Sports Drinks in the Philippines

2020 IMPACT

Closure of gyms and prohibition of sport events results in sales declines

Although sports drinks recorded a less negative performance than many other soft drinks categories in the Philippines during 2020, the category struggled to maintain the attention of consumers as consumption opportunities for the category were reduced to vanishing point. This was due mainly to the closure of all gymnasiums, sports clubs and fitness centres during the initial quarantine lockdown period and afterwards, with these types of facilities unable to operate between mid-March and July.

On-trade sales of sports drinks fall off a cliff as consumption occasions diminish

Prior to the onset of the COVID-19 pandemic, on-trade sales of sports drinks were relatively high in the Philippines. Indeed, many local consumers were in the habit of consuming sport drinks in local restaurants.

Incumbent players continue with their marketing efforts to promote brands

All brands of sports drinks recorded declining value and volume sales over the course of 2020. The negative influence of the COVID-19 pandemic and the limited presence of sport drinks in both on-trade and off-trade channels were among the main reasons for the category’s ability to withstand the pressures created by the COVID-19 situation.

RECOVERY AND OPPORTUNITIES

Hydration to emerge as selling point for sports drinks as health consciousness rises

Sports drinks is expected to return to moderate positive growth in the retail channel during the forecast period, while on-trade sales are expected to recover from the devastation of 2020 by 2023 at the latest. Once the COVID-19 situation has been brought under some control during the early stages of the forecast period, sales of sports drinks can be expected to benefit from a widening of the consumption occasions for these products.

Home seclusion likely to become a more ingrained trend during the forecast period

One factor which could work against the recovery of sales of sports drinks during the forecast period is that many of the habits that people developed during the COVID-19 pandemic during 2020 are likely to remain in effect during the forecast period, even once the COVID-19 situation and has eased somewhat. Thus, even though gymnasiums, health clubs and fitness centres will be able to return to normal operation again at some point during the early stages of the forecast period, many consumers who previously would have worked out in the gym are expected to continue with the home workout routines that they developed themselves during the quarantine lockdown period.

Greater demand for sports drinks via e-commerce set to drive category sales growth

One of the major consumer trends to emerge in the Philippines during 2020 was the strong shift towards e- commerce that was seen across a wide range of consumer goods industries. In particular, m-commerce has emerged as a key distribution channel for numerous fmcg categories.