PETpla.net Insider 11 / 2020

EDITOUR PETplanet Insider Vol. 21 No. 11/20 www.petpla.net 26 Dimensional and thickness measurements for plastic containers and preforms. • Repeatable • Accurate • Precise • Fast GAWiS D +1.724.482.2163 AGRINTL.COM SEE GAWIS4D IN ACTION supply chains, strict lockdown meas- ures, a decline in tourism, reduced income being sent home by Filipinos working abroad and lower con- sumption rates are all exacerbating the current situation. However, the economy should return to pre-Covid levels in 2021. The drinks’ world and PET There is one thing that has remained constant since our 2017 market report. Carbonated soft drinks (CSD) are still way out in front when it comes to consumption of non- alcoholic drinks in the Philippines. According to a report by Euromoni- tor in late June, CSD sales in 2019 comprised 4.86 billion litres, fol- lowed by bottled water (in < 8 l packs) which comprised 2.86 billion litres. This is just what market experts had expected to happen here during our last on-site visit. Consumption of water is increas- ing as are non-CSDs, albeit on a smaller scale. Along with new market products and taste varieties, the industry reacted to the introduction of the sugar tax in 2018 by downsiz- ing product content to minimise sugar tax impact, using different ingredients and producing healthier drinks which created markets in nearly every area. And these are almost literally catch- ing on with customers. Changes in consumer trends in favour of online shopping, together with the building of new retail channels such as modern supermarkets, convenience stores and shops outside cities are ensuring ever-increasing outreach to the general population. According to a Euromonitor fore- cast for the rest of this year, there will only be a slight change in consump- tion of all non-alcoholic drinks. In terms of growth figures for individual drinks’ ranges this means a modest decline in CSDs, bottled water, ready-to-drink (RTD) tea, sports and soy drinks. Con- sumption of energy drinks is expected to remain at a steady level, with RTD coffee likely to increase by a few per- centage points. The reusable glass bottle is still a firmly established feature in the Philip- pines unlike in many other countries. For CSDs in particular it is expected to have a 66% share of the packag- ing market in 2020, ahead of PET with 31%. However, according to Euromoni- tor, this could change again in favour of the PET bottle at some point as use of PET is anticipated to grow by 11%. For the water market, 98% is in plastics packaging which is mostly PET and 2% in glass. Here, the increase in PET use would be 12% and 9% for glass. PET bottles are almost exclusively used for RTD teas and coffees, i.e. 95% and Rice farmers at work Philippines bottled water packag- ing split (retail/off-trade unit volume) (Source: Market Research Company Euromonitor International)