Beer - Singapore

The Beer market in Singapore has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In Singapore, there has been a shift in customer preferences towards craft and premium beers. This can be attributed to the increasing consumer demand for unique and high-quality products. Craft beers, with their distinct flavors and artisanal production methods, have gained popularity among beer enthusiasts in the country. Additionally, the rising disposable income levels and changing lifestyles have also contributed to the growing preference for premium beers.

Trends in the market: One of the notable trends in the Singaporean beer market is the increasing demand for low-alcohol and non-alcoholic beers. This trend is driven by health-conscious consumers who are seeking alternatives to traditional alcoholic beverages. Non-alcoholic and low-alcohol beers offer a healthier option without compromising on taste. Furthermore, the growing interest in health and wellness has also led to the introduction of innovative beer products infused with natural ingredients such as fruits and herbs. Another trend in the market is the rise of online beer sales. With the increasing popularity of e-commerce platforms, consumers in Singapore are now able to conveniently purchase their favorite beers online and have them delivered to their doorstep. This trend has not only provided consumers with a wider range of beer options but has also allowed breweries to reach a larger customer base.

Local special circumstances: Singapore's vibrant food and beverage scene has played a significant role in the development of the beer market. The country is known for its diverse culinary offerings, and beer is often paired with local dishes such as chili crab and satay. This cultural aspect has contributed to the growth of the beer market as consumers seek to enhance their dining experiences with the right beer selection. Furthermore, Singapore's status as a global financial hub and a popular tourist destination has also had a positive impact on the beer market. The presence of multinational companies and a large expatriate population has created a demand for international beer brands, leading to a wider variety of options available in the market.

Underlying macroeconomic factors: The favorable economic conditions in Singapore have supported the growth of the beer market. The country's stable GDP growth, low unemployment rate, and high per capita income have increased consumers' purchasing power, enabling them to spend more on discretionary items such as beer. Additionally, the government's efforts to promote tourism and attract foreign investments have also contributed to the growth of the beer market. Singapore's reputation as a global business hub and its vibrant nightlife scene have attracted both business travelers and tourists, creating a demand for beer in bars, restaurants, and hotels. In conclusion, the Beer market in Singapore is experiencing growth due to changing customer preferences towards craft and premium beers, emerging trends such as low-alcohol and non-alcoholic options, local special circumstances related to the country's food and beverage scene and its status as a global financial hub and tourist destination, as well as favorable macroeconomic factors.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.