ABSTRACT
This purpose of this article is to demonstrate (1) how growing seaweed in the central Philippines is affected by multifaceted local dynamics and (2) how it is also dependent on the complementary livelihood strategies of in situ and ex situ diversification. This article explores the livelihood trajectories of 45 households that were all engaged in growing seaweed in 2015. Surveys and semi‐structured interviews were conducted with households and key informants in two municipalities. Results reveal a process of livelihood divergence. While in one municipality growing seaweed has become a relative success, virtually all households in the other municipality have had to stop growing seaweed, returned to fishing, and remained poor. The reasons for this divergence can be found in the spheres of environmental challenges, value chain governance dynamics, and local coastal governance. Three implications are put forward that could improve the inclusiveness of coastal development in the Philippines and beyond.