PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627837
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627837
The Philippines Instant Coffee Market is estimated to grow at a CAGR of 8.75%, from US$3,368.856 million in 2025 to US$5,124.424 million by 2030.
Due to the rising coffee consumption in the country along with the initiatives taken by the government to expand production, the market is expected to witness a surge during the projected period. Additionally, the 2022 Manila Coffee Festival, which officially opened in Intramuros in April 2022, brought together 5,000 coffee enthusiasts, farmers, and distributors in one location. Intramuros Administration chief Guiller Asido declared the launch a success, with 5,000 passes distributed on the first day. The event drew 32 exhibitors, including local coffee producers, young entrepreneurs, and small coffee firms. Hence, such initiatives are projected to contribute to the market's profitability in the future.
Furthermore, coffee retail brands such as UCC, Starbucks, and Coffee Bean & Tea Leaf have established themselves across the country. This provides further incentive for the industry to develop throughout the predicted period. Furthermore, with the growth of small and local coffee shops in the Philippines, the industry is expected to grow at a rapid rate in tandem with increased coffee consumption during the next five years. For instance, in January 2022, PT Mayora Indah Tbk (Mayora), the maker of one of the world's best-selling coffee-candy brands, 'Kopiko,' will launch 'Kopiko Lucky Day' ready-to-drink (RTD) coffee in the Philippines. Kopiko Lucky Day, according to the Indonesian business, is prepared by precisely roasting and combining chosen coffee beans for a creamy and powerful Thai iced coffee experience. The government, civil society organizations, and the private sector have established a number of strategies and approaches to deal with the rising demand and constrained supply of high-quality green coffee beans in order to effectively manage the country's coffee sector, which is anticipated to benefit the Philippines instant coffee market.
Philippines instant coffee market growth drivers
The prime factor that is driving the Philippine instant coffee market growth is the favorable trend of coffee consumption in addition to the initiatives being taken by the government to boost the coffee. For instance, in October 2022, the Department of Agriculture (DA) announced a collaboration with Nestle Philippines to scale up the coffee business. The agreement is focused on expanding local production and enhancing the country's sufficiency level, which is presently at 15%. Nestle Philippines asked the DA to incorporate sustainability into coffee production while also collaborating closely with farmers to produce high-quality coffee beans. Additionally, according to the Philippine Council for Agriculture and Fisheries, Robusta is the most farmed coffee variety in the nation, accounting for 76.5% of total output in 2020. Robusta is mostly used to make instant coffee. Furthermore, there are small and medium-sized coffee mills in the nation that produce roasted beans and ground coffee. According to the same source, Nestle Philippines, Inc. is the largest local manufacturer of soluble coffee, accounting for 80% of the instant coffee market. The Philippine Statistics Authority reports that the Philippines produced 60,044 metric tonnes of coffee in 2019. However, the country was only 32.40% self-sufficient in coffee production in 2019, leaving the country dependent on coffee imports. This demonstrates a high level of investment potential in the coffee business including instant. Therefore, with such an increase in the number of consumption and production, the instant coffee market in the country is anticipated to surge in the coming years.
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