Philippines Coffee Market Research Report 2023

The Philippines Coffee Market Synopsis

The Philippines’ Coffee Market is Expected to Grow at a Significant Growth Rate, and the Forecast Period is 2023-2030, Considering the Base Year as 2022.

The Philippines is a major coffee producer, and the country's coffee beans are highly regarded for their quality. The two main types of coffee grown in the Philippines are Arabica and Robusta. Arabica beans are known for their smooth, mellow flavor, while Robusta beans are known for their strong, bold flavor.

• The Philippines coffee market is growing rapidly, driven by several factors, including increasing disposable income among Filipinos, growing popularity of coffee shops and cafes, rising awareness of the health benefits of coffee, and government support for the coffee industry.
• The market is expected to continue to grow in the coming years, with a CAGR of 8.22% from 2023 to 2028. The instant coffee segment is the largest, accounting for the majority of the market share. This is due to the convenience of instant coffee, which can be easily prepared at home or on the go.
• The Philippines coffee market is a vibrant and growing market. The market is expected to continue to grow in the coming years, driven by several factors, including increasing disposable income, the growing popularity of coffee shops and cafes, and rising awareness of the health benefits of coffee.

Top Key Players:

"Starbucks Philippines (USA), The Coffee Bean & Tea Leaf (USA), Figaro Coffee Company (Philippines), Bo's Coffee (Philippines), UCC (Ueshima Coffee Company) (Japan), Dunkin' Donuts Philippines (USA), Seattle's Best Coffee (USA), McCafe (McDonald's Philippines) (USA), Tim Hortons (Canada), J.CO Donuts & Coffee (Indonesia), Coffee Project (Philippines), The Shangri-La Coffee Garden (Philippines), Gloria Jean's Coffees (Australia), Toby's Estate Coffee (Australia), Coffee Dream (Philippines), The French Baker (Philippines), Bo's Coffee Bigtrain (Philippines), 7-Eleven Philippines (USA), Rustan Coffee Corporation (CBTL) (Philippines), Coffee Alley (Thailand) and Other Major Players"

The Philippines Coffee Market Trend Analysis

International Coffee Trends and Innovations

• The Philippines coffee market is being driven by international coffee trends and innovations. Consumers are increasingly demanding higher-quality coffee, and they are also looking for new and exciting coffee experiences. This has led to the growth of specialty coffee shops and cafes in the Philippines, as well as the introduction of new coffee products and flavors.
• One of the most popular international coffee trends in the Philippines is the rise of cold brew coffee. Cold brew coffee is made by steeping coffee grounds in cold water for an extended period, resulting in a smooth and flavorful coffee drink. Cold brew coffee is often seen as a healthier alternative to traditional hot coffee, and it is also a popular choice for those who want to enjoy coffee without caffeine.
• Another international coffee trend that is gaining popularity in the Philippines is the use of specialty coffee beans. Specialty coffee beans are grown in specific regions and are known for their unique flavor profiles. These beans are often used in high-end coffee shops and cafes, and they are also available for purchase online.

From 2018 to 2022, the Roast Coffee market in the Philippines experienced impressive growth, with average revenue increasing from 1.07 billion USD to 1.77 billion USD. This steady rise is indicative of a thriving coffee culture in the country, driven by factors like urbanization, higher incomes, and evolving consumer preferences. The industry's adaptability to new trends and technologies further fueled this positive trajectory. With such encouraging figures, the future of the Philippines' coffee market appears promising, presenting ample opportunities for continued success and expansion.

Investment in Coffee Research and Development

• The Philippines is a major coffee producer, but the country's coffee industry is still largely underdeveloped. There is a great opportunity for investment in coffee research and development in the Philippines. This investment could help to improve the quality of Philippine coffee beans, develop new coffee varieties, and find more efficient ways to grow and process coffee.
• Investment in coffee research and development could also help to promote the Philippines as a premium coffee destination. The Philippines has several unique coffee-growing regions, and the country's coffee beans have the potential to compete with the best coffee beans in the world. With investment in research and development, the Philippines could become a major player in the global coffee market.
• several government and private organizations are already working to promote coffee research and development in the Philippines. These organizations are working to improve the quality of Philippine coffee beans, develop new coffee varieties, and find more efficient ways to grow and process coffee. With continued investment, these organizations could help to make the Philippines a major player in the global coffee market.

The Philippines Coffee Market Segment Analysis

The Philippines’ Coffee Market is Segmented into Form, Speciality Coffee, Flavors, Distribution Channel, and End-Users. By Speciality Coffee, the Cold Brew & Nitro Cold Brew Coffee segment is Anticipated to Dominate the Market Over the Forecast Period.

