Hot drinks in 2024: The big picture
In 2024, the hot drinks market in Singapore is expected to see flat performance in total volume terms, largely due to a combination of regulatory changes and reduced consumer spending power. One of the key regulatory changes that will affect the market is the increase in the Goods and Services Tax (GST) rate, which jumped from 8% to 9%, effective from 1 January 2024.
2024 key trends
As consumer interest in healthier, lower-sugar options continues to rise, coffee brands are increasingly introducing reduced-sugar alternatives to meet evolving demand. One notable example is Nescafé, the second-largest coffee brand in Singapore in terms of retail value, which launched Nescafé Gold 2-in-1 Zero Sugar.
Competitive landscape
Despite ongoing competition among leading players, no significant shifts in market leadership are anticipated in hot drinks in 2024. Nestlé Singapore Pte Ltd remains firmly in the lead in retail value terms, outpacing its closest rival, Super Group Ltd, by a considerable margin.
Retailing developments
Offline retail continues to dominate the distribution of hot drinks in Singapore, with many local consumers viewing physical stores as key destinations to explore a wide variety of products and enjoy an engaging shopping experience. The presence of knowledgeable in-store sales assistants further enhances this experience, due to their ability to provide personalised recommendations that cater to individual tastes, particularly for consumers seeking more sophisticated or premium beverages.
Foodservice vs retail split
In Singapore, other hot drinks maintain a significant share of foodservice volume sales, largely driven by the popularity of malt-based beverages such as Milo, which are widely available across various foodservice channels, from traditional hawker centres to full-service restaurants. In 2024, foodservice volume sales across all three categories - coffee, tea, and other hot drinks - are projected to continue growing, despite the recent increase in Singapore's GST rate, which rose from 8% to 9% in January 2024.
What next for hot drinks?
The market for hot drinks in Singapore is expected to experience only modest growth in volume terms over the forecast period. Coffee will remain the leading category, due to its status as an essential daily beverage for many Singaporeans.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Singapore with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in Singapore, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in Singapore report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in Singapore?
- To what extent are health considerations impacting consumption of Hot Drinks in Singapore?
- What are the traditional preferences in Hot Drinks in Singapore? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in Singapore?
- Which are the leading brands in Hot Drinks in Singapore?
- How are products distributed in Hot Drinks in Singapore?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in Singapore
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in Singapore
KEY DATA FINDINGS
Coffee sees shift towards more health-focused options
Growth in foodservice is being driven by expanding chained coffee shop landscape
Sustainability and ethical sourcing trends persist in 2024
Fresh ground coffee pods set for strong growth
Speciality coffee is expected to gain momentum
Out-of-home coffee consumption is expected to thrive
Tea in Singapore
KEY DATA FINDINGS
Potential for on-trade volume sales and retail value growth of tea as retail volume stagnates in 2024.
Black tea remains dominant, but green and fruit/herbal teas gain momentum, alongside health and wellness trend
Leader Lipton faces growing competition from higher-end tea brands and RTD tea
Premiumisation will drive growth in tea, with focus on affordable luxury segment
Tea will be increasingly viewed as meaningful gifting option
Polarisation in tea market: premium versus value-driven options
Other Hot Drinks in Singapore
KEY DATA FINDINGS
Health concerns and rise of alternative beverages lead to decline in retail demand, but foodservice sales continue to thrive
Rising cocoa and sugar prices impact production costs
Leading brands target impulse consumption through RTD offerings
Flat performance for other hot drinks as market shifts focus to adult consumers
Health and wellness trends and limited innovation will impact chocolate-based drinks
Consolidation will continue to define the market
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Hot Drinks research and analysis database.
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