Singapore Coffee Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Singapore Coffee Market Growth

The surge in coffee consumption, the rising popularity of instant coffee, and the growing establishment of coffee shops are some of the crucial drivers boosting the demand of Singapore coffee market. As per the industry report 2023, around 776 coffee shops are situated in Singapore's residential or neighbouring shop areas, creating a lucrative landscape for coffee growth.

Technological advancements and the emergence of smart coffee machines are also revolutionising the coffee sector in Singapore. These devices provide convenience, uniformity, and the option to personalise coffee, appealing to tech-savvy consumers. Moreover, the growing number of speciality coffee shops in the café scene has significantly boosted the market by offering unique and high-quality coffee choices that attract coffee enthusiasts and promote increased coffee consumption.

Market players are adopting strategic initiatives such as offering single-serve coffee pods which offer ease of usage and are gaining popularity among consumers. For instance, Gold Kili announced the launch of a new format for its coffee product range in Singapore in June 2024.

Key Trends and Recent Developments

Preference for organic coffee, growing instant coffee sales, and speciality coffee shops are accelerating the Singapore coffee market value.

September 2024

Malaysian coffee chain ZUS Coffee announced its entry into Singapore by the end of 2024 with a store in Changi Airport’s Terminal 4. The country will serve as its second international market after the Philippines, where it opened 46 stores in September 2023. Founded in 2019, ZUS Coffee currently operates 550 outlets in Malaysia and aims to join the league of several world-class coffee brands such as Starbucks, Paris Baguette and The Coffee Bean & Tea Leaf with its first Singaporean store at Changi Airport’s fourth terminal.

June 2024

Singaporean home coffee machine manufacturer Morning opened its first retail outlet in the country to showcase its Morning Machine, a premium Nespresso-compatible capsule coffee machine launched in 2021. The outlet also features a tasting bar where customers can sample a range of 120 coffees brewed on the Morning Machine and offer a capsule recycling service.

June 2024

Singapore-based Gold Killi, a leading beverage brand in the country, launched a new range of coffee products to expand its market. The new range comprises three exclusive products, namely Signature Blend, Columbia, and Nanyang Style. The Signature Blend is crafted with an in-house formula of Robusta and Arabica beans, while Columbia is a single-origin blend with a distinct profile of Arabica coffee. Similarly, the Nanyang Style combines the richness of Robusta coffee with a touch of caramel sweetness and nutty undertones.

May 2024

Malaysian coffee chain Oriental Kopi announced its collaboration with Singapore’s Paradise Group to establish its first shop in the country by the end of the third quarter of 2024. As part of its regional expansion strategy, the brand is reportedly planning to open eight more shops in Singapore by the end of the next year.  Oriental Coffee is known for its Nanyang-style brew prepared with Arabica, Robusta, and Liberica beans.

Rising Coffee Exports Driving the Singapore Coffee Market Revenue

The exports of coffee products by Singapore have risen in the past few years owing to its growing demand in the Asia Pacific region. According to the World Bank, the country exported around 180,000 kgs of roasted, decaffeinated coffee to major Southeast Asian markets such as South Korea, Hong Kong, Malaysia, Vietnam, and Indonesia, amounting to over USD 3,000,000. These values are expected to increase in the coming years, owing to a growing demand for coffee globally, the development of shipping logistics in Singapore, and favourable trade initiatives by the Government.

Increasing Demand for Organic Coffee Propelling the Growth of the Singapore Coffee Market

Growing sustainability and health concerns are prompting people to opt for organic coffee products cultivated without synthetic pesticides and fertilizers. These products are more eco-friendly and are believed to contain fewer harmful chemicals compared to regular coffee, raising their overall demand in the market. Industry leaders such as Brawn and Brain, and Mistercoffee Singapore are tapping into its market potential with their new lines of organic coffee blends available seasonally for customers. As the preference for organic coffee grows further in the coming years, several new market players are expected to emerge in the Singapore coffee market.

Growing Instant Coffee Sales Creating New Opportunities for the Coffee Industry in Singapore

The fast-paced urban lifestyle of Singapore’s population has propelled the demand for instant coffee, driving its sales among young and adult customers. Further, growing investment in this domain has enabled market players to improve the quality and expand the variety of instant coffee served in the country’s most popular cafes. For instance, California-based Blue Bottle Coffee opened a pop-up store in Singapore in August 2024, launching several instant coffee products, including its craft instant coffee blend, for Singaporean customers.

Speciality Coffee Shops and Café Culture in Singapore Increasing the Overall Market Consumption

The growing café culture in Singapore has raised the demand for speciality coffee among consumers, propelling the growth of the local market. Several local cafes have been capitalizing on artisanal and sophisticated brewing techniques to source premium single-origin coffee beans and serve a unique coffee-drinking experience to customers. For instance, the Japan-based Big Short Coffee brand, launched in Singapore in 2024, has been serving speciality coffee drinks to customers by experimenting with techniques such as molecular gastronomy, cocktail mixing, science labs and ingredients not normally used in coffee.

Singapore Coffee Industry Segmentation

“Singapore Coffee Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Whole-Bean
• Ground Coffee
• Instant Coffee
• Coffee Pods and Capsules

Market Breakup by End Use

• HoReCa
• Retail

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Speciality Stores
• Online
• Others

Singapore Coffee Market Share

Based on product type, the market is divided into whole-bean, ground coffee, instant coffee, and coffee pods and capsules. Instant coffee is expected to gain a prominent share of the market in coming years as it offers a convenient and efficient way to prepare a cup of coffee, making it highly favoured by individuals with busy schedules such as professionals and students. Moreover, it is a cost-effective option compared to whole-bean or ground coffee, attracting price-conscious customers in the country.

Leading Companies in the Singapore Coffee Market

The market players are readily launching new flavours and formats to gain a competitive edge in the market.

• Nestle S.A.
• Starbucks Corp.
• Inspire Brands Inc.
• LUIGI LAVAZZA S.p.A
• Perk Coffee Pte Ltd.
• Others