Soft drinks in 2024: The big picture
The hot drinks market in Singapore is set to record positive volume growth though both the on-trade and off-trade channels in 2024, albeit at a slower pace than the previous three years. This is largely due to a combination of regulatory changes and reduced consumer spending power.
2024 key trends
A prominent trend reshaping the soft drinks industry is the growing focus on health and wellness. Consumers are increasingly seeking products that not only refresh but also contribute to their overall wellbeing.
Competitive landscape
The leading company in Singapore’s soft drinks market, Coca-Cola Singapore Beverages Pte Ltd, has implemented a series of innovative collaborations across diverse industries, ranging from music to movies, to captivate consumers. One notable initiative is the launch of Coca-Cola K-Wave Zero Sugar, inspired by the global K-Wave phenomenon.
Retailing developments
Leading soft drink brands are tapping into various channels to boost consumer out-of-home demand, particularly through vending solutions. Coca-Cola Singapore Beverages Pte Ltd, for example, has partnered with technology giant Grab Singapore to launch the Coke&Go initiative.
Foodservice vs retail split
The foodservice channel is poised for faster growth than its off-trade counterpart in 2024, driven by a resurgence in foot traffic to on-trade outlets. Soft drinks, including carbonates, RTD tea, and juice, are popular items in these establishments, making footfall at locations such as full-service restaurants, limited-service restaurants, and hawker centres a key driver of demand.
What next for soft drinks?
Economic uncertainties are expected to continue to impact the soft drinks market in Singapore, due to a combination of factors. These include the potential ripple effects following the United States elections, China’s uneven economic recovery, and ongoing geopolitical tensions.
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Overview:
Understand the latest market trends and future growth opportunities for the Soft 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:
- Bottled Water
- Carbonates
- Concentrates
- Juice
- RTD Coffee
- RTD Tea
- Energy Drinks
- Sports Drinks
- Asian Speciality Drinks
If you're in the Soft 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 Soft 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 Soft Drinks in Singapore?
- To what extent are health considerations impacting consumption of Soft Drinks in Singapore?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Soft Drinks in Singapore?
- Which are the leading brands in Soft Drinks in Singapore?
- What potential exists for multinational or domestic soft drinks companies to expand in Singapore?
- How are products distributed in Soft Drinks in Singapore?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of Soft Drinks?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
Soft Drinks in Singapore
Soft drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for soft drinks?
Fountain sales in Singapore
Trends
DISCLAIMER
Bottled Water in Singapore
KEY DATA FINDINGS
Flat performance for bottled water
Functional bottled water faces competitive challenges
Premium bottled water struggles to gain traction with local consumers amid general economic uncertainty
Blurring of lines between carbonates and sparkling flavoured bottled water
Sustainability initiatives will continue to gain traction
Supermarkets, convenience stores, and small local grocers will remain key channels for bottled water sales
Carbonates in Singapore
KEY DATA FINDINGS
Coca-Cola and PepsiCo innovate with smart vending solutions to enhance customer experience
Impact of rising carbon tax presents opportunities and challenges
Health-conscious consumers drive shift to reduced-sugar carbonates, despite concern over artificial sweeteners
Health trends and shifting demographics will present challenges for future of carbonates
Innovative collaborations will stimulate consumer interest.
Foodservice will remains key channel for carbonates brands
Concentrates in Singapore
KEY DATA FINDINGS
Continued decline for liquid concentrates as healthier options take centre stage
Mixed fortunes for powder concentrates
Coffee liquid concentrates represent niche, yet convenient alternative
Demographic shifts will pose challenge for liquid concentrates
Powdered sports drinks will struggle in face of RTD convenience
Speciality tea and coffee concentrates could thrive in post-pandemic, on-the-go era
Concentrates Conversions
Juice in Singapore
KEY DATA FINDINGS
Decline in juice consumption amid growing health concerns
Coconut and other plant waters face ongoing challenges
Players leverage foodservice collaborations to boost visibility
Packaged juices may face intensified competition from foodservice kiosks
Packaged juices to target health-conscious consumers with low-calorie and premium offerings.
