The Philippines’ coffee and tea capsule market is set for substantial growth, fueled by the country’s young population, rising disposable incomes, and a growing demand for convenient, premium beverage options at home. According to the latest report from IMARC Group, the market size for coffee and tea capsules in the Philippines reached USD 1,077 million in 2024. Looking ahead, the market is projected to grow significantly, reaching USD 6,832 million by 2033, with a compound annual growth rate (CAGR) of 21.65% from 2025 to 2033.
The steady rise in the market can be attributed to the increasing consumer preference for convenience and high-quality drinks. Urbanization and busy lifestyles have particularly driven the demand for coffee and tea capsules, especially among working professionals and millennials. Local brands like Figaro and UCC are expanding their capsule offerings, while international players such as Nespresso and Starbucks are also gaining traction.
Sustainability is becoming an important trend, with brands focusing on eco-friendly options like biodegradable or recycled capsules, appealing to both brands and environmentally conscious consumers. Although coffee and tea capsules are more expensive than traditional brewing methods, the market continues to grow due to the perceived value in terms of quality, convenience, and time-saving benefits. Innovation in flavors, including options like UCC’s unique “Calamansi-infused coffee,” is also driving consumer interest and further boosting market growth.
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