18 Nov 2021
Hot drinks sector of Philippines to reach US$2.4bn by 2025, forecasts GlobalData
Posted in Consumer
The hot drinks sector in the Philippines is projected to grow from ₱78.5bn (US$1.6bn) in 2020 to ₱121.8bn (US$2.4bn) by 2025 at a compound annual growth rate (CAGR) of 9.2% over the five-year period, says GlobalData, a leading data and analytics company.
GlobalData's report, 'Philippines Hot Drinks - Market Assessment and Forecasts to 2025' reveals that the market is majorly driven by the growth of the hot coffee category, which is forecast to register the fastest value CAGR of 11.6% during 2020-2025. The category is followed by hot tea, which is expected to record a CAGR of 7% during the same period.
Jhinuk Roy, Consumer Analyst at GlobalData, says: "The emergence of Nestlé as the leading company in the Philippines has created a high demand for hot drinks products, especially for hot coffee with Nescafé being one of the leading brands. At the same time, increased consumer health awareness is supporting the growth of hot tea segments such as green tea and herbal tea."
'Convenience stores' was the leading distribution channel in the hot drinks sector in the Philippines in 2020, followed by 'hypermarkets & supermarkets' and, food & drinks specialists stores.
Per capita expenditure (PCE) of hot drinks in the Philippines increased from US$11.7 in 2015 to US$14.4 in 2020, which was lower than both the regional level (US$20.4) and the global level (US$31.8). Furthermore, the PCE of hot drinks in the country is expected to increase further and reach US$19.9 by 2025.
Nestle, Mayora Group and Universal Robina Company were the top three companies in the country by value in 2020, while Nescafé and Milo were the leading brands.
Roy concludes: "With growing concerns over the negative health effects of preservatives and additives in hot drinks, consumers in the Philippines are opting for products which are naturally healthy and also affordable."
GlobalData plc published this content on 18 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2021 11:42:06 UTC.