Bottled Water in the Philippines

2020 IMPACT

Pressure on on-trade demand drags down the overall performance of bottled water

While bottled water is considered a necessity for the majority of households in most parts of the Philippines, the quarantine lockdown that was announced in response to the COVID-19 pandemic during between the middle of March and the end of May 2020 resulted in declines being seen in total volume sales of bottled water over the course of the year. The main factor contributing to the overall sales decline seen in the category during the year was the unavailability of on-trade outlets due to the shutdown of the entire Philippine hospitality industry to on-trade customers throughout the initial lockdown period.

Growth momentum in functional bottled water halted as consumer priorities change

While functional bottled water had been one of the fastest growing categories of bottled water prior to the onset of the COVID-19 pandemic, the inability of this category to compete with still bottled water as a basic source of hydration and the widespread closures of schools and workplaces throughout the country significantly dampened demand for functional bottled water during the year. The brand B’lue, for example, has traditionally relied on brand activations in schools, colleges and universities to appeal to younger consumers.

Incumbent players conduct aggressive push for multipacks and large pack sizes

In light of the channel shift seen in bottled water during 2020 in terms of the move away from the on-trade channel and towards retail sales for at-home consumption, category players Asia Brewery and Philippine Spring Water Resources took to promoting their larger pack sizes more aggressively. In particular, these larger packs were promoted as catering to the needs of consumers who are forced to spend much of their time at home.

Files are delivered directly into your account within a few minutes of purchase.