Market Potential of Pasteurized Coconut Water in the Philippine Beverage Industry

Abstract

Trends in health and well-being are taking the lead in the beverage consumption movement.  The waning attractiveness of carbonated beverage may be attributed to the negative impression of the sugar content linking it to health problems.  Studies show that coconut water is found to be as effective as a sports drink for rehydration.  However, while coconut water may be an old commodity which is usually consumed as fresh, pasteurized coconut water (PCW) becomes a new entrant in the Philippine beverage industry.  As new player, penetrating the market of the giant beverage manufacturers seem to be risky and challenging.  The study aimed to determine the market potential of bottled pasteurized coconut water and to identify product positioning opportunity in the beverage market. The study employed random consumption survey and product test. Van Westerndorp price sensitivity meter was used in determining the ideal price for PCW.  The properties of PCW against the respondents’ top beverage were used as bases for product positioning.  The study revealed that PCW is widely accepted by the general consumers and the target market using common beverage attributes. PCW is positioned as a functional health drink that could serve as a substitute beverage to bottled water and sports drink.  The natural and functional appeal of PCW may serve as its product differentiation tool in penetrating the beverage market and attracting consumers with active and healthy lifestyle.  With high market acceptability, there is a huge potential for PCW to infiltrate the Philippine beverage industry.