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Note: This report includes forecasting data that is based on baseline historical data.
Executive summary
The Philippines' post pandemic economic recovery is expected to result in consumers enjoying higher levels of disposable income and interest in alcoholic drinks, despite inflationary pressures. According to the World Health Organization (WHO), the consumption of alcoholic drinks in Philippines is dominated by spirits (72%), followed by beer (27.3%) and wine (0.4%).
Despite overall decreased retail sales over 2018 to 2022, standard priced alcoholic beverages showed sustained resilience and popularity. The end of the COVID-19 pandemic saw the return of premiumisation in alcoholic drinks to pre-pandemic preferences. These trends are especially noticeable within on-trade consumption.
Overall wine sales increased at a compound annual growth rate (CAGR) of 3.5% from 2018 to 2022 to reach 25.4million litres with all grape wine categories increasing. Over 2023 to 2027, wine sales are expected to increase 5.4% annually, with all wine categories increasing.
Retail beer sales in Philippines, consisting mostly of lager, fell by 1.0% annually from 2018 to 2022 and are projected to increase 10.0% annually to reach 3.8billion liters by 2027.
Sales of spirits grew 5.3% overall over 2018 to 2022 with shoju/soju growing fastest, followed by gin. Compared with whiskies, shochu/soju is much cheaper. co*cktail culture is likely to drive consumer demand and market growth over 2023 to 2027 with all categories expected to grow in the single digits.
Domestic players have broad distribution networks in supermarkets, hypermarkets and grocery retailers, which pose barriers to entry for smaller players. As such, Ecommerce sites including Boozy, the PCK, Sarvoso, and Winery are using discounting and promotions to encourage consumers to purchase products online rather than in store-based retailers. As they gain greater visibility and reach, this is expected to shape the retail landscape of alcoholic drinks in the future.
Overview
The Philippines' post pandemic economic recovery is expected to result in consumers enjoying higher levels of disposable income and interest in alcoholic drinks, despite inflationary pressures. Increased socialization and economic expansion has rekindled Philippines drinking culture, especially, co*cktail culture, which has led to a resurgence in demand for inventive, high-quality co*cktails, which has strongly bolstering on-trade sales of spirits as well as beer and wine. According to the World Health Organization (WHO), the consumption of alcoholic drinks in Philippines is dominated by spirits (72%), followed by beer (27.3%) and wine (0.4%).
Over 2018 to 2022, during the pandemic, standard priced alcoholic beverages, such as Ginebra San Miguel, San Miguel Pale Pilsen, Red Horse, and Tanduay Rhum, showed sustained resilience and popularity. The success of these affordable-yet-quality alcoholic beverages can be attributed to the expansion of distribution networks, cost-cutting measures, as well as effective marketing campaigns that drove consumer demand.
The end of the pandemic saw the return of premiumisation in alcoholic drinks to pre-pandemic preferences. This is especially noticeable within on-trade consumption, which enables consumers to sample premium spirits by the glass, requiring less financial commitment than purchasing an entire case or bottle.
Domestic players have broad distribution networks in supermarkets, hypermarkets and grocery retailers, which pose barriers to entry for smaller players. Retailers Lazada and Shopee are anticipated to retain their dominance owing to their inherent efficiencies and user friendliness. As such, Ecommerce sites including Boozy, the PCK, Sarvoso, and Winery are using discounting and promotions to encourage consumers to purchase products online rather than in store-based retailers. As they gain greater visibility and reach, this is expected to shape the retail landscape of alcoholic drinks in the future.
