Tetra Pak in the Philippines: Smart innovation with local impact

As the global packaging sector undergoes significant changes resulting from consumer expectations and operational demands, carton packaging has emerged as a key area of focus. In the Philippines, the question is whether industry is evolving quickly enough to address both market needs and production challenges.

 

In this context, John Jose, Marketing Director, Tetra Pak Malaysia, Singapore, Philippines and Indonesia, offers his views into the sector’s current strengths and hurdles, while also examining the pace of innovation in carton packaging. He further provides an overview of Tetra Pak’s presence and operations in the Philippines, specifically in supporting industry growth and advancing packaging solutions.

 

 

John Jose, Marketing Director, Tetra Pak Malaysia, Singapore, Philippines and Indonesia

 

 

Please share your perspective of the Philippines’ F&B packaging sector (key strengths and challenges)? 

The Philippine packaging sector is a vital part of the national economy, supporting food, retail, and e-commerce industries. According to GlobalData, the market reached 72.3 billion units in 2023 and is projected to grow to 89.4 billion units by 2028 at over 4% CAGR, led by food packaging. 

 

The country’s packaging and processing food industry continues to thrive — locally driven by urbanisation and busy lifestyles, and globally supported by strong exports of tuna, sardines, crabmeat, and tropical fruits. The Philippines’ rich agricultural base, particularly in coconut and fruit production, also strengthens its export potential, with the global coconut milk and cream market expected to reach USD 7 billion by 2028. 

 

However, the sector faces rising input costs and uneven recycling infrastructure, which challenge profitability and sustainability. Evolving regulations — including Extended Producer Responsibility (EPR) and climate-related policies — are also raising expectations for low-impact, recyclable packaging. 

 

To stay competitive, Philippine producers must move beyond cost and compete on value, compliance, and innovation. Global markets now prioritize health, sustainability, and e-commerce readiness, making packaging innovation essential to maintaining momentum. Sustained growth will depend on how quickly the industry can adopt sustainable materials, streamline supply chains, and scale value-added packaging solutions. 

 

Is the local carton packaging sector evolving fast enough to meet consumer needs as well as manufacturing challenges? 

The local carton packaging sector in the Philippines is evolving steadily, but whether it's fast enough depends on the lens through which we evaluate—consumer needs, manufacturing capabilities, and sustainability pressures. 

 

Growth in consumer demand is driven by continuous expansion in retail and e-commerce, rising demand for lightweight, recyclable and biodegradable packaging as well as increasing preference for sustainable packaging. 

 

The manufacturing sector faces challenges on raw material sourcing, environmental regulations, technology gaps due to investments needed and the prevalence of flexible and lightweight packaging. 

 

Many sectors are promoting eco-friendly packaging alternatives and packaging manufacturers are deep into search for the next-big-thing on packaging innovation like introducing more renewable materials or production lines using lesser utilities like water, power and air. 

 

Could you provide an overview of Tetra Pak’s presence and operations in the Philippines, along with any key milestones you would like to highlight?

Tetra Pak has been operating in the Philippines since 1981, advancing the country’s food packaging and processing landscape through safe, high-quality, and sustainable solutions. Today, we support over 50 household brands across 24 brand owners, helping ensure that nutritious food and beverages reach Filipino families safely and sustainably. 

 

We’ve also been a strong partner in unlocking new growth opportunities for the local food industry. A key milestone is our contribution to developing the Philippines as one of the global hubs for coconut-based products — and one of the country’s strongest export sectors. To strengthen this ecosystem, we established the Coconut Knowledge Centre (CKC) in 2012 which is now located in Thailand.

 

Leveraging more than 20 years of experience in coconut beverage processing and packaging, the CKC provides end-to-end expertise — from product and process development to innovative packaging design and consumer insights. It also serves as a regional hub for industry collaboration, tracking emerging market trends, analysing new product launches, and identifying growth opportunities. Through these efforts, we continue to help customers expand their portfolios, strengthen competitiveness, and build profitable, sustainable businesses. 

 

Our technical collaboration and the knowledge shared through the CKC have helped Filipino co-packers scale production capabilities, improve operational efficiency, and reach international markets — helping position the Philippines among the world’s leading producers of UHT coconut water. 

 

As the organization continues to drive engagement with brand owners in driving growth innovation and operational efficiency, it is also securing initiatives to promote sustainability leadership through various programs like Cartons for Communities which raise awareness and drive carton recycling initiatives across the country, working with schools, communities and local governments. 

 

How important is the Philippines market to the company in relation to its growth plans in Southeast Asia? 

