Singapore instant coffee market is estimated to attain a market size of USD97.726 million by the end of 2025. 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. The instant coffee brands like Gold Kili are focusing on emulating butter and sugar roasted coffee flavor in their mixes in order to match the coffee consumption style of maximum individuals. The coffee industry in Singapore has two faces, one containing takeaway shops that sell at least 800 to 1000 cups of coffee every morning to the executives from various international organizations in the city, or there are several specialty coffees shops in the suburban areas.
The other side of the Singapore coffee culture includes the hawker centers 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 centers include the use of a large amount of high-caffeine Robusta beans, Arabica beans are not utilized in these centers 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 hence is offering regional exporters in Vietnam and Indonesia to have 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 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 against 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.
The presence of key companies in the region is offering a wide range of instant coffee products to the consumers, this is further providing an impetus in fueling 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, Nescafe GOLD Cappuccino. These contain a premium blend of Arabica and Robusta beans that are golden roasted for providing smooth, rich, and aromatic coffee.