, Singapore

Why Singapore’s unique coffee culture are attracting cafe operators

Coffee sales are expected to rise by 3.2% CAGR in 2027.

Singapore is considered a tea-drinking nation however coffee consumption is on the rise with coffee sales set to increase steadily by 3.2% value compound annual growth rate (CAGR) over 2022 to 2027, according to GlobalData.

Singapore is a unique coffee market given that it is a major coffee bean producer and exporter, a global coffee trading hub for the Southeast Asian region, and home to a distinctive café culture. The coffee market growth has gained pace, spurred by the proliferation of coffee roasters and cafés over the last decade, and the surge in at-home coffee consumption during the pandemic. With all remaining COVID-19 restrictions lifted by early 2023, the country is witnessing a rebound in on-premise coffee sales. 

“Singaporeans get their daily caffeine fix from kopitiams, sprawling open-air food stalls known as hawkers centres, street carts, or the host of new-age cafés and coffee roasters that have opened shop in the last decade. Besides kopi and Western-style lattes, flat whites, and cold brew coffees have also gained popularity. Coffee has become somewhat of a staple for Singaporeans, with the per capita coffee consumption at 122.7 litres in 2022 for a city-state with a population of just 5.6 million. Yet, the market continues to expand, with sales rising year after year,” Tim Hill, Key Account Director at GlobalData Singapore said.

Previously, the COVID-19 lockdown and intermittent closures of restaurants and cafes boosted at-home consumption of coffee which cafes leveraged by expanding ready-to-drink cold-brew at homes. The lifting of all remaining COVID-19 restrictions by early 2023 has paved the way for residents and tourists to return to cafés and restaurants, thereby fueling the revival of on-premise sales.

“Unsurprisingly, more multinational companies are eyeing the potent Singapore coffee market. For instance, the Japanese beverages giant, Suntory Group, launched its popular Suntory Boss RTD coffee drinks brand through 7-Eleven stores in March 2023. Additionally, the Chinese café heavyweight, Luckin Coffee, flagged off its first international venture by opening two pilot outlets in Singapore in April 2023. The iconic Canadian chain, Tim Hortons, has also announced similar expansion plans,” Bobby Verghese, Consumer Analyst at GlobalData said

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