In a significant development for the Philippine coconut industry, the United States Food and Drug Administration (USFDA) has removed coconut from its list of major food allergens, a move that is expected to increase demand for coconut products and benefit local farmers and exporters. This decision was announced by the Department of Trade and Industry (DTI) on January 27, 2025, highlighting the potential for growth in the sector.
The removal of coconut from the allergen list means that coconut products, including packaged foods and supplements containing coconut, will no longer require special allergen labeling as mandated by the US Food Allergen Labeling and Consumer Protection Act of 2004 (FALCPA). This change is anticipated to boost the market for a variety of coconut-based products such as refined and virgin coconut oil, coconut milk, desiccated coconut, coconut water, and coconut sugar.
Bianca Pearl Sykimte, Director of the DTI’s Export Marketing Bureau, praised the collaborative efforts of the DTI, the Department of Agriculture, the Philippine Coconut Authority, and private sector stakeholders in overcoming industry challenges. She emphasized the commitment to fostering the growth of the coconut sector by addressing critical market access and regulatory issues.
According to data from Mintel’s global new product database spanning 2018 to 2023, over 20,000 coconut product variants are utilized in the US for food, beverages, and personal care products. This statistic underscores the significant role of coconut in the American market.
Industry leaders have welcomed the USFDA’s decision, noting its positive impact on global coconut trade. Yvonne Agustin, Executive Director of the United Coconut Associations of the Philippines, described the move as a long-awaited victory for the industry, resolving a decades-long issue regarding coconut’s classification as a tree nut. Similarly, Dr. Rhoey Lee Dakis, Vice President of Sales, Marketing, and Export at Peter Paul Philippine Corporation, stated that the decision provides clarity for consumers and manufacturers, removing unnecessary labeling and misconceptions.
The Philippine Statistics Authority reported that coconut products continue to be the country’s top export, with a value of USD524.92 million from January to October 2024. This latest development is expected to further strengthen the global position of the Philippine coconut industry.