Management (Coffee Industry of Singapore)

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Management (Coffee Industry
of Singapore)

Contents
Coffee Industry in Singapore.................................................................................2
Introduction........................................................................................................... 2
Closure of some coffee brands in Singapore..........................................................2
Pestle analysis of coffee industry in Singapore......................................................4
Conclusion............................................................................................................. 5
References............................................................................................................. 7

Coffee Industry in Singapore
Introduction
Due to the increasing sophistication related to taste among the young consumers, the demand
of café culture is increasingly demanding the premium services. A shift has been seen from
the fresh ground coffee to the premium coffee beans such as Robusta beans and Single-origin
coffee. Due to the growing young people, it is seen that they seek to enjoy completely visiting
any food outlet. In the year 2016, it is seen that the revenue in coffee segment is US$1,681m.
It is also expected to grow by 4.1 per cent. The coffee industry of Singapore is evolving due
to the growth of hipster and speciality shops. By taking into account 2018 year, around 95
thousand 60kgs bag of the coffee were consumed in the Singapore (Statista, 2019).
Due to several reasons, coffee industry is expected to grow over the next years also specially
by doing the development of the third-wave coffee houses. Due to the increasing demand for
the coffee, more cafes will open in Singapore by offering the single origin coffee or more
premium coffee. Among the presence of wide number of coffee, fresh ground coffee pods has
achieved the highest retail volume growth in the year 2018 boosted by the premiumisation
and convenience. As compare to this, the demand of RTD coffee in Singapore is declining
due to the increasing concern of the consumers toward healthy drinks (Henderson, 2016).
The local consumer states that the RTD coffee contains too much sugar instead of the
unsweetened coffee. In this way, if any new coffee brand wants to enter into Singapore, it has
to ensure the proper research on its part.
Closure of some coffee brands in Singapore
In spite of the increasing demand of coffee in Singapore, some industries are not able to cope
up with the demand of customers. Costa coffee is one such example of this. It has revealed
that Costa Coffee is closing around eight of its stores by the end of September. However, the
move of this coffee will not affect any of its operation in other markets of Southeast Asia.
However, the employees of the Costa Coffee have revealed that the high rent of the shops is
the reason of its closure. Costa Coffee is not able to achieve ensures the differentiated brand
presence in comparison to the current local players and international franchise.