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.
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.
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.
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.
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.
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.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
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:
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.
Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!