PH TAGGED AS LUCRATIVE MARKET FOR FOREIGN CRAFT BEER BREWERS
Imported craft beer products will find their way into a “robust” domestic market owing to the growing population’s desire for more nontraditional alcoholic drinks, a study has found.
“While imported beer accounts for less than 1 percent of consumption, a small but growing number of beer enthusiasts, who are on the lookout for a variety of beer styles, are driving demand,” the United States Department of Agriculture (USDA) said in a report.
The USDA said the resumption of economic activities and the young and growing population would drive sales of imported craft beer in the country in the coming years.
“The Philippines’ burgeoning beer manufacturing industry presents strong opportunities for US exporters of brewing ingredients,” said the USDA, noting the non-existence of local commercial production of hops and barley.
The foreign agency said imports had surged by 52 percent through July this year. Traders project yearend imports to reach $4.7 billion, up by 38 percent from a year ago.
The Philippines is considered a consumption “sweet spot” despite the disparity in take-home pay among economic segments.
About a fifth of the population, equivalent to more than 20 million people, earn an average of $12,700 annually.
About 51 percent of the country’s 115 million population comprised young people below the age of 24.
Widely consumed
Beer is the most widely consumed alcoholic beverage nationwide, accounting for 72 percent or about 2.1 billion liters of total consumption.
The United States was the eighth largest exporter of beer to the Philippines in 2018 but has lagged since then.
According to the USDA, the lack of imported beer variety spurred interest among the large retail chains to import US commercial and craft beer brands.
The domestic beer manufacturing industry is dominated by San Miguel Brewery Inc. which has a market share of 93 percent. Asia Brewery Inc. holds a 6 percent share.
Republic Act No. 11467, signed by former President Rodrigo Duterte in January 2020, raised the excise tax on beer by P2 at the beginning of each year until it reaches P43 in 2024. It will increase by 6 percent every year starting 2025.