Filipinos developing taste for nonalcoholic drinks, says USDA

Local demand for nonalcoholic beverages was estimated to have increased in 2022 as industries continued to recover from pandemic restrictions, with exports from the United States alone forecast to have surged 20 percent to $13.6 million.

A December report by the US Department of Agriculture-Foreign Agricultural Service (USDA-FAS) noted that prospects for growth were ‘exceptionally bright’ owing to the strong presence and preference for American brands.

“Continued growth in imported nonalcoholic beverage consumption is underscored by the country’s young, fast growing, and highly urbanized population, and the still relatively low consumption,” the FAS said in the market briefer.

It also noted that nonalcoholic beverages comprise less than 2 percent of total nonalcoholic beverage consumption in the Philippines, suggesting the huge market potential for growth.

According to the US government agency, exports of nonalcoholic beverages to the Philippines amounted to $96 million in 2021, which is equivalent to 67 million liters of drinks.

However, this is down 8 percent compared to prepandemic levels.

Thailand was the top exporter of these goods to the Philippines, with a 36-percent market share.

The top nonalcoholic beverages exports from Thailand in 2021 were almond milk, probiotic drinks, milk tea, fruit juice with coconut gel, energy drink and soy milk.

The United States was in second place with a 12-percent market share, with $11.4 million worth of exports during that year, according to the FAS.

Root beer, tea, milk, soy milk, ginger ale, soft drinks, cocktail mixes and energy drinks were the nonalcoholic beverages exported by the United States to the Philippines in 2021.

China follows at third place with a market share of 11 percent, followed by South Korea with 10 percent, Belgium with 5 percent, and Indonesia with 4 percent. —Alden M. Monzon INQ