Concentrates in the Philippines

Euromonitor International
November 2022
CONCENTRATES IN THE PHILIPPINES Passport i

LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2022 DEVELOPMENTS ............................................................................................................... 1
Powder concentrates sees recovery growth in 2022, and Tang releases two new launches ... 1
Coca- .. 1
Liquid concentrates remains lacklustre in 2022 ........................................................................ 2
PROSPECTS AND OPPORTUNITIES......................................................................................... 3
Powder concentrates to rise over forecast period, though will struggle with image and price
concerns ................................................................................................................................... 3
Product variety in terms of health benefits and exciting flavours will aid in stimulating further
growth for powder concentrates ................................................................................................ 3
Rising e-commerce sales will prompt greater player presence online, though store-based
outlets will retain leadership; no signs of real recovery for liquid concentrates ......................... 3
CATEGORY DATA ....................................................................................................................... 4
Concentrates Conversions ....................................................................................................... 4
Summary 1 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format ........... 4
Table 1 Off-trade Sales of Concentrates (RTD) by Category: Volume 2017-
2022 ............................................................................................................. 4
Table 2 Off-trade Sales of Concentrates (RTD) by Category: % Volume
Growth 2017-2022 ....................................................................................... 4
Table 3 Off-trade Sales of Concentrates by Category: Value 2017-2022 ................. 5
Table 4 Off-trade Sales of Concentrates by Category: % Value Growth 2017-
2022 ............................................................................................................. 5
Table 5 LBN Brand Shares of Off-trade Concentrates (RTD): % Volume 2019-
2022 ............................................................................................................. 5
Table 6 NBO Company Shares of Off-trade Concentrates: % Value 2018-
2022 ............................................................................................................. 6
Table 7 LBN Brand Shares of Off-trade Concentrates: % Value 2019-2022 ............. 6
Table 8 NBO Company Shares of Off-trade Liquid Concentrates (RTD): %
Volume 2018-2022 ....................................................................................... 6
Table 9 LBN Brand Shares of Off-trade Liquid Concentrates (RTD): % Volume
2019-2022 .................................................................................................... 7
Table 10 NBO Company Shares of Off-trade Powder Concentrates (RTD): %
Volume 2018-2022 ....................................................................................... 7
Table 11 LBN Brand Shares of Off-trade Powder Concentrates (RTD): %
Volume 2019-2022 ....................................................................................... 7
Table 12 Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume
2022-2027 .................................................................................................... 8
Table 13 Forecast Off-trade Sales of Concentrates (RTD) by Category: %
Volume Growth 2022-2027 .......................................................................... 8
Table 14 Forecast Off-trade Sales of Concentrates by Category: Value 2022-
2027 ............................................................................................................. 8
Table 15 Forecast Off-trade Sales of Concentrates by Category: % Value
Growth 2022-2027 ....................................................................................... 9

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CONCENTRATES IN THE PHILIPPINES Passport 1

CONCENTRATES IN THE
PHILIPPINES
KEY DATA FINDINGS
Off-trade volume sales fall by 5% in 2022 to 5.6 million litres
Co-Ro Food A/S is the leading player in 2022, with an off-trade volume share of 73%
Off-trade volume sales are set to decrease at a CAGR of 2% over the forecast period to 5.0
million litres

2022 DEVELOPMENTS

Powder concentrates sees recovery growth in 2022, and Tang releases

two new launches
The COVID-19 pandemic could not have come at a worse time for concentrates in the
Philippines. With the situation placing significant pressure on the incomes of many Philippine
households, all discretionary spending came under some level of scrutiny. Although
concentrates is well-known for the value for money it represents, the average unit price of
concentrates saw a steep increase during the review period due to the implementation of the
sugar tax in 2018, which particularly affected sales of powder concentrates. It also created
challenges in the form of competition from other RTD beverages like carbonates, juice, and RTD
tea.
The pandemic only exacerbated the poor performance of concentrates with even steeper
rates of decline in off-trade volumes; concentrates has no discernible presence in the on-trade
channel. Consumers who started working or studying from home could instead opt to purchase
multi-serve packages of juice or carbonates. These product types are more convenient to
consume than concentrates, which need an extra step of mixing with water to be prepared.
Furthermore, decreased spending power forced many consumers to turn away from
concentrates in favour of other types of soft drinks that were benefitting from aggressive price
cuts and other marketing promotions during the pandemic.
After periods of substantial retail volume decline, 2022 is proving to be a more positive year
for powder concentrates despite the continued inflationary pressures. Consumers who for much
of the year have still been spending more time at home have turned to powder concentrates, as
it offers cheaper alternative for ready-to-drink beverages on a per-litre basis. Leading player
Mondelez Philippines has also contributed to overall growth through its sustained above- and
below- the-line marketing efforts for Tang. The player is also active with product innovations
April 2022 saw the launch of two new Tang variants under Tang Fruit & Veg: Orange and
Carrot, and Dalandan and Malunggay, with both alternatives aiming to cash in on accelerated
health and wellness trends.

Coca-Cola Bottlers withdraws from concentrates, halting production of

Despite the lacklustre performances that have been registered in concentrates in recent
years, leading players have continued to develop strong marketing and promotional strategies.
Thus, the negative scenario that emerged during the pandemic did not discourage companies
from continuing to invest in the promotion of their brands. For instance, Nestlé Philippines

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