SINGAPORE – Consumers are embracing environmental responsibility through their purchase decisions by looking for products with improved sustainability and ethical production processes, as affirmed by 33% of Singaporeans*. Brands are, therefore, tapping into this trend by providing consumers with more sustainable options in coffee offerings, says GlobalData, a leading data and analytics company.
Meenakshi Haran, Consumer Lead Analyst at GlobalData, comments: “Consumers in Singapore are particularly concerned about sustainability of coffee, with 22% of them expressing concerns about how unappealing they find the waste generated from coffee grounds**.
Climate change and the resulting unfavorable weather conditions have contributed to volatility in coffee harvest in recent years, making coffee expensive.
Additionally, changing climate conditions are expected to impact production across prominent coffee growing regions, further adding to consumer concerns of making environmentally friendly purchase decisions.”
Tim Hill, Key Account Director, SE Asia, GlobalData, adds: “Despite coffee’s popularity, high prices are impacting consumption as consumers navigate the economic and environmental crises. As many as 30% of Singaporeans stated that their spending on coffee is quite/very high**.
“Brands are therefore tapping into the growing consumer desire to balance affordability and make sustainable choices by focusing on innovations to create new coffee options. For instance, Singapore’s Prefer claims to have created a first-of-its-kind bean-less coffee in Asia using a fermenting technology similar to the one used to brew beer. The company also claims that this new and innovative method of bean-less coffee eliminates the dependency on coffee harvest, thus ensuring cost optimization for producers and consumers.”
Haran continues: “Amid slow economic growth of 1.1% recorded in 2023^, Singaporeans are concerned about their spending ability, with 76% of respondents admitting they pay high/very high attention to prices when shopping for products**, and innovations in affordable coffee may just be what the consumers are looking for, given that coffee is a popular drink in the country.”
Hill concludes: “Price is equally an important influencer across Asia, where consumers are highly conscious of their spending. This is affirmed by 46% of Asian respondents who consider low price to be an essential feature when making purchase decisions+. Therefore, products that can demonstrate savings and tout sustainability credentials, such as Prefer’s innovative coffee, will align well with consumer expectations across Asia.”
*GlobalData 2023 Q4 Consumer Survey – Singapore, published in December 2023, 500 respondents
**GlobalData 2024 Q1 Hot Topics Survey – Singapore, published in February 2024, 500, respondents
^ Ministry of Trade and Industry, Singapore
+ GlobalData 2023 Q4 Consumer Survey – Asia & Australasia, published in December 2023, 6000 respondents
