Coffee Trends in Singapore Essay
Coffee Trends in Singapore
•In 2011, the total volume growth of coffee was 5%, which was a similar trend as in 2010 due to the continuous strong economic growth in Singapore. Due to the high density of on-trade channels including chained local coffee shops such as Ya Kun Kaya Toast and Old Town White Coffee and chained Western-style specialised coffee shops such as Starbucks and Gloria Jean’s Coffee, coffee drinking culture has penetrated into the Singaporean market. The manufacturers have also launched high-quality products in the off-trade channel. Hence, consumers are seeking to have the authentic high-quality brewed coffee at home.
•Nestlé Singapore Pte Ltd continued to post the leading position in terms of off-trade value sales with a 40% value share. This success could be attributed to its constant research and development as well as the frequent promotional campaigns due to the companies’ economic scale, which can keep attracting the consumers. Due to the companies’ global strong presence, the company develops not only instant coffee products but also enhances the fresh coffee category by introducing the coffee machines and fresh coffee pods such as Nespresso and Nescafé Dolce Gusto. PROSPECTS
•Total volume of coffee is expected to increase by 2% CAGR over the foreacst period. Considering the review period, this growth is slightly conservative, which reflects the current uncertain global economic condition. Although local consumers are becoming more affluent and have more disposable income, their consumption patterns are likely to follow the economic outlook in Singapore, which will reflect, in particular, the growth in on-trade volume.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 17 October 2016
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