PH liquor gross sales seen to maintain 5%-7% annual development

Alcohol gross sales within the Philippines are projected to maintain a single-digit annual development regardless of the 6 % improve in excise tax for alcohol merchandise in January.

“Regardless of the annual improve in excise tax, merchants are optimistic that gross sales of alcohol merchandise, each native and imported, will develop 5 % to 7 % every year,” the US Division of Agriculture (USDA) stated in a report.

Below Republic Act No. 11467, the excise tax on distilled spirits elevated by 6 % on Jan. 1 this yr and can proceed to rise at a set charge of 6 % yearly.

Solely distilled spirits are topic to a two-tiered excise tax, together with an advert valorem tax (proportional to the worth of the product) and a selected tax (fastened tax quantity no matter product worth).

Wines and different fermented liquors, together with beer and ale, are levied with particular excise tax. Fortified wines with over 25-percent alcohol comply with the distilled spirits excise tax schedule.

The international company famous, citing Euromonitor estimates, that the Philippines had consumed 3.6 billion liters of alcohol merchandise in 2024.

Beer was essentially the most broadly consumed alcoholic product within the nation, comprising 74 % of complete consumption final yr. Distilled spirits accounted for 25 %, whereas wine and different alcoholic drinks made up just one %.

“Consumption has been rising at a compounded annual development charge (CAGR) of seven % over the previous 5 years,” the USDA stated.

The report additionally stated that solely 142 million liters, or round 4 % of complete alcohol consumed, had been imported within the earlier yr.

“Philippine imports of alcohol merchandise grew at a CAGR of 1.6 % over the previous 5 years,” it stated.

America was the fourth largest provider of alcohol merchandise to the archipelago final yr, holding a market share of seven %. It primarily provides wines and whiskeys.

“The Philippines’ favorable shopper demographics, growing consumption of alcohol merchandise, and widespread acceptance of American merchandise create a unprecedented profile that makes the Philippines an thrilling marketplace for U.S. alcohol merchandise,” the USDA stated.

“This highlights the large potential for U.S. exporters to considerably develop their market share within the Philippines throughout all alcohol product classes,” it added.

In line with the report, the Philippines was the eighth-largest marketplace for US agricultural merchandise in 2024, with exports reaching $3.5 billion.

The USDA stated that since 2006, the Philippines has been the most important Southeast Asian marketplace for high-value US consumer-oriented meals and beverage merchandise, together with alcohol merchandise.