Travel and coffee. If there’s a better combination, I don’t know it. 

Right now, we’re hopping on over to the Philippines for some coffee goodness. 

This article outlines 27 Philippines coffee consumption statistics and trends you need to know for 2023.  

Here are the key statistics:

• The Philippines is the second-largest consumer of coffee in Asia, with a projected increase in coffee consumption to 3.78 kilograms per person by 2025.
  
• Instant coffee is a popular choice among Filipinos, with an average spending of $44 per person on instant coffee in 2022.
  
• The country is a significant player in the coffee consumption market in Asia, with an estimated 4.4% year-on-year growth rate.
  
• By 2025, the country is projected to consume 7.4 million 60-kilogram bags of coffee.
  
• Spending on coffee is forecast to grow by an average of 8.1% per year from 2022 to 2025.

Want to learn more? 

Let’s dive into these stats in more detail. 

A Brief Overview of Worldwide Coffee Consumption

To see where Asia (and the Philippines) fits into the global coffee consumption mix, take a look at the chart below.

In terms of percentage share, Asia & Pacific is second only to Europe when it comes to coffee consumption. 

General Statistics of Coffee in the Philippines

Coffee was introduced to the Philippines as early as 1730 by a Spanish Franciscan friar. 

Since then, coffee has become an important part of the country’s culture and economy. In recent years, the consumption of coffee in the Philippines has risen.

Some general statistics of coffee in the Philippines include:

1. In the first quarter of 2023, the production of coffee (green coffee beans) in the Philippines was estimated at 9.42 thousand metric tons, marking a 1.3 percent increase from the same quarter of 2022 (Philippine Information Agency).
   
2. While the consumption of coffee showed an upward trend over the last few years, the production value of the commodity in the Philippines dipped and was approximately 3.37 billion Philippine pesos in 2022 (Statista).
   
3. Filipinos are now considered heavy coffee drinkers. 80% of them drink an average of 2.5 cups of coffee per day (JKSIA).
   
4. In 2023, 93% of households in the Philippines buy some coffee every week (The Business Manual).
   
5. The Philippines is not among the top coffee-producing countries in the world. In 2023, it ranked 24th in terms of coffee production, behind Indonesia, Vietnam, and Brazil.

Despite not being a major coffee producer, the Philippines has a thriving coffee industry, with many local coffee shops and roasters. 

The country is also known for its unique coffee varieties, such as the Barako coffee from Batangas.

For a more general overview, check out our article here on the rich history of coffee. 

Based on original study from Statista. 

Current Philippines Coffee Consumption Patterns

Do you know how much coffee Filipinos consume on average per year, per person, and per day? 

Well, here are a few stats for you:

6. Before the COVID pandemic, Filipinos consumed 3.4 kilograms of coffee per person per annum.
   
7. In 2021, the total coffee consumed in the Philippines was about 3.3 million 60-kilogram bags.
    
8. Filipinos spent an average of $44 per person on instant coffee in 2022.
   
9. And by 2025, Filipinos are expected to consume 3.78 kilograms of coffee per person.

In terms of coffee varieties, the Philippines is known for producing four types of coffee beans: 

• Arabica
• Robusta
• Excelsa
• Liberica. 

Robusta is the most popular type of coffee in the country, followed by Arabica. 

Excelsa and Liberica are less commonly consumed.

The factors that influence coffee consumption in the country include income level, age group, lifestyle, and preference. 

According to Statista, the coffee market in the Philippines is expected to grow annually by 8.22% (CAGR 2023-2028). This growth is driven by the growing café culture in the country.

Here are some interesting statistics on coffee consumption in the Philippines:

10. Filipinos consumed 3.05 kilograms of coffee per person in 2021.
    
11. The Philippines is the second-largest consumer of coffee in Asia.
    
12. Coffee consumption in the Philippines is forecast to grow 4.4% year-on-year to 7.4 million 60-kilogram bags in 2025.
    
13. Spending on coffee in the Philippines is forecast to grow by an average of 8.1% a year from 2022 to 2025.

Overall, coffee consumption in the Philippines is expected to continue growing in the coming years, driven by the growing café culture in the country.

Filipinos are projected to spend more on coffee, and the market is expected to expand.

Coffee’s Popularity in Filipino Households

Coffee is an essential part of Filipino culture and daily life. 

It’s a staple in most households, with around 90% of households in the Philippines having coffee in their cupboards. 

