2021 saw further strong growth in sales of drinking milk products, although growth rates were slower than what was seen in 2020 as the COVID-19 situation stabilised to some extent during the year. The favourable performance of the category since the onset of the COVID-19 pandemic can be attributed mainly to the double-digit growth registered in dairy only flavoured milk drinks and shelf stable milk, with both plain and flavoured UHT milk proving popular towards the end of the review period.
The higher demand seen for drinking milk products in the Philippines towards the end of the review period motivated many of the category’s leading players to launch new products in an effort to capture the attention of consumers and take advantage of the enhanced opportunities to establish new products and brands. While drinking milk products generally performed well during 2020 and 2021, one category which struggled was soy drinks.
The spike seen in demand for drinking milk products towards the end of the review period motivated a raft of new launches across the category as leading players looked to take advantage of opportunities to generate stronger sales. Prominent among these new launches was the introduction of Sunkist Pistachio Milk in other milk alternatives during the first quarter of 2021.
The forecast period is expected to see drinking milk products record a moderate but positive performance, with the spike seen in demand in the immediate wake of the COVID-19 pandemic likely to give way to more stable and sustainable growth rates. The response to the COVID-19 situation, specifically the strict adherence to the principles of social distancing and home seclusion, supported retail sales of drinking milk products as the focus of consumers shifted towards the home environment, it is expected that consumption habits that developed over the course of 2020 and 2021 will have promoted more frequent consumption of RTD milk more generally and this is expected to develop into a long-term trend over the forecast growth.
Vietnamese player Vinamilk is poised to enter the Philippines during the forecast period and the impending arrival of this experienced and well-resource player has the potential to shake up the competitive environment in various categories of drinking milk products. During the first quarter of 2021, Vinamilk announced that it had received its offshore investment registration license from the Philippines Ministry of Planning and Investment, which indicates that the company has gained approval for its plan to establish a joint venture company in the Philippines.
At the end of the review period, other milk alternatives remained a very small category of drinking milk products in the Philippines. Indeed, soy drinks have long been very popular in the country, with other milk alternatives relatively unknown among much of the population.
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This report originates from Passport, our Drinking Milk Products research and analysis database.
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