Hot Drinks in the Philippines
Euromonitor International's Hot Drinks in the Philippines market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 67 | Publication date: Jun 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Economic upheaval lowers the desire for hot drinks
2008 could have been a very successful year for hot drinks, given the strong potential for growth that existed. Manufacturers were ready to offer products to excite consumers; however an economic slowdown diminished the purchasing power of many Filipinos. Therefore consumers were forced to focus on commodities such as rice at the expense of secondary products such as hot drinks. Coffee remains an important part of consumer lifestyles in the Philippines; however, consumption slowed as more people used a sachet of instant coffee twice as an economy measure. The tendency to economise was revealed by the slowdown in off-trade volume growth in 2008.
New products grace hot drinks
Filipinos were offered instant tea by two brands distributed mostly through the off-trade channel: Lipton Milk Tea and Galinco Nai Cha (Milk Tea). Instant tea is the most recent type to be offered in the Philippines; black tea has been around for quite a long time while green tea, fruit/herbal tea and other tea were introduced earlier in the review period. Other plant-based hot drinks was enlivened recently as the leading brand Nesvita provided innovations such as a chocolate flavour version and two new cereal drink brands: the Bear Brand Busog Lusog (full healthy) and Nutrivim. These innovative products provided more options for consumers.
Tri-media campaigns consolidate the leadership of big multinationals
Tri-media campaigns, specifically TV advertisements, consolidated the leadership of big multinationals such as Nestlé Philippines Inc and Unilever Philippines Inc. By fortifying brand equity, Nescafé, Milo and Lipton generated high profits in coffee, other hot drinks and tea respectively. The visibility of products, through TV advertisements, often associated with popular celebrities, spelled out the difference between rich multinational companies and local players. The greater financial resources of foreign companies have enabled them to advertise products more often than local competitors. Since Filipinos are almost addicted to watching television and listening to the radio, these well-advertised brands have been incorporated into their everyday lifestyles.
Supermarkets/hypermarkets dominates hot drinks
Over the review period, supermarkets/hypermarkets consistently gained retail volume shares, due partly to the continuous expansion of outlets by chains such as SM hypermarket. Supermarkets/hypermarkets is increasingly becoming an indispensable retail format for hot drink manufacturers. In 2008, supermarkets/hypermarkets dominated retail volume sales as more consumers shop for hot drinks in these outlets. However, manufacturers’ profit margins might suffer as supermarkets/hypermarkets look to exploit this growing dependency by increasing placement fees.
Hot drinks’ performance will be dictated by younger consumers
The biggest contributor to retail volume sales is expected to remain malt-based hot drinks followed by coffee and tea. Younger consumers are predicted to remain the biggest consumers of malt-based hot drinks, while coffee and instant tea manufacturers are also targeting young people. Thus, hot drinks’ performance will be dependent largely on manufacturers building a relationship with these consumers. Over the forecast period, hot drinks manufacturers are expected to launch “cooler” themed hot drinks to attract younger consumers.
Table of contents
HOT DRINKS IN THE PHILIPPINES : MARKET INSIGHT
EXECUTIVE SUMMARY
Economic upheaval lowers the desire for hot drinks
New products grace hot drinks
Tri-media campaigns consolidate the leadership of big multinationals
Supermarkets/hypermarkets dominates hot drinks
Hot drinks’ performance will be dictated by younger consumers
KEY TRENDS AND DEVELOPMENTS
High preference for convenience favours mixes and small packages
Healthy and fortified products penetrate new areas
Night owls find good company in hot drinks
Foreign brands dominate hot drinks
Economic slowdown impacts hot drinks
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 12 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 13 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 14 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 15 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 16 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 17 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 19 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 20 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 21 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 22 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - PHILIPPINES
GILAMAR ENTERPRISES - HOT DRINKS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Gilamar Enterprises: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 3 Gilamar Enterprises: Competitive Position 2008
HERBCARE CORP - HOT DRINKS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Herbcare Corp: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 5 Herbcare Corp: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 6 Herbcare Corp: Competitive Position 2008
SAN MIGUEL SUPER COFFEE MIX CO - HOT DRINKS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 7 San Miguel Super Coffee Mix Co: Key Facts
Summary 8 San Miguel Super Coffee Mix Co: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 San Miguel Super Coffee Mix Co: Competitive Position 2008
UNIVERSAL ROBINA CORP - HOT DRINKS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Universal Robina Corp: Key Facts
Summary 11 Universal Robina Corp: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 12 Universal Robina Corp: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 13 Universal Robina Corp: Competitive Position 2008
COFFEE IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 23 Coffee Machine Sales: 2002-2007
Table 24 Retail Sales of Coffee by Type: Volume 2003-2008
Table 25 Retail Sales of Coffee by Type: Value 2003-2008
Table 26 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 27 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 28 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 29 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 30 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 31 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
Table 32 Standard Vs Coffee Pods 2004-2008
Table 33 Coffee Company Shares 2004-2008
Table 34 Coffee Brand Shares 2005-2008
TEA IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 36 Retail Sales of Tea by Subsector: Value 2003-2008
Table 37 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 38 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 39 Tea Company Shares 2004-2008
Table 40 Tea Brand Shares 2005-2008
Table 41 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 42 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 43 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 44 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 45 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 46 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 47 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 48 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 49 Other Hot Drinks Company Shares 2004-2008
Table 50 Other Hot Drinks Brand Shares 2005-2008
Table 51 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 52 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 53 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 54 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013