Singapore Instant Coffee Market - Forecasts from 2022 to 2027

The Singapore instant coffee market is estimated to grow with a CAGR of 5.97% over the forecast period to attain a market size of US$106.933 million in 2027, from US$71.264 million in 2020. The vibrant coffee culture in the country is projected to increase market growth in the forecast period.

Coffee in Singapore is referred to as Kopi and is preferred on a wide scale. One can see plenty of locals preferring coffee filled with loads of sugar and condensed milk. Instant coffee brands like Gold Kili are focusing on emulating butter and sugar-roasted coffee flavour in their mixes in order to match the coffee consumption styles of most individuals. The coffee industry in Singapore has two faces. One contains takeaway shops that sell at least 800 to 1000 cups of coffee every morning to the executives from various international organizations in the city, and the other contains several speciality coffee shops in the suburban areas.

The other side of the Singapore coffee culture includes the hawker centres, where one may see locals coming from different backgrounds and of almost all age groups consuming around 4 to 6 cups a day. The factors driving the growth of coffee in these hawker centres include the use of a large amount of high-caffeine Robusta beans, Arabica beans are not utilized in these centres for coffee preparation.

The sustainable need for robusta is further gaining traction for many exporters to take advantage of the open-door policy on trade in Singapore with no taxes or barriers, further fueling the market growth in the forecast period. This is mainly due to the fact that the country has no import duty and is offering regional exporters in Vietnam and Indonesia a good hold on Singapore's robusta industry. According to the USDA statistics, the production of Robusta beans in Vietnam utilized for instant coffee with creamer and sugar is projected to increase with an annual growth rate of 0.3% to around 29.1 million bags during the production year, 2019-2020. This represents a 10% growth from the last five years, with each bag containing around 60kg of coffee beans.

The present COVID-19 pandemic scenario is projected to decline the market's growth due to the closure of coffee shops and other public gathering areas in 2020. Lockdown and work-from-home initiatives are being taken for the prevention of novel coronavirus infections, and this has led to the shutting down of the coffee stalls in the country, further impacting the sales of instant coffee in the current year.

COVID-19 SCENARIO

Due to the shutdown of coffee shops and other public meeting locations as a result of the current COVID-19 outbreak, Singapore's immediate market development is projected to be limited. For the prevention of novel coronavirus infections, lockdown and work-from-home programs have been implemented, resulting in the closure of coffee booths and firms across the country, further affecting instant coffee sales in the forecast period.

Key Development

October 2020.

Starbucks Holiday Coffees and Favorites are now available at home for the first time, Nestlé Singapore.

The presence of key companies in the region is offering a wide range of instant coffee products to consumers. This is further providing an impetus to fuel the market growth in the forecast period.

Nestle Singapore, through its Nescafe GOLD brand, is offering several product variants in the region. The products include Nescafe GOLD BLEND, Nescafe GOLD Decaffeinated, Nescafe GOLD Organic, Nescafe GOLD BLEND 3in1, Nescafe GOLD Dark Latte, Nescafe GOLD Creamy Latte, and Nescafe GOLD Cappuccino. These contain a premium blend of Arabica and Robusta beans that are golden roasted to provide a smooth, rich, and aromatic coffee.

Segmentation:

By Type

• Freeze-Dried Instant Coffee
• Spray-Dried Instant Coffee

By Distribution Channel

• Offline
• Retail
• Food Services
• Online

By Region

• North Region
• South Region
• East Region
• South Region