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This report uses the Duke GVCC Global Value Chain (GVC) framework to examine the Philippines’ position in the global coffee industry and identify opportunities for upgrading for the sector. While the country has a rich history as being a significant exporter of beans, a variety of impediments—coffee rust, shifting dynamics within the global industry, and insufficient government support—have caused the domestic industry to atrophy in recent decades. The Philippines is an important coffee market in other respects. The country has been a leading importer of instant coffee by volume since 2011 and is projected to become one of the world’s largest five consumers by 2021. The robust demand has, in turn, boosted fortunes of businesses participating in the retail segment in the country. In an effort to help domestic producers take advantage of both the local and global markets, policymakers have engaged with the stakeholders to facilitate economic upgrading. In order for those efforts to gain traction, further process and product upgrades are necessary to improve the quality of Filipino coffee.
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