Philippines' Chocolate And Cocoa Confectionery Industry And Competitive Landscape 2023

Updated: January 01, 2024

Industry Landscape

In 2022, Philippines' imports of chocolate and confectionery containing cocoa (HS code 1806) amounted to USD 215 million (up 53% YoY) while exports were just a fraction of imports at USD 7.3 million (down 10% YoY). In volume terms, imports amounted to 50.6 million kilograms (up 42% YoY) while exports amounted to 1.9 million kilograms (down 20% YoY).

Philippine's chocolate exports have been on the rise, and growing global interest in Philippine-origin chocolate could support continued export demand growth. Over the past four years, Philippines' chocolate exports have grown at a CAGR of 6% in volume terms.

The Philippines has a fairly extensive downstream cocoa supply chain with the country's exports of cocoa beans (HS code 1801), far exceeding imports in both value and volume terms. Imports of value-added cocoa products namely cocoa powder (HS code 1805), and cocoa paste (HS code 1803) however far exceed exports while exports of cocoa butter (HS code 1804) barely exceed imports.

According to latest available data from FAOSTAT, the Philippines had around 31,500 hectares of cocoa planted in country as of 2021, rising from 31,300 hectares the previous year.

The Philippine government is supportive of the country's cocoa products industry. ARISE Plus Philippines (a four-year EU-funded project involving the Government of the Philippines which started in 2021) has been instrumental in opening market opportunities in the EU for Philippines' SMEs, including downstream players in the country's chocolate space. Meanwhile the Philippine Cacao Industry Roadmap (2021-2025) aims to expand cocoa cultivation in the country, increase fermented bean productivity, and focus on Fine Flavor Beans (FFB) among other objectives.

Cocoa farm production yields are constrained by a lack of knowledge on Good Agricultural Practices (GAP) (according to the Philippine Cacao Industry Association (PCIA), the country's cacao farmers produce around 700 grams of dried beans per tree, well below their 2 kilogram target) and a shortage of agricultural labor is crimping cocoa farmers' incomes leading to a growing interest in more lucrative crops such as durian which may negatively impact supply of Philippine-origin cocoa beans.
At USD 10,136 per person on a PPP basis in 2022, income levels in the Philippines are relatively compared to Southeast Asian neighbors like Vietnam (USD 13,461), Indonesia (USD 14,657), and Malaysia (USD 33,523) however growth is also among the lowest with per capita incomes growing at a CAGR of 4% over the five years between 2017-2022 compared with 8.2% for Vietnam, 6% for Indonesia, 5.2% for Malaysia.

Homegrown chocoalatier Cebu Best Mango focuses on chocolate-dipped fruits (notably chocolate-dipped mangoes, and chocolate-dippped pineapples) and fruit-flavored chocolate products (such as mango chocolate, and calamansi chocolate) which are sold in flow pack and boxed packaging formats. The brand's positioning focuses heavily on Filipino heritage, making it a popular choice for diplomatic gifts, and embassy-sponsored trade shows, and is also served on Philippine Airlines flights as well. Channels cover both online and offline channels and include their direct-to-consumer online store on their website, and third party retailers including SM Stores, Metro Stores, and Kultura Filipino and their respective online marketplace platforms.
Recent developments:
- As part of channel expansion efforts, Cebu Best Mango's products were made available on supermarket chain Metro Stores' online store, as well as Kultura Filipino's airport retail store at Mactan-Cebu International Airport.

Local chocolatier Dalareich Chocolate House sells chocolate bars, chocolate-dipped fruits, chocolate-coated cacao nibs, and tableya. Channels include their direct-to-consumer online store on their website, their physical retail store located in the Philippine province of Bohol, supermarket chains such as Metro Stores, chocolate cafes, and hotel gift shops.
Recent developments:
- New product launches include three new single origin chocolate bar flavors (Loboc 70%, Carmen 75%, and Bukidnon 70%), and chocolate-coated cashews. Seasonal releases included two limited-edition chocolate bars for Christmas.
- Packaging for their unsweetened chocolates were upgraded.
- Channel expansion efforts during the year resulted in products made available at Tindeli cafe, Maharlicup cafe, Bohol Beach Resort, Chocolate Hills Complex.
- Marketing initiatives included trade shows (in Japan), chocolate tasting events, popup stores, overseas promotion efforts through strategic partners (in Belgium, and two in the U.S.), tour group visits, and promotional efforts in collaboration with local beauty pageant winners Nicole Borromeo and Bohol native Pauline C. Amelinckx.

Local chocolate brand Godel Chocolate, owned by bakery industry solutions provider JCG Marketing Group, is largely a chocolate-making equipment supplier however they also sell chocolate products including chocolate bars, cacao nibs, and tableya. The company operates across multiple online and offline channels including their direct-to-consumer online store on their website, online marketplace platforms (such as Shopee and Lazada), as well as offline channels namely their Godel Showroom, and third-party retailers including supermarkets such as SM Hypermarket.
Recent developments:
- Seasonal releases include filled chocolate products for Valentine's Day, and Father's Day.
- Godel Chocolate's tableya was awarded bronze at the Academy of Chocolate awards, and three products (two chocolate bars and one tableya) were recognized at Great Taste Awards 2023.
- Marketing efforts heavily centered on offline promotion including trade shows, and fairs (at least 12 during the year or one every month), pop-up events (over 40 during the year or over three per month), workshops (at least two during the year) and factory tours.
- As part of channel expansion, Godel's products were made available in select SM Hypermarket branches in Manila.

Auro Chocolate is a homegrown, award-winning tree-to-bar chocolate brand. The company's products are manufactured at their one MT capacity factory in the province of Laguna. Auro's products are exported to more than 15 countries worldwide.
Recent developments:
- Auro Chocolate opened their flagship store in early 2023.
Future plans:
- Looking ahead, Auro Chocolate plans to launch more community initiatives with cocoa farmers and expand sourcing to introduce chocolate products produced with cacao from new origins.