Yoghurt and Sour Milk Products in the Philippines

PROSPECTS

Probiotic variants drive the robust performance of yoghurt and sour milk products

Yoghurt and sour milk products recorded slower volume growth in 2018 compared with in 2017. Drinking yoghurt, which is the biggest category in yoghurt and sour milk products, recorded the fastest current value growth in 2018, driven primarily by probiotic variants such as Yakult (Yakult Philippines), which is widely known for its benefits to digestive health.

New flavours and bigger pack sizes are introduced within yoghurt

Value sales of flavoured yoghurt and plain yoghurt are low compared to those of drinking yoghurt, since Filipinos are partial to rice meals or bread for their main meals. As a result, spoonable yoghurt is not typically served during breakfast.

Further opportunities for growth

Although Filipinos are partial to small pack sizes, there is a growing presence of bigger pack sizes in yoghurt. Nestlé Philippines, for instance, launched 500g packs for its spoonable yoghurt in 2017.

COMPETITIVE LANDSCAPE

Yakult Philippines takes the lion’s share within yoghurt and sour milk products

Yakult Philippines continued to account for the majority value share of yoghurt and sour milk products in 2018, even though it solely derives its share from drinking yoghurt. Having been operating in the country since 1978, Yakult Philippines enjoys first-mover advantage in probiotic drinking yoghurt.

Nestlé Philippines dominates both flavoured yoghurt and plain yoghurt

Nestlé Philippines dominated both flavoured yoghurt and plain yoghurt in 2018. One of its main advantages is its ability to tailor its flavour offerings to local taste preferences.

Good prospects for Creamy Delight

The shelf stable brand, Creamy Delight (ABI Pascual Foods), which was launched in 2013, has the potential to gain prominence over the forecast period and challenge Nestlé’s leadership of spoonable yoghurt. Although Creamy Delight may be aiming for a different consumer base than Nestlé with its competitive price point and availability through sari-sari stores, it holds the possibility of success since it has a wider potential customer base that includes the low end of sales.

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