Bottled Water - Philippines

The Bottled Water market in Philippines has experienced significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: In line with global trends, consumers in Philippines are increasingly opting for bottled water as a healthier alternative to sugary beverages. The rising awareness about the negative health effects of sugary drinks has led to a shift in consumer preferences towards bottled water, which is perceived as a cleaner and safer option. Additionally, the convenience factor of bottled water has also contributed to its popularity among consumers, who are often on the go and prefer to have a portable source of hydration.

Trends in the market: One of the key trends in the bottled water market in Philippines is the growing demand for premium and flavored water. As consumers become more health-conscious, they are willing to pay a premium for bottled water that offers additional benefits such as enhanced flavors or added vitamins and minerals. This trend is driven by the desire for variety and a more enjoyable drinking experience. Another trend in the market is the increasing popularity of eco-friendly packaging options. Consumers are becoming more aware of the environmental impact of plastic bottles and are seeking alternatives such as biodegradable or recyclable packaging. This trend is driven by a growing concern for sustainability and a desire to reduce plastic waste.

Local special circumstances: The Philippines is a tropical country with a hot and humid climate, which creates a high demand for bottled water. The need for hydration is constant, and consumers rely on bottled water to quench their thirst and stay refreshed throughout the day. This unique climate condition has contributed to the growth of the bottled water market in Philippines.

Underlying macroeconomic factors: The growing middle class in Philippines has played a significant role in the development of the bottled water market. As disposable incomes rise, consumers have more purchasing power and are willing to spend on premium products such as bottled water. Additionally, the increasing urbanization in the country has also contributed to the growth of the market, as consumers in urban areas are more likely to opt for bottled water due to its convenience and perceived safety. In conclusion, the Bottled Water market in Philippines is growing due to changing consumer preferences, including a shift towards healthier options and a desire for convenience. The market is also influenced by local special circumstances such as the hot and humid climate, which creates a high demand for hydration. Additionally, underlying macroeconomic factors such as a growing middle class and increasing urbanization have contributed to the development of the market.

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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.