• The Cold Brew & Nitro Cold Brew Coffee segment is anticipated to dominate the Philippines coffee market in the coming years. This is due to the growing popularity of cold brew coffee among consumers.
• Cold brew coffee is made by steeping coffee grounds in cold water for an extended period, resulting in a smooth and flavorful coffee drink. It is often seen as a healthier alternative to traditional hot coffee, and it is also a popular choice for those who want to enjoy coffee without caffeine.
• The Philippines is a major coffee producer, and the country's coffee beans are highly regarded for their quality. This makes the Philippines an ideal market for cold brew coffee, as consumers are already familiar with the taste of coffee. Additionally, the Philippines has a warm climate, which makes cold brew coffee a refreshing and popular choice.
• The growth of the Cold Brew & Nitro Cold Brew Coffee segment is being driven by several factors, including the increasing popularity of specialty coffee, the growing health consciousness of consumers, and the rising demand for convenient and ready-to-drink coffee beverages. This segment is expected to continue to grow in the coming years, and it is likely to become a major force in the Philippines coffee market.

Philippines Coffee Market Country Analysis

• The Philippines is dominating the coffee market for several reasons. One reason is the country's strong coffee culture. Coffee has been an important part of Filipino culture for centuries, and it is enjoyed by people of all ages.
• Another reason for the Philippines' dominance in the coffee market is the country's growing middle class. As more people in the Philippines have disposable income, they can afford to buy coffee, both at home and in coffee shops.
• The Philippines is also well-positioned to dominate the coffee market because of its favorable climate. The warm climate makes coffee a refreshing and popular drink, and it is often enjoyed outside, in cafes or parks.
• The Philippines is dominating the coffee market because of its strong coffee culture, growing middle class, and favorable climate. The country is well-positioned to continue to dominate the market in the years to come.

Covid-19 Impact Analysis on The Philippines Coffee Market

• The COVID-19 pandemic has had a significant impact on the Philippines coffee market. The pandemic has led to a decline in coffee consumption, as people have been staying home more and avoiding public places. This has hurt the coffee industry, as businesses have been forced to close or reduce their operations.
• The pandemic has also created some opportunities for the coffee industry. The rise of online shopping has led to an increase in demand for online coffee sales. This has allowed coffee businesses to continue to operate and reach customers even during the pandemic. Additionally, the pandemic has led to a renewed interest in coffee at home, as people have been looking for ways to enjoy coffee without going to coffee shops.
• The impact of COVID-19 on the Philippines coffee market has been mixed. The pandemic has led to a decline in coffee consumption, but it has also created some opportunities for the coffee industry. It remains to be seen how the coffee market will recover from the pandemic, but the industry is well-positioned to adapt to the new normal.

Top Key Players Covered in The Philippines Coffee Market

• Starbucks Philippines (USA)
• The Coffee Bean & Tea Leaf (USA)
• Figaro Coffee Company (Philippines)
• Bo's Coffee (Philippines)
• UCC (Ueshima Coffee Company) (Japan)
• Dunkin' Donuts Philippines (USA)
• Seattle's Best Coffee (USA)
• McCafe (McDonald's Philippines) (USA)
• Tim Hortons (Canada)
• CO Donuts & Coffee (Indonesia)
• Coffee Project (Philippines)
• The Shangri-La Coffee Garden (Philippines)
• Gloria Jean's Coffees (Australia)
• Toby's Estate Coffee (Australia)
• Coffee Dream (Philippines)
• The French Baker (Philippines)
• Bo's Coffee Bigtrain (Philippines)
• 7-Eleven Philippines (USA)
• Rustan Coffee Corporation (CBTL) (Philippines)
• Coffee Alley (Thailand) and Other Major Players

Key Industry Developments in The Philippines Coffee Market

In April 2023, Philippine grab-and-go coffee startup Pickup Coffee officially disclosed raising $40 million in its most recent funding round. Earlier reports indicated that the company had secured $30.75 million in fresh funding based on filings with Singapore's Accounting and Corporate Regulatory Authority (ACRA). It's important to note that ACRA filings represent only the equity funding received in the round, and the total funding amount could be higher, potentially including other components like debt.

In October 2022, The Department of Agriculture (DA) revealed its alliance with Nestlé Philippines to elevate the coffee industry. The partnership aims to strengthen local coffee production and enhance the country's self-sufficiency level, which presently stands at a mere 15 percent. To support the coffee sector, they are proposing the creation of a coffee center in Sultan Kudarat, as well as researching balanced fertilization. However, as of the current update, further specifics regarding the coffee center and research have not been disclosed.