Voluntary Report – Voluntary - Public Distribution Date: March 26,2020
Report Number: RP2020-0014
Report Name: Market Opportunities in Baguio for US Food and Beverages
Country: Philippines
Post: Manila
Report Category: SP1 - Expand International Marketing Opportunities, Food Service - Hotel
Restaurant Institutional, Retail Foods
Prepared By:
Approved By: Morgan Haas
Report Highlights:
Located 150 miles north of Manila, Baguio city is the heart of northern Luzon, featuring opportunities
for U.S. foods and beverages, specifically in the food retail and the food service sectors.
General Information:
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF
AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
Located 150 miles north of Manila on the island of SUMMARY DATA
Luzon, Baguio City originated as a hill station by the
United States in the early 1900s and quickly became a Province: Benguet
favorite retreat of Americans and more recently
Population (2015): 345,366
Filipinos. Originally intended to be the summer capital
of the Philippines, it has since become a popular <30 years old: 65.5% (226,215)
tourist destination to many from Manila escaping the
heat, noise, and crowds. Density (2015): 2,316/ mi² (6,005/ km²)
Baguio is rich in fresh agricultural products such as Ave. Annual Salary: Php 195,000 (approx. $4,000)
vegetables, fruits, and flowers from Benguet province,
GDP Growth (2018): 7.30%
with the city also being a distribution point for such
products throughout Luzon. Meanwhile, virtually all Fresh vegetables (potatoes,
U.S. products flow through Manila-based importers. carrots, ube, beans, broccoli,
cauliflower, lettuce, cabbage,
Despite Baguio’s relatively small size, it is home to Top Agricultural radish, etc.); fresh fruits
numerous shopping centers and malls catering to Products (strawberries, coffee, avocado),
increasing commercial and tourist activity. Its preserved fruits (strawberry jam,
population doubles or sometimes triples during long ube jam, peanut brittle and
weekends and holidays in the summer and Christmas many others)
season. Visitors primarily come from Manila and other Top Food
parts of the Philippines. Featuring a young None
Manufacturers
demographic, popular occupations among locals
include manufacturing, commercial retail and food SM Supermarket, Robinsons
services, academe, medical services, and business Supermarket, Marketplace by
Key Supermarkets:
process outsourcing. Rustans, Puregold, Savemore, 7-
11 Convenience Store,
Travel time to Baguio is around 4-5 hours’ drive.
Baguio City Public Market,
Following an earthquake 30 years earlier, the city plans
Victoria Supermart, Sunshine
to reopen its airport for commercial operations in Key Local Retailers:
Supermart, Pacific Market Place,
2020. More convenient travel options to Baguio will Baguio Holiday Supermart
encourage further development and commercial
activities in the area.
Over the last five years, FAS Manila has repeatedly found interest for US foods and beverages in Baguio,
culminating in the establishment of the regional trade show, World Food Expo (WOFEX) Baguio in 2019, where
16 Philippine companies represented more than 150 SKUs of U.S. food, beverage and ingredient products,
reaching more than 1,000 representatives from hotels, restaurants, supermarkets, food manufacturers, and
culinary institutions from the region of Northern Luzon. Featured product with the best market potential
included beef, lamb, poultry, wines, juices, dried fruits, nuts, frozen potatoes, baking and confectionary
ingredients, syrups, and condiments.
Looking ahead, Baguio’s growing population and tourist sector as well as upcoming infrastructure projects will
serve to increase the distribution of imported food supplies to this marketplace and throughout Luzon.
Food Retail Sector
The majority of Baguio residents still purchase their
food requirements from traditional retailers such as
wet markets and sari-sari-stores (mom-and-pop
stores). With its cool weather and small area for
commute, consumers still patronize the city’s biggest
public market that is located at the very center of the
city. It is a favorite destination of both residents and
tourists since almost everything (from food, clothing,
to souvenirs) can be found in this vast public market.
Food in bulk or retail is cheaper in the public market
compared to what is sold in the supermarkets. Mostly
fresh products are found in the public market, which
are locally sourced or produced.
Modern supermarkets are scattered around Baguio City. They are located in the busy commercial areas or near
residential areas. Packaged, frozen, and processed food items are mainly sold in the supermarkets.
Supermarkets are open until 9:00pm, catering to the busy households who tend to buy their food after work.
Key supermarkets such as SM, Puregold, Robinsons and Rustans carry more imported items than the local
supermarkets in Baguio and would be the likely destination for U.S. food and beverage products.
The entrance of SM City Mall in 2003 opened the door for its competitors to join this market as well. These
stores offer more stock keeping unit (both local and imported) compared to the local supermarkets, thus
providing more choices for consumers.
SM Supermarket is the biggest food retail player
in Baguio. It has three supermarkets in Baguio
City, the biggest located inside SM City Baguio
Mall, while two Savemore stores are on stand-
alone locations.
7-Eleven is the leading convenience retail store
in Baguio. It runs 30 stores in the province of
Benguet with 28 of them located in Baguio City.
Puregold has two stores operating in Baguio
City, while both Robinsons and Rustan’s each
have one store.
Though some imported food items are already available in key supermarkets, Post sees that there is still
potential for more U.S. food and beverage products, including red meats, poultry, wines, juices, dried fruits,
nuts, frozen potatoes, snack food and chocolates, baking and confectionary ingredients, syrups, sauces, and
condiments, etc.
Food Service/HRI Sector
Baguio City is home to more than 1000 food service restaurants. From fast food to fine dining, local to
international cuisine, cheap eats to more expensive ones, restaurants in Baguio are prominent throughout the
city. A tour in Baguio is never complete without a planned food trip. Most restaurants are in stand-alone
locations, while others are located inside a commercial building or malls.
The city’s HRI sector has expanded to the dining and lodging needs of ever-growing tourists. Large numbers of
tourists visit Baguio particularly during summer and the Christmas holidays, with 1.5 million tourists visited in
2017. Most hotels or inns are locally owned with only a few international hotel brands like Holiday Inn,
Wyndham (Microtel), and Ritz present in Baguio. Popular local hotels include The Baguio Country Club, The
Manor, Forest Lodge, and Hotel Veniz. Vacation and transient houses use a typical house with separate
furnished rooms for rent.
Hotels and restaurants in Baguio City mainly purchase their food supplies from direct distributors (local or
imported products) or straight from the local public market or supermarkets. High-end establishments with
specific requirements for meat, beverage, and other food ingredients acquire their food supplies from the
importer’s accredited or assigned distributors.
Food Manufacturing
Baguio does not have a significant food manufacturing sector.
Further Information and Assistance
For further information or assistance, please contact:
U.S. Department of Agriculture
Foreign Agricultural Service
Embassy of the United States of America
1201 Roxas Boulevard
Manila, Philippines
Trunk Line: (632) 301-2000
Website: www.fas.usda.gov
Email:
[email protected]Attachments:
No Attachments.
