Coffee in the Philippines
Euromonitor International
December 2019
COFFEE IN THE PHILIPPINES Passport i
LIST OF CONTENTS AND TABLES
Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Price Competition Boosts Volume Growth of Instant Coffee Mixes, While Sales of Standard
Instant Coffee Continue To Decline .......................................................................................... 1
Fresh Coffee Sees Stronger Growth in Foodservice Than Retail in 2019 ................................ 1
Premiumisation Is Becoming A Greater Source of Growth ....................................................... 2
Competitive Landscape ................................................................................................................ 2
Leading Player Mayora Indah Gains Momentum by Working Closing With Its Distributors To
Increase Availability in Traditional Markets ............................................................................... 2
Top International Players Maintain Their Strength in Coffee, Helped by Strong Brand
Recognition and Close Ties With Retailers ............................................................................... 2
Distributor’s Stronger Ties With Foodservice and Hospitality Industry Boost Prospects for
Nescafé Dolce Gusto and Nespresso ....................................................................................... 2
Category Data .............................................................................................................................. 3
Table 1 Retail Sales of Coffee by Category: Volume 2014-2019 .............................. 3
Table 2 Retail Sales of Coffee by Category: Value 2014-2019 ................................. 3
Table 3 Retail Sales of Coffee by Category: % Volume Growth 2014-2019 ............. 4
Table 4 Retail Sales of Coffee by Category: % Value Growth 2014-2019 ................ 4
Table 5 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume
2014-2019 .................................................................................................... 4
Table 6 NBO Company Shares of Coffee: % Retail Value 2015-2019 ...................... 5
Table 7 LBN Brand Shares of Coffee: % Retail Value 2016-2019 ............................ 5
Table 8 Forecast Retail Sales of Coffee by Category: Volume 2019-2024 ............... 6
Table 9 Forecast Retail Sales of Coffee by Category: Value 2019-2024 .................. 6
Table 10 Forecast Retail Sales of Coffee by Category: % Volume Growth 2019-
2024 ............................................................................................................. 7
Table 11 Forecast Retail Sales of Coffee by Category: % Value Growth 2019-
2024 ............................................................................................................. 7
© Euromonitor International
COFFEE IN THE PHILIPPINES Passport 1
COFFEE IN THE PHILIPPINES
HEADLINES
▪ Retail value and volume sales of coffee rise by 2% and 5%, respectively to reach PHP63.8
billion and 166,388 tonnes in 2019
▪ Value growth for instant coffee mixes slows down as price competition intensifies
▪ Foodservice volume growth rises by a steep 9% to reach 5,042 tonnes in 2019
▪ Nestlé Philippines and Mayora Indah respectively lead in coffee with a combined and equally
divided value share of 70%
▪ Value sales are set to rise at a current value CAGR of 4% (1% 2019 constant value CAGR)
and volume sales are set to rise at a CAGR of 3% over the forecast period
PROSPECTS
Price Competition Boosts Volume Growth of Instant Coffee Mixes, While
Sales of Standard Instant Coffee Continue To Decline
Value growth compared to volume growth of instant coffee continued to slow down in 2019 as
price competition in instant coffee mixes intensified. Incumbent players paid more attention to
increasing the availability of twin packs, the type of packaging that consumers perceive as
offering the best value for money. However, it has been challenging for players to maintain
healthy margins while maintaining volume expansion. While product launches take place
annually in coffee mixes, consumers are gravitating towards straightforward variants of coffee
mixes at affordable prices. This shift to more coffee mixes has directly influenced the decline in
standard instant coffee, which takes more effort to prepare.
Over the forecast period, retail volume and current retail value CAGRs of instant coffee are
expected to slow down compared to what they were over the review period as instant standard
coffee is anticipated to further decline and coffee mixes will become more mature. Demand for
products that can be conveniently prepared at a time when consumers are having increasingly
hectic lifestyles points to the prospect that coffee mixes will continue to be the category’s main
growth driver.
Fresh Coffee Sees Stronger Growth in Foodservice Than Retail in 2019
Fresh coffee beans and fresh ground coffee saw stronger growth in foodservice than in retail
in 2019, and while sales of fresh ground coffee pods remained negligible in foodservice over the
year, their use has been increasing in that channel. Meanwhile, fresh ground coffee pods
generated the highest retail volume and value growth among all of the coffee categories. The
rising culture of eating out in the Philippines has resulted in an increase in full-service
restaurants and cafés in the Philippines, which has boosted demand for fresh coffee. This
culture has also raised consumer awareness of and demand for quality coffee, and thus has
contributed to increased demand for domestically produced fresh coffee such as that offered by
Gourmet Farms in upper-scale supermarkets and for the relatively recently arrived Nespresso
brand of fresh coffee pods.
