In the Philippines, the annual growth rate of coffee is at 5%. This is a great opportunity for the participants of the instant coffee market. But with the entrance of Starbucks instant coffee in the scene, the current participants need to exert additional effort in order to stay in competition.
Although this doesn't greatly affect minimum wage earners, there is still the possibility of them trying other products. Moreover, their behavior towards coffee drinking might also change when new trends in the instant coffee market come about.
Another economic aspect that may affect the operating environment of coffee is the booming of the call center industry in the Philippines. This may increase the consumption of coffee especially by call center agents since coffee increases mental alertness especially during late hoursGlobal market of instant coffee is at $17 billion dollars. With this figure, Starbucks coffee, the market leader in the specialty coffee market has joined the instant coffee market. Moreover, this is also caused by the financial downturn happening in the US. With this new participant in the instant coffee market, there are possibilities of having new trends in coffee drinking especially that Starbucks is a respected brand in the coffee market.