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Coffee Industry

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Coffee Industry
An Analysis of the Coffee Service industry in Metro Manila…

AN ANALYSiS OF ThE COFFEE SErViCE iNdUSTrY iN mETrO mANiLA ANd ThE BUYiNG BEhAViOr OF iTS CONSUmErS
Cynthia A. henson
Abstract this study focuses on the unique coffee drinking culture, the specialty coffee industry, and the behavioral patterns of coffee drinkers. Coffee drinking in specialty coffee shops is compared with coffee drinking behavior at home, in school or in the office. the results are based on two consumer surveys, each involving three hundred respondents. One survey was conducted among current in-store coffee shop customers and the other among consumers aged sixteen to thirty, randomly picked among store/mall visitors, residential subdivisions and offices.

________
Coffee drinking, both in-home/office/school, and casual outside coffee drinking in Metro Manila has turned out to be as common a practice as dining. this is illustrated by the proliferation of coffee shops all around the metropolis and its outskirts, and the increased sales of instant coffee variants. More and more people are learning to appreciate coffee drinking not just as an “after dining” practice or a morning ritual, but as part of an emerging lifestyle. Coffee has become a convenient and easily available drink. increased sales of both instant coffee and coffee beans, and the proliferation of coffee shops have contributed to the growth in coffee sales in both retail and foodservice outlets. Retail sales of coffee increased by 6% in volume in 2005 and more than 13% in value over 2004. this growth in the coffee industry is remarkable considering major economic downturns and political unrest.

John Gokongwei School of Management

47

Henson

the participants in the local coffee industry are now more competitive players, each battling for its own share of the market. table 1 illustrates coffee brand shares from years 2002-2005, with Nescafe taking a huge lead through the years. table 1. Coffee Brand Shares 2002

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