The Philippines is a strategic growth market for Tetra Pak within Southeast Asia. With its young population, strong agricultural sector, and expanding food-processing base, it plays a pivotal role in the region’s food security and sustainability journey. 

 

The country is also a global leader in coconut-based products, consistently ranking among the top two coconut producers worldwide. This makes it an important centre for innovation and value-added food exports, where Tetra Pak continues to provide the packaging technology and expertise to help producers expand regionally and globally. 

 

Urbanization is accelerating, and demand for convenience and on-the-go consumption is rising — fuelling growth in packaged food, beverages, and single-serve products. This, in turn, is driving strong demand for packaging solutions that ensure safety and ease of use. At the same time, there is growing momentum toward recyclable and eco-friendly materials, reflecting consumers’ increasing preference for sustainable packaging. 

 

Tetra Pak remains committed to working hand in hand with local partners to strengthen food security, advance the circular economy, and help Filipino brands scale sustainably across regional and global markets. 

 

Can you cite examples of packaging formats or technologies that have gained traction in the Philippine market due to shifting consumer preferences? 

Filipino consumers today are increasingly seeking packaging solutions that balance three key priorities: affordability, convenience, and environmental responsibility. This shift in consumer behavior is driving demand for innovative packaging formats across the market. 

 

One notable example is Tetra Recart®, the world's first retortable carton package, which is gaining significant traction in the Philippines—particularly within the country's well-established canned food industry. This breakthrough technology offers a sustainable alternative to traditional metal cans and glass jars. 

 

What makes Tetra Recart® particularly appealing is its strong environmental profile combined with practical benefits. The package is made with 70% paperboard sourced from responsibly managed, renewable forests, and delivers up to 85% lower CO₂ emissions compared to conventional metal cans. Beyond sustainability, it addresses consumer convenience through features like easy-open mechanisms, re-closable designs, and mess-free handling—all factors that resonate strongly with Filipino families seeking both functionality and peace of mind. 

 

At the same time, smaller, affordable portion packs are also becoming more popular, reflecting the everyday needs of Filipino consumers. Tetra Pak recently introduced the Tetra Brik® Aseptic 100 B format in the market, enabling cost-efficient local co-packing for small-volume products. Using highly sterile aseptic packaging technology, our aseptic packaging ensures products have up to 12 months of shelf life without refrigeration or preservatives — preserving freshness and nutrition while reducing waste. 

 

Our aseptic process ensures that both the food and packaging materials are commercially sterile, keeping them safe from harmful bacteria throughout production. These cartons are made from fully recyclable materials that maintain product integrity while minimising environmental impact. 

 

These innovations demonstrate how packaging can meet evolving lifestyles and economic realities, giving Filipino brands more flexibility to offer sustainable, high-quality products at the right price point. 

 

Tetra Recart®. Paper-based, retortable carton that can replace traditional cans and glass jars for packaging shelf-stable food products.

 

 

How would you describe the adoption of smart packaging in the country? What factors are driving, or hindering its acceptance? 

The adoption of smart and sustainable packaging in the Philippines is still emerging but rapidly gaining traction. According to Mobility Foresights, the local smart packaging market is projected to grow from USD 41.2 billion in 2025 to USD 82.5 billion by 2031, reflecting rising awareness among producers about shelf-life extension, food traceability, and export readiness. 

 

As the country modernises its food system, manufacturers are under increasing pressure to innovate — not only to ensure safe and stable food supply, but also to meet global standards for quality, compliance, and sustainability. Brands are looking for solutions that helps reduce waste, extend freshness, and enhance transparency from farm to shelf.

  

Urbanization, e-commerce, and changing lifestyles are driving demand for more convenient options. This creates opportunities for both established manufacturers and startups to innovate and invest in new solutions, positioning themselves to capture the next wave of growth.  

 

Please tell us about the company’s approach to packaging innovation, especially how this is supporting producers, SMEs, or community-based food systems in the country. 

Tetra Pak’s approach to innovation focuses on enabling safe, affordable, and sustainable access to food — for everyone. We’re introducing sustainable packaging formats tailored to the Philippine market to improve affordability, nutrition, and food safety across different income segments. 

 

In the Philippines, we work closely with producers to make innovation more accessible. Our lightweight, stackable, and renewable packaging formats help businesses reduce waste, improve logistics efficiency, and meet rising consumer expectations for sustainability and convenience. Recognizing that not all producers can invest in full-scale facilities, we also collaborate with local co-packers, allowing smaller businesses to access world-class processing and packaging technology and participate in the formal food-supply value chain. 

