Health and Wellness in the Philippines

Health and Wellness in the Philippines

EXECUTIVE SUMMARY

COVID-19 impact on health and wellness

COVID-19 country impact

Company response

Retailing shift

Foodservice vs retail split

What next for health and wellness?

MARKET DATA

Table 1 Sales of Health and Wellness by Type: Value 2015-2020
Table 2 Sales of Health and Wellness by Type: % Value Growth 2015-2020
Table 3 Sales of Health and Wellness by Category: Value 2015-2020
Table 4 Sales of Health and Wellness by Category: % Value Growth 2015-2020
Table 5 Sales of Health and Wellness by Prime Positioning: Value 2015-2020
Table 6 Sales of Health and Wellness by Prime Positioning: % Value Growth 2015-2020
Table 7 NBO Company Shares of Health and Wellness: % Value 2016-2020
Table 8 LBN Brand Shares of Health and Wellness: % Value 2017-2020
Table 9 Distribution of Health and Wellness by Format: % Value 2015-2020
Table 10 Distribution of Health and Wellness by Format and Category: % Value 2020
Table 11 Forecast Sales of Health and Wellness by Type: Value 2020-2025
Table 12 Forecast Sales of Health and Wellness by Type: % Value Growth 2020-2025
Table 13 Forecast Sales of Health and Wellness by Category: Value 2020-2025
Table 14 Forecast Sales of Health and Wellness by Category: % Value Growth 2020-2025
Table 15 Forecast Sales of Health and Wellness by Prime Positioning: Value 2020-2025
Table 16 Forecast Sales of Health and Wellness by Prime Positioning: % Value Growth 2020-2025

GLOBAL MACROECONOMIC ENVIRONMENT

GLOBAL INDUSTRY ENVIRONMENT

DISCLAIMER

SOURCES

Summary 1 Research Sources

Better For You Beverages in the Philippines

KEY DATA FINDINGS

2020 IMPACT

Increased health awareness and economic uncertainty due to COVID-19 drove a shift from other low calorie cola to bottled water

Negative economic impact of pandemic led to a shift from BFY reduced caffeine beverages to more affordable instant coffee mixes

Smaller pack sizes help leader Coca-Cola Bottlers Philippines to compete more effectively on price with standard carbonates

RECOVERY AND OPPORTUNITIES

Retail volume sales of BFY beverages set for slow recovery, as economic impact of COVID-19 lingers

E-commerce will continue to expand due to greater consumer familiarity and increased investment

Marketing investment could boost consumer awareness of the potential health benefits of BFY beverages and lead to wider distribution

CATEGORY DATA

Table 17 Sales of BFY Beverages by Category: Value 2015-2020
Table 18 Sales of BFY Beverages by Category: % Value Growth 2015-2020
Table 19 NBO Company Shares of BFY Beverages: % Value 2016-2020
Table 20 LBN Brand Shares of BFY Beverages: % Value 2017-2020
Table 21 Distribution of BFY Beverages by Format: % Value 2015-2020
Table 22 Forecast Sales of BFY Beverages by Category: Value 2020-2025
Table 23 Forecast Sales of BFY Beverages by Category: % Value Growth 2020-2025

Fortified/Functional Beverages in the Philippines

KEY DATA FINDINGS

2020 IMPACT

COVID-19 undermines demand for FF soft drinks by reducing on-the-go consumption and discretionary purchasing

Smaller pack size helps Coca-Cola Bottlers Philippines consolidate its leadership of FF beverages

Social media grow in importance as a marketing channel during lockdown

RECOVERY AND OPPORTUNITIES

As pandemic threat fades, increase in on-the-go consumption and impulse purchasing will see retail current value sales of FF beverages return to growth

Lack of affordability will continue to undermine demand for FF juice drinks (up to 24% juice)

