Ten promising sectors for U.S. exporters are summarized below. This list is not exclusive, so if your products or services are not listed here, please contact us using the form at the bottom of this page for an assessment of the market. You may also use this form to request information on typical market entry strategies, opening an office in Manila, and an unscreened list of potential local representatives for your company.

Introduction

Almost any U.S. product or service can find an interested buyer in the Philippines. The country is solidly pro-American, and the government and people are strong allies of the United States. The United States exports almost $8 billion annually to the Philippines, making this our 19th largest export market and our biggest customer in SE Asia. Thanks to our close relationship over the past 100 years, Filipinos are very knowledgeable about U.S. products and services and have a great affinity for them. Moreover, the Philippines is the world’s third largest English speaking nation, so U.S. firms seldom encounter language problems when doing business with Philippine companies. The U.S. presence is strong and growing.

(1) Information Technology

For the next three years, the IT market will be driven by the increasing number of companies adopting e-commerce and e-business methods. Further, the market has also been greatly affected by the Philippines' effort to become a leading regional center for e-Services hosting a variety of global enterprises in information technology and other professional services.

(2) Construction Equipment

The construction sector is projected to improve its performance in the next three years as the Philippine government implements more infrastructure-related projects such as irrigation systems, road networks, ports, water facilities, drainage systems and power stations. The private sector, on the other hand, is expected to benefit from the reforms in the housing finance system. Further, major developers will continue to develop retail/commercial establishments. The Philippines is almost 100 percent dependent on imported construction equipment. The U.S. ranked second to Japan as the Philippines’ import source of construction equipment in 2001. The U.S. share was 16 percent compared to Japan’s 33 percent. The Philippines imported 17 percent of its construction equipment requirements from Singapore.

(3) Building Materials

Imports of building products are expected to grow 5 percent in the next two years since the construction sector is projected to improve its performance. Low-cost and middle-income housing, retail real estate or shopping malls, and infrastructure are the leading areas in the construction sector.

(4) Pharmaceuticals

U.S. pharmaceuticals continue to have high potential. The local Bureau of Food and Drugs adopts U.S. pharmacopoeia. Eighty percent of pharmaceutical products are sold through drug stores, fourteen percent through hospitals and the rest by other entities (like supermarkets and small corner stores. Drug retailing is among the most lucrative businesses in the country.

(5) Water Resource Equipment/Services

The demand for clean water has emerged as one of the highest priorities of the Philippines thanks to the Clean Water being finalized by the Philippine Congress. The Philippine population of approximately 80 million badly needs clean water, and numerous municipalities are experiencing intermittent or continuous water shortage or suffering from contaminated water resources.

(6) Medical Equipment

Continuous requirements for medical services, new technology, and equipment replacement should spur market growth. The U.S. market share is 30 percent. Japan and Singapore follow with 13 percent each. Importers of medical equipment advise that import data on Singapore reflect transshipments from the U.S., Europe and other Asian countries, including Japan. The market shares reflect Philippine preference for U.S. products. Third country suppliers, however, are giving U.S. products increasing competition.

(7) Security and Safety Equipment

The Philippine government has issued a 16–point defense plan to strengthen intelligence, harden soft targets and manage the consequences of terrorist attacks. The policy framework is expected to spur new regulations regarding the safety and security situation in the Philippines, and increase sales of equipment and services. The following sub-sectors present promising opportunities: Information and Data Security Products and Services (firewalls, intrusion detection and response systems, anti-virus software, vulnerability assessment services and other related products and services); Building and Properties Safety and Security (burglar / intrusion alarm systems; access control systems including exit devices and swipe cards; surveillance systems (particularly closed circuit TVs or CCTV; fire alarm / fire detection systems; building automation; emergency evacuation systems); and Physical and Personal Security (protective gear and equipment).

(8) Food Processing and Packaging Equipment

The food processing and packaging industry is very diverse in terms of business size and activity. There are over 22,500 food and beverage processors, 99 percent of which are cottage, small and medium enterprises. The dominant players, namely San Miguel Corporation, Republic Flour Mills, Universal Robina Corporation, and Purefoods are large-scale agro-industrial corporations all of which are multi-product, vertically-integrated manufacturers and processors. Small and medium-size companies, however, also thrive. Most of these firms focus on supplying the domestic market. Relatively few companies export their products.

(9) Pollution Control Equipment/Services

American air pollution control equipment/services companies are active in the Philippines and account for more than 30 percent of the market share in the pollution control sector. This sector is completely import dependent. Good opportunities also exist for U.S. waste management companies in national and local government waste collection projects.

(10) Consumer Goods (including Food Products)

Filipino consumers have a strong affinity and distinct preference for American products. American culture and lifestyle is nowhere more evident and emulated in Asia than in the Philippines. American products are highly regarded for their high quality and product consistency. Filipinos are brand conscious but price sensitive at the same time. Popular American brands can afford a small price premium versus competing products from third country suppliers. About 80 percent of imported products in Philippine supermarkets are American products and/or brands; the variety and range of American product lines are similar to those available in the US. Local stores are becoming more sophisticated; most of which now compare to US/western stores. Practically all Filipinos have relatives in the United States who regularly send or bring home food gifts, which has become the initial yet very effective way of introducing American products to Filipino consumers.

Additional Industry Sectors, Market Entry Strategies, Other Information

Remember, you can contact us for an assessment of the Philippine market for other products or services not listed here. This free assistance is available only to exporters of goods and services that have at least 51 percent U.S. content.