Ready-to-Drink (RTD) Coffee - Singapore

The Ready-to-Drink (RTD) Coffee market in Singapore has been experiencing significant growth in recent years.

Customer preferences: Singaporeans have developed a strong affinity for RTD coffee due to its convenience and on-the-go nature. With the fast-paced lifestyle in Singapore, consumers are increasingly seeking convenient and ready-to-consume beverages that can be easily consumed while commuting or during work breaks. RTD coffee fits perfectly into this lifestyle, offering a quick and refreshing caffeine boost without the need for brewing or preparation.

Trends in the market: One of the key trends in the RTD coffee market in Singapore is the growing demand for premium and specialty coffee options. As consumers become more knowledgeable about coffee and develop a refined taste for different flavors and blends, they are willing to pay a premium for high-quality and unique RTD coffee products. This trend has led to the emergence of artisanal coffee brands and specialty coffee shops that offer a wide range of RTD coffee options with distinct flavors and brewing techniques. Another trend in the market is the increasing popularity of healthier and functional RTD coffee products. Singaporeans are becoming more health-conscious and are actively seeking beverages that offer nutritional benefits. As a result, there is a rising demand for RTD coffee products that are low in sugar, fat-free, and enriched with vitamins or antioxidants. This trend is driving innovation in the market, with manufacturers introducing new and innovative RTD coffee variants that cater to the health-conscious consumer segment.

Local special circumstances: Singapore's thriving café culture has played a significant role in driving the growth of the RTD coffee market. The city-state is known for its vibrant coffee scene, with numerous specialty coffee shops and cafés offering a wide variety of coffee options. This café culture has created a strong coffee-drinking culture among Singaporeans, making them more receptive to RTD coffee products. Furthermore, the hot and humid climate in Singapore makes RTD coffee an appealing beverage choice for many consumers. The refreshing and cooling properties of RTD coffee make it a popular choice for quenching thirst and providing a quick energy boost in the tropical weather.

Underlying macroeconomic factors: Singapore's strong and stable economy has contributed to the growth of the RTD coffee market. The country's high per capita income and disposable income levels have enabled consumers to spend more on convenience and premium products, including RTD coffee. Additionally, Singapore's well-developed retail infrastructure and widespread availability of RTD coffee products have made it easily accessible to consumers across the country. In conclusion, the Ready-to-Drink (RTD) Coffee market in Singapore is experiencing significant growth due to the convenience it offers to consumers, the growing demand for premium and specialty coffee options, and the increasing popularity of healthier and functional beverages. The local café culture and the hot climate in Singapore further contribute to the market's development. Singapore's strong economy and high disposable income levels also play a crucial role in driving the growth of the RTD coffee market.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.