Ready-to-Drink (RTD) Coffee & Tea - Singapore

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

Customer preferences: Singaporeans have a growing preference for convenience and on-the-go consumption, which has contributed to the increasing popularity of RTD coffee and tea. The busy lifestyles of consumers in Singapore have led to a higher demand for ready-to-drink beverages that can be easily consumed while commuting or at work. Additionally, the younger generation in Singapore has shown a strong affinity towards coffee and tea, further driving the demand for RTD options.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Singapore is the rising demand for healthier and functional beverages. Consumers are becoming more health-conscious and are actively seeking out products that offer nutritional benefits. As a result, there has been a surge in the demand for RTD coffee and tea products that are low in sugar, use natural ingredients, and offer functional properties such as antioxidants or energy-boosting effects. Another trend in the market is the increasing popularity of premium and specialty RTD coffee and tea products. Singaporeans are willing to pay a premium for high-quality and unique beverages that offer a superior taste experience. This has led to the emergence of artisanal coffee and tea brands in the market, offering a wide range of flavors and blends to cater to the discerning taste buds of consumers.

Local special circumstances: Singapore's vibrant food and beverage scene, with its diverse culinary offerings, has played a significant role in driving the growth of the RTD Coffee & Tea market. The presence of numerous cafes and specialty beverage shops has created a culture of coffee and tea appreciation among Singaporeans. This has resulted in a higher demand for RTD coffee and tea products, as consumers look for ways to enjoy their favorite beverages outside of cafes and restaurants.

Underlying macroeconomic factors: The growing affluence and disposable income of consumers in Singapore have also contributed to the development of the RTD Coffee & Tea market. As Singaporeans become more financially stable, they are willing to spend more on premium and convenient products, including RTD beverages. Additionally, the increasing urbanization and Westernization of Singaporean society have led to a greater adoption of Western food and beverage trends, including the consumption of RTD coffee and tea. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Singapore is experiencing growth due to customer preferences for convenience and on-the-go consumption, the rising demand for healthier and functional beverages, the popularity of premium and specialty products, the vibrant food and beverage scene, and the underlying macroeconomic factors of growing affluence and urbanization.

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.