Over the forecast period, foodservice and retail volume growth as well as retail value growth
of fresh coffee is expected to be higher than it was over the review period.
© Euromonitor International
COFFEE IN THE PHILIPPINES Passport 2
Premiumisation Is Becoming A Greater Source of Growth
Despite the bulk of coffee being consumed by the mass market, premiumisation is becoming
a greater source of growth. Players such as Coffee Bean & Tea Leaf and UCC have greater
visibility in modern retail channels, particularly in convenience stores, as they promote their
coffee mixes to young professionals. Greater premiumisation also continues to be reflected in
the rising use of Nescafé Nespresso in households. Meanwhile, all fresh coffee makers bank on
premiumisation in terms of packaging and rising awareness of what makes a quality coffee. In
all, the premiumisation trend is supporting growth in fresh coffee in both the retail and
foodservice channels as more full-service restaurants and other foodservice establishments
have more dedicated coffee menus, and over the forecast period, the country’s expected
economic growth is expected to further support higher consumption of premium products in both
channels.
COMPETITIVE LANDSCAPE
Leading Player Mayora Indah Gains Momentum by Working Closing
With Its Distributors To Increase Availability in Traditional Markets
The Indonesian player Mayora Indah maintained its leadership in coffee and also gained
momentum in 2019 by increasing its availability in traditional retailers and enhancing its route to
market as it works closely with its distributors. The company implemented above-the-line and
below-the-line marketing campaigns for various variants of its instant coffee mixes to appeal to
different lifestyles of coffee drinkers. Over the year, the company also announced its plan to set
up a factory facility in the country. This is a decision it was imperative for Mayora to make in
order to more aggressively compete in this highly competitive category, as it will be able to
increase efficiency in every hot drinks product category in which it competes in the Philippines.
Top International Players Maintain Their Strength in Coffee, Helped by
Strong Brand Recognition and Close Ties With Retailers
International players continue to lead in coffee, with Nestlé Philippines and Mayora Indah, the
top two players, commanding more than 65% of the value sales. Nestlé dominates fresh ground
coffee pods and ranks first in standard instant coffee. It benefits the most from the high
recognition that its Nespresso and Nescafé brands enjoy. Mayora held the highest volume share
and saw the highest growth in both value and volume in 2019. It holds the leading value share in
instant coffee mixes, for which it is especially active in maintaining close ties with retailers while
implementing marketing campaigns. While a local company, Universal Robina, has one of the
top brands in instant coffee and coffee mixes, Great Taste, it has been losing shares to the
leading player in both categories. Also, while the domestic Gourmet Farms saw consistent
growth over the review period and nearly dominates fresh coffee, on the whole its value share
remains smaller relative to other coffee players operating in larger and/or faster-growing
categories.
Distributor’s Stronger Ties With Foodservice and Hospitality Industry
Boost Prospects for Nescafé Dolce Gusto and Nespresso
The distributor of Nescafé Dolce Gusto and Nespresso in the Philippines, Philippine Service
Group Corp, sustained its momentum in 2019 as it was able to have ties in foodservice and the
hospitality industry. Its determination to promote consumption of coffee capsules at home has
made the company’s retail outlet in the Philippines an essential marketing tool as consumers
© Euromonitor International
COFFEE IN THE PHILIPPINES Passport 3
can ask sales personnel about the many different variants the brand has to offer. Nespresso
also is benefiting from the developing premiumisation trend in the Philippines.
