The Philippines' total e-commerce sales are projected to reach $24 billion by 2025, with food and beverage accounting for a fifth, as more Filipino consumers get used to online purchases, the United States Department of Agriculture (USDA) said.

To reach this, the Philippines' overall e-commerce sales are expected to grow at a compound annual growth rate of nine percent, the USDA-Foreign Agricultural Service (FAS) said in its latest market brief.

It said half of the more than 70 million online users in the Philippines participate in cross-border e-commerce (CBE), with purchases (mostly non-food products) accounting for a fourth of the e-commerce market.

'The unprecedented growth in B2C cross-border e-commerce purchases of food and beverage products can be traced back to the aftermath of the pandemic, which inadvertently spurred new ways for Filipino consumers to acquire a variety of imported goods directly,' the USDA-FAS said.

Of the total online purchases, the US agency also said the Philippines is also forecast to register a five-fold jump in purchases of food and beverage products as more Filipino consumers become aware of CBE.

From $1 million in 2022, purchases of food and beverage products through CBE could quadruple to $5 million in 2025, it said.

'Recent developments in cross-border e-commerce expanded Filipino consumers' access to imported food and beverage products, rising from zero in 2019 to almost $1 million in purchases in 2022,' the USDA-FAS said.

'Developments in CBE over the past two years, such as the emergence of freight forwarders and virtual platforms, have encouraged Filipino consumers to import food and beverage products for personal consumption,' it said.

Last year, the top purchased products were food supplements, baked goods, chocolates, confectionery, whey protein powder, pet food, coffee and tea, flavored energy drink, wine, beer, and spirits, prepared vegetables, fruits, nuts, dairy products (infant milk, flavored milk and cheeses), honey and olive oil.

'Filipino consumers are constantly on the lookout for new and unique products, and have a strong affinity for US products. These factors present an excellent opportunity for US exporters to cater to this growing demand by promoting food and beverage products online,' the USDA-FAS said.

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