Philippines Roasted Coffee Market is predicted to reach USD 701.52 millions at a CAGR of 12.2% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global Philippines Roasted Coffee Market”.

Market Synopsis

According to the MRFR analysis, the Philippines Roasted Coffee market was valued at USD 220.23 million in 2022 and is projected to reach USD 701.52 million by 2032 at a CAGR of 12.2%.

The key factors driving the growth of the roasted coffee market include innovations in packaging, sustainable practices, and the development of new roasted coffee products, reflecting the industry's commitment to knowing changing consumer preferences. The Philippines Roasted Coffee market is expected to continue its expansion, driven by the increasing demand for roasted coffee across the country.

COVID-19 Impact on the Roasted Coffee Market

The roasted coffee market in the Philippines has changed in recent years due to several key factors. The growth of the market was significantly influenced by the proliferation of coffee chains and shops both in cities and in the countryside. Demand for quality coffee experiences has increased in urban centers and international and local coffee chains have capitalized on this trend. The emergence of a strong coffee culture under the influence of global trends has created a stable market for these establishments. In rural areas, expansion into traditionally underserved communities not only boosted the local economy but also expanded the consumer base of roasted coffee. Moreover, changing consumer preferences have played a key role in shaping the market landscape. The demand for versatile and complex coffee experiences has intensified the competition between coffee shops, which has encouraged innovations in menu offerings, atmosphere, and service. The inclusion of coffee in tourism strategies and economic development projects, especially in coffee-growing regions, brought an immersive experience to consumers, which further boosted the roasted coffee industry. This strategic expansion not only encouraged economic growth but also created direct links between producers and consumers as partnerships with local farmers became more common.

In addition, the growth of cafes and coffee shops has created a business center that offers job opportunities, especially to younger people. Entrepreneurship flourished as individuals set up boutique cafes and franchises in both urban and rural areas. Overall, the dynamic development of coffee culture in the Philippines, shaped by urbanization, changing consumer preferences, and strategic market expansion, highlights the flexibility and potential for sustainable growth.

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Competitive Landscape

The Philippines Roasted Coffee Market is characterized by the presence of many global, regional, and local players. The market is highly competitive, with all the players competing to gain maximum market share. Intense competition, and frequent changes in government policies, and regulations are key factors that impact market growth. The vendors compete based on cost, product quality, reliability, and services. The vendors must provide cost-efficient and high-quality coffee products to sustain their presence in an intensely competitive market environment. The key players operating in the Philippines Roasted Coffee market comprise Silca Coffee Roasting Company, Inc. (Philippines), Bote Central, Inc. (Philippines), Bo's Coffee (Philippines), DUNKIN (USA), Nestlé S.A.  (Switzerland), McCafé (Australia), Starbucks Coffee Company (USA), Figaro Coffee Company (Philippines), Philippine Coffee Company (Philippines), UCC Ueshima Coffee Co., Ltd (Japan) among others.

Segmentation

By Coffee Bean Type

1. Arabica: The Arabica coffee segment of the Philippine roasted coffee market describes the roasted beans of the Arabica coffee plant species. Known for its soft, mild taste and aromatic qualities, Arabica coffee is a premium choice among coffee lovers in the Philippines. This segment serves a more demanding market that appreciates the subtleties of coffee flavor and aroma. Arabica beans are typically grown at high altitudes, which contributes to their unique flavor profile, characterized by higher acidity and a sweeter, fruitier taste compared to other types of coffee. In the Philippines, Arabica coffee is often grown in cold, mountainous regions where the conditions are most suitable for this type of coffee. The Arabica segment in the Philippines will benefit from the growing interest in specialty coffees and the evolution of Filipino coffee tastes.


2. Robusta: Robusta coffee is known for its strong, bold flavor and high caffeine content, making it a popular choice for consumers looking for a more intense coffee experience. Broad beans are generally easier to grow than Arabica because they are more resistant to pests and harsh environmental conditions and can be grown at lower altitudes. Robusta coffee is widely available and often more competitively priced than Arabica, making it accessible to a wider range of consumers.


3. Others: Other segments include a variety of specialty coffees, including Liberica and Excelsa, as well as blends and flavored coffees that meet the preferences of niche consumers. These coffee types offer unique flavor profiles and characteristics that distinguish them from more traditional Arabica and Robusta offerings.

By Form

1. Whole Bean: Whole beans refer to roasted, raw coffee beans that have not been grounded or processed in any way or to any extent other than the roasting process. They are sold in their natural state and require grinding before use. Consumers in the Philippines prefer whole beans for several reasons. One reason is that they allow them to customize the grind size and freshness of their liking. Another reason is the affordability of whole coffee beans and generally cheaper than purchasing pre-ground coffee, making it more affordable for those who drink coffee regularly.


