Sector Trend Analysis – Fish and seafood trends in the Philippines

Canadian performance

Canada is currently one of the smallest suppliers of fish and seafood to the Philippines. In 2021, imports from Canada amounted to Can$ 7.7K, consisting of processed fish, frozen crab, crab, and other crustaceans. Imports from Canada have fluctuated greatly since 2016, from a high of Can$1.2M to Can$704 in 2020.

Fish and seafood is one of Canada's smallest agri-food exports to the Philippines, representing 0.02% of all Canadian agri-food exports to the Philippines in 2021.

Consumption trends

According to the Philippine Statistics Authority, fish is the most consumed animal protein in the Philippines with annual per capita consumption of 40 kilograms.^{Footnote 1} The top four consumed fish species in the Philippines are Milk Fish, Tilapia, Round Scad. And Golden Fusilier.

Filipino consumers perceive fresh food to be superior to frozen food, but the pandemic pushed them to embrace both local and imported shelf stable and frozen foods, including seafood. The category experienced increased growth during the pandemic due to an increase in eating at home. As canned goods are affordable, the category also attracted consumers who suffered financial hardship due to the pandemic and switched to cheaper brands or alternative products.

In 2021, shelf stable seafood was the fastest growing category within processed meats. According to Euromonitor, shelf stable sardines is expected to be a key growth driver as it is popular as an affordable option, especially among low-income demographics. This is supported by a national information campaign on the "freshness" and safety aspects of frozen seafood.

By the numbers

Top ten fish and seafood suppliers to Philippines in 2021

Market access considerations

Imported fish and aquatic products require certification by the Secretary of Agriculture. Only the importation of fish and aquatic products for canning and processing purposes and those undertaken by institutional buyers are exempt from such certification. For more information, visit the Philippine Department of Agriculture (DA) Bureau of Fisheries and Aquatic Resources website.

Regional suppliers to the Philippines benefit from close proximity and market access conditions granted by regional trade agreements, including under ASEAN and RCEP.

Seafood production

The Philippines is the eighth leading fish-producing country in the world with total production from aquaculture and commercial fisheries, at 4.36 million MT (2019). Major fisheries include skipjack, Indian sardines, yellowfin tuna, frigate tuna, fimbriated sardines, big-eyed scad, eastern little tuna, Indian mackerel, slipmouth, and indo-pacific mackerel.

Decades of overfishing, destructive fishing practices, and lax enforcement is leading to a decline in the country's commercial fisheries and an increased reliance on aquaculture. Approximately 70% of fishing grounds in the Philippines are currently overfished. In 2018, aquaculture accounted for about 53% of total production with 2.3 million MT, where seaweeds, milkfish, tilapia, and shrimps/prawns were the major cultured species. Commercial fisheries constituted 47% of the total production with 2.0 million MT (BFAR, 2019; PSA, 2019).

Market sizes

Fish and seafood sales in the Philippines have steadily grown over the past five years and are expected to continue this trajectory to 2026. Shelf stable seafood is the fastest growing category with sales of US$748.8 million in 2021 and a CAGR of 13.1%. This is followed by frozen processed seafood, which has a CAGR by 9.2%. Shelf stable seafood is forecast to grow at a CAGR of 5.0% during 2021-2026 and frozen processed seafood by 4.5% over the same period.

Century, 555, Ligo, and New Seniorita are the top four brands in the Filipino fish & seafood sector. While Century and 555 combined account for a value share of 45.1% in 2021, Ligo and New Senorita held value shares of 11.5% and 8.0% respectively.

Distribution channels

Supermarkets, traditional retailers, and hypermarkets are the leading distribution channels in the Filipino fish & seafood sector. Combined, they accounted for a value share of 93.3% in 2021, followed by convenience stores.

Filipino consumers shop almost daily on a needs basis at traditional grocers called sari-saris. These stores make up the second largest distribution channel for processed seafood products, at 25.2% of grocery retailers. This channel is popular in rural areas as they serve as the hub of many communities and offer products in small package sizes that are affordable, which is a major consideration for Filipino consumers.

Middle class consumers tend to use hyper and supermarkets, which represent 68.1% of grocery retail sales. These are often located in urban centers and shopping malls and are popular for their selection of imported brands and higher quality products. Modern retailers have been expanding outside Metro Manila in recent years. The forecast period is expected to see mid-tier cities in the provinces develop as retail hubs. This will intensify the competition faced by traditional and informal retailers and will provide consumers with a more diverse and convenient range of shopping options.

For more information

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For additional information on upcoming trade shows, please contact:

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Resources

• Euromonitor International:
  • Processed Meat, Seafood, and Alternatives To Meat in the Philippines 2022
  • Retailing in the Philippines Analysis 2022
• Journal of Anatolian Environmental and Animal Sciences - An Overview of Fisheries and Aquaculture in the Philippines 2021
• USDA GAIN Report – Philippines Seafood Products Market Brief 2022

Sector Trend Analysis – Fish and seafood trends in the Philippines
Global Analysis Report

Prepared by: Kris Clipsham, International Market Analyst

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