Tea penetrated households regardless of income level as health consciousness drove growth. Consumers gravitated more towards green tea and fruit/herbal tea products rather than black tea, which accounted for the bulk of the category, particularly as the former are linked to health benefits such as better digestion and aiding sleep.
In 2018, more premium tea brands expanded their retail presence and the premium segment became more fragmented, particularly in retail outlets catering to higher-end consumer groups, such as Rustan’s and South Supermarket. For example, Clipper, a premium tea brand, increased its retail prominence in recent years and was available in more establishments in 2018.
Despite the growing maturity of black tea, Unilever Philippines maintained its lead as Lipton continued to have wide distribution in retail. Aside from social media marketing and merchandising, tea players such as Unilever Philippines implemented only a limited number of above-the-line campaigns.
Following Nestlé Philippines Inc’s entry into instant tea with Nestea Milk Tea Hokkaido and Nestea Milk Tea Wintermelon, Unilever Philippines relaunched its instant tea line in 2018. Lipton’s 3-in-1 Milk Tea included three new variants – Creamy Classic, Milky Chocolate and Vanilla Crème.
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This industry report originates from Passport, our Hot Drinks market research database.