Wine in the Philippines
| Category | 2018 | 2022 | CAGR* % 2018-2022 | 2023 | 2027 | CAGR* % 2023-2027 |
|---|---|---|---|---|---|---|
| Wine | 22.1 | 25.4 | 3.5 | 27.1 | 33.0 | 5.4 |
| Red Wine | 17.9 | 20.6 | 3.7 | 22.0 | 27.0 | 5.5 |
| White Wine | 3.7 | 4.2 | 3.2 | 4.4 | 5.2 | 4.6 |
| Sparkling Wine | 0.3 | 0.4 | 0.6 | 0.4 | 0.4 | 4.2 |
| Sake | 0.1 | 0.1 | −6.3 | 0.1 | 0.1 | 4.5 |
| Rosé Wine | 0.1 | 0.1 | 0.4 | 0.1 | 0.1 | 5.5 |
Source: Euromonitor 2023 *CAGR: Compound Annual Growth Rate | ||||||
Overall wine sales increased at a compound annual growth rate (CAGR) of 3.5% from 2018 to 2022 to reach 25.4million litres with all grape wine categories increasing. As well, legislative actions - such as the proposed Restaurant Industry Revival Act of 2022, for example - have also acted as key drivers. The legislation offers incentives for the continued operation of foodservice businesses, as on-trade has been key to driving growth within wine overall as consumers show interest in frequenting dining establishments. The rising popularity of wine-specialty bars as well as increased traffic at mid-range and upscale restaurants, where wines are commonly served by the glass, has proven essential to increasing local consumer awareness and appreciation for various types of wine. The return-to-work saw a wave of young professionals migrating back to the city, resulting in a noticeable boost to on-trade consumption. This boost in on-trade is anticipated to continue as the number of younger wine drinkers (of legal drinking age) is expected to continue growing with an openness to new experiences in their choice of beverages in bars and restaurants. Over 2023-27, wine sales are expected to increase 5.4% annually, with all wine categories increasing.
Higher disposable incomes and increased urbanization, coupled with broader product variety and price points have been the main growth drivers in wine off-trade in the Philippines, where wine drinking isn't traditionally embedded in the cultural fabric. For example, the PHP476 - 675 (Can$11.40-Can$16.13) price range has been steadily gaining traction as a popular price point, primarily due to the increased distribution of premium new world wines in the locations where the market leader is present.
While key players like Bel Mondo Italia Corp and Emperador Distillers have broadened their distribution in modern retail channels, those that have yet to fully leverage convenience stores, supermarkets and hypermarkets are expected to shift their focus towards e-commerce. Ecommerce platforms such as Boozy, Manila Wine, and Winery PH have boosted the visibility of wines from diverse regions at varied price points. Ecommerce presents lower barriers to entry for smaller producers compared to traditional modern retailers, leading to a greater range of products being available on this channel. As a rising number of local consumers continue to transition to online shopping, the expected increase in awareness of and curiosity to try new wines will boost Ecommerce sales.
| Company name | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| Bel Mondo Italia Corp | 36.0 | 37.6 | 38.0 | 38.3 | 40.5 |
| E&J Gallo Winery Inc | 10.4 | 9.9 | 10.2 | 10.2 | 10.4 |
| Wine Group Inc, The | 3.8 | 3.7 | 3.6 | 3.6 | 3.7 |
| Félix Solís Avantis SA | 2.6 | 2.6 | 2.5 | 2.5 | 2.4 |
| Conrad & Co Inc | 2.2 | 2.1 | 2.0 | 2.0 | 1.9 |
| Fly Ace Corp | 1.4 | 1.4 | 1.3 | 1.3 | 1.4 |
