Key Industries to Explore When Starting a Business in Davao

Davao City is known as an economic powerhouse in Mindanao, serving as a critical player in the island group’s trade activities. It also invites many business opportunities that support the brand expansion, development, and manufacture of Davao products.  Entrepreneurs should also explore industries that help enrich the quality of life in the city, such as agriculture, manufacturing, food and beverage, and even hospitality.

First-time or seasoned business owners should delve into these essential industries for new ventures. Here are some ideas to kickstart a new business in Davao City. 

6 Important Industries for Starting a Business in Davao City

1. Agribusiness

Popular Davao products and pasalubong come from local agricultural products. The region is known to be abundant in various crops, such as banana, cacao, coconut, abaca, durian, and more, bringing in about ₱147.18 billion in the gross regional domestic product in 2024. Farms typically work with cooperatives and the local government to supply their produce to wider markets. Because of this, agribusinesses such as food processing, homemade food products and fiber-based handicrafts have easier access to these organic and raw materials.

2. General Manufacturing

The manufacturing industry plays a key role in developing Davao products for domestic distribution and export. Different sectors such as food and beverage processing, consumer goods, and craft products are some of the niches of manufacturing businesses in Davao. Manufacturers also source local supplies and raw materials to innovate unique products that prove useful to daily life. Business owners can also explore endless technology and automation strategies to optimize local production.

3. Construction Materials and Services

Construction is one of the Davao industries that is experiencing a rising demand, especially with public infrastructure projects such as port modernization. Private development projects in the city and nearby provinces also outsource construction materials and services for building, repairing, and renovation. This invites increased business opportunities in the provision of construction materials such as cement, steel and metal, wood, aggregates, and prefabricated components. 

4. Hospitality and Eco-Tourism

As one of the major cities in the Philippines, many visitors and prominent figures frequent Davao. This means endless opportunities for setting up an eco-tourism business in Davao City to encourage green leisure activities. Small hotels, Airbnbs, and boutique hotels are feasible for city travelers, while the coastline is ideal for beach houses and resorts.

Eco-tourism supports conservation efforts and forges meaningful connections with nature and the local community. Hospitality businesses can also promote the use of locally-made, eco-friendly Davao products such as fibers and consumables.

5. Retail

Many opportunities for retail businesses in Davao City exist within its sprawling urban landscape, from small shops to large shopping malls. Retail business is lucrative and versatile, distributing various kinds of products to shoppers. Your products can vary across food products, cosmetics, fashion, or dry consumer goods. Create a standout business by providing unique and specialized products in the local market.

6. Franchising

If you wish to reduce the risks of starting a new business, you can look into franchising existing businesses in Davao. Franchising is low-cost and highly profitable if you have a target market, strategic location, generous amount of foot traffic, and sufficient startup costs. It eliminates the need to establish a new brand since a franchisee will be expanding a recognized brand. There are many brands across different niches that offer franchising, such as:

  • Beverages/refreshments
  • Bills payment and remittance centers
  • Clothing store
  • Convenience stores
  • Fast food restaurants
  • Food carts
  • Gas station
  • Laundry shop
  • Skincare and aesthetics
  • Ticketing outlet

Brands have different startup costs, which can range anywhere from 50,000 pesos to over 1 million pesos, so it is important to assess your budget, desired business model, available location, and profitability before investing in a franchise business in Davao.

Cargo Shipping Your Supplies Beyond Davao City

Distributing your products and supplies outside Davao City to Manila, Cebu, or neighboring areas in Mindanao can be challenging for new business owners. To cut down on logistics costs, check out cargo shipping services such as Trans-Asia Shipping Lines that can get your Davao products anywhere in the Philippines. 

  • Rolling Cargo – Light commercial vehicles, cars, and trucks carrying goods and supplies
  • General Cargo – Packaged cargo containing Davao products for distribution
  • Bulk Cargo – Unpackaged cargo such as grains, ores, cement, sand
  • Agricultural Products – Local produce, fruits, vegetables, crops
  • Parcels – Documents, envelopes, folders
  • Boxes – Small, large, and extra large boxes containing items for shipment
  • Container – Goods packed in standardized shipping containers

Trans-Asia Shipping Lines can transport all kinds of cargo on its cargo vessels. Davao cargo shipping routes include:

  • Davao to Manila and vice versa
  • Davao to Cebu and vice versa
  • Davao to Cagayan de Oro and vice versa
  • Davao to Zamboanga and vice versa
  • General Santos to Davao and vice versa

The diversity of Davao industries lets you explore a variety of business ideas that can strengthen your presence in the city. It is essential to choose the best type of industry that suits your expertise, meet the needs of the local market, and boost the wellbeing of consumers.

ALSO READ: Your Complete Guide to Navigating Less than Container Load Shipping to Visayas and Mindanao

Partner with Trans-Asia Shipping Lines for your business cargo shipping needs! Expand your business beyond Davao through our Manila to Mindanao cargo shipping routes, such as Manila to General Santos, Manila to Zamboanga, and vice versa. We also offer cargo shipping to Cagayan de Oro, Cebu, and Davao. View our freighter schedule here and book with us today.