Bottled Water in the Philippines

PROSPECTS

Bottled water bolsters its performance

Unlike other soft drinks categories, bottled water did not contract in volume in 2018, as prices remained competitive. There is an expanding middle class and rising demand for clean and healthy beverages, thus there is an increasing preference for packaged bottled water.

Premiumisation in bottled water strengthens

While premiumisation is not a new trend, it is becoming more evident in bottled water. After cementing its success in still bottled water, Asia Brewery launched the first locally-produced sparkling water, Summit Sparkling Water, in late 2017.

Marketing efforts to drive further growth

With the positive outlook for the Philippine economy, and rising demand for clean drinking water, it is imperative for incumbent players to take advantage of these opportunities through marketing efforts and effective distribution systems. While bulk water will continue to command the highest proportion of bottled water sales, economic development will support demand for small pack sizes of water, particularly still bottled water.

COMPETITIVE LANDSCAPE

Philippine Spring Water Resources remains the category leader

While 2018 was a good year for Asia Brewery’s bottled water brands Absolute and Summit, Philippine Spring Water Resources maintained its leadership. As well as its recent entry in carbonated bottled water, the company sustained its efforts in functional bottled water by launching Nature Spring Fibre, which has a greater emphasis on health claims compared to its flavoured bottled water line.

Local players continue to dominate

There has been growing interest in bottled water in recent years not just from local players, but also from international companies. In 2018, Pepsi launched Aquafina, while a new local player, Philippine Bottling Beverage, launched Banahaw Spring Purified Water, thereby increasing the variety of brands available in the category.

More new entrants expected

Over the forecast period, the promising economic outlook in the Philippines will continue to encourage new entrants, both local players and international companies. As competition in still bottled water is mainly based on price, it is crucial for new players to offer similar pricing to convey value to consumers.

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