| Cía Cervecerías Unidas SA | 1.3 | 1.2 | 1.2 | 1.2 | 1.1 |
| Mompo Arsenal Trading SL | 0.8 | 0.7 | 0.7 | 0.7 | 0.7 |
| Bacardi & Co Ltd | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 |
| Gekkeikan Sake Co Ltd | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| Others | 41.2 | 40.6 | 40.3 | 40.0 | 37.6 |
| Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
| Source: Euromonitor 2023 | |||||
| Brand name (company name) | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| Novellino (Bel Mondo Italia Corp) | 36.0 | 37.6 | 38.0 | 38.3 | 40.5 |
| Carlo Rossi (E&J Gallo Winery Inc) | 10.4 | 9.9 | 10.2 | 10.2 | 10.4 |
| Franzia (Wine Group Inc, The) | 3.8 | 3.7 | 3.6 | 3.6 | 3.7 |
| Sol de España (Félix Solís Avantis SA) | 2.6 | 2.6 | 2.5 | 2.5 | 2.4 |
| Don Quixote (Conrad & Co Inc) | 2.2 | 2.1 | 2.0 | 2.0 | 1.9 |
| Doña Elena (Fly Ace Corp) | 1.4 | 1.4 | 1.3 | 1.3 | 1.4 |
| Gato Negro (Cía Cervecerías Unidas SA) | 1.3 | 1.2 | 1.2 | 1.2 | 1.1 |
| Mompo Mass Wine (Mompo Arsenal Trading SL) | 0.8 | 0.7 | 0.7 | 0.7 | 0.7 |
| Martini (Bacardi & Co Ltd) | 0.2 | 0.2 | 0.2 | 0.1 | 0.1 |
| Gekkeikan (Gekkeikan Sake Co Ltd) | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| Others | 41.3 | 40.6 | 40.3 | 40.0 | 37.7 |
| Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
| Source: Euromonitor 2023 | |||||
Beer in the Philippines
| Category | 2018 | 2022 | CAGR* % 2018-2022 | 2023 | 2027 | CAGR* %2023-2027 |
|---|---|---|---|---|---|---|
| Beer | 2,386.7 | 2,295.6 | −1.0 | 2,607.8 | 3,811.1 | 10.0 |
| Mid-Priced Lager | 2,065.9 | 1,995.1 | −0.9 | 2,290.4 | 3,448.6 | 10.8 |
| Economy Lager | 199.0 | 189.8 | −1.2 | 199.7 | 220.5 | 2.5 |
| Flavoured/Mixed Lager | 109.3 | 100.6 | −2.1 | 107.1 | 128.9 | 4.7 |
| Premium Lager | 3.8 | 2.5 | −9.8 | 2.6 | 3.1 | 4.2 |
| Dark Beer | 2.1 | 1.9 | −2.5 | 2.0 | 2.5 | 5.7 |
Source: Euromonitor 2023 *CAGR: Compound Annual Growth Rate | ||||||
Retail beer sales in Philippines, consisting mostly of lager, fell by 1.0% annually from 2018 to 2022 and are projected to increase 10.0% annually to reach 3.8billion litres by 2027. Sales of all beer categories fell with premium lager falling the fastest by a CAGR of 9.8%. Over 2023-27, beer sales are expected to rebound by 10% with mid priced lager growing fastest by 10.8% annually.
In addition to mid-priced lagers, other beers are forecast to experience growth, including no/low alcoholic beer and both domestic and imported premium lagers. For example, Asia Brewery introduced Paraiso, a craft beer-style beverage available in two distinctive flavours: Bighani and Lakas. The decision to launch this beer was aligned with an upsurge in consumer interest towards craft beer, effectively broadening the company's product portfolio in a category that has traditionally exhibited strong loyalty to incumbent brands.
Heineken Philippines has also unveiled Heineken Silver - a premium low calorie lager, as well as Heineken 0.0 - a nonalcoholic variant of the company's iconic beer, both of which continue to be brewed and distributed under Asia Brewery Inc. As well, Philippines' consumer interest in weissbier/weizen/wheat beers suggests a potential growth in off-trade and on-trade sales for these beer types. The return of foreign tourists should also support this trend, with there being a global craft beer movement as consumers go in search of more interesting flavours.
