Milk and cream market in the Philippines

Earlier Report Observations

The Philippine milk and cream market expanded sharply in 2019, with volume reaching 159.8 thousand tons following the implementation of the TRAIN Law, which exempted these products from excise taxes applied to sweetened beverages, making them more affordable and stimulating demand. This regulatory shift contributed to a substantial increase in imports, which surged to 135.4 thousand tons that year.

Market volume experienced fluctuations in the subsequent years, declining to 138.6 thousand tons by 2021. During this period, the industry remained highly concentrated, dominated by a few major importers and manufacturers which shaped competitive dynamics. A recovery occurred in 2022, with market size climbing to 164.6 thousand tons.

By 2023, strategic efforts by the National Dairy Authority to increase dairy imports and invest in local production capacity were underway, coinciding with active promotion of dairy product diversification by the Philippine Carabao Center. Consumer trends also shifted towards healthier and diversified options, including plant-based alternatives, influencing product innovation and market segmentation as regulatory updates on import permits and product standards were introduced in 2024.

Production milk and cream in the Philippines

In kind, 2017-2020, t

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

Milk and cream production in the Philippines has grown for the third consecutive year. In 2020, the country produced 27 511 tons of milk and cream, representing a 9.6% increase compared to 2019. Over the period from 2017 to 2020, production rose by 17.4%, which translates to an average annual growth rate of 5.5%.

Annual dynamics of production in the Philippines in kind, 2017-2020, t

Exports milk and cream from the Philippines

Exports in kind, K t

The data shows irregular fluctuations, indicating a volatile market environment. The minimum export volume was recorded in 2018 at 0.3 thousand tons, while the maximum occurred in 2017, resulting in a 5.1-fold difference between these years. In 2020, the Philippines exported 0.5 thousand tons of milk and cream, down by 22.7% from the previous year. The largest decline was observed in 2018 at 80.5%, while the largest increase occurred in 2019 at 139.7%.

Annual dynamics of product's exports from the Philippines in kind, 2017-2020, K t

From 2017 to 2020, Australia and Canada dominated the Philippines' milk and cream exports in volume, jointly accounting for 92.7% of total flows, with other countries holding much smaller shares.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from the Philippines in kind, 2017-2020

Exports in value, K $ US

In 2020, milk and cream exports from the Philippines amounted to 849 thousand US dollars, marking a decline of 28.5% compared to the previous year. The minimum value was recorded in 2018 at 708 thousand US dollars. Over the period from 2017 to 2020, exports decreased by 50.8%, with a compound annual growth rate of -21.0%. The largest decline occurred in 2018 at 58.9%, while the largest increase was in 2019 at 67.8%.

Annual dynamics of product's exports from the Philippines in value, 2017-2020, K $ US

Throughout 2017 to 2020, exports in value terms were heavily concentrated on Australia, which accounted for 92.3% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from the Philippines in value, 2017-2020

Imports milk and cream to the Philippines

Imports in kind, K t

After a two-year rise, the Philippines' milk and cream import volume declined. In 2020, imports totaled 125.5 thousand tons, showing a moderate decrease of 7.3% year-over-year. The maximum value was recorded in 2019 at 135.4 thousand tons. Between 2017 and 2020, imports increased by 72.9%, equating to an annualized rate of 20.0%. The largest increase occurred in 2019 at 60.8%.

Annual dynamics of product's imports to the Philippines in kind, 2017-2020, K t

From 2017 to 2020, New Zealand (31.9% of imports in volume), Australia (20.7% of imports in volume), and Germany (17.4% of imports in volume) were the largest suppliers of milk and cream to the Philippines, together forming 70.0% of total imports in volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to the Philippines in kind, 2017-2020

Imports in value, K $ US

After a two-year increase, the Philippines' milk and cream import volume declined. In 2020, imports tallied 85 904 thousand US dollars, which is 6.2% less year-over-year. The maximum value was recorded in 2019 at 91 585 thousand US dollars. Between 2017 and 2020, imports increased by 36.7%, equating to an annualized rate of 11.0%. The largest increase occurred in 2019 at 23.4%.

Annual dynamics of product's imports to the Philippines in value, 2017-2020, K $ US

From 2017 to 2020, New Zealand (34.6% of imports in value terms), Australia (18.2% of imports in value terms), and Germany (15.6% of imports in value terms) accounted for the largest share of imports in value terms, together comprising 68.4% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to the Philippines in value, 2017-2020