Declining birth rate will pose challenge for juice drinks
RTD Coffee in Singapore
KEY DATA FINDINGS
Producers struggle with rising coffee bean prices
Demand for reduced sugar options spurs innovation in RTD coffee
“Bean-free” coffee makes its debut amid growing sustainability concerns
Competition from chained foodservice players is expected to intensify, placing pressure on RTD coffee brands
RTD coffee will face strong competition from customisable options and affordable local alternatives
Vending machines selling freshly prepared coffee could place pressure on RTD variants
RTD Tea in Singapore
KEY DATA FINDINGS
Continued growth momentum for reduced sugar RTD tea
Competitive landscape remains led by long-standing brands
East Asian RTD tea brands see growing availability
Private label RTD tea brands set to gain traction amid economic uncertainty
Kombucha to remain niche, despite its growing popularity as healthy alternative
RTD tea faces competition from bubble tea and other foodservice outlets
Energy Drinks in Singapore
KEY DATA FINDINGS
Manufacturers face challenges in navigating mature market
Expanding construction sector fuels demand for energy drinks
Energy drinks brands focus on building brand loyalty amongst young adults
Lack of regulations around caffeine levels sparks concern
Natural energy drinks, while remaining niche, are expected to grow in availability
Reduced sugar energy drinks show stronger growth potential
Sports Drinks in Singapore
KEY DATA FINDINGS
Sports drinks players drive further growth through event sponsorships and community engagement initiatives
Sports drinks support hydration and recovery in Singapore's tropical climate.
Sports drinks navigate challenges amid sugar concerns and rise of healthier alternatives
Decline in physical activity levels poses challenge for sports drinks players
Sports drinks will capitalise on international sports events, while seeking to boost community engagement
Established brands expected to maintain popularity
Asian Speciality Drinks in Singapore
KEY DATA FINDINGS
Asian speciality drinks hold limited appeal among younger Singaporeans
Global drinks brands pose strong competition
Asian speciality drinks face challenges in broadening their consumer base
Asian speciality drinks will see further decline in volume sales
Niche speciality brands may struggle to get a stronger foothold
Supermarkets will remain key channel for off-trade volume sales of Asian speciality drinks
The following categories and subcategories are included:
Soft Drinks
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- Carbonated Natural Mineral Bottled Water
- Carbonated Spring Bottled Water
- Carbonated Purified Bottled Water
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- Still Flavoured Bottled Water
- Sparkling Flavoured Bottled Water
- Functional Bottled Water
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- Still Natural Mineral Bottled Water
- Still Spring Bottled Water
- Still Purified Bottled Water
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- Regular Carbonates
- Reduced Sugar Carbonates
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- Regular Cola Carbonates
- Reduced Sugar Cola Carbonates
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- Regular Non-Cola Carbonates
- Reduced Sugar Non-Cola Carbonates
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- Regular Lemonade/Lime
- Reduced Sugar Lemonade/Lime
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- Regular Tonic Water/Mixers/Other Bitters
- Reduced Sugar Tonic Water/Mixers/Other Bitters
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- Regular Orange Carbonates
- Reduced Sugar Orange Carbonates
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- Regular Other Non-Cola Carbonates
- Reduced Sugar Other Non-Cola Carbonates
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- Liquid Concentrates
- Powder Concentrates
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- Not from Concentrate 100% Juice
- Reconstituted 100% Juice
- Coconut and Other Plant Waters
- Juice Drinks (up to 24% Juice)
- Nectars
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- RTD Coffee
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- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
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- Regular Energy Drinks
- Reduced Sugar Energy Drinks
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- Regular Sports Drinks
- Reduced Sugar Sports Drinks
- Asian Speciality Drinks
Soft Drinks
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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This report originates from Passport, our Soft Drinks research and analysis database.
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