Soft Drinks - Philippines

The Soft Drinks market in Philippines has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In Philippines, customers have shown a strong preference for soft drinks, with a particular focus on carbonated beverages. This can be attributed to the country's warm climate, where people often seek refreshing and thirst-quenching drinks. Additionally, the younger population in Philippines has a high affinity for soft drinks, making it a popular choice among the demographic.

Trends in the market: One of the key trends in the Soft Drinks market in Philippines is the increasing demand for healthier options. As consumers become more health-conscious, there has been a shift towards low-sugar and zero-sugar soft drinks. This trend is in line with the global movement towards healthier lifestyles and the growing awareness of the negative health effects of excessive sugar consumption. As a result, companies in the market have been introducing new products and reformulating existing ones to cater to this demand. Another trend in the Soft Drinks market in Philippines is the rise of functional beverages. Consumers are increasingly seeking soft drinks that offer additional benefits, such as energy boosters, antioxidants, or vitamins. This trend is driven by the growing interest in wellness and self-care, as well as the desire for convenience. Companies have responded by introducing a variety of functional beverages, including energy drinks, sports drinks, and flavored water with added nutrients.

Local special circumstances: The Soft Drinks market in Philippines is also influenced by local special circumstances. One of these is the strong presence of local brands in the market. Filipino consumers have a sense of loyalty towards local products, and this extends to the soft drinks category. Local brands have capitalized on this sentiment by offering unique flavors and marketing strategies that resonate with the local culture. This has created a competitive landscape where both global and local players strive to differentiate themselves and capture market share.

Underlying macroeconomic factors: The Soft Drinks market in Philippines is also shaped by underlying macroeconomic factors. The country's growing economy and rising disposable incomes have contributed to increased consumer spending on soft drinks. As people have more purchasing power, they are able to indulge in discretionary items such as soft drinks. Additionally, the expanding middle class in Philippines has created a larger consumer base for soft drink companies to target. In conclusion, the Soft Drinks market in Philippines is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for healthier options and functional beverages, along with the strong presence of local brands, has driven the market forward. As the economy continues to grow and consumer spending power increases, the Soft Drinks market in Philippines is expected to further expand in the coming years.

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.