Executive Summary

Mar 2019
PROSPECTS
Incumbent players struggle to emphasise value in powder concentrates

For years, powder concentrates has relied on its price competitiveness to drive volume. However, the sugar tax in 2018 badly hit the performance of powder concentrates, with prices a 25-30g pack size, which converts to one litre of RTD juice or tea, rising by as much as 90%.

Convenience-seeking motives of consumers weakens the performance of concentrates

As powder concentrates products lost their price advantage because of the sugar tax, the convenience-seeking motives of consumers came to the fore. Nestlé Philippines responded to the challenging market conditions with the introduction of single-serve packs of Nesfruta and Nestea, which convert to 250ml, or one cup.

Poor performance over the forecast period

Over the forecast period, the outlook for powder concentrates remains weak, as the recent price rises have encouraged consumers to shift to RTD beverages. It is imperative for players to keep their products available in retailers, and maintain efforts to engage consumers with above-the-line and below-the-line advertising.

COMPETITIVE LANDSCAPE
International players reign in the category

Mondelez Philippines Inc led the category in terms of off-trade value sales in 2018, owing to its unmatched product mix, aggressive marketing and strength in distribution. The company was not too badly affected in terms of volume sales by the sugar tax implementation, as it was able to keep its products available in traditional retailers.

Nestlé Philippines launches new variant and pack sizes

Nestlé Philippines was particularly active in launching new products in 2018. Following the increasing concerns regarding sugar consumption, and the implementation of the sugar tax, the company launched Nestea Zer0% Iced Tea to appeal to consumers who want to avoid sugary products but want to drink iced tea.

Companies need to respond to losing price advantage

Over the forecast period, it is important for incumbent players to maintain their efforts in marketing and distribution, while also emphasising the benefits of their products over RTD beverages. The impact of the sugar tax has been to diminish the price advantage of concentrates, and it is crucial for players to offer value to consumers in other ways.

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Concentrates in the Philippines

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Overview

Discover the latest market trends and uncover sources of future market growth for the Concentrates industry in Philippines with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Concentrates industry in Philippines, our research will save you time and money while empowering you to make informed, profitable decisions.

The Concentrates in Philippines market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Concentrates in Philippines?
  • What are the major brands in Philippines?
  • Who are the key consumers of concentrates in Philippines?
  • How do premium vs. standard vs. economy brands compete for sales and market share?
  • How does the sales performance of domestic manufacturers compare to international brands/manufacturers?

Why buy this report?

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This industry report originates from Passport, our Soft Drinks market research database.

Concentrates in the Philippines - Category analysis

HEADLINES

PROSPECTS

Incumbent players struggle to emphasise value in powder concentrates
Convenience-seeking motives of consumers weakens the performance of concentrates
Poor performance over the forecast period

COMPETITIVE LANDSCAPE

International players reign in the category
Nestlé Philippines launches new variant and pack sizes
Companies need to respond to losing price advantage

CATEGORY DATA

Concentrates Conversions
Summary 1 Concentrates Conversion Factors for ReadytoDrink (RTD) Format
Table 1 Off-trade Sales of Concentrates (RTD) by Category: Volume 2013-2018
Table 2 Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2013-2018
Table 3 Off-trade Sales of Concentrates by Category: Value 2013-2018
Table 4 Off-trade Sales of Concentrates by Category: % Value Growth 2013-2018
Table 5 Leading Flavours for Off-trade Powder Concentrates: % Volume 2013-2018
Table 6 NBO Company Shares of Off-trade Concentrates (RTD): % Volume 2014-2018
Table 7 LBN Brand Shares of Off-trade Concentrates (RTD): % Volume 2015-2018
Table 8 NBO Company Shares of Off-trade Concentrates: % Value 2014-2018
Table 9 LBN Brand Shares of Off-trade Concentrates: % Value 2015-2018
Table 10 NBO Company Shares of Off-trade Liquid Concentrates (RTD): % Volume 2014-2018
Table 11 LBN Brand Shares of Off-trade Liquid Concentrates (RTD): % Volume 2015-2018
Table 12 NBO Company Shares of Off-trade Powder Concentrates (RTD): % Volume 2014-2018
Table 13 LBN Brand Shares of Off-trade Powder Concentrates (RTD): % Volume 2015-2018
Table 14 Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume 2018-2023
Table 15 Forecast Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2018-2023
Table 16 Forecast Off-trade Sales of Concentrates by Category: Value 2018-2023
Table 17 Forecast Off-trade Sales of Concentrates by Category: % Value Growth 2018-2023

Soft Drinks in the Philippines - Industry Overview

EXECUTIVE SUMMARY

Soft drinks declines with the implementation of sugar tax
Sugar tax and health concerns are the defining trends in 2018
Coca-Cola Bottlers Philippines Inc (CCBPI) maintains leadership
Convenience, health concerns and premiumisation characterise new product developments
Growth anticipated to slowdown as consumers adjust to sugar tax

MARKET DATA

Table 18 Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: Volume 2013-2018
Table 19 Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: % Volume Growth 2013-2018
Table 20 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2013-2018
Table 21 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2013-2018
Table 22 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2018
Table 23 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2018
Table 24 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2018
Table 25 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2018
Table 26 Off-trade Sales of Soft Drinks (RTD) by Category: Volume 2013-2018
Table 27 Off-trade Sales of Soft Drinks (RTD) by Category: % Volume Growth 2013-2018
Table 28 Off-trade Sales of Soft Drinks by Category: Value 2013-2018
Table 29 Off-trade Sales of Soft Drinks by Category: % Value Growth 2013-2018
Table 30 Total Sales of Soft Drinks by Fountain On-trade: Volume 2013-2018
Table 31 Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 2013-2018
Table 32 NBO Company Shares of Total Soft Drinks (RTD): % Volume 2014-2018
Table 33 LBN Brand Shares of Total Soft Drinks (RTD): % Volume 2015-2018
Table 34 NBO Company Shares of Off-trade Soft Drinks (RTD): % Volume 2014-2018
Table 35 LBN Brand Shares of Off-trade Soft Drinks (RTD): % Volume 2015-2018
Table 36 NBO Company Shares of Off-trade Soft Drinks: % Value 2014-2018
Table 37 LBN Brand Shares of Off-trade Soft Drinks: % Value 2015-2018
Table 38 Penetration of Private Label in Off-trade Soft Drinks (RTD) by Category: % Volume 2013-2018
Table 39 Penetration of Private Label in Off-trade Soft Drinks by Category: % Value 2013-2018
Table 40 Distribution of Off-trade Soft Drinks (as sold) by Format and Category: % Volume 2018
Table 41 Forecast Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: Volume 2018-2023
Table 42 Forecast Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: % Volume Growth 2018-2023
Table 43 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2018-2023
Table 44 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2018-2023
Table 45 Forecast Off-trade Sales of Soft Drinks (RTD) by Category: Volume 2018-2023
Table 46 Forecast Off-trade Sales of Soft Drinks (RTD) by Category: % Volume Growth 2018-2023
Table 47 Forecast Off-trade Sales of Soft Drinks by Category: Value 2018-2023
Table 48 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 2018-2023
Table 49 Forecast Total Sales of Soft Drinks by Fountain On-trade: Volume 2018-2023
Table 50 Forecast Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 2018-2023

APPENDIX

Fountain sales in the Philippines
Trends

SOURCES

Summary 2 Research Sources