Alcoholic Drinks - Philippines

The Alcoholic Drinks market in Philippines has been experiencing steady growth in recent years.

Customer preferences: Filipinos have a long-standing tradition of socializing and celebrating with alcoholic beverages. Beer is the most popular alcoholic drink in the country, with a wide variety of local and international brands available. However, there has been a growing demand for other types of alcoholic drinks, such as wine and spirits, as consumers become more sophisticated in their tastes.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Philippines is the increasing popularity of craft beer. Craft beer breweries have been popping up across the country, offering unique and flavorful options to consumers. This trend is driven by a desire for more diverse and high-quality beer options, as well as a growing interest in supporting local businesses. Another trend in the market is the rise of premium spirits. Filipino consumers are becoming more willing to spend on higher-end spirits, such as whiskey and vodka, as they seek out more sophisticated and premium drinking experiences. This trend is influenced by a growing middle class with higher disposable incomes and an increasing appreciation for luxury goods.

Local special circumstances: One of the unique aspects of the Alcoholic Drinks market in Philippines is the strong presence of local breweries and distilleries. Filipino consumers have a strong sense of national pride and are often inclined to support local businesses. This has created a favorable environment for local alcoholic beverage producers, who are able to cater to the specific tastes and preferences of the Filipino market. Additionally, the Philippines has a vibrant nightlife culture, with bars and clubs being popular social destinations. This has contributed to the growth of the Alcoholic Drinks market, as consumers seek out new and exciting drinking experiences.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in Philippines can be attributed to several underlying macroeconomic factors. Firstly, the country has been experiencing steady economic growth, which has led to an increase in disposable incomes. This has allowed consumers to spend more on discretionary items, including alcoholic beverages. Furthermore, the young and growing population in Philippines has contributed to the growth of the market. With a large proportion of the population in their prime drinking years, there is a strong demand for alcoholic drinks. In conclusion, the Alcoholic Drinks market in Philippines is developing due to customer preferences for diverse and high-quality options, as well as the rise of local breweries and distilleries. The market is also influenced by the country's vibrant nightlife culture and underlying macroeconomic factors such as economic growth and a young population.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.