just-food and GlobalData outlines ten facts you need to know about the ice cream sector in the Philippines.
1. Ice cream sales in the Philippines stood at PHP12.8bn (US$252.7m) in 2018 – and are forecast to rise to PHP17.1bn by 2023, representing a compound annual growth rate of 6%. In volume terms, the sector is expected to grow from 67.8 million kg in 2018 to 88.6m kg by 2023, a CAGR of 5.5%. 2. Per capita consumption of ice cream in the Philippines stood at 0.6kg in 2018 and is expected to reach 0.8kg by 2023. Expenditure on ice cream per capita stood at US$2.30 in 2018 in the Philippines, compared to a regional spend of $5.3 and $10 globally.
3. In the Philippines, consumption of ice cream is higher among females than males, GlobalData says. Furthermore, children aged up to 15 accounted for the highest consumption of ice cream in 2018, with a 40.9% volume share.
4. The combined hypermarkets and supermarkets channel was the largest by distribution in the Philippines ice cream sector in 2018, accounted for a value share of 63%. That part of the market was followed by convenience stores and food & drinks specialists with shares of 20.3% and 15.4%, respectively.
5. The market is dominated by two large players, with Unilever having a market share by value of 51.7% in 2018. Froneri, the international ice-cream venture between Nestle and PAI Partners, accounted for 31.5% of sales value, with local food and drinks group San Miguel Corp. in third, with a market share of 8.7%.
6. By brand, Unilever’s Selecta is the best-selling brand, with a market share of more than 41% in 2018. The Nestle brand, locally marketed by Froneri, was second with a market share of 14.3%. San Miguel’s Magnolia was third, accounting for 8.7% at sales. The same three brands lead the market by volume, although a second Froneri brand – Sorbetes – was joint third in 2018.
7. Private labels accounted for 1.4% of ice cream sales in the Philippines by value in 2018. The penetration of private-label products stood at 1.8% (sales by value) in the ‘take-home and bulk ice cream’ category. The ‘impulse ice cream – single serve category’ saw 0.9% of its sales by value generated through private label.
8. The ‘take-home and bulk ice cream’ category was the largest by sales in 2018, with value sales hitting PHP7bn. The ‘impulse ice cream – single serve category’ saw sales of PHP5.6bn.
9. According to analysis by GlobalData, the Philippines has the most consolidated ice-cream sectors in Asia Pacific when compared to four other large markets in the region – India, China, Japan and Australia.
10. In the Philippines, ice cream products with health-and-wellness claims generated total value sales of $11.1m in 2018. The segment is forecast to grow at a CAGR of 5.7% during the next five years to reach $14.7m by 2023.