E-commerce is likely to emerge as a distribution channel

CATEGORY DATA

Table 24 Sales of Fortified/Functional Beverages by Category: Value 2015-2020
Table 25 Sales of Fortified/Functional Beverages by Category: % Value Growth 2015-2020
Table 26 Key Functional Ingredients in Fortified/Functional Bottled Water: % Value 2015-2020
Table 27 Key Functional Ingredients in Fortified/Functional Non-Cola Carbonates: % Value 2015-2020
Table 28 Key Functional Ingredients in Fortified/Functional 100% Juice: % Value 2015-2020
Table 29 Key Functional Ingredients in Fortified/Functional Juice Drinks (up to 24% juice): % Value 2015-2020
Table 30 Key Functional Ingredients in Fortified/Functional Nectars (25-99% juice): % Value 2015-2020
Table 31 Key Functional Ingredients in Fortified/Functional RTD Tea: % Value 2015-2020
Table 32 NBO Company Shares of Fortified/Functional Beverages: % Value 2016-2020
Table 33 LBN Brand Shares of Fortified/Functional Beverages: % Value 2017-2020
Table 34 Distribution of Fortified/Functional Beverages by Format: % Value 2015-2020
Table 35 Forecast Sales of Fortified/Functional Beverages by Category: Value 2020-2025
Table 36 Forecast Sales of Fortified/Functional Beverages by Category: % Value Growth 2020-2025

Naturally Healthy Beverages in the Philippines

KEY DATA FINDINGS

2020 IMPACT

Soaring prices crush demand for NH hot drinks

With no more than a modest increase in unit price, demand for NH soft drinks proves more robust

As NH beverages remain niche, players focus on below-the-line marketing

RECOVERY AND OPPORTUNITIES

Increased consumer interest in preventative health will help to drive recovery in retail volume sales

Product variety set to expand to ride on health consciousness

E-commerce will continue to grow in importance, as manufacturers and retailers pay more attention to it in the aftermath of COVID-19

CATEGORY DATA

Table 37 Sales of NH Beverages by Category: Value 2015-2020
Table 38 Sales of NH Beverages by Category: % Value Growth 2015-2020
Table 39 NBO Company Shares of NH Beverages: % Value 2016-2020
Table 40 LBN Brand Shares of NH Beverages: % Value 2017-2020
Table 41 Distribution of NH Beverages by Format: % Value 2015-2020
Table 42 Forecast Sales of NH Beverages by Category: Value 2020-2025
Table 43 Forecast Sales of NH Beverages by Category: % Value Growth 2020-2025

Better For You Packaged Food in the Philippines

KEY DATA FINDINGS

2020 IMPACT

Supply constraints at Unilever Foods Philippines (CMC) weighed heavily on retail current value sales of reduced fat sauces, dressings and condiments

Stockpiling and increased interest in health and wellness boost demand for reduced salt tuna

Some locked-down middle- and high-income consumers turn in e-commerce

RECOVERY AND OPPORTUNITIES

Strong demand for baked goods will buoy retail current value sales of reduced fat sauces, dressings and condiments

Economic hangover will weigh on demand for premium products

Manufacturers will increase their focus on marketing as the fight for value share grows fiercer

CATEGORY DATA

Table 44 Sales of BFY Packaged Food by Category: Value 2015-2020
Table 45 Sales of BFY Packaged Food by Category: % Value Growth 2015-2020
Table 46 NBO Company Shares of BFY Packaged Food: % Value 2016-2020
Table 47 LBN Brand Shares of BFY Packaged Food: % Value 2017-2020
Table 48 Distribution of BFY Packaged Food by Format: % Value 2015-2020
Table 49 Forecast Sales of BFY Packaged Food by Category: Value 2020-2025
Table 50 Forecast Sales of BFY Packaged Food by Category: % Value Growth 2020-2025

Free From in the Philippines

KEY DATA FINDINGS

2020 IMPACT

In spite of the negative economic impact of COVID-19, shift in demand from foodservice leads to modest acceleration in retail current value sales growth

Significant new product development, particularly in soy milk

Increase in home cooking boosts demand for tofu, while stockpiling leads to higher retail current value sales of free from baby food

RECOVERY AND OPPORTUNITIES

2021 will see a sharp slowdown in retail current value sales growth, as some demand shifts back to foodservice

E-commerce may grow in importance, particularly for free from lactose special baby milk formula

