Organic Beverages in Singapore

PROSPECTS

Consumers still to be convinced of the health benefits of organic beverages

Unlike non-organic alternatives, organic beverages have not been treated with herbicides, fungicides, insecticides, pesticides and synthetic fertilisers. With mainstream farming methods engineered to maximise crop yields through the use of these chemicals, consumers of organic coffee are spared from their potential harmful effects on the human body.

High prices undermine the appeal of organic beverages

With their high unit prices, organic beverages are perceived as luxuries by consumers. As the economic slowdown in 2016 spilled over into 2017, retail volume and current value sales of organic beverages decreased.

Organic beverages would benefit from better labelling

Organic beverages spare the consumer from agricultural chemicals. However, this potential health benefit is not communicated to the consumer on product packaging.

COMPETITIVE LANDSCAPE

Domestic manufacturers continue to lead in 2017

Domestic manufacturers Clipper Teas and Boncafé International continued to lead retail value sales of organic beverages in 2017. Nevