The Philippines, a leading global supplier of coconut products, should shift from commodity exports to higher-value offerings to maintain its competitive edge as Vietnam captures a growing share of the international market, according to an expert.
“The Philippines continues to remain one of the major suppliers of coconut and its related products to countries like the US, but this does not mean we forget two important things: the need for smart diversification and to watch out for competition,” said Sowmya Ramaswami, head of global trade and export solutions at Euromonitor International.
Ramaswami, who spoke at the recently concluded National Exporters Week in Makati, noted that coconut products now rival fruits among the country’s top non-electronics export earners.
She said global demand for coconut and its derivative products continues to rise across the United States, Europe and China.
However, the Philippines cannot be complacent, as Vietnam is rapidly strengthening its position, led by strong uptake in the food sector, expanding non-food applications, heightened health and wellness awareness and a surge in plant-based diets.
Vietnam now supplies nearly 20 percent of coconut imports in major markets, becoming the Philippines’ most formidable rival in the category. Its presence in the US market alone “has grown significantly over the last three to five years,” Ramaswami said, adding that Vietnam’s exports continue to expand swiftly despite high US tariffs.
Ramaswami attributed Vietnam’s rapid ascent to supply-chain realignment, aggressive diversification, a strong focus on value-added products and well-targeted trade and investment policies.
To keep pace, she recommended that the Philippines strategically scale its coconut exports through smart diversification into new markets and applications, innovation in product customization and branding, and stronger value-added processing to convert raw materials into more premium offerings.
The Philippines should also stay alert to the “cross-sector boom” opening new frontiers for coconut-based exports, she said.
A recent Euromonitor study noted that the rising demand for healthy alternatives is creating targeted diversification opportunities, especially as bakery and cereal brands tap into coconut for both flavor and functionality.
The commodity is also driving the “clean beauty wave” in cosmetics and expanding its footprint in functional foods such as coconut water, virgin coconut oil, coconut milk and cream as non-dairy substitutes, desiccated coconut for baking and confectionery and coconut sugar as a natural sweetener alternative.
