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.
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.
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.
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.
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.
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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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.
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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