Raw cane or beet sugar in solid form market in the Philippines

Earlier Report Observations

The Philippine market for raw cane sugar in solid form opened the period at 2.1 million tons in 2018 but contracted to 1.9 million tons in 2019. This decline was driven by a reduction in sugarcane area outside Negros Island and unfavorable weather, including increased rainfall that lowered yields and sugar content. Government measures to liberalize sugar imports, allowing up to 200 000 tons, helped partially offset the domestic production shortfall. Recovery began in 2020, with the market volume rising back to 2.0 million tons as improved coordination among producers and stronger state support, including the timely release of fertilizers and the distribution of high-yielding cane varieties, bolstered output.

Market volume grew to 2.1 million tons in 2021 despite frequent rains and a weaker La Niña pattern that reduced tons cane per hectare. The Sugar Regulatory Administration (SRA) sought to manage supply by requesting sugar requirement plans from beverage and food manufacturers. In 2022, the market expanded further to 2.2 million tons, supported by Sugar Order No. 2, which allocated 100% of domestic sugar production to the local market. However, the sector faced a new threat with the first detection of the red-striped soft scale insect in Pampanga, posing risks to future planting cycles.

A notable contraction occurred in 2023, with the market falling to 2.0 million tons. Sugarcane production from April to June dropped by 11.3% year-on-year, and the average sugar recovery rate at mills declined by 9%, both pressured by climatic stress. By 2024, production outcomes exceeded initial projections despite El Niño conditions, aided by ongoing government programs focusing on soil improvement, better cane varieties, and irrigation. The SRA monitored stock levels and considered opening a sugar import program to maintain a three-month buffer, reflecting continued efforts to balance supply and demand.

Production raw cane or beet sugar in solid form in the Philippines

In kind, 2017-2020, K t

From 2017 to 2020, the Philippines was one of the world's leading producers of raw cane or beet sugar in solid form, ranking 27th globally by production volume.

Top producers of raw cane or beet sugar in solid form, 2017-2020

World map of production of raw cane or beet sugar in solid form, 2017-2020

Following a two-year decline, the Philippines' production of raw cane or beet sugar in solid form rebounded in 2020. That year, output reached 2 126 K t, marking a 4.4% increase compared to 2019. However, over the entire 2017-2020 period, production actually decreased by 15.1%, with a compound annual growth rate (CAGR) of -5.3%. The lowest production level was recorded in 2019 at 2 037 K t, while the sharpest annual drop occurred in 2018, when output fell by 15.5%.

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

In value, 2017-2020, M $ US

In 2020, the value of raw cane or beet sugar in solid form produced in the Philippines was 1 143 M $ US, representing a 2.6% decrease from 2019. Over the 2017-2020 period, production value increased by 2.2%, with a CAGR of 0.7%. The lowest value was recorded in 2018 at 1 095 M $ US, while the highest was in 2019 at 1 173 M $ US. The most significant annual increase occurred in 2019, when value rose by 7.1%.

Annual dynamics of production in the Philippines in value, 2017-2020, M $ US

Exports raw cane or beet sugar in solid form from the Philippines

Exports in kind, K t

Export volumes showed notable fluctuations during this period. They reached their highest point in 2017 and dropped to the lowest in 2018, with a 4.3-fold difference between these years. In 2020, the Philippines exported 117.4 K t of raw cane or beet sugar in solid form, reflecting a moderate year-over-year increase of 4.9%. The minimum export volume was recorded in 2018 at 108.3 K t, which also saw the largest annual decline of 76.9%.

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

From 2017 to 2020, the United States and China were the primary destinations for the Philippines' exports of raw cane or beet sugar in solid form, together accounting for 82.9% of total export flows. Other trading partners each held significantly 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, M $ US

Export values experienced considerable volatility over this period. They peaked in 2017 and hit their lowest point in 2018, with a 3.7-fold gap between these years. In 2020, the Philippines exported 63.1 M $ US worth of raw cane or beet sugar in solid form, showing a slight decline of 2.1% compared to the previous year. The minimum value was recorded in 2018 at 56.1 M $ US, which also saw the largest annual drop of 73.2%. The most significant increase occurred in 2019, with a 15.0% rise.

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

During 2017-2020, the United States remained the dominant partner for the Philippines' exports of raw cane or beet sugar in solid form in value terms, capturing 75.4% of total export flows. Other markets collectively formed a long tail with much smaller shares.

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 raw cane or beet sugar in solid form to the Philippines

Imports in kind, K t

Import volumes exhibited significant fluctuations in this period. They peaked in 2018 and reached their lowest point in 2019, with a dramatic 1 109-fold variation between these years. In 2020, the Philippines imported 0.1 K t of raw cane or beet sugar in solid form, representing an 80.3% increase year-over-year. The minimum import volume was recorded in 2019 at 0.1 K t, while the maximum was in 2018 at 77.3 K t. The largest annual decline occurred in 2019, with a 99.9% drop, and the most substantial increase was in 2018, soaring by 39 142.4%.

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

From 2017 to 2020, Thailand served as the main source for the Philippines' imports of raw cane or beet sugar in solid form, consistently accounting for 99.6% of total import volumes.

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, M $ US

The import market displayed volatility during the observed period. Values reached a high in 2018 and a low in 2019, with a 287-fold difference between these years. In 2020, the Philippines imported approximately 0.1 M $ US of raw cane or beet sugar in solid form, indicating a steep year-over-year gain of 25.2%. The minimum value was recorded in 2019 at 0.1 M $ US, while the maximum was in 2018 at 25.7 M $ US. The largest annual decline occurred in 2019, with a 99.7% drop, and the most significant increase was in 2018, surging by 18 045.5%.

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

Between 2017 and 2020, Thailand was almost the exclusive supplier of raw cane or beet sugar in solid form to the Philippines, absorbing 98.8% of total import value.

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

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