| Company Name | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| San Miguel Corp | 94.3 | 94.7 | 94.2 | 94.1 | 94.7 |
| Asia Brewery Inc | 5.6 | 5.3 | 5.7 | 5.6 | 5.2 |
| Others | 0.1 | 0.3 | |||
| Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
| Source: Euromonitor 2023 | |||||
| Brand name (company name) | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Red Horse (San Miguel Corp) | 64.2 | 65.3 | 63.6 | 64.3 | 65.1 |
| San Miguel (San Miguel Corp) | 24.5 | 24.1 | 24.8 | 24.2 | 24.0 |
| Gold Eagle (San Miguel Corp) | 5.6 | 5.2 | 5.8 | 5.6 | 5.6 |
| Beer na Beer (Asia Brewery Inc) | 2.8 | 2.6 | 3.0 | 2.9 | 2.7 |
| Colt 45 (Asia Brewery Inc) | 2.7 | 2.5 | 2.6 | 2.6 | 2.4 |
| Others | 0.3 | 0.2 | 0.2 | 0.4 | 0.2 |
| Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
| Source: Euromonitor 2023 | |||||
Spirits in the Philippines
| Category | 2018 | 2022 | CAGR* % 2018-2022 | 2023 | 2027 | CAGR* % 2023-2027 |
|---|---|---|---|---|---|---|
| Spirits | 711,785.4 | 875,428.1 | 5.3 | 919,370.8 | 1,102,438.8 | 4.7 |
| Gin | 260,019.0 | 406,766.7 | 11.8 | 436,677.1 | 537,278.7 | 5.7 |
| Dark Rum | 178,439.7 | 213,903.9 | 4.6 | 221,446.5 | 268,310.3 | 4.6 |
| Brandy | 247,535.1 | 224,741.7 | −2.4 | 230,079.3 | 260,516.7 | 3.0 |
| Aniseed-Flavoured Spirits | 11,485.9 | 12,941.3 | 3.0 | 13,263.0 | 13,802.1 | 1.3 |
| Shochu/Soju | 3,093.8 | 7,545.3 | 25.0 | 7,847.1 | 10,046.1 | 5.9 |
| Japanese Whisky | 4,984.0 | 4,423.8 | −2.9 | 4,684.1 | 6,268.4 | 7.2 |
| Blended Scotch Whisky | 2,460.9 | 1,573.9 | −10.6 | 1,685.9 | 1,974.4 | 4.6 |
| Vodka | 1,180.6 | 1,026.0 | −3.4 | 1,065.7 | 1,156.9 | 2.4 |
| Tequila (and Mezcal) | 468.0 | 500.0 | 1.7 | 540.2 | 698.8 | 6.9 |
| Bourbon/Other US Whiskey | 447.0 | 438.9 | −0.5 | 464.1 | 538.2 | 4.2 |
| White Rum | 398.0 | 428.3 | 1.9 | 442.1 | 481.9 | 2.4 |
| Other Whiskies | 272.1 | 233.1 | −3.8 | 239.2 | 275.0 | 3.4 |
| Cognac | 221.1 | 195.9 | −3.0 | 201.4 | 237.4 | 3.9 |
| Bitters | 205.7 | 158.2 | −6.4 | 166.9 | 217.6 | 6.6 |
| Single Malt Scotch Whisky | 224.6 | 179.5 | −5.4 | 185.4 | 206.6 | 2.8 |
| Other Liqueurs | 179.0 | 177.1 | −0.3 | 181.7 | 205.3 | 3.0 |
| Lambanog | 83.5 | 96.9 | 3.8 | 99.4 | 104.1 | 1.4 |
| Cream-based Liqueurs | 56.5 | 60.6 | 1.8 | 63.1 | 71.1 | 3.2 |
| Irish Whiskey | 28.9 | 35.1 | 5.0 | 36.9 | 47.1 | 6.1 |
| Canadian Whisky | 2.0 | 1.8 | −2.2 | 1.8 | 2.2 | 3.9 |
Source: Euromonitor 2023 *CAGR: Compound Annual Growth Rate | ||||||
Sales of spirits grew 5.3% overall over 2018-2022 with shoju/soju growing fastest, followed by gin. Compared with whiskies, shochu/soju is much cheaper and perceived to have a better taste and quality compared than local white spirits.
