Citing a Mordor Intelligence market research report, Luna said consumption of sustainable-certified coffee is rising across Asia-Pacific, supported by the rapid growth of e-commerce platforms and increasing consumer awareness around health, ethics and traceability.
For the Philippines, this trend aligns with the government’s push to revive and upscale the local coffee industry, particularly in Mindanao and upland farming communities, where sustainability certification could unlock premium markets both domestically and regionally.
The cocoa sector also presents strong momentum. Luna said the Asia-Pacific cocoa market is the fastest-growing globally, expanding at a compound annual growth rate of 9.62 percent through 2030. The Philippines, which has identified cacao as a priority crop under its agribusiness modernization strategy, stands to benefit from this regional demand upswing.
Palm oil markets, while still dominated by Indonesia and Malaysia, are also recording meaningful gains in emerging Asian economies from low baselines—an experience that offers lessons for the Philippines as it balances sustainability, food security and land-use concerns.
“Cotton-producing countries in Asia are also consuming more sustainable cotton,” Luna added, pointing to broader regional acceptance of sustainability standards.
Untapped potential in domestic consumption
Luna highlighted how major Asian economies consume most of their agricultural output domestically. China absorbs 88 percent of its tea production, while India consumes more than 80 percent of its own supply.
“This consumption pattern indicates substantial untapped potential to increase VSS-certified tea consumption, as even modest percentage increases would translate to substantial absolute volumes given the scale of domestic markets,” she said.
For the Philippines, this insight underscores the opportunity to grow local demand for certified, sustainably produced food, particularly as Filipino consumers become more conscious of food safety, climate resilience and ethical sourcing.
Barriers remain—but policy and industry action matter
Despite promising developments, Luna warned that major challenges remain in expanding certified consumption across emerging markets.
Price sensitivity is a key constraint, as certified products often command price premiums of 10 percent to 30 percent—levels many middle-income consumers struggle to afford. The absence of regulatory incentives or mandatory sustainability requirements in most emerging economies also means growth relies heavily on voluntary corporate commitments and consumer purchasing power.
These challenges, however, also point to policy opportunities for the Philippines, where targeted incentives, public-private partnerships and stronger sustainability frameworks could help local farmers and agribusiness firms scale up certification and competitiveness.
Sustainability standards shaping future trade
Published by the International Trade Centre (ITC) in collaboration with the Research Institute of Organic Agriculture and IISD, The State of Sustainable Markets 2025 underscored the growing role of sustainability standards in global trade.
“Sustainability standards provide a framework for companies to ensure that their operations are environmentally friendly and socially responsible,” the report said, adding that these standards help businesses prepare for future regulations, harmonize trade practices and drive innovation.
The annual report tracks 13 major sustainability standards covering bananas, cocoa, coffee, cotton, oil palm, soybeans, sugarcane, tea and forestry products. The 2025 edition incorporates 2023 data and confirms that market growth resumed after an unusual dip in 2020.
For the Philippines, the findings reinforce the case for positioning sustainable agriculture not just as an environmental goal, but as a strategic agribusiness and export advantage in a rapidly evolving Asia-Pacific market.