Dairy products and alternatives in 2025: The big picture
Retail current value sales of dairy products and alternatives in the Philippines are projected to continue to rise at a strong rate over 2025, amid ongoing inflationary pressures. Nonetheless, the performance demonstrates the resilience of products seen as daily necessities, such as milk formula or powder milk. Efforts by incumbent players to focus on cost-containment strategies and marketing efforts support consistent demand.
Key trends in 2025
Nutrition and health trends in general are expected to continue to be emphasised across all dairy categories through 2025. Baby food players continue to see improved nutritional benefits as a key brand differentiator. Mead Johnson Philippines is expected to be the fastest-growing company in baby food in 2025, with its flagship brands Lactum, Enfagrow and Enfamil registering retail value sales growth. Its flagship brands are supported by strong marketing and a wide distribution network. The company also continues to launch new products, targeting different consumers groups within baby food. For example, towards the end of the review period, it launched Enfagrow A+ CS-Biome in the Philippines, which aims to support the immunity and gut health of children born through caesarean section.
Competitive Landscape
Nestlé Philippines is expected to remain the leading company in dairy products and alternatives in 2025, with only a very marginal drop in retail value share anticipated. The company produces brands like Bear Brand, Chuckie, Nestlé and Nido, present in baby food, drinking milk and yoghurt. The company has continued to invest in its manufacturing capabilities in the Philippines, enabling it to support the demand for dairy products. For example, in 2025, Nestlé Philippines announced its intention to invest PHP2 billion annually over the next three years in its Philippines operations, which includes strengthening production capacities in existing factories. The brand equity of Bear Brand and Chuckie enables the player to amass wide distribution across modern grocery retailers and small local grocers. Additionally, the player has consistently invested in its Nestlé Wellness Campus (NWC) programme, in conjunction with the Philippines Department of Education, which aims to educate students in public schools on nutrition related topics. In terms of new product development, the manufacturer has expanded its portfolio with the launch of Bear Brand Milk N’ Soy, a powder milk and soy drink for children, in 2025. Moreover, it utilised the brand equity of Carnation to launch the new Carnation Everyday Creamer towards the end of 2024. The new product is marketed for use not only as a drink, but also for making desserts at home.
Channel developments
Supermarkets is projected to see a marginal rise in retail value share in 2025 to remain the leading distribution channel for dairy products and alternatives, followed by small local grocers. These retail formats are perceived as reliable sources of quality and safe products, which are critical factors, especially when purchasing for infants. Supermarkets, in particular, benefit from broad product assortments, allowing, for example, parents to purchase baby food alongside other household necessities, streamlining the shopping experience.
What next for dairy products and alternatives?
Retail value (constant 2025 prices) sales of dairy products and alternatives are set to rise healthily over the forecast period. In addition, the foodservice channel is expected to remain crucial to various dairy categories for sales and to build brand/product awareness. This is set to be the case for “other” plant-based milk brand owners, which have focused on partnerships with foodservice operators, particularly cafés and specialist coffee and tea shops, to offer menu items made with oat or almond milk. By experiencing these alternatives in popular cafés and specialist coffee and tea shops, consumers are more likely to develop a taste or preference for plant-based options and subsequently purchase them in retail outlets for home use.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Philippines with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Philippines, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Philippines report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Philippines?
- Which are the leading brands in Dairy Products and Alternatives in Philippines?
- How are products distributed in Dairy Products and Alternatives in Philippines?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Philippines?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in the Philippines
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in the Philippines
KEY DATA FINDINGS
Baby food continues to see positive growth in 2025, despite pressure from the downward trend in the birth rate
Mead Johnson Philippines leads baby food with a strong brand portfolio
Modern retail channels leverage a reputation for quality and safety to dominate the distribution landscape
“Other” baby food and prepared baby food are projected to see the highest retail value CAGRs
Focus on consumer education and community engagement to support brand differentiation within a competitive category
Sustainability to be driven by tighter local enforcement and efforts by key manufacturers
Butter and Spreads in the Philippines
KEY DATA FINDINGS
Butter piques consumer interest through strategic brand positioning and culinary trends
Magnolia continues to invest in the category and consumer engagement
E-commerce continues to develop as a distribution channel in butter and spreads
Distribution expansion, marketing and education to provide a boost to the category
Health-conscious shift to spur butter amid global price volatility
Economic pressures may influence a shift toward budget-friendly formats
Cheese in the Philippines
KEY DATA FINDINGS
Cheese is supported by brand building efforts and on-trade trends
The leading brand Eden enjoys strong marketing support in 2025
Players invest in merchandising in large grocery retailers and e-commerce
Processed cheese is expected to drive the category
Hard cheese while niche, is expected to grow steadily amidst headwinds
Sustainability efforts may be tempered by economic challenges
Drinking Milk Products in the Philippines
KEY DATA FINDINGS
Drinking milk products continues to expand, with powder milk leading the way in 2025
Nestlé Philippines continues to lead drinking milk products as the competition grows in 2025
Modern retail channels gain on traditional grocery retailers
Flavoured milk drinks to gain from the offer of new products and convenience-orientated demand
Growing offer and presence of shelf stable milk and fresh milk
Sustainability to be more integrated into business operations while local authorities seek to improve domestic dairy production capabilities
Yoghurt and Sour Milk Products in the Philippines
KEY DATA FINDINGS
Drinking yoghurt continues to shape the category in 2025
Yakult Philippines focuses on expanding production, distribution and the consumer base
Supermarkets remains the dominant distribution channel in 2025, but e-commerce adds dynamism to the category
Development and growth is expected across yoghurt in the forecast period
Stronger competition is to be expected within yoghurt
Players leverage digital capabilities to reach consumers
Other Dairy in the Philippines
KEY DATA FINDINGS
Evaporated milk is the most dynamic category in 2025
Alaska Milk Corp leverages a strong brand name, price deals and consumer engagement to dominate
Supermarkets remains the key distribution channel but e-commerce continues to gain ground
Brand partnerships to boost other dairy in the foodservice channel
Price competition may intensify with the influx of affordable brands
Digital capabilities to be used for various marketing and payment operations
Plant-Based Dairy in the Philippines
KEY DATA FINDINGS
“Other” plant-based milk continues to gain momentum
Price reductions and small packaging boost the performance of Oatside
E-commerce offers new and exciting opportunities for plant-based dairy players
“Other” plant-based milk to continue to add dynamism to plant-based dairy
Foodservice remains a key avenue for “other” plant-based milk
Sustainability remains at the forefront of brand narratives
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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