Non-Alcoholic Drinks - Philippines

The Non-Alcoholic Drinks market in Philippines has been experiencing significant growth in recent years.

Customer preferences: Consumers in Philippines have shown a growing preference for healthier beverage options, which has led to an increased demand for non-alcoholic drinks. This shift in consumer preferences can be attributed to a number of factors, including a growing awareness of the health risks associated with excessive alcohol consumption and a desire to lead a more balanced and healthier lifestyle. Additionally, the younger generation in Philippines is also more health-conscious and actively seeks out non-alcoholic alternatives to traditional alcoholic beverages.

Trends in the market: One of the key trends in the Non-Alcoholic Drinks market in Philippines is the rise of functional beverages. These are beverages that offer additional health benefits beyond hydration, such as enhanced energy, improved digestion, or immune support. Functional beverages have gained popularity among consumers in Philippines due to their perceived health benefits and convenience. Manufacturers have responded to this trend by introducing a wide range of functional beverages, including sports drinks, energy drinks, and herbal teas. Another trend in the market is the increasing popularity of ready-to-drink (RTD) beverages. RTD beverages are pre-packaged drinks that are ready for immediate consumption, without the need for any additional preparation. This convenience factor has made RTD beverages a preferred choice among busy consumers in Philippines who are looking for quick and easy refreshment options. RTD beverages are available in a variety of flavors, including fruit juices, iced teas, and carbonated soft drinks.

Local special circumstances: The Non-Alcoholic Drinks market in Philippines is also influenced by local cultural and social factors. The country has a strong coffee culture, with coffee being a staple beverage for many Filipinos. This has led to a growing demand for non-alcoholic coffee-based drinks, such as iced coffee and coffee-flavored milkshakes. Additionally, the tropical climate in Philippines has contributed to the popularity of fruit-based non-alcoholic drinks, such as fruit juices and smoothies.

Underlying macroeconomic factors: The growth of the Non-Alcoholic Drinks market in Philippines can be attributed to several underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income levels. This has allowed consumers to spend more on non-essential items, including beverages. Additionally, the growing urbanization and changing lifestyles in Philippines have also contributed to the growth of the market. As more people move to cities and lead busier lives, they are increasingly looking for convenient and on-the-go beverage options.

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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.