The consumption of imported alcoholic beverages in the Philippines is expected to reach P50 billion by 2025, according to a report by a global beverage alcohol data and intelligence firm.
IWSR Drinks Market Analysis noted that the imported spirits segment would be accounting for 35- percent market share in terms of retail sales value by 2025.
Consumption of spirits, in terms of retail sales value, is anticipated to grow at a compounded annual growth rate (CAGR) of 5.2 percent in 2021 to 2025, IWSR noted.
Broken down, the consumption of imported spirits is seen to grow quicker than the overall segment with a CAGR of 14.9 percent in the same period. The local spirits segment, meanwhile, is pegged at 1.3-percent CAGR during the five-year frame.
Last year, the Philippines booked P116.30 billion worth of retail sales value for spirits, which is better than P114.10 billion in 2019. IWSR noted that consumption of spirits in the country was only P91.70 billion in 2017.
The Lucio Co-owned Keepers Holdings Inc. has the lion’s share of imported spirits in the country at 74 percent by volume and 66.9 percent by retail sales. This is due to its pure third-party distribution arrangements and associated businesses with leading spirits brands.
Driven by Keepers’ primary brand Alfonso, the company expects that the anticipated growth in the imported spirits segment will bode well for its business and operations.
The liquor distribution firm recently filed a P7.5-billion follow-on offering with the Securities and Exchange Commission. It plans to issue 3 billion common shares for P2 to P2.5 apiece, proceeds of which will be used for strategic acquisition, product portfolio and distribution network expansion and working capital, among others.
This year, IWSR forecasts global beverage alcohol to grow by 2.9 percent and expects consumption to return to pre-pandemic level by 2023.
“Recovery will be boosted by the industry pivoting rapidly in key markets, the momentum of e-commerce and RTDs, and increasing sophistication of the at-home occasion in many markets,” the research firm stated.
Last year, global beverage alcohol volume declined by 6.2 percent as the operations of bars and restaurants were affected by the lockdown measures amid the pandemic, IWSR noted.
The ISWR database includes the global market of wine, spirits, beer, cider, and RTDs (ready-to-drink) by volume and value in 160 countries. It tracks overall consumption and trends at brand, price and category level.