Monday, July 17, 2017

Beer imports record 5% Market share in the Philippines

While browsing through Linkedin today, saw this article posted by Pham Le Duc titled "The Beer Market in Southeast Asia"


In his article, he discussed the overall beer market among our Southeast Asian neighbours or otherwise known as TIPMV and beer imports look bright for the Philippine market. Why?


In the figure shown above, you can see that beer consumption in the Philippines grow at a static rate of 15% annually. Which is huge for 100M Filipinos!
Philippines and Thailand have a similar chart with its local beer companies grabbing majority of the market, the only difference is that Thailand's local beer market is shared by 2 companies while San Miguel Beer Corporation takes the biggest chunk at 91% and leaving the 4% to its closest competitor in Asia Brewery Co. Inc. Leaving close to 5% to the imported beer segment. And even if the chart doesn't show, there is a growing Craft Beer market in the country.

The beer market in the Philippines will be vulnerable in the coming years because of the big youth population who are willing to try new beer flavors and beer brands with purchasing powers. The country is also optimistic with the tourist industry and expecting a surge in visitor arrivals from China, Russia,Japan, USA and the South East Asian neighbor who are willing to spend for a good beer. The future is bright for the beer industry specially to the beer import segment. 

The Pinoys these days are somehow exposed to a lot of beer varieties, our OFW brothers and sister for example are pretty much exposed to the beers available in their working countries and when they come home to the Philippines, they have the purchasing power to drink imported beer once in a while with their family. Another group that are market changers are the Fil-foreign locals, they have the money and willing to spend it over a good craft beer or imported beer.

Another angle is the switch to Federalism, if this pushes through and FDI (Foreign Direct Investment) is in place. The beer market is definitely changing. The beer brands who are already present in the country now will reap the most when this happens.

Credits to the owners of the figure, Euromonitor and shared by Duc Pham.