According to a new report published by Pristine Intelligence, titled, “Coffee Market by Forms, Source, Speciality Coffee, Process, Flavors, Distribution Channel, and End-Users: Country Opportunity Analysis and Industry Forecast, 2022–2030,” the Philippines Coffee market size was valued at $ 2064.44 million in 2023, and is projected to reach $ 3250.52 million by 2030, registering a CAGR of 6.7% from 2024 to 2030. The Philippines coffee market encompasses all aspects of coffee production, distribution, and consumption within the country. It involves the cultivation of coffee plants, primarily in regions such as Benguet, Batangas, and Cavite, as well as the processing, roasting, and packaging of coffee beans. The market also includes the distribution and retailing of coffee products through various channels, including supermarkets, specialty coffee shops, and online platforms.   

Fueled by a burgeoning coffee culture and a shift towards specialty coffee. Urban areas have witnessed a proliferation of coffee shops, serving as social hubs for diverse demographics. This trend has led to an increased demand for higher quality and more nuanced coffee experiences, driving the emergence of boutique coffee roasters and specialty coffee shops across the country. Despite historical challenges in local coffee production, efforts are underway to revitalize the industry, focusing on improving quality, sustainability, and productivity through government and private sector initiatives.

In the context of average revenue per capita at home, instant coffee generates a significantly higher revenue compared to roast coffee. With an estimated revenue of 16.99 billion USD, instant coffee dominates the market due to its convenience and widespread availability. Its popularity among consumers looking for quick and easy coffee solutions contributes to its substantial revenue figures. On the other hand, roast coffee, with a revenue of 1.84 billion USD, represents a smaller portion of the market. Despite its lower revenue, roast coffee appeals to consumers who prioritize quality and flavor, often seeking a more artisanal coffee experience. While instant coffee maintains a larger market share in terms of revenue, roast coffee caters to a niche segment of consumers willing to pay a premium for a superior coffee product.

The growing coffee culture in the Philippines, especially in metropolitan areas, is a major factor fueling the market's expansion. Due to the emergence of coffee shop culture, cafes have become well-liked social hubs that draw a wide range of customers looking for distinctive coffee experiences. Due to this tendency, specialty coffee has become more and more popular, which has led to the establishment of specialty coffee shops and boutique coffee roasters around the nation. Filipinos are consuming more coffee and appreciating better-quality brews as a result of the beverage's growing acceptance in the country's culture.

The increased demand for coffee that is ethically and sustainably sourced presents an opportunity for the Philippines coffee market. Customers are favoring coffee that is ethically sourced and supports fair trade methods more and more as they become more environmentally and socially conscious. Companies can seize this market potential by emphasizing sustainability measures, such as encouraging environmentally friendly farming practices and helping regional coffee growers. Companies may stand out in the market and meet the growing demand for sustainable coffee options by matching consumer values with their products and providing coffee that is obtained responsibly.

Philippines Coffee Market, Segmentation

The Coffee market is segmented on the basis of Forms, Source, Speciality Coffee, Process, Flavors, Distribution Channel and End-Users.

Forms:

The packaging type segment is further classified into Whole Coffee Beans, Ground Coffee, Instant Coffee, Coffee Pods & Capsules, Espresso, Others. Among these, the Instant Coffee sub-segment accounted for the highest market. Due to its convenience and accessibility. It offers consumers a quick and easy way to prepare coffee, making it popular among busy individuals and households. Additionally, Instant Coffee aligns well with the fast-paced lifestyle prevalent in urban areas, where time is often limited. Its long shelf life and easy storage further add to its appeal, making it a staple in many Filipino households. While other forms of coffee, such as Whole Coffee Beans and Ground Coffee, cater to consumers who prioritize freshness and flavor, Instant Coffee's mass appeal and convenience continue to drive its dominance in the Philippines market. However, as consumer preferences evolve and there's a growing interest in specialty coffee, segments like Whole Coffee Beans and Coffee Pods & Capsules are also witnessing growth, catering to those seeking a more premium coffee experience..

Source:

The source segment is further classified into Arabica, and Robusta. Among these, the Arabica sub-segment is anticipated to show the fastest growth by 2031. Arabica coffee is renowned for its smooth, mild flavor profile and aromatic qualities, making it highly sought after by consumers looking for premium coffee experiences. As the demand for specialty and gourmet coffee continues to rise in the Philippines, driven by a growing coffee culture and increased consumer awareness, the Arabica segment is poised to benefit significantly. Additionally, Arabica coffee is often associated with higher quality and is favored by many coffee connoisseurs for its nuanced flavor profiles and lower caffeine content. With consumers increasingly prioritizing taste and quality, the appeal of Arabica beans is expected to grow further.

Some of the leading Coffee market players are

• • Figaro Coffee Company (Philippines)
  • Bo's Coffee (Philippines)
  • Starbucks Philippines (USA)
  • The Coffee Bean & Tea Leaf (USA)
  • UCC (Ueshima Coffee Company) (Japan)
  • Dunkin' Donuts Philippines (USA)
  • Seattle's Best Coffee (USA)
  • McCafe (McDonald's Philippines) (USA)
  • Tim Hortons (Canada)

Key Developments:

In April 2023, Pickup Coffee, a grab-and-go coffee startup in the Philippines, has revealed that its last fundraising round brought in $40 million. According to earlier reports, the company filed with Singapore's Accounting and Corporate Regulatory Authority (ACRA) to obtain $30.75 million in new finance. It's crucial to keep in mind that the ACRA filings only reflect the equity money that was received during the round; other funding, such as loans, may have been included.

Key Findings of the Study / Key Industry Developments.

• Average Revenue Per Capita, at Home for Instant coffee - 16.99 USD billion and Roast coffee - 1.84 USD billion.
• Instant coffee dominates revenue due to convenience and availability.
• Filipinos consuming more coffee and appreciating higher quality brews.