Alcoholic Drinks - Singapore

The Alcoholic Drinks market in Singapore has been experiencing steady growth over the past few years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Singapore, there is a growing preference for premium and craft alcoholic drinks among consumers. This trend can be attributed to the increasing disposable income and changing lifestyles of the population. Consumers are becoming more willing to spend on high-quality and unique products, which has led to a rise in demand for premium alcoholic beverages. Craft beers, artisanal spirits, and small-batch wines have gained popularity among the younger generation, who are seeking new and exciting flavors. Additionally, health-conscious consumers are also opting for low-alcohol or non-alcoholic alternatives, leading to the emergence of a niche market for these products.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Singapore is the growing popularity of online sales channels. With the rise of e-commerce platforms and the convenience of online shopping, more consumers are choosing to purchase alcoholic beverages online. This trend has been further accelerated by the COVID-19 pandemic, which has led to restrictions on physical retail outlets. Online platforms provide a wider selection of products and the convenience of doorstep delivery, making them an attractive option for consumers. Another trend in the market is the increasing demand for experiential drinking experiences. Bars and restaurants in Singapore are focusing on creating unique and immersive experiences for their customers. This includes offering specialty cocktails, hosting mixology workshops, and organizing tasting events. These experiences not only cater to the growing demand for premium alcoholic beverages but also provide an opportunity for consumers to learn about different types of drinks and their production processes.

Local special circumstances: Singapore has a diverse population with a mix of local residents and expatriates from various countries. This multicultural environment has contributed to the demand for a wide range of alcoholic beverages, including international brands and flavors. The presence of a large expatriate community has also influenced the market, with preferences for specific types of drinks from their home countries. This has led to a diverse range of products being available in the market, catering to different tastes and preferences.

Underlying macroeconomic factors: The strong economy and high disposable income levels in Singapore have played a significant role in the growth of the Alcoholic Drinks market. The country has a high standard of living and a culture of dining out and socializing, which has contributed to the demand for alcoholic beverages. Additionally, Singapore is a popular tourist destination, attracting visitors from around the world. The tourism industry has further boosted the demand for alcoholic drinks, as tourists often indulge in dining and entertainment experiences during their visit. In conclusion, the Alcoholic Drinks market in Singapore is experiencing growth due to changing customer preferences, including a preference for premium and craft beverages, the popularity of online sales channels, and the demand for experiential drinking experiences. The local special circumstances, such as the multicultural population and the presence of a large expatriate community, have also contributed to the diversity of products available in the market. The strong economy and high disposable income levels in Singapore, coupled with the country's status as a tourist destination, have further fueled the growth of the market.

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.