Also, 93% of households buy some coffee every week, making Filipinos some of the heaviest coffee drinkers in the world.

Filipinos consume coffee in various forms, with instant coffee being the most popular due to its convenience and affordability. Soluble coffee accounts for 90% of the coffee market in the Philippines. 

And specialty coffee is gaining popularity in the country, with Starbucks being the biggest coffee shop chain. 

At home, coffee is typically prepared using a variety of methods, including drip, French press, and pour-over. 

Coffee plays a significant role in Filipino culture and social life. It is a common drink during breakfast and merienda (afternoon snack) and is often served during special occasions such as birthdays and funerals.

It’s also a way for people to bond with family and friends, with coffee shops serving as popular meeting places.

Coffee Shop Insights

With the increasing demand for coffee, it’s no surprise that more and more coffee shops are popping up all over the country. 

Here are some insights:

14. Starbucks is, by far, the biggest coffee shop chain in the Philippines, operating more than 420 outlets in the country. Other popular coffee shop chains include Coffee Bean and Tea Leaf, Tim Hortons, and Dunkin’ Donuts.
    
15. There are two main segments in the coffee shop market: chains and independents. Chains dominate the market with a market share of 75.3%, while independents make up the remaining 24.7%.
    
16. Specialty coffee shops are also gaining popularity in the Philippines. These shops offer high-quality coffee, often sourced from local farmers, and are known for their unique brewing methods.
    
17. The biggest challenge facing the coffee shop industry in the Philippines is competition. With so many coffee shops to choose from, it can be difficult for businesses to stand out. 

To overcome this challenge, many coffee shops are focusing on innovation and differentiation. For example, some shops offer unique flavors or brewing methods, while others are incorporating technology to enhance the customer experience.

18. Another challenge facing the industry is sustainability. Many coffee shops are working to reduce their environmental impact by using eco-friendly materials and implementing sustainable practices.
    

Comparisons with Other Beverages or Trends

Coffee is a popular beverage in the Philippines, but how does it compare to other drinks and trends in the country, particularly tea? Let’s take a look at some statistics:

19. Tea consumption in the Philippines is also on the rise, with the market expected to grow by 5.91% (CAGR 2023-2028), according to a report by Statista.
    
20. The pandemic has led to an increase in demand for health and wellness products, including herbal teas and fruit juices, which may pose a threat to the coffee industry in the country.
    
21. However, coffee shops and cafes are still popular in the Philippines, with a growing cafe culture driving demand for specialty coffee and espresso-based drinks.
    
22. Revenue in the Coffee market amounts to US$2.3bn in 2023, making it a significant player in the country’s food and beverage sector.
    
23. The COVID-19 pandemic has had a significant impact on the coffee industry in the Philippines, with many coffee shops and cafes forced to close or reduce their operations due to lockdown measures.

The growth of the tea market and the demand for health and wellness products may pose challenges to the coffee industry. 

But the growing cafe culture and demand for specialty coffee suggest there are still opportunities for growth and innovation in the sector.

Future Trends

As the coffee industry in the Philippines continues to grow, there are several future trends to watch out for. Here are some considerations for what’s to come:

24. Specialty Coffee: With the rise of specialty coffee shops in the Philippines, there is an increasing demand for high-quality, unique coffee beans. Expect to see more specialty coffee shops popping up around the country, offering a wider choice for customers.
    
25. Premiumization: As Filipinos become more interested in specialty coffee, there is also a trend towards premiumisation. Consumers are willing to pay more for high-quality coffee, and are seeking out unique and rare beans. This trend is expected to continue as the coffee industry grows.
    
26. Sustainability: With growing concerns about climate change and environmental impact, there is a growing demand for sustainable coffee. Consumers are increasingly interested in the origin of their coffee beans, and are seeking out brands that prioritize sustainability and ethical sourcing.
    
27. Research and Development: The Philippine government has invested in research and development for the coffee industry, with the goal of improving the quality and productivity of coffee beans. This investment is expected to lead to new varieties of coffee beans and improved farming practices, which will benefit both farmers and consumers.
    

Conclusion

Overall, the future of the coffee industry in the Philippines looks bright. 

With growing demand for specialty coffee, premiumisation, sustainability, and continued investment in research and development, many opportunities for growth and innovation exist.

Bottom line: next time you’re over there, make sure you try some of their amazing java!

Frequently Asked Questions