2. Ground: The ground segment refers to coffee beans that have been roasted and then ground into fine powder. This form of coffee is convenient and easy to prepare, making it a popular choice for many Filipino consumers. Ground coffee is preferred for convenience reasons as ground coffee is easier to prepare than whole beans which need to be ground before brewing. As it is quick to prepare, the ground coffee is ideal for busy mornings.


3. Instant: The instant segment represents the market value of the instant form of roasted coffee in the Philippines market. Instant coffee refers to a type of coffee that has been pre-brewed and dried into soluble granules or powder which can be easily dissolved into hot water to provide a quick cup of coffee. This form of coffee is popular among consumers who value both convenience and speed in their daily coffee consumption routine.


4. Pods & Capsules: Coffee pods & capsules are defined as small, individual servings of coffee that are sealed in containers made of plastic, biodegradable materials, or other materials. They are designed to be used in specialized coffee machines that pierce the container and release the coffee grounds into a cup or carafe. Pods and capsules come in a variety of sizes, shapes, and materials.

By Consumption Type

1. At-Home: The at-home coffee consumption refers to the portion of the Philippines roasted coffee market where consumers purchase roasted coffee for personal consumption in their homes or private spaces. This includes coffee brewed using various methods such as drip coffee makers, French press, pour-over, espresso, and others. Typically, consumers from this segment purchase roasted coffee from retail stores, supermarkets, convenience stores, or online platforms and then prepare it themselves using their equipment and preparation.


2. Out-of-Home: The out-of-home segment refers to the share of the market where consumers purchase roasted coffee from food service establishments including cafés, restaurants, bars, and other similar service types outside of their homes. Roasted coffee consumption at cafeterias at offices, schools, theatres, and other such public places is studied and reported in the out-of-home consumption segment. The out-of-home consumption of roasted coffee is defined by several factors that influence consumer behavior and preferences including the space for social interaction, timesaving, availability of specialty coffee, and ambiance.

By Roasting Type

1. Light Roast: Light roast coffee has a higher acidity level, making it a perfect option for those who prefer a delicate taste and subtle aroma that resonates with the tanginess of fruit. Owing to the mild flavor profile, light roast coffee is a popular choice for those who prefer a subtler coffee taste without the bitterness associated with darker roasts. It is also an excellent option for pairing with milk or cream, as it does not overpower the flavor of the milk. The primary difference between light roast coffee and other roast levels is the amount of heat applied during the roast.


2. Medium Roast: The flavor profile of medium roast coffee is characterized by a balance of sweetness, acidity, and bitterness, making it easier to enjoy without overwhelming the palate. It often features notes of chocolate and nuts, making it suitable for a wide range of applications. The medium roast level allows for a more comprehensive taste experience than light roasts, with a slightly sweeter and nuttier flavor profile than dark roasts. One of the main advantages of medium roast coffee is its ability to retain the original bean’s characteristics, resulting in a more complex and nuanced flavor profile.


3. Medium Dark Roast: Medium-dark roast coffee is a versatile choice for espresso and French press brewing methods. The medium-dark coffee roast is popular and preferred by consumers for its rich texture and muted level of acidity. It is widely preferred by individuals looking out for a slightly higher and stronger level of flavor than the light and medium roast type. Roasting for a higher duration has enhanced the antioxidant properties of the coffee beans, making it a healthier choice for coffee lovers.


4. Dark Roast: Dark coffee roasts are popular among those who prefer to have a strong flavor of coffee and experience a heavy mouthfeel. The increasing preference for consumers to limit their caffeine intake without reducing coffee consumption is shifting to dark roast coffee as they have the lowest levels of caffeine than other lighter roast types which is driving the growth of the segment in the upcoming years. Dark roast coffee has several health benefits that set it apart from other roast types. One of the main advantages of dark roast coffee is its high antioxidant content which makes it suitable for health-conscious consumers.

By Brewing Type

1. Espresso: The cornerstone of the Philippine roasted coffee market is espresso, a very thick coffee made by forcing a small amount of near-boiling water through finely ground coffee beans. This segment is for consumers who want a strong and full-bodied coffee experience, often for a quick caffeine fix or as a base for other coffee drinks such as lattes and cappuccinos. The popularity of espresso in the Philippines reflects a growing appreciation for specialty coffee and the cafe culture that flourished in urban centers. Consumers in this segment tend to be more discerning about coffee quality and realize that they prefer freshly roasted and perfectly ground beans to achieve the perfect espresso bag.


