Shifting trends lift bottled water sales

CEBU, Philippines — Demand for bottled water in the Philippines is rising thanks to the changing consumer beverage preference and the growing concerns on local water supply.

In an interview with The FREEMAN on Tuesday, Mark Gabriel Mathay, brand manager at Indonesian company Mayora Indah, said the Philippines' packaged water market looks promising amid the growing trend of consumers shifting to water as their beverage.

Mayora is the company behind the Kopiko coffee and Le Minerale, a packaged water brand that had just entered the Philippine market about two years ago.

Mathay, who handles the company's water brand, cited in particular the Cebu market as among the priority markets for their packaged water business being the second largest city in the country. 

He said the company is looking to further its presence in the country particularly in Cebu.

"Cebu is a highly urbanized city. So it's a special market for us," he said.

"The Philippines in general is a very young and promising market not just in Asia but in the world," he added.

Mathay believes demand for bottled water is likely to further increase, being among the fastest growing product categories in the fast moving consumer goods (FMCG) industry.

"We are optimistic for growth and the demand in the Philippines," he said. He said Le Minerale sources mountain mineral water in Indonesia.

According to market research firm Euromonitor International, the positive outlook for the Philippine economy and the rising demand for clean drinking water should push incumbent players to take advantage of these opportunities through marketing efforts and effective distribution systems.

"While bulk water will continue to command the highest proportion of bottled water sales, economic development will support demand for small pack sizes of water, particularly still bottled water," the research company said.

Euromonitor so noted unlike other soft drinks categories, bottled water did not contract in volume in 2018, as prices remained competitive.

"There is an expanding middle class and rising demand for clean and healthy beverages, thus there is an increasing preference for packaged bottled water," it said.

There has been growing interest in bottled water in recent years not just from local players, but also from international companies.

Over the forecast period, the promising economic outlook in the Philippines will continue to encourage new entrants, both local players and international companies. As competition in still bottled water is mainly based on price, it is crucial for new players to offer similar pricing to convey value to consumers.

The Philippines packaged water market has been dominated by competing firms The Coca-Cola Company (Wilkins), Philippine Spring Water Resources (Nature’s Spring) and LT Group (Absolute and Summit).

Mathay said that moving forward, Mayora is looking to increase the market share of Le Minerale in the country's bottled water business.