Philippines hot drinks sales to climb 7.9% CAGR in 2027
On-premise retail sales will be bolstered by the hospitality industry’s revival.
The Philippines’ hot drinks sector is expected to register a compound annual growth rate of 7.9% from 2022 to 2027, according to data and analytics firm GlobalData.
According to the Philippines Hot Drinks – Market Assessment and Forecasts to 2027 the hot coffee category will register the fastest value CAGR of 9.1% from 2022 to 2027.
Tim Hill, Key Account Director at GlobalData Singapore said that the surge in the public outdoor movement and tourist activity bolstered both retail and on-premise sales of hot tea and hot coffee in 2022
“As a result, the per capita expenditure (PCE) on hot drinks in the Philippines increased from $11.9 in 2017 to $16.5 in 2022. However, this lagged the Asia-Pacific average PCE of $22.2, and the global average PCE of $34.5, indicating ample room for future growth,” Hill said.
The report highlighted that amongst distribution channels, convenience stores accounted for the highest share of hot drink sales in the Philippines in 2022, as most consumers in the market preferred to shop for groceries at stores near their homes out of fear of infections and due to inflationary pressures. The hypermarkets & supermarkets and food & drinks specialists channels also benefited from the increasing consumer out-of-home activities.