2. Pour-Over/Drip: The pour-over or drip coffee segment of the Philippine roasted coffee market caters to coffee enthusiasts who appreciate the nuanced flavors and aromas that this brewing method can extract from the coffee grounds. Its handmade process, where hot water is poured over the coffee in the filter, appeals to the pouring method, which treats coffee making as a meditative ritual and strives to produce the perfect cup.


3. Cold Brew: The cold-brewed coffee segment of the Philippine roasted coffee market has gained significant momentum, especially among younger people who prefer its smooth and mild taste and the convenience it offers. Unlike traditional methods of making hot coffee, cold soup soaks coarsely ground coffee in cold water for a long time, resulting in a less acidic coffee concentrate that can be served cold, offering a refreshing alternative in the tropical climate of the Philippines. This segment grew due to the versatility of cold beer; it can be enjoyed as it is, diluted with water or milk, or used as a base for innovative coffee drinks.


4. Others: The other segment of the Philippines roasted coffee market, encompasses brewing methods like a French press, plunger/press, percolate, vacuum, and Aeropress. It represents a small but significant portion of the coffee industry, catering to the varied tastes and preferences of coffee consumers. These brewing methods, known for their ability to extract distinct flavors and aromas from roasted coffee, have cultivated a dedicated following among consumers seeking a more hands-on approach to their coffee experience.

By Consumer Group

1. Gen Z: Gen Z, is the youngest consumer group consisting of individuals born between 1997 and 2012 a majority share of the consumers in the consumer group are in the initial stages of their careers and have fewer personal responsibilities than the other older generations. This segment represents the roasted coffee consumption by the consumers who fall in this birth year making them currently between the ages of 10 and 26. Convenience plays a significant role in this shift, as younger consumers often lead busy lifestyles and prefer to save time by preparing their coffee at home.


2. Millennials: Similar to Gen Z consumers, the millennials are interested in learning about the coffee's cultural significance, history, and production process. This mindset is clear in millennials and roasters who embrace other cultures, serve single-origin coffees, and educate consumers on their stories. Millennials are becoming more conscious of their health than previous generations.


3. Gen X: Over the years, Gen X preferred to consume coffee at home and is slowly shifting to out-of-the-home consumption owing to the increased availability and widespread accessibility of food service establishments that focus on coffee sales. They tend to purchase their roasted coffee from a variety of store-based retail formats including supermarkets & hypermarkets, specialty stores, and grocery stores & convenience stores.


4. Baby Boomers: The baby boomers segment represents the revenue generated from the older consumer group comprising the people born between 1946 and 1964 commonly referred to as the senior citizens. The segment represents a significant population cohort in many countries, including the Philippines. This generation is known for their strong work ethic, loyalty, and dedication to their families. Baby boomers are now reaching their golden years, enjoying the fruits of labor, and seeking to live life to the fullest.

By Distribution Channel

1. 
   

   Food Retail: The food retail sector of the Philippine roasted coffee market includes multiple outlets such as supermarkets, hypermarkets, convenience stores, and specialty coffee shops. This sector plays an important role in making roasted coffee available to many consumers. Supermarkets and hypermarkets are major players offering a variety of roasted coffee products, including local and international brands, to suit different preferences and price ranges. Food retail is further segmented into supermarkets & hypermarkets, specialty stores, convenience stores & grocery stores, and online.

   
   


2. 
   

   Food Service: The food service sector of the Philippine roasted coffee market has a variety of businesses such as coffee shops, restaurants, hotels, and fast-food chains that offer coffee on their menus. This sector contributes significantly to the consumption of roasted coffee and offers a diverse selection of coffee-based beverages according to different consumer preferences. Coffee shops, from local independent outlets to international chains, are central to this sector and often serve as indicators of coffee culture. They offer a wide range of coffee drinks, from classic espressos to innovative coffee blends that attract a wide customer base.

   
   


3. 
   

   B2B Suppliers & Wholesalers: The B2B suppliers and wholesalers of the Philippine roasted coffee market are pivotal players in the intricate supply chain, facilitating the seamless flow of premium roasted coffee to a diverse array of commercial hospitality entities, including hotels, lodges, offices, hostels, educational institutions, and other commercial spaces that procure their coffee requirements in bulk from wholesalers. These suppliers and wholesalers expertly cater to the nuanced needs of these large-volume buyers by offering an extensive selection of roasted coffee beans, ranging from single-origin specialty coffees to popular commercial blends, thereby ensuring that the varying preferences and quality expectations of their business are met with precision.