 

Beyond packaging, we support customers through our Product Development Centres (PDC) and Customer Innovation Centres (CIC) located across the world. These facilities allow brands to co-create, prototype, and test new products and packaging formats, using consumer insights and sensory testing to optimize performance and market appeal. By combining technical know-how with design, data, and consumer research, we help brands shorten time-to-market, strengthen competitiveness, and meet the evolving needs of Filipino consumers. 

 

Together, these initiatives enable Tetra Pak to play an active role in shaping a more innovative and inclusive food ecosystem — one that supports producers of all sizes and delivers better access to safe, nutritious food for communities nationwide. 

 

Are there initiatives or partnerships focused on circular economy, recycling infrastructure, or carbon reduction? 

Our approach to sustainability takes into consideration the expectations of our stakeholders, and the environmental, social and governance (ESG) topics that are most material to our industry. At the heart of our sustainability approach, we consider the interconnections and interdependencies of five focus areas, which are aligned with our purpose and where Tetra Pak can contribute the most: food systems, nature, climate, circularity, and social sustainability.

 

Carbon reduction: We are making strong progress, achieving 94% renewable electricity in our operations and cutting value chain GHG emissions by 25% since 2019. This is part of our global ambition to reach net-zero emissions across our value chain by 2050. 

• > Designing for recycling: Our cartons are designed with circularity in mind. The average paperboard content of our beverage cartons is more than 70% which is a renewable material when sourced responsibly. The paperboard we use comes from Forest Stewardship Council™ (FSC™) certified forests and other controlled sources supporting sustainable use of forest resources.

• > Advancing circularity: We work globally to advance the circular economy by supporting efforts to improve collection and recycling infrastructure worldwide. In places where collection infrastructure is still being built up, we are co-investing with recyclers in new equipment and facilities to increase recycling capacity. Examples of such cases is our partnership with Recon Polymers in Netherlands.
• > Working with customers: Through continuous innovation in more efficient packaging and processing solutions, we aim to help our customers reduce their climate footprint and make food production more efficient – from renewable, responsibly sourced carton packages to processing technologies and services that reduce water, energy and waste

 

Tetra Pak is a leader in sustainability, but what can be said about sustainability in the Philippines? What metrics does Tetra Pak use to measure sustainability impact in the country? 

Sustainability in the Philippines is progressing steadily, supported by stronger government policies such as the Extended Producer Responsibility (EPR) Act and a growing shift in consumer preference toward eco-friendly packaging. However, challenges remain around recycling infrastructure and waste collection, which require continued collaboration across the value chain. 

 

At Tetra Pak, we are committed to playing our part. Our key local circular economy and voluntary EPR initiative is the "Cartons for Communities" program. This is a flagship example of circularity in action, linking environmental education with real community benefit. The program focuses on strengthening the recycling value chain by supporting its various actors, for example, by providing waste sorters with PPEs or junk shop partners with items to help boost business productivity. 

 

An example of this program's impact is a collaboration project with the Del Monte Foundation. In 2023, this specific initiative collected over 618,000 beverage cartons, transforming them into classroom furniture and construction materials, which refurbished six schools in Mindanao and provided 115 desks and 460 chairs. 

 

Nationally, we also partner with Basic Environmental Systems & Technologies (BEST), CARPEL Environment Corporation, GNS Enterprises, Evergreen Labs, and Berdeng Kalabaw to strengthen recycling infrastructure. We support the Rural Industrial Corp recycling facility in Bulacan, which converts post-consumer beverage cartons into paper products and Poly Al Pro boards for construction materials. 

 

In terms of metrics, we track our progress through key indicators such as carbon reduction, renewable material usage, and recycling outcomes, all aligned with our global ambition to reach net-zero emissions across our value chain by 2050. Please refer to our latest Sustainability Report 2024 for more details. 

 

This past World Food Day, what was Tetra Pak’s message to F&B companies in the Philippines? 

This year’s World Food Day theme, “Hand in Hand for Better Foods and a Better Future”, perfectly captures what’s needed now — stronger collaboration across the food value chain. 

 

In ASEAN and here in the Philippines, we are working to ensure that safe, nutritious food reaches every community that needs it. Too often, gaps in processing, packaging, storage, and transport prevent this from happening. 

 

Our message to F&B companies is to view packaging not just as a container, but as a system enabler. Smart, sustainable packaging keeps food safe for longer, reduces spoilage, and makes nutritious products more accessible — especially in areas with limited cold storage or transport infrastructure. 

 

By working hand in hand with governments, producers, and communities, we can build food systems that are more resilient, equitable, and sustainable. Together, we can ensure that every Filipino, especially every child, has access to safe, nutritious food while protecting the planet for future generations.