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The coconut oil industry in the Philippines remains one of the largest contributors to the nation’s economy. Today, the Philippines continues to be one of the leading coconut producing countries and the definitive leader for coconut oil exports in 2017, thanks to the country’s vast coconut planting areas and preferential weather conditions. Over the recent years, the growing demand for coconut oil, driven by more health-conscious consumers from around the world has further strengthened the Philippines’ leading position in the global coconut oil market. Meanwhile, the development of technology and increasing investment in the Philippines’ coconut mills are also expected to further boost the country’s year-over-year coconut oil production.
Before we go more in-depth into the key drivers impacting the growth of the coconut oil industry in the Philipines. At BizVibe, we’d like to introduce B2B buyers and sellers to our new business networking platform, targeted to companies that want to simplify the complex and tedious b2b sourcing and sales cycle. Get quotes quicker, generate better leads, and unlock a hidden world of new business opportunities.
Grow Your Professional Network: Connect with the Top Coconut Oil Companies in the Philippines
According to forecasts from the United Coconut Association of the Philippines (UCAP), Philippines’ coconut production is expected to increase to 2.244 million metric tons (MMT) in the current fiscal year, representing a nearly 10% growth from the previous fiscal year when the production of most crops declined due to bad weather conditions.
The UCAP also suggests that the projected hike in coconut production would also result in more shipments of coconut oil this year. The total coconut oil production in the Philippines is expected to reach 1.48 million metric tons in 2017, and the country’s coconut-oil exports this year could reach 765,000 MT, 5.37% higher than the 726,000 MT shipped in 2016.
The Philippines is the world’s 2nd largest coconut producing country. In addition to a thriving coconut oil production process, the Philippines has also achieved huge foreign trade earnings from its prestigious coconut industry. In terms of statistics, the Philippines sells over 70% of its coconut oil to the export market, of which about 80% go to Europe and the United States. According to data from the Philippine Statistics Authority (PSA), the Philippines earned $1.7 billion from coconut exports in 2016. The bulk of export receipts came from coconut oil, which accounted for 80.5% of total exports. Revenues from coconut oil in 2016 reached $1.13 billion, slightly higher than the 2015 record of $1.12 billion.
Currently, the United States is the largest importer of coconut oil from the Philippines. The US imports 33% of the country’s entire copra oil export supply. In 2016, the United States alone consumed 529,000 metric tons of virgin coconut oil.
In the near future, the coconut oil industry in the Philippines is expected to post a CAGR of 10% by 2022. The market’s surge will be driven by an increase in global demand for this newly recognized superfood, as it has been scientifically proven that coconut oil benefits skin, hair, nails, and overall health when applied topically, or ingested.
The Philippines’ leading position in the global coconut oil market has also attracted a significant number of buyers and traders from all over the world to source the best business deals. To help your coconut oil business stay at the peak of the industry, BizVibe provides the best way to source products and make business deals with the top coconut oil producers in the Philippines. The state of the coconut oil industry in the Philippines is expected to continue growing. Network with global influencers in a thriving market today.