CATEGORY DATA
Table 1 Retail Sales of Coffee by Category: Volume 2014-2019
Tonnes
2014 2015 2016 2017 2018 2019
Fresh Coffee 2,469.2 2,646.1 2,774.0 2,883.2 3,097.4 3,357.0
- Fresh Coffee Beans 926.7 981.4 1,022.3 1,059.6 1,138.6 1,241.1
- Fresh Ground Coffee 1,542.5 1,664.6 1,751.7 1,823.5 1,958.8 2,115.8
-- Fresh Ground Coffee 4.0 9.6 10.8 14.3 16.4 18.1
Pods
-- Standard Fresh 1,538.5 1,655.0 1,740.9 1,809.2 1,942.4 2,097.7
Ground Coffee
Instant Coffee 110,534.8 121,296.2 135,116.4 147,609.3 155,189.4 163,031.1
- Instant Standard Coffee 13,201.0 13,291.7 13,291.6 12,383.9 11,850.5 11,378.5
-- Regular Instant 13,180.6 13,270.9 13,270.4 12,361.2 11,826.6 11,353.6
Standard Coffee
-- Decaffeinated 20.4 20.8 21.2 22.7 23.8 25.0
Instant Standard Coffee
- Instant Coffee Mixes 97,333.7 108,004.6 121,824.7 135,225.4 143,338.9 151,652.6
-- Regular Instant 97,333.7 108,004.6 121,824.7 135,225.4 143,338.9 151,652.6
Coffee Mixes
-- Decaffeinated - - - - - -
Instant Coffee Mixes
Coffee 113,003.9 123,942.3 137,890.3 150,492.5 158,286.8 166,388.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Retail Sales of Coffee by Category: Value 2014-2019
PHP million
2014 2015 2016 2017 2018 2019
Fresh Coffee 1,966.9 2,182.4 2,377.8 2,585.1 2,923.8 3,207.1
- Fresh Coffee Beans 737.0 787.8 848.9 917.6 1,050.5 1,135.0
- Fresh Ground Coffee 1,229.9 1,394.6 1,529.0 1,667.5 1,873.4 2,072.2
-- Fresh Ground Coffee 39.3 86.1 94.8 125.7 143.1 162.5
Pods
-- Standard Fresh 1,190.6 1,308.5 1,434.2 1,541.8 1,730.3 1,909.7
Ground Coffee
Instant Coffee 46,043.6 50,415.3 56,289.1 58,755.3 59,485.6 60,641.8
- Instant Standard Coffee 11,050.6 11,229.3 10,695.1 9,969.7 9,796.6 9,493.8
-- Regular Instant 11,031.0 11,209.0 10,674.0 9,946.4 9,772.1 9,468.0
Standard Coffee
-- Decaffeinated 19.6 20.3 21.1 23.3 24.5 25.8
Instant Standard Coffee
- Instant Coffee Mixes 34,993.0 39,186.0 45,594.0 48,785.6 49,689.0 51,148.0
-- Regular Instant 34,993.0 39,186.0 45,594.0 48,785.6 49,689.0 51,148.0
Coffee Mixes
-- Decaffeinated - - - - - -
Instant Coffee Mixes
Coffee 48,010.5 52,597.8 58,666.9 61,340.4 62,409.5 63,848.9
© Euromonitor International
COFFEE IN THE PHILIPPINES Passport 4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 3 Retail Sales of Coffee by Category: % Volume Growth 2014-2019
% volume growth
2018/19 2014-19 CAGR 2014/19 Total
Fresh Coffee 8.4 6.3 36.0
- Fresh Coffee Beans 9.0 6.0 33.9
- Fresh Ground Coffee 8.0 6.5 37.2
-- Fresh Ground Coffee Pods 10.0 35.1 350.6
-- Standard Fresh Ground Coffee 8.0 6.4 36.3
Instant Coffee 5.1 8.1 47.5
- Instant Standard Coffee -4.0 -2.9 -13.8
-- Regular Instant Standard Coffee -4.0 -2.9 -13.9
-- Decaffeinated Instant Standard Coffee 4.8 4.1 22.2
- Instant Coffee Mixes 5.8 9.3 55.8
-- Regular Instant Coffee Mixes 5.8 9.3 55.8
-- Decaffeinated Instant Coffee Mixes - - -
Coffee 5.1 8.0 47.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 4 Retail Sales of Coffee by Category: % Value Growth 2014-2019
% current value growth
2018/19 2014-19 CAGR 2014/19 Total
Fresh Coffee 9.7 10.3 63.1
- Fresh Coffee Beans 8.0 9.0 54.0
- Fresh Ground Coffee 10.6 11.0 68.5
-- Fresh Ground Coffee Pods 13.6 32.8 313.5
-- Standard Fresh Ground Coffee 10.4 9.9 60.4
Instant Coffee 1.9 5.7 31.7
- Instant Standard Coffee -3.1 -3.0 -14.1
-- Regular Instant Standard Coffee -3.1 -3.0 -14.2