Monde Nissin Corp makes a host of meat-free bets

CATEGORY DATA

Table 51 Sales of Free From by Category: Value 2015-2020
Table 52 Sales of Free From by Category: % Value Growth 2015-2020
Table 53 NBO Company Shares of Free From: % Value 2016-2020
Table 54 LBN Brand Shares of Free From: % Value 2017-2020
Table 55 Distribution of Free From by Format: % Value 2015-2020
Table 56 Forecast Sales of Free From by Category: Value 2020-2025
Table 57 Forecast Sales of Free From by Category: % Value Growth 2020-2025

Fortified/Functional Packaged Food in the Philippines

KEY DATA FINDINGS

2020 IMPACT

Increased demand for power milk and probiotic yoghurt due to COVID-19 drives acceleration in retail current value sales growth of FF packaged food

Lockdown undermines demand for FF gum

Ajinomoto Philippines Corp. takes inspiration from Japan to launch an FF condiment

RECOVERY AND OPPORTUNITIES

Deepening consumer interest in health and wellness will continue to buoy growth

Nestlé subscription service could benefit from increased popularity of e-commerce

Speed of local COVID-19 vaccination effort will have implications for distribution

CATEGORY DATA

Table 58 Sales of Fortified/Functional Packaged Food by Category: Value 2015-2020
Table 59 Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2015-2020
Table 60 Key Functional Ingredients in Fortified/Functional Breakfast Cereals: % Value 2015-2020
Table 61 Key Functional Ingredients in Fortified/Functional Sugar Confectionery: % Value 2015-2020
Table 62 Key Functional Ingredients in Fortified/Functional Milk: % Value 2015-2020
Table 63 Key Functional Ingredients in Fortified/Functional Sweet Biscuits: % Value 2015-2020
Table 64 Sales of Fortified/Functional Yoghurt by Standard Fat vs Reduced Fat: % Value 2015-2020
Table 65 NBO Company Shares of Fortified/Functional Packaged Food: % Value 2016-2020
Table 66 LBN Brand Shares of Fortified/Functional Packaged Food: % Value 2017-2020
Table 67 Distribution of Fortified/Functional Packaged Food by Format: % Value 2015-2020
Table 68 Forecast Sales of Fortified/Functional Packaged Food by Category: Value 2020-2025
Table 69 Forecast Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2020-2025

Naturally Healthy Packaged Food in the Philippines

KEY DATA FINDINGS

2020 IMPACT

COVID-19 leads to sharp slowdown in demand growth for NH fruit snacks and particularly NH nuts, seeds and trail mix

Pandemic disrupts bakery operations

Leader food Industries Inc benefits from premiumisation trend in nuts

RECOVERY AND OPPORTUNITIES

Gradual return to normality will lead to rebound in retail current value sales growth for NH cereal bars, NH fruit snacks and NH nuts, seeds and trail mix

Growing awareness will boost demand for NH Olive Oil among affluent consumers

Manufacturers will pay more attention to e-commerce

CATEGORY DATA

Table 70 Sales of NH Packaged Food by Category: Value 2015-2020
Table 71 Sales of NH Packaged Food by Category: % Value Growth 2015-2020
Table 72 NBO Company Shares of NH Packaged Food: % Value 2016-2020
Table 73 LBN Brand Shares of NH Packaged Food: % Value 2017-2020
Table 74 Distribution of NH Packaged Food by Format: % Value 2015-2020
Table 75 Forecast Sales of NH Packaged Food by Category: Value 2020-2025
Table 76 Forecast Sales of NH Packaged Food by Category: % Value Growth 2020-2025

Organic Packaged Food in the Philippines

KEY DATA FINDINGS

2020 IMPACT

Distribution largely remains limited to health food stores

New product development is concentrated in baby food

RECOVERY AND OPPORTUNITIES

Premium pricing, a lack of consumer awareness and limited distribution will continue to constrain demand

CATEGORY DATA

Table 77 Sales of Organic Packaged Food by Category: Value 2015-2020
Table 78 Sales of Organic Packaged Food by Category: % Value Growth 2019-2020
Table 79 NBO Company Shares of Organic Packaged Food: % Value 2016-2020
Table 80 LBN Brand Shares of Organic Packaged Food: % Value 2017-2020
Table 81 Distribution of Organic Packaged Food by Format: % Value 2015-2020
Table 82 Forecast Sales of Organic Packaged Food by Category: Value 2020-2025
Table 83 Forecast Sales of Organic Packaged Food by Category: % Value Growth 2020-2025

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