Banana Market Overview in the Philippines

The revenue of the banana market in the Philippines amounted to $4.2B in 2010, shrinking by -9.4% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +10.8% over the period from 2007 to 2010; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2008 with an increase of 35% against the previous year. Over the period under review, the banana market attained its peak figure level at $4.7B in 2009, and then declined slightly in the following year.

In value terms, banana production amounted to $5.9B in 2010 estimated in export prices. The total output value increased at an average annual rate of +12.6% from 2007 to 2010; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2008 with an increase of 35% year-to-year. Banana production peaked at $6.2B in 2009, and then declined slightly in the following year.

In 2010, the average yield of bananas in the Philippines totaled 20 tonne per ha, remaining constant against the previous year. The yield figure increased at an average annual rate of +5.7% over the period from 2007 to 2010; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed in certain years. The most prominent rate of growth was recorded in 2008 with an increase of 16% year-to-year. Over the period under review, the average banana yield attained its peak figure level in 2010 and is expected to retain its growth in the near future. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

Banana harvested area in the Philippines stood at 449K ha in 2010, stabilizing at the previous year. Overall, the banana harvested area continues to indicate modest growth. The pace of growth appeared the most rapid in 2009 with an increase of 1.8% year-to-year. Over the period under review, the harvested area dedicated to banana production reached its peak figure in 2010 and is likely to see steady growth in the immediate term.

In 2010, the amount of bananas consumed in the Philippines amounted to 6.5M tonnes, coming down by -4.8% against the previous year. The total consumption volume increased at an average annual rate of +5.6% over the period from 2007 to 2010; the trend pattern remained consistent, with only minor fluctuations being observed in certain years. The pace of growth appeared the most rapid in 2008 with an increase of 18% y-o-y. Banana consumption peaked at 6.8M tonnes in 2009, and then declined slightly in the following year.

The revenue of the banana market in the Philippines amounted to $4.2B in 2010, going down by -9.4% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +10.8% from 2007 to 2010; the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The growth pace was the most rapid in 2008 with an increase of 35% y-o-y. Over the period under review, the banana market attained its maximum level at $4.7B in 2009, and then declined slightly in the following year.

The banana market is expected to start a downward consumption trend over the next fifteen years. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -5.0% for the fifteen-year period from 2010 to 2025, which is projected to depress the market volume to 3M tonnes by the end of 2025.

Over the period under review, imports of banana in the Philippines were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for banana.

This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.