-- Decaffeinated Instant Standard Coffee 5.1 5.7 31.7
- Instant Coffee Mixes 2.9 7.9 46.2
-- Regular Instant Coffee Mixes 2.9 7.9 46.2
-- Decaffeinated Instant Coffee Mixes - - -
Coffee 2.3 5.9 33.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 5 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume 2014-
2019
% retail volume
2014 2015 2016 2017 2018 2019
Hard Coffee Pods - - - - - -
Soft Coffee Pods 100.0 100.0 100.0 100.0 100.0 100.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
© Euromonitor International
COFFEE IN THE PHILIPPINES Passport 5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Note: Totals may not sum to 100% due to data rounding
Table 6 NBO Company Shares of Coffee: % Retail Value 2015-2019
% retail value rsp
Company 2015 2016 2017 2018 2019
Nestlé Philippines Inc 42.0 41.4 37.7 36.5 35.2
Mayora Indah Tbk PT 22.5 23.5 29.0 31.1 34.6
Universal Robina Corp 28.5 28.7 26.9 25.7 23.4
Gourmet Farms Inc 1.6 1.6 1.8 2.2 2.5
San Miguel Super Coffee 1.8 1.6 1.5 1.6 1.6
Mix Co
Culinary Exchange, The 0.5 0.5 0.5 0.5 0.5
Kraft Foods 0.5 0.5 0.4 0.4 0.4
(Philippines) Inc
Silva's Coffee Mill 0.4 0.4 0.4 0.4 0.4
Merlo Agricultural Corp 0.3 0.3 0.3 0.3 0.3
Continental Association 0.2 0.2 0.2 0.2 0.2
Food Products Export Inc
Monastery Farms 0.1 0.1 0.1 0.1 0.1
Century Pacific Food Inc 0.0 0.0 - - -
Boncafé International - - - - -
Pte Ltd
Others 1.5 1.2 1.0 0.9 0.7
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 7 LBN Brand Shares of Coffee: % Retail Value 2016-2019
% retail value rsp
Brand (GBO) Company (NBO) 2016 2017 2018 2019
Kopiko Mayora Indah Tbk PT 23.5 29.0 31.1 34.6
Nescafé (Nestlé SA) Nestlé Philippines Inc 39.5 36.0 34.5 33.1
Great Taste (JG Universal Robina Corp 26.7 25.3 24.2 22.0
Summit Holdings Inc)
Gourmet Farms Gourmet Farms Inc 1.6 1.8 2.2 2.5
San Mig Coffee (San San Miguel Super Coffee 1.6 1.5 1.6 1.6
Miguel Corp) Mix Co
Blend 45 (JG Summit Universal Robina Corp 2.0 1.6 1.5 1.4
Holdings Inc)
Nescafé Taster's Nestlé Philippines Inc 0.3 0.2 0.5 0.5
Choice (Nestlé SA)
Culinary Exchange Culinary Exchange, The 0.5 0.5 0.5 0.5
Maxwell House Kraft Foods 0.5 0.4 0.4 0.4
(Jacobs Douwe (Philippines) Inc
Egberts)
Siete Baracos Silva's Coffee Mill 0.4 0.4 0.4 0.4
Batangas Brew Merlo Agricultural Corp 0.3 0.3 0.3 0.3
Continental Continental Association 0.2 0.2 0.2 0.2
Food Products Export Inc
Nescafé Dolce Gusto Nestlé Philippines Inc 0.2 0.2 0.2 0.2
(Nestlé SA)
Monk's Blend Monastery Farms 0.1 0.1 0.1 0.1
© Euromonitor International
COFFEE IN THE PHILIPPINES Passport 6
KDO Century Pacific Food Inc 0.0 - - -
Boncafé Boncafé International - - - -
Pte Ltd
Gourmet's Gourmet Farms Inc - - - -
Maxwell House Kraft Foods - - - -
(Kraft Foods Inc) (Philippines) Inc
Maxwell House Kraft Foods - - - -
(Mondelez (Philippines) Inc
International Inc)
San Miguel (San San Miguel Super Coffee - - - -
Miguel Corp) Mix Co
Others Others 2.7 2.4 2.3 2.1
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 8 Forecast Retail Sales of Coffee by Category: Volume 2019-2024
Tonnes
2019 2020 2021 2022 2023 2024
Fresh Coffee 3,357.0 3,611.0 3,871.6 4,133.9 4,398.1 4,669.0
- Fresh Coffee Beans 1,241.1 1,346.6 1,457.0 1,569.2 1,686.9 1,808.4
- Fresh Ground Coffee 2,115.8 2,264.4 2,414.5 2,564.7 2,711.2 2,860.6