Reinvigorated interest in co*cktail culture and increased willingness among consumers to raise their on-trade consumption is expected to spur interest in innovative and artisanal co*cktails as employees return to work. This trend is also driven by bars such as The Curator and Oto, which have positioned the Philippines on the global co*cktail scene by earning places in Asia's 50 Best Bars. In addition to driving co*cktail culture, these establishments are also providing a platform to promote domestic and international spirits brands in the Philippines, such as Hendrick's Gin, Remy Martin, and Patron. Companies such as Diageo Philippines and Pernod Ricard Philippines have made strategic alliances with bars and restaurants to promote their premium offerings, for example, their promotion of Johnny Walker Black Label and Singleton showcased them as ingredients in creative co*cktails.
These favourable shifts bolstering demand for spirits, particularly for economy and standard-priced spirits, has served to boost demand in both off-trade and on-trade channels. As such, co*cktail culture is likely to drive consumer demand and market growth over 2023-27 with all categories expected to grow in the single digits.
| Company name | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| San Miguel Corp | 36.3 | 40.2 | 41.1 | 44.5 | 45.9 |
| Tanduay Distillers Inc | 25.0 | 24.1 | 26.7 | 25.1 | 24.4 |
| Alliance Global Group Inc | 31.6 | 28.8 | 25.8 | 24.1 | 23.3 |
| AR Valdespino SA | 1.4 | 1.6 | 1.6 | 1.7 | 1.7 |
| Suntory Holdings Ltd | 0.7 | 0.7 | 0.5 | 0.5 | 0.5 |
| Hite Jinro Co Ltd | 0.3 | 0.4 | 0.5 | 0.5 | 0.4 |
| Emperador Distillers Inc | 0.4 | 0.4 | 0.3 | 0.3 | 0.3 |
| Diageo Plc | 0.5 | 0.5 | 0.3 | 0.3 | 0.3 |
| Muhak Co Ltd | 0.1 | 0.1 | 0.1 | 0.2 | 0.2 |
| Destilería Limtuaco & Co Inc | 0.3 | 0.3 | 0.2 | 0.2 | 0.2 |
| Lotte Group | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| London Birmingham Distillers Ltd | 0.2 | 0.0 | 0.0 | 0.0 | 0.0 |
| Others | 3.2 | 3.0 | 2.8 | 2.6 | 2.6 |
| Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
| Source: Euromonitor 2023 | |||||
| Brand Name (Company Name) | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| San Miguel (San Miguel Corp) | 33.8 | 37.9 | 39.1 | 42.7 | 44.2 |
| Emperador (Alliance Global Group Inc) | 31.2 | 28.5 | 25.5 | 23.8 | 23.1 |
| Tanduay (Tanduay Distillers Inc) | 22.7 | 21.9 | 24.3 | 22.8 | 22.2 |
| Alfonso (AR Valdespino SA) | 1.4 | 1.6 | 1.6 | 1.7 | 1.7 |
| Vino Kulafu (San Miguel Corp) | 1.6 | 1.6 | 1.6 | 1.5 | 1.4 |
| Suntory (Suntory Holdings Ltd) | 0.6 | 0.6 | 0.5 | 0.5 | 0.5 |
| Jinro (Hite Jinro Co Ltd) | 0.3 | 0.4 | 0.5 | 0.5 | 0.4 |
| Gran Matador (San Miguel Corp) | 0.9 | 0.6 | 0.3 | 0.3 | 0.2 |
| Fundador (Emperador Distillers Inc) | 0.4 | 0.4 | 0.3 | 0.3 | 0.2 |
| Good Day (Muhak Co Ltd) | 0.1 | 0.1 | 0.1 | 0.2 | 0.2 |
| Source: Euromonitor 2023 | |||||
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Resources
- Euromonitor International:
- Alcoholic Drinks in Philippines, June 2023
- Beer in Philippines, June 2023
- Spirits in Philippines, June 2023
- Wine in Philippines, June 2023
- Global Trade Tracker, 2023
- World Health Organization: Global Status Report on Alcohol 2018
Sector Trend Analysis – Beer, wine, and spirits in Philippines
Global Analysis Report
Prepared by: Kris Clipsham, International Market Analyst
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