Chapter 1 Market Study
Essay by Isis Millicent Quiñones • December 17, 2017 • Research Paper • 389 Words (2 Pages) • 1,139 Views
Chapter I
MARKET STUDY
This chapter analyzes and interprets the information about the market of the product or service to be offered for sale. The past, present and potential customers for the product or service are methodically examined through the gathered data.
Demand Analysis
Coffee specialty shops continue to increase and these shops cater to a wider and younger clientele. Being seen in coffee shops has almost become a status symbol nowadays which makes coffee a highly in demand commodity (Carillo, 2016). The third wave movement of the specialty coffee started at 2012 when specialty coffee shops started opening in the country (M.Joseph, 2015). The third wave coffee movement is often referred to as Specialty Coffee, was really spearheaded by coffee shops and roasters. In third wave coffee, coffee is treated like a premium product like wine or craft beer, wherein people pay careful attention to its origins and how it’s made making the market demand high.
In a statement in the Manila Bulletin on May 2017, Juliet Lucas, the Regional Industry Cluster coordinator for coffee, based in Bontoc, Mountain Province explained that there is a fast growing number of coffee drinkers in the Philippines who consume the equivalent of 4,775,000 60-kg beans a year.
This shares a commonality in coffee drinkers and the developing wide-spread coffee shops’ unmet demand of the market. In an article of the ABS-CBN by Lagura (2008), it was stated that drinking coffee has always been a craze among Filipinos. Popular coffee shops are now in every nook and cranny and they attract a big number of people, mostly young urban professionals. According to a study by business news site Quartz, Pinoys drink 0.608 cups of coffee a day per capita—or 222 cups of coffee per person annually. According to a study of Olsen (2013), Forty percent of 18 to 24 year olds, the ages in which students typically attend college, drink coffee every day ("National coffee drinking," 2012).
Year | Demand (metric tons) | Growth Rate (%) |
2012 | 130,000 | 0 |
2013 | 139,500 | 7.3 |
2014 | 153,000 | 9.7 |
2015 | 168,000 | 9.8 |
2016 | 180,000 | 7.1 |
Table 1. Total Coffee Demand in the Philippines for Five Years (expressed in metric tons)
Based on the data expressed in metric tons and growth rate of coffee consumption, the demand on coffee in the Philippines is increasing every year. This shares a commonality in the demand of coffee beans and the demand in coffee shops by the market.
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