-- Fresh Ground Coffee 18.1 19.9 21.8 23.6 25.3 27.0
Pods
-- Standard Fresh 2,097.7 2,244.6 2,392.7 2,541.1 2,685.9 2,833.6
Ground Coffee
Instant Coffee 163,031.1 168,666.9 174,425.9 180,142.7 185,786.0 191,162.3
- Instant Standard Coffee 11,378.5 10,948.2 10,556.2 10,209.8 9,905.4 9,653.6
-- Regular Instant 11,353.6 10,922.1 10,528.9 10,181.5 9,876.0 9,623.2
Standard Coffee
-- Decaffeinated 25.0 26.1 27.2 28.3 29.4 30.4
Instant Standard Coffee
- Instant Coffee Mixes 151,652.6 157,718.7 163,869.7 169,932.9 175,880.6 181,508.7
-- Regular Instant 151,652.6 157,718.7 163,869.7 169,932.9 175,880.6 181,508.7
Coffee Mixes
-- Decaffeinated - - - - - -
Instant Coffee Mixes
Coffee 166,388.1 172,278.0 178,297.5 184,276.6 190,184.1 195,831.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 9 Forecast Retail Sales of Coffee by Category: Value 2019-2024
PHP million
2019 2020 2021 2022 2023 2024
Fresh Coffee 3,207.1 3,478.4 3,746.1 4,018.3 4,290.4 4,569.0
- Fresh Coffee Beans 1,135.0 1,220.1 1,305.5 1,394.3 1,483.5 1,572.5
- Fresh Ground Coffee 2,072.2 2,258.3 2,440.6 2,624.0 2,806.9 2,996.5
-- Fresh Ground Coffee 162.5 176.7 192.6 207.3 221.0 234.8
Pods
-- Standard Fresh 1,909.7 2,081.5 2,248.1 2,416.7 2,585.8 2,761.7
Ground Coffee
Instant Coffee 60,641.8 61,174.2 61,613.9 61,977.7 62,314.4 62,478.2
- Instant Standard Coffee 9,493.8 9,258.5 9,075.1 8,913.6 8,772.7 8,668.8
© Euromonitor International
COFFEE IN THE PHILIPPINES Passport 7
-- Regular Instant 9,468.0 9,231.3 9,046.7 8,883.8 8,741.7 8,636.8
Standard Coffee
-- Decaffeinated 25.8 27.2 28.5 29.8 31.0 32.1
Instant Standard Coffee
- Instant Coffee Mixes 51,148.0 51,915.7 52,538.7 53,064.1 53,541.7 53,809.4
-- Regular Instant 51,148.0 51,915.7 52,538.7 53,064.1 53,541.7 53,809.4
Coffee Mixes
-- Decaffeinated - - - - - -
Instant Coffee Mixes
Coffee 63,848.9 64,652.6 65,360.0 65,996.0 66,604.8 67,047.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 10 Forecast Retail Sales of Coffee by Category: % Volume Growth 2019-2024
% volume growth
2019/20 2019-24 CAGR 2019/24 Total
Fresh Coffee 7.6 6.8 39.1
- Fresh Coffee Beans 8.5 7.8 45.7
- Fresh Ground Coffee 7.0 6.2 35.2
-- Fresh Ground Coffee Pods 9.8 8.3 49.0
-- Standard Fresh Ground Coffee 7.0 6.2 35.1
Instant Coffee 3.5 3.2 17.3
- Instant Standard Coffee -3.8 -3.2 -15.2
-- Regular Instant Standard Coffee -3.8 -3.3 -15.2
-- Decaffeinated Instant Standard Coffee 4.6 4.0 21.7
- Instant Coffee Mixes 4.0 3.7 19.7
-- Regular Instant Coffee Mixes 4.0 3.7 19.7
-- Decaffeinated Instant Coffee Mixes - - -
Coffee 3.5 3.3 17.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 11 Forecast Retail Sales of Coffee by Category: % Value Growth 2019-2024
% constant value growth
2019/2020 2019-24 CAGR 2019/24 Total
Fresh Coffee 8.5 7.3 42.5
- Fresh Coffee Beans 7.5 6.7 38.6
- Fresh Ground Coffee 9.0 7.7 44.6
-- Fresh Ground Coffee Pods 8.8 7.6 44.5
-- Standard Fresh Ground Coffee 9.0 7.7 44.6
Instant Coffee 0.9 0.6 3.0
- Instant Standard Coffee -2.5 -1.8 -8.7
-- Regular Instant Standard Coffee -2.5 -1.8 -8.8
-- Decaffeinated Instant Standard Coffee 5.3 4.4 24.3
- Instant Coffee Mixes 1.5 1.0 5.2
-- Regular Instant Coffee Mixes 1.5 1.0 5.2
-- Decaffeinated Instant Coffee Mixes - - -
Coffee 1.3 1.0 5.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
© Euromonitor International
