The Philippines Economy
The Philippines concluded 2023 on a high note, emerging as the fastest-growing economy in ASEAN with a growth rate of 5.6%. In comparison, Malaysia grew by 3.7%, Indonesia and Vietnam both by 5.0%, Thailand by 1.9%, Myanmar by 2.5%, Cambodia by 5.0%, and Singapore by 1.1%. Looking ahead to 2024 and 2025, the Philippines is expected to continue its robust performance with a projected growth rate of 6.2%, showcasing its resilience amidst various global economic pressures.
Philippines’ Vegetable Oil Market Supply & Demand
The Philippines is the world’s largest coconut oil producer, responsible for 51% of global production. In 2023, the country produced 1.2 million tonnes of coconut oil, which represents 83% of its total oils and fats production. According to data from Oil World, approximately 1.1 million tonnes (90%) were exported, leaving only about 10% for domestic consumption.
According to the Philippine Statistics Authority, the country has approximately 63,380 hectares of oil palm plantations, producing 140,000 tonnes of palm oil per year, which accounts for 10% of the Philippines’ oils and fats production. Currently, there are 11 palm oil mills and 5 palm oil refineries in the country. The 5 refineries are owned by Oleo Fats Incorporated, Tantuco Enterprise Inc, Ricor Mills Corporation, A Brown Energy & Resources Development Inc (ABERDI), and Caraga Oil Refining Inc.
Figure 1: Vegetable Oil Imports in the Philippines (Source: Oil World)
Coconut and palm oil account 93% of the Philippines’ total oils and fats production, with 90% of the coconut oil being exported due to its premium prices. As a result, the country’s oils and fats consumption rely heavily on imports. Palm and palm kernel oil were the most imported oils in the Philippines, totalling 939,000 tonnes in 2023 and making up 87% of the country’s total oils and fats imports.
The import of palm oil in the Philippines is highly influenced by domestic coconut oil production and prices, as palm oil serves as a direct substitute for coconut oil among household consumers. The preference for palm oil in domestic consumption is primarily due to its lower price compared to coconut oil.
In 2023, the Philippines palm oil imports dropped by 21% to 939,000 tonnes from 1.1 million tonnes in 2022, as coconut oil prices were only slightly higher than palm oil prices from January to September 2023. Coconut oil prices further deteriorated and were on par with palm oil from October 2023 to March 2024.
The U.S. Department of Agriculture (USDA) has forecasted a 15% decrease in the Philippines’ coconut oil production for 2024/25 due to El Nino weather disturbance in first quarter of 2024. Severe dryness affected many parts of the Philippines from February to April 2024, with rainfall 50% below normal levels. Consequently, palm oil imports in the Philippines are expected to rise by 105,000 tonnes, reaching 1.05 million tonnes in 2024. According to Oil World data, Malaysia and Indonesia combined palm oil exports to the Philippines increased by 4,100 tonnes (2%) in the first quarter of 2024, totalling 206,000 tonnes.
Main Vegetable Oil Players in the Philippines
Company Name |
Cooking Oil Brand |
Market Share (%) |
Coconut Industry Investment Fund Oil Mills Group |
Minola |
38% |
International Oil Factory (IOF) |
Baguio |
34% |
Nutri Asia Inc |
UFC |
8% |
Malabon Soap & Oil Industrial Co Inc |
Spring |
2% |
A.D. Gothong Manufacturing Corporation |
Bambi |
1% |
Table 1: Top 5 Cooking Oil Players in the Philippines (Source: Euromonitor)
According to Euromonitor, the top three vegetable oil companies in the Philippines dominate 80% of the country’s cooking oil market (Table 1). The Coconut Industry Investment Fund (CIIF) Oil Mills Group holds the largest market share at 38% with its Minola brand, followed by International Oil Factory (IOF) with a 34% share under the Baguio brand. Nutri Asia Inc holds an 8% market share with its UFC cooking oil brand.
Company Name |
Instant Noodle Brand |
Market Share (%) |
Monde Nissin Corporation |
Lucky Me |
67% |
JG Summit Holdings Inc |
Payless |
14% |
Nissin Food Holdings Co Ltd |
Nissin |
7% |
Nongshim Co Ltd |
Nong Shim |
2% |
Zest-O Corporation |
Quickchow |
2% |
Table 2: Top 5 Instant Noodle Players in the Philippines (Source: Euromonitor)
In terms of market share for instant noodles, the top three companies dominate 88% of the market in the Philippines (Table 2). Monde Nissin Corporation leads with a 67% market share under the brand Lucky Me. JG Summit Holdings Inc ranks second with a 14% market share under the brand Payless, while Nissin Food Holdings Co Ltd holds a 7% market share under the brand Nissin.
