Ready-to-Drink (RTD) Coffee - Philippines

The Ready-to-Drink (RTD) Coffee market in Philippines is experiencing significant growth and development in recent years.

Customer preferences: The increasing popularity of RTD Coffee in Philippines can be attributed to several factors. Firstly, the convenience and ready-to-consume nature of RTD Coffee products appeal to busy urban consumers who are constantly on the go. This allows them to enjoy their favorite coffee flavors without the need for brewing or preparation. Additionally, the younger generation in Philippines, who are increasingly adopting a Western lifestyle, are embracing the trend of consuming RTD Coffee as a fashionable and trendy beverage choice.

Trends in the market: One of the key trends in the RTD Coffee market in Philippines is the growing demand for premium and specialty RTD Coffee products. Consumers are becoming more discerning and are willing to pay a premium for high-quality and unique flavors. This trend is driven by the increasing influence of Western coffee culture and the desire for a more sophisticated coffee drinking experience. As a result, companies in the RTD Coffee market are introducing innovative and premium products to cater to this demand. Another trend in the market is the rising popularity of RTD Coffee among health-conscious consumers. With the growing awareness of the health benefits associated with coffee, such as antioxidant properties and improved cognitive function, consumers are seeking healthier alternatives to traditional sugary beverages. This has led to the introduction of healthier RTD Coffee options, such as low-sugar or sugar-free variants, as well as those enriched with functional ingredients like collagen or vitamins.

Local special circumstances: The unique cultural and social aspects of Philippines also play a role in shaping the RTD Coffee market. Filipinos have a strong coffee culture and are known for their love of coffee. Coffee shops are popular gathering places for socializing and conducting business meetings. The popularity of RTD Coffee can be seen as an extension of this coffee culture, allowing consumers to enjoy coffee on-the-go or in non-traditional settings. Furthermore, the tropical climate in Philippines makes cold beverages particularly appealing, making RTD Coffee a refreshing choice for consumers.

Underlying macroeconomic factors: The growing middle class and rising disposable incomes in Philippines are driving the growth of the RTD Coffee market. As more consumers have the means to afford premium and convenient beverages, the demand for RTD Coffee products is increasing. Additionally, the rapid urbanization and changing lifestyles in Philippines are contributing to the growth of the market. The increasing number of young professionals and urban dwellers who lead busy and fast-paced lives are seeking convenient and on-the-go beverage options, making RTD Coffee a popular choice. In conclusion, the Ready-to-Drink (RTD) Coffee market in Philippines is experiencing growth and development due to customer preferences for convenience and premium products, as well as the influence of Western coffee culture. The rising health consciousness among consumers and the unique cultural and social aspects of Philippines also contribute to the growth of the market. The underlying macroeconomic factors, such as the growing middle class and changing lifestyles, further drive the demand for RTD Coffee products in the country.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.