Brewing change: Are coffee drinking habits in Singapore changing in the face of rising prices?

In early July, coffee prices for Robusta beans surged to a record high – as drought-hit top producer Vietnam grapples with poor crop yields – while Arabica coffee futures swelled by 30% this year. The supply crunch comes amid rising coffee consumption across multiple Southeast Asian markets.

In this series, we throw a spotlight on the coffee drinking landscape in Singapore (this article) and Thailand, exploring:

• How common regular coffee drinking is among consumers
• Top coffee chains most popular with regular coffee drinkers
• Whether coffee drinkers have noticed significant price changes
• How coffee drinking habits have changed among consumers who feel the pinch

What proportion of Singaporeans are regular coffee drinkers?

Latest YouGov Surveys research shows that regular coffee drinkers are in the majority of consumers in Singapore. Almost eight in ten (79%) consume the beverage once a month or more, with three in five (58%) doing so on a daily basis.

Demographically, men are significantly more likely than women to be regular coffee drinkers: over three-fifths of men say they drink coffee on a daily basis (62%) compared to over half of women (54%).

Across age cohorts, Gen Z (59%) stands out as significantly less likely to be regular coffee drinkers compared to Millennials (79%), Gen X (85%) and Baby Boomers (83%).

Which major café chains / coffeeshops are most popular among regular coffee drinkers in Singapore?

When regular coffee drinkers in Singapore – defined as consumers who imbibe the beverage once to multiple times a month – were asked to indicate where they typically buy their cuppa from, homegrown coffee stall Ya Kun Kaya Toast emerged as the most popular coffee chain that almost two in five (39%) pointed to.

American coffeehouse chain Starbucks and local coffee chain Toast Box (owned by food and beverage corporation BreadTalk Group) are next most popular, enjoying the support of over a third (both 35%) of regular coffee drinkers – ahead of about a quarter (26%) for US-headquartered The Coffee Bean & Tea Leaf.

The next most popular coffee stores trail some distance away, with traditional coffee chain Fun Toast (formerly Kheng Nam Hong) and China-headquartered Luckin Coffee attracting a sixth of regular coffee drinkers (16%), followed by Killiney Kopitiam (15%) and Heavenly Wang (13%).

Specialty cafés % Arabica and Huggs Coffee (both 5%) round out the top 10 coffee chains regular coffee drinkers in Singapore typically buy from.

Do most coffee drinkers feel prices for their cuppa have risen or stayed the same?

When asked to reflect on their coffee spending at cafés and grocery stores over the past few months, most regular coffee drinkers in Singapore say prices have risen.

Almost three-quarters (73%) say ordering the beverage from coffee shops is now more costly, with two in five (39%) saying prices have increased by a lot.

About seven in ten (69%) say buying coffee beans/grounds or bottled coffee from supermarkets / convenience chains / online stores is now more costly, with over a quarter (28%) saying prices have increased by a lot.

Across the top 10 coffee chains most frequented by regular coffee drinkers, a clear majority of customers say prices of their usual coffee orders have increased in the past few months.

Overall, customers of local chains Heavenly Wang (86%), Huggs (83%) and Ya Kun Kaya Toast (81%) were relatively most likely to say so – at over eight in ten – while customers of international chains Starbucks (78%), % Arabica (77%) and Luckin Coffee (74%) were relatively least likely to say so.

Notably, customers of traditional coffee chains – which sell more affordably priced beverages compared to modern coffeehouses – are most likely to say prices of their coffee orders have increased by a lot: Heavenly Wang (54%), Ya Kun, Fun Toast, Killiney Kopitiam (all 46%) and Toast Box (45%).

How have coffee drinking habits changed among consumers who feel the pinch?

Almost a third of consumers who indicate their usual coffee purchases have grown more costly in recent months say they have ordered less from cafés and coffee joints and brewed their own cuppa more (31%), while a quarter have considerably reduced their overall coffee consumption altogether (26%).

Around a quarter of consumers have started buying more from cheaper brands/versions of coffee beans/grounds/bottled drinks when grocery shopping (24%), while a fifth now switch to buying more from coffee joints with lower prices (20%).

Meanwhile, a tenth have continued to stick with their usual coffee joints but are opting for coffee drinks lower down the price range (10%) – while 4% have largely switched from coffee to other beverages.

On the other hand, about a quarter (27%) of consumers have not changed their coffee drinking habits in response to a rise in coffee prices.

Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online in July 2024, with a national sample of 1,064 Singapore residents, using a questionnaire designed by YouGov. Data figures have been weighted by age, gender, and ethnicity to be representative of all adults in Singapore (18 years or older), and reflect the latest Singapore Department of Statistics (DOS) estimates. Learn more about YouGov Surveys: Serviced.

_{Cover Photo by Cheryl Chan}