Fast Food Chain |
Number of Outlets * |
Jollibee |
1,400 |
McDonalds |
668 |
Chowking |
640 |
Mang Inasal |
570 |
Shakey’s Pizza |
521 |
Table 3: Top 5 Fast Food Chains in the Philippines by Number of Outlets (Source: Statista) *Number of Outlets are based on Year 2022
The top five fast food brands by number of outlets in the Philippines are Jollibee, McDonald’s, Chowking, Mang Inasal, and Shakey’s Pizza. According to a market survey by the research firm Cint, 46% of Filipinos eat fast food one to three times a week on average. Fast food is also the most popular type of food ordered from delivery apps in the Philippines. Jollibee is the largest fast food chain in the country, holding a 29% market share according to Statista.
Malaysia’s Palm Oil Market Share in the Philippines
Malaysia & Indonesia Palm Oil (1000 Tonnes) |
2019 |
2020 |
2021 |
2022 |
2023 |
Malaysian Palm Oil |
629 |
693 |
580 |
639 |
441 |
Indonesian Palm Oil |
653 |
626 |
839 |
736 |
471 |
Malaysian Palm Oil Share (%) |
49% |
53% |
41% |
46% |
48% |
Table 4: Origin of palm oil imported into the Philippines (Source: MPOB & Oil World)
Malaysian palm oil had a market share of 40% to 50% over the past five years, and Malaysia is gradually reclaiming market share after the Covid-19 pandemic. According to MPOB export data, RBD Palm Olein, RBD Palm Oil, and Cooking Oil are the most imported products in the Philippines, accounting for 99% of Malaysia’s total palm oil exports to the country.
Growth Scenario in The Philippines
As the Philippine economy grew faster than other Southeast Asian economies in 2023, the market presents strong opportunities for Malaysian palm oil. The Philippines oils and fats consumption ranges between 1.5 to 1.7 million tonnes per annum, with palm oil constituting 77% of this total. There is significant growth potential for palm oil in this market especially in the food service sector.
According to the World Instant Noodle Association, the Philippines ranked seventh in instant noodle consumption in 2023, with 4.39 billion servings consumed annually. While China accounts for 40% of the world’s instant noodle consumption, the per capita consumption in the Philippines is higher. The average Filipino consumes over 36 servings per year, compared to 29 servings consumed by the average Chinese (Table 5).
Country |
Servings (Million Unit) |
Population |
Servings Per Capita |
China and Hong Kong |
42,210 |
1,432 |
29.47 |
Indonesia |
14,540 |
279 |
52.11 |
India |
8,680 |
1,440 |
6.02 |
Vietnam |
8,130 |
99 |
81.12 |
Japan |
5,840 |
122 |
44.91 |
U.S.A |
5,100 |
341 |
14.95 |
The Philippines |
4,390 |
119 |
36.89 |
Korea |
4,040 |
51 |
79.21 |
Thailand |
3,950 |
71 |
55.63 |
Nigeria |
2,980 |
228 |
13.07 |
Table 5: Top 10 Instant Noodle Consuming Countries in 2023 (Source: World Instant Noodle Association)
Major fast food chains are planning to expand their number of outlets to accommodate the growing urbanization rate (48%) and rising population. For example, Jollibee aims to open 100 new stores in the Philippines in 2024, while McDonald’s plans to open 60 new stores across the country and an average of 50 new stores annually over the next few years. The demand for palm oil is expected to increase in tandem with the growth of the food service sector.
In 2023, the Philippines had a population growth rate of 1.54%, the highest among developing economies in the ASEAN region, compared to Malaysia (1.09%), Cambodia (1.06%), Myanmar (0.74%), Indonesia (0.74%), Vietnam (0.68%), and Thailand (0.15%). The per capita consumption of oils and fats in the Philippines was 13.2 kg in 2023, significantly below the world average of 30.3 kg. Palm oil is the most consumed vegetable oil in the Philippines, accounting for 77% of the country’s total oils and fats consumption, indicating significant growth potential. Additionally, under the ASEAN Trade in Goods Agreement (ATIGA), the tariff for crude and refined palm oil is 0% (HS code: 151190).
Prepared by William Lau, MPOC HQ
*Disclaimer: This document has been prepared based on information from sources believed to be reliable but we do not make any representations as to its accuracy. This document is for information only and opinion expressed may be subject to change without notice and we will not accept any responsibility and shall not be held responsible for any loss or damage arising from or in respect of any use or misuse or reliance on the contents. We reserve our right to delete or edit any information on this site at any time at our absolute discretion without giving any prior notice.