments B.V. PCPPI manufactures and sells well-known beverage brands: Pepsi-Cola, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Lipton, Sting, Premier, Milkis, and Aquafina. It has established 13 operations across the country, serving more than 700,000 outlets and providing employment through its extensive distribution network [73].

  • Century Pacific Food, Inc. Century Pacific Food, Inc. (CNPF) was incorporated on October 25, 2013. The company is primarily engaged in the business of buying and selling, processing, canning, packaging, and manufacturing all kinds of food and food products. CNPF is a wholly-owned subsidiary of Century Pacific Group, Inc. It is the Philippines’ largest canned food company, engaged in the development, marketing, and distribution of processed fish, meat, and dairy products [74].The company's main business segments are the canned and processed fish segment which produces tuna, sardines, and other fish and seafood-based products; the canned meat segment which produces corned beef, meat loaf, luncheon meat, and other meat-based products; the dairy and mixes segment which comprises of evaporated milk, condensed milk, and other dairy products as well as coffee mixes and flavor mixes; the tuna export segment which produces private label canned, pouched, and frozen tuna products for export; and the coconut segment which produces retail-packaged coconut water, organic virgin coconut oil, desiccated coconuts, coconut flour, and coconut milk. Recognizable brands under these segments include Century Tuna, 555, Blue Bay, Argentina, Swift, Angel, Birch Tree, and Kaffe de Oro [74].

  • Zenith Foods Corp. Zenith Foods Corporation (ZFC) is the Central Commissary of Jollibee Foods Corporation and operates a food processing plant and serves more than 800 Jollibee and Greenwich stores in and outside the Philippines. Established in 2003, the company is based in Calamba, Laguna, Philippines. ZFC is the biggest and most advanced in the country and among Asia’s best. Aided by custom-made mechanized equipment, the production lines are for the marinated Chicken Joy, frozen patties and pies, breads, sauces, hotdogs and other meat products, and dry blended goods [75]. The chicken marination line can produce as many as 150,000 pieces a day while about 480,000 hamburger patties a day are turned out by the frozen patty line. The breadline is designed to match the volume output of patties, i.e. also about 480,000 pieces a day. The pie line can produce as much as 157,000 pocket pies in a 20-hour operating day. Currently, pies are exported to Jollibee stores in Hong Kong, Guam, Saipan, Brunei, and the USA. Various sauce products are processed in the ZFC sauceline including those for the Jollibee bestsellers, spaghetti and palabok [75].


[61] Jurgenson, H. & Southeast Asia IPR SME Helpdesk. (n.d.). IP Protection in the Philippines’ Food and Beverage Industry. UK-ASEAN Business Council.


[62] Abela, M. (2019, November). Food Industry in the Philippines: Philippines Food Industry. Flanders Investment & Trade.


[63] Research and Markets. (2018, April 12). Philippines Food and Beverage Market Analysis & Forecast 2018–2019 - ResearchAndMarkets.com. Business Wire.


[64] Trade Chakra. (n.d.). Food Processing Industry in Philippines, Food & Beverage Industry in Philippines.


[65] Barton, K. (2021, January 27). The Philippines drinks market. Drinktec Blog.


[66] International Labour Organization, United Nations Entity for Gender Equality and the Empowerment of Women., United Nations Industrial Development Organization, Espinoza, A., Pimentel, M., & Valiente, C. (2021, August). Resilient Businesses and the Pandemic: Unlocking Opportunities to Build a Better Normal: Towards GenderResponsive and Resilient Micro-, Small, and Medium Enterprises in the Food Manufacturing and Processing Sector in the Philippines. United Nations Philippines.


[67] OG Analysis. (2021, April). Philippines Food and Beverages Market, Size, Share, Outlook and Growth Opportunities 2020–2027.


[69] International Trade Administration. (2021, September 11). Philippines - Country Commercial Guide: Philippines - Country Commercial Guide. International Trade Administration | Trade.Gov.


[70] Singian, M. (2019, December). Robust Opportunities in Philippine Food and Beverage Processing Industry. USDA Foreign Agricultural Service.


[71] Nestle Ph. (n.d.-a). About us. Nestlé.


[73] Pepsi Philippines. (n.d.). Who We Are. Pepsi-Cola Products Philippines, Inc.


[74] PSE Edge. (n.d.). Century Pacific Food, Inc.


[75] Fast Food Company Jollibee, Philippines. (2016, Aug 20). Retrieved from