Are you fond of buying drinks at a local coffee shop or at a small stall that sells coffee? Recently the University of Asia and the Pacific-Center for Food and Agri Business (UA&P-CFA) announced the results of its research revealing that the local coffee market (cafés and small sellers specifically) of the Philippines are being dominated by Starbucks Coffee and Dunkin’ (formerly Dunkin’ Donuts) while several local brands are gradually gaining market share, according to a Philippine Star business news report.
To put things in perspective, posted below is an excerpt from the business news report of the Philippine Star. Some parts in boldface…
Global brands continue to dominate the country’s coffee industry, but homegrown brands are gaining traction, helping to diversify and enrich Filipinos’ caffeine options, according to the University of Asia and the Pacific-Center for Food and Agri Business (UA&P-CFA).
In a policy brief, UA&P-CFA said the local café market is led by a “few dominant” global brands, based on a Euromonitor report.
These global brands, the UA&P-CFA noted, maintain their strong presence through solid branding, extensive branch networks and loyal customer base.
The policy brief indicated that Starbucks Corp. remains as the industry leader, accounting for almost 54 percent of total value share among chain café and bar operators.
It was followed by Dunkin’, a foreign brand under Inspire Brands Inc., with a 12.1-percent market share, according to the policy brief authored by Cy Reyes, a research assistant at UA&P-CFA.
Meanwhile, McDonald’s Corp. held a market share of 5.8 percent while Jollibee Foods Corp., which operates The Coffee Bean & Tea Leaf, accounted for 5.6 percent.
“In addition to global chains, the Philippine café scene is vibrant and diverse, featuring several strong homegrown brands that continue to gain traction and shape local consumer habits,” UA&P-CFA said.
UA&P-CFA said one of the most prominent local cafés is Mary Grace Food Inc., noting that it is known for its “cozy, sit-down atmosphere” and its handcrafted baked goods. The other notable local players, according to the policy paper, are Bo’s Coffee, Figaro Coffee, Coffee Project and But First, Coffee.
The local coffee industry has also been enriched by the growth of specially and so called third-wave coffee shops like Yardstick, % Arabica and El Union, the UA&P-CFA said.
These coffee shops focus on artisanal brewing methods, single-origin beans and minimalist shop designs, it added.
Furthermore, coffee kiosks like Big Brew, Pickup Coffee and various regional iced coffee stalls catering to the fast-growing market for convenient, budget-friendly caffeine options contribute to the vibrant coffee industry.
The emergence of various coffee brands outside the traditional, huge global names indicate the “rich” and “expanding” influence of local café innovators, UA&P-CFA said.
“Though these smaller and niche players hold modest individual shares of the market, collectively they play a vital role in the evolution of the industry,” it said.
“They offer localized flavors, elevate coffee standards, and respond to the preferences of a wide and increasingly discerning customer base,” it added.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the coffee market and coffee sellers industry of the Philippines will keep modernizing as more people keep on buying coffee? Do you think the recent study should focus more on convenience stores selling coffee? What is your favorite coffee shop here in the Philippines?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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