Spirits - Philippines

The Spirits market in Philippines has been experiencing significant growth in recent years.

Customer preferences: The Filipino consumers have shown a growing interest in premium and high-quality spirits. They are increasingly willing to spend more on premium brands that offer unique flavors and superior craftsmanship. This shift in consumer preferences can be attributed to the rising disposable income and changing lifestyles of the Filipino population. Additionally, there is a growing trend of socializing and entertaining at home, which has led to an increased demand for spirits for personal consumption and hosting gatherings.

Trends in the market: One of the key trends in the Spirits market in Philippines is the increasing popularity of locally produced spirits. Filipino consumers are embracing and supporting local distilleries that offer unique and authentic flavors. This trend can be attributed to the growing sense of national pride and the desire to support local businesses. Moreover, local spirits often incorporate traditional Filipino ingredients and flavors, which resonate well with the consumers. Another trend in the market is the rising demand for craft spirits. Filipino consumers are becoming more adventurous and are seeking out spirits that offer distinct flavors and innovative production methods. Craft spirits are often made in small batches and emphasize quality over quantity. This trend can be attributed to the increasing consumer awareness about the production process and the desire for unique and personalized experiences.

Local special circumstances: The Spirits market in Philippines is influenced by the country's rich cultural heritage and traditions. The consumption of spirits is deeply ingrained in Filipino culture, with spirits being an integral part of celebrations and social gatherings. Filipino consumers value the role of spirits in fostering social connections and creating memorable experiences. This cultural significance has contributed to the steady growth of the spirits market in the country. Additionally, the Philippines has a strong tourism industry, attracting a large number of international visitors each year. This has led to an increased demand for spirits, as tourists often seek to experience the local flavors and beverages. The tourism industry has provided a significant boost to the spirits market in the country, driving both domestic consumption and export opportunities.

Underlying macroeconomic factors: The growth of the Spirits market in Philippines can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, resulting in an expanding middle class with increased purchasing power. This has led to a rise in discretionary spending, including on premium spirits. Furthermore, the Philippines has a young and growing population, with a large proportion of young adults entering the legal drinking age. This demographic shift has contributed to the increased demand for spirits, as young adults are more likely to explore different alcoholic beverages and experiment with new flavors. In conclusion, the Spirits market in Philippines is witnessing growth due to the changing consumer preferences, including a preference for premium and locally produced spirits. The market is also influenced by cultural traditions and the country's strong tourism industry. The underlying macroeconomic factors, such as economic growth and a young population, are driving the demand for spirits in the country.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.