This report uses the Duke CGGC Global Value Chain (GVC) framework to examine the role of
the Philippines in the global cocoa-chocolate industry and identify opportunities for the country to
upgrade. The cocoa-chocolate global value chain (GVC) is a multimillion-dollar industry that
connects cocoa bean producers, often located in developing nations, with manufacturers and
consumers of chocolate. The demand for chocolate has grown rapidly in the last decade,
encouraging countries to expand and improve cocoa bean production. Taking advantage of
increased global demand, the Philippines is interested in participating in the sector.
The Philippines’ current involvement in the cocoa-chocolate GVC is limited despite many competitive advantages. The primary role it plays is an importer of intermediate and final products for domestic consumption. The country has produced cocoa for centuries and has good climatic and geographical conditions for its production. However, exports remain low; globally, the country ranks 72nd in exports with a global market share of less than 0.01% (UNComtrade, 2016). In 2014, only eight Filipino firms reported exports of over US$500,000 in the cocoa-chocolate GVC (PSA, 2007-2014).