The advent of the COVID-19 pandemic in the Philippines and the official response to it had a devastating impact on on-trade sales of coffee during 2020. In particular, the quarantine measures that were introduced during March, more specifically the quarantine lockdown that applied in most parts of the country, resulted in a drastic decline in on-trade consumption and a shift away from the foodservice channel towards retail purchases and at-home consumption.
Instant coffee mixes was one of the big winners in coffee during 2020 as the unavailability of cafés, restaurants and specialist coffee shops resulted in a major shift towards at-home consumption of coffee. Widespread adherence to the principles of home seclusion benefited the category as instant coffee mixes is a popular choice among people preparing instant coffee at home who may not have the ability to store fresh milk.
In line with the shift towards at-home consumption of coffee that was seen over the course of 2020, the owners of the Philippines’ leading coffee brands such as Great Taste, Kopiko and Nescafé are actively increasing their marketing efforts, especially via social media. Indeed, social media has emerged as an important communication medium for brands in numerous fmcg categories as social distancing and home seclusion have seen many Philippine consumers staying at home.
The forecast period is expected to see sales of coffee in the Philippines recover robustly from the negative performance recorded during 2020 as result of the COVID-19 pandemic. In particular, foodservice volume sales can be expected to rise substantially during 2021 as the country opens up again and people are able to buy coffee from their local café, restaurant or specialist coffee shop.
With instant coffee mixes having emerged strongly as one of the big winners from the COVID-19 situation during 2020, the forecast period is expected see sales of these products continue to rise. Instant coffee mixes remain most popular among lower-income consumers and as this consumer base is becoming increasingly affluent, this is likely to support rising demand for instant coffee mixes.
With home seclusion likely to remain a major influence on sales of coffee during 2021 and 2022, fresh coffee can be expected to face considerable challenges due to the general preference for instant coffee for at-home consumption. However, one area of fresh coffee that benefited massively from the adherence to the principles of social distancing and home seclusion in the Philippines during 2020 was fresh coffee pods.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Coffee industry in Philippines with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Coffee industry in Philippines, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Coffee research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page