Ready-to-Drink (RTD) Coffee & Tea - Philippines

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

Customer preferences: Filipinos have traditionally been avid consumers of coffee and tea, and the convenience of ready-to-drink options has only increased their popularity. The fast-paced lifestyle of urban areas in the Philippines has led to a growing demand for on-the-go beverages, and ready-to-drink coffee and tea products provide a convenient solution for consumers who are looking for a quick and refreshing pick-me-up. Additionally, the younger generation in Philippines is increasingly adopting a more Westernized lifestyle, which includes a preference for ready-to-drink beverages.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Philippines is the increasing demand for healthier and more natural options. As consumers become more health-conscious, they are looking for beverages that are low in sugar and free from artificial additives. This has led to the introduction of a wide range of RTD coffee and tea products that are made with natural ingredients and sweetened with alternatives like stevia or honey. Another trend in the market is the rise of innovative flavors and blends. Manufacturers are constantly introducing new and exciting flavors to cater to the diverse taste preferences of consumers in Philippines. From traditional flavors like mocha and jasmine tea to unique combinations like matcha latte and coconut coffee, there is a wide variety of options available to suit different palates.

Local special circumstances: The growing popularity of RTD coffee and tea in Philippines can also be attributed to the increasing number of cafes and coffee shops in the country. As more international coffee chains enter the market, they bring with them a culture of coffee consumption and a demand for convenient and high-quality beverages. This has created a ripple effect, with local brands and manufacturers also stepping up their game to meet the rising expectations of consumers.

Underlying macroeconomic factors: The growing middle class in Philippines is a major driver of the RTD Coffee & Tea market. As disposable incomes rise, consumers have more purchasing power to spend on indulgences like ready-to-drink beverages. Additionally, the increasing urbanization and modernization of the country have led to a shift in consumer preferences towards convenience and on-the-go options. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Philippines is experiencing significant growth and development due to customer preferences for convenience, healthier options, and innovative flavors. The increasing number of cafes and coffee shops in the country, as well as the growing middle class and urbanization, are also contributing to the market's growth. Overall, the future looks promising for the RTD Coffee & Tea market in Philippines as it continues to evolve to meet the changing demands of consumers.

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.