Coffee Trends in Singapore Essay

In 2011, the total volume growth of coffee was 5%, which was a similar trend as in 2010 due to the continuous grueling 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 townspeople White Coffee and chained Western-style specialised coffee shops such as Starbucks and Gloria Jeans Coffee, coffee drinking culture has penetrated into the Singaporean market. The manufacturers have besides launched high-quality products in the off-trade channel. Hence, consumers are seeking to have the authentic high-quality brewed coffee at home.COMPETITIVE LANDSCAPENestl 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 patronage 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 withal enhances the fresh coffee category by introducing the coffee machines and fresh coffee pods such as Nespresso and Nescaf Dolce Gusto. PROSPECTSTotal volume of coffee is expected to development 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 tight 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.