Hot drinks in 2024: The big picture
Despite ongoing inflationary pressures, retail volume sales of hot drinks in the Philippines are projected to experience positive growth in 2024, although at a more subdued pace compared to the previous year. While industry players have adopted various strategies to stabilise prices and stimulate consumer demand, shoppers remain cautious with their spending as they navigate persistent economic uncertainties.
2024 key trends
Health and wellness concerns continue to significantly influence purchasing decisions in the hot drinks market. As consumers become more health-conscious, brands are responding by offering healthier alternatives.
Competitive landscape
International players Mayora Indah Tbk PT and Nestlé Philippines Inc continue to dominate the competitive landscape for other hot drinks in the Philippines, thanks to their unmatched marketing and distribution efforts. Both companies leverage their well-established brands - Milo for Nestlé and Energen for Mayora Indah - which enjoy widespread and consistent availability across both traditional and modern retail channels.
Retailing developments
Small local grocers continue to dominate the retail landscape for hot drinks in 2024. While modern formats, such as supermarkets and convenience stores, are expanding their footprint, the sheer number of sari-sari stores across the Philippines makes the channel more convenient for day-to-day shopping for most local consumers.
Foodservice vs retail split
While foodservice volume sales of hot drinks are projected to grow faster than their retail counterparts in 2024, the bulk of the market still relies on the off-trade. However, the on-trade channel remains a key driver of growth, as consumers are often more open to trying new, premium products, such as single-origin teas and speciality coffee selections, when dining out.
What next for hot drinks?
Volume sales of hot drinks will continue to expand over the forecast period. Growth, particularly within foodservice, will be supported by improved economic conditions, which will have a positive impact on consumer spending.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks 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 the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks 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 Hot Drinks 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 Hot Drinks in Philippines?
- To what extent are health considerations impacting consumption of Hot Drinks in Philippines?
- What are the traditional preferences in Hot Drinks in Philippines? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in Philippines?
- Which are the leading brands in Hot Drinks in Philippines?
- How are products distributed in Hot Drinks in Philippines?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in the Philippines
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in the Philippines
KEY DATA FINDINGS
Coffee registers sustained growth, with premiumisation trend gaining momentum
Nestlé Philippines capitalises on health and wellness trend with launch of Nescafe Sugar Free
Foodservice drives growth in fresh coffee beans
Growing demand for premium products
Consumers will continue to gravitate towards value-for-money coffee mixes
Expansion of foodservice channel will drive growth
Tea in the Philippines
KEY DATA FINDINGS
Tea sees continued growth as players look to enhance consumer engagement
Tea benefits from its association with health and wellness
Cross-brand promotions represent key marketing strategy
Bright future is brewing for tea
Health and wellness will be a central theme
Instant tea has potential for growth, thanks to its convenience positioning
Other Hot Drinks in the Philippines
KEY DATA FINDINGS
Other hot drinks suffer from increase competition from other breakfast options
Nestlé Philippines launches zero-sugar variant of Milo
International players dominate competitive landscape
Other hot drinks will achieve further gains
Health and wellness concerns will take priority
Sari-sari stores will remain central to distribution
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Hot Drinks research and analysis database.
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