Philippines Roasted Coffee Market Research Report Information By Coffee Bean Type (Arabica, Robusta, and Others), By Form (Whole Bean, Ground, Instant, and Pods & Capsules), By Consumption Type (At-Home and Out-of-Home), By Roasting Type (Light Roast, Medium Roast, Medium Dark Roast, and Dark Roast), By Brewing Type (Espresso, Pour-Over/Drip, Cold Brew, and Others), By Consumer Group (Gen Z, Millennials, Gen X, and Baby Boomers), and By Distribution Channel (Food Retail, Food Service, and B2B Suppliers & Wholesalers) - Forecast Till 2032

Philippines Roasted Coffee Market Overview

Philippines Roasted Coffee Market Size was valued at USD 220.23 million in 2022. The Philippines Roasted Coffee market industry is projected to grow from 2023 to USD 701.52 million by 2032, exhibiting a compound annual growth rate (CAGR) of 12.2% during the forecast period (2023 - 2032). The expansion of coffee chains and shops in both urban and rural areas of the Philippines is an important factor in the growth of the roasted coffee market. A growing urban population along with an emerging coffee culture influenced by global trends has created a solid market for these establishments. These cafes are social spaces that serve not only the need for a caffeine fix but also provide places to socialize, work, and relax. The significant increase in consumer disposable income in the Philippines has greatly increased the consumption of premium coffee products. Moreover, the adoption of sustainable and ethically produced coffee seeds is an important factor in the Philippine roasted coffee market. As consumers become more aware of the environmental and ethical implications of their purchasing decisions, there has been a significant shift towards products with sustainable practices.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Philippines Roasted Coffee Market Trends

• Expansion Of Coffee Shop Chains and Cafes Across Urban and Rural Areas

The expansion of coffee chains and shops in both urban and rural areas of the Philippines is an important factor in the growth of the roasted coffee market. In city centers, the trend is characterized by the growth of international and local coffee chains, capitalizing on the growing demand for special and high-quality coffee experiences. A growing urban population along with an emerging coffee culture influenced by global trends has created a solid market for these establishments. These cafes are social spaces that serve not only the need for a caffeine fix but also provide places to socialize, work, and relax.

At the same time, expansion into rural areas reflects a broader market approach and inclusive strategy. As coffee consumption becomes more ingrained in the Filipino lifestyle, the expansion of coffee shop chains into rural areas is bringing the coffee shop experience to communities that have been traditionally underserved. The expansion will not only stimulate the local economy but will also contribute to the overall growth of the coffee industry by creating new consumer bases. In addition, setting up cafes in rural areas often requires a partnership with local farmers, which encourages a direct connection between producers and consumers.

The expansion of coffee shops is being accelerated by changing consumer preferences, as people seek versatile and sophisticated coffee experiences. This trend has increased competition between cafes, making innovations in menu offerings, atmosphere, and service stand out in a crowded market. In rural areas, expansion is often linked to economic development initiatives and tourism strategies. Local governments and private entrepreneurs recognize the potential of coffee tourism, taking advantage of rich coffee-growing regions to attract visitors. This has led to the establishment of coffee farms that double as cafes and offer visitors an immersive experience from bean to cup. Integrating coffee into the tourism industry not only stimulates the local economy but also promotes sustainable and ethical sourcing practices.

In addition, the expansion of coffee shops increased job opportunities, especially for young people, which contributed to general economic growth. In both urban and rural areas, the coffee industry has become a center of entrepreneurship, with people setting up their boutique coffee shops or franchises. This trend not only serves the growing demand for versatile coffee experiences but also promotes community and entrepreneurship.

Overall, the growth of cafes and coffee shops in urban and rural areas reflects the dynamic and evolving coffee culture in the Philippines, providing many growth opportunities for market players and contributing significantly to the revival of the roasted coffee industry.

Philippines Roasted Coffee Type Insights

The Philippines Roasted Coffee market segmentation, based on coffee bean type, includes arabica, robusta, and others. The robusta segment accounted for the largest market share of 70.97% in 2022 and is likely to register a CAGR of 11.7% during the projected period. 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. This endurance makes Robusta a more economically viable option for farmers in the Philippines, especially in areas not suitable for Arabica cultivation. Fortified coffee is often considered less refined than Arabica but is prized for its rich flavor and robustness. It is often used in blends to create a stronger coffee base, especially in espresso blends, and is also the main type of coffee used in traditional Filipino coffee varieties such as the popular Baraka. Robusta's affordability and strong flavor profile make it a popular choice for the mass market, especially among consumers who want a stronger, more bitter coffee.

In addition, Robusta coffee is widely available and often more competitively priced than Arabica, making it accessible to a wider range of consumers, including those with low incomes. Packaging and branding of Robusta coffee products usually focus on its strength and bold flavor characteristics. The Robusta segment benefits from its widespread use in the household and food sectors, and its popularity in instant coffee strengthens its market position.

Figure 1:  Philippines Roasted Coffee Market, by coffee bean type, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Philippines Roasted Coffee Form Insights

The Philippines Roasted Coffee market segmentation, based on form, includes whole bean, ground, instant, and pods & capsules. The instant segment accounted for the largest market share of 46.77% in 2022. 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. Instant coffee has several unique properties that distinguish it from other forms of roasted coffee. One of its primary characteristics is its ability to dissolve quickly in hot water, providing a convenient and hassle-free coffee experience whereas the other forms like whole beans and ground require brewing and grinding respectively before consumption. There is no specific brewing method required for preparing instant coffee as they are already brewed and ground, they can be just prepared as per the individual preference with hot water cream, or hot milk. It also has a longer shelf life compared to other forms of roasted coffee, making it an attractive option for those who want to enjoy coffee without worrying about spoilage. However, instant coffee has a lesser amount of caffeine than ground coffee. Moreover, the popularity of instant roasted coffee in the region can be attributed to several factors including convenience, speed, and affordability. Many consumers appreciate the ease of preparation and the fact that they can have a freshly brewed cup of coffee in just a few minutes.

Figure 1:  Philippines Roasted Coffee Market, by form, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Philippines Roasted Coffee Market Segment Insights:

Philippines Roasted Coffee Consumption Type Insights

The Philippines Roasted Coffee market segmentation, based on consumption type, includes at-home and out-of-home. The at-home segment held the majority share in 2022 concerning the Philippines Roasted Coffee market revenue. The at-home coffee consumption refers to the portion of the Philippine 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. At-home consumption of roasted coffee is defined by several factors that influence consumer behavior and preference convenience, personalization, cost-effectiveness, quality control, and privacy & relaxation. At-home consumption offers the convenience of enjoying high-quality coffee in the comfort of one’s own space, without having to leave the house or rely on external sources. Home brewing allows consumers to customize their coffee according to their tastes, including the type of coffee beans used, brewing method, grind size, and flavor profile. Buying roasted coffee beans in bulk for a monthly based on the family size and frequency of consumption. The low-income and middle-income groups tend to buy bulk at discounted prices while the high-income groups tend to buy premium types of coffee. Also, it is perceived that frequent purchases from food service establishments have a bigger impact on the individual’s budget allocation on food components while at-home consumption tends to be cost-effective without compromising on the roasted coffee consumption.

Figure 1:  Philippines Roasted Coffee Market, by Consumption Type, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Philippines Roasted Coffee Distribution Channel Insights

The Philippines Roasted Coffee market segmentation, based on distribution channels, includes food retail, food service, and B2B suppliers & wholesalers. The B2B segment accounted for a higher market share in 2022 and is expected to witness the highest CAGR. 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. Convenience stores, which are growing rapidly in urban areas, offer quick access to roasted coffee products, which is especially attractive to busy consumers looking for instant gratification. Specialty coffee shops, on the other hand, are gaining popularity as providers of a unique experience, often selling high-quality, hand-roasted coffee. These stores not only function as stores but also as places where consumers can enjoy fresh coffee and learn more about different coffee types and brewing techniques. The grocery retail industry is also adopting online platforms that expand consumer reach and provide added convenience. This sector is affected by factors such as changing consumer preferences, urbanization, and increased coffee consumption at home, especially after the pandemic. The challenge in this industry is to maintain product quality, ensure a wide selection, and compete with a growing online presence.

Figure 2:  Philippines Roasted Coffee Market, by Distribution Channel, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Philippines Roasted Coffee Key Market Players & Competitive Insights

Market leaders in the Philippine's Roasted Coffee sector are at the forefront of adapting to the evolving landscape, employing a spectrum of strategies to meet dynamic consumer demands and sustain a competitive edge. These proactive approaches reflect the industry's recognition of the need for agility and innovation in response to changing preferences, emerging trends, and challenges. The primary strategy adopted by market leaders involves diversifying their product portfolios to cater to a wide array of consumer preferences. This entails offering an extensive range of roasted coffee products. By doing so, these companies ensure that they remain versatile in meeting the diverse culinary needs of consumers worldwide. This diversification not only expands the market reach but also allows leaders to capitalize on the growing demand for convenience, health-focused options, and international flavor profiles. Furthermore, the market leaders are investing significantly in research and development (R&D) to stay ahead of emerging trends and consumer preferences. By staying abreast of changing consumer attitudes, these companies position themselves as trendsetters, capturing the attention and loyalty of consumers seeking novel coffee options in the Philippines Roasted Coffee market.

Key Companies in the Philippines Roasted Coffee market include.

• 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)

Philippines Roasted Coffee Industry Developments

August 2023: GCash, through GForest, and the Philippine Coffee Board announced their collaboration to boost the local coffee industry. This was a unique opportunity for individuals to actively contribute to sustainable coffee farming, as well as to support community livelihood while protecting the environment.

August 2023: The Philippines largest homegrown coffee brand, Bo’s Coffee, has opened a new outlet in Dubai’s most prominent shopping mall, The BurJuman Mall.

Philippines Roasted Coffee Market Segmentation

Philippines Roasted Coffee Coffee Bean Type Outlook

• Arabica


• Robusta


• Others

Philippines Roasted Coffee Form Outlook

• Whole Bean


• Ground


• Instant


• Pods & Capsules

Philippines Roasted Coffee Consumption Type Outlook

• At-Home


• Out-of- Home

Philippines Roasted Coffee Roasting Type Outlook

• Light Roast


• Medium Roast


• Medium Dark Roast


• Dark Roast

Philippines Roasted Coffee Brewing Type Outlook

• Espresso


• Pour Over/Drip


• Cold Brew


• Others

Philippines Roasted Coffee Consumer Group Outlook

• Gen Z


• Millennials


• Gen X


• Baby Boomers

Philippines Roasted Coffee Distribution Channel Outlook

• Food Retail
  
  
  
  • Supermarkets & Hypermarkets
  
  
  • Specialty Stores
  
  
  • Online
  
  
  • Convenience Stores & Grocery Stores
  
  
  
  


• Food Service


• B2B Suppliers & Wholesalers