Pepper market in the Philippines

Earlier Report Observations

The pepper market in the Philippines reached 7 434 t in 2019, then contracted sharply to 5 971 t in 2020. This decline coincided with the global COVID-19 pandemic, which disrupted supply chains and trade flows, while domestic pepper production continued its multi-year downward trend.

Market volume saw a further gradual decrease to 5 517 t by 2022, sustained by imports compensating for insufficient local output. The period was marked by a consistent reliance on foreign supply, primarily from Vietnam and Indonesia.

A recovery to 5 751 t occurred in 2023, supported by rising consumer interest in specialty pepper varieties and complex spice flavors. Moving into 2024, trends shifted toward convenience, quality, e-commerce channels, and a preference for local ingredients, shaping future demand dynamics for pepper.

Production pepper in the Philippines

In kind, 2017-2020, t

From 2017 to 2020, the Philippines ranked as the 23rd largest pepper producer in the world.

Top producers of pepper, 2017-2020

World map of production of pepper, 2017-2020

Pepper production in the Philippines declined for the third consecutive year. In 2020, the country produced 1 028 tons of pepper, representing a 9.2% decrease compared to 2019. Between 2017 and 2020, production fell by 24.9%, which translates to an annualized decline rate of 9.1%.

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

Exports pepper from the Philippines

Exports in kind, t

The export market showed an unstable trend during this period. The lowest export volume was recorded in 2018 at 91 tons, while the highest was in 2020 at 620 tons, reflecting a 6.8-fold difference between these years. In 2020, cross-border shipments of pepper from the Philippines surged by 557.9% year-over-year. The largest decline occurred in 2018, with a drop of 12.5%.

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

From 2017 to 2020, Thailand dominated the export structure in volume terms, accounting for 99.4% of total flows.

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

The export market exhibited volatility over the observed period. The lowest value was recorded in 2018 at 1 244 thousand US dollars, while the peak was in 2020 at 3 018 thousand US dollars, showing a 2.4-fold amplitude. In 2020, pepper exports from the Philippines increased by 120.5% compared to the previous year. The largest decline occurred in 2018, with a decrease of 21.7%.

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

From 2017 to 2020, Thailand served as the primary destination for pepper exports from the Philippines, consistently absorbing 99.5% of total exports in value terms.

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 pepper to the Philippines

Imports in kind, t

After a two-year increase, pepper import volume to the Philippines declined. The maximum volume was recorded in 2019 at 6 396 tons, while in 2020, imports totaled 5 564 tons, marking a 13.0% decrease from the previous year. Over the period from 2017 to 2020, imports grew by 2.2%, with a compound annual growth rate of 0.7%. The largest increase occurred in 2019, with a rise of 10.4%.

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

From 2017 to 2020, the import structure in volume terms was heavily concentrated on Vietnam, which accounted for 85.4% of total flows, with other partners making up the remainder.

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

Pepper imports to the Philippines increased for the second consecutive year. The minimum value was recorded in 2018 at 19 049 thousand US dollars, while in 2020, imports reached 20 662 thousand US dollars, showing a slight uptick of 2.9% versus the previous year. Over the period from 2017 to 2020, imports rose by 2.7%, with a compound annual growth rate of 0.9%. The largest decline occurred in 2018, with a decrease of 5.3%, while the largest increase was in 2019, with a rise of 5.4%.

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

From 2017 to 2020, Vietnam was the dominant supplier of pepper to the Philippines, accounting for 86.0% of total imports in value terms, with other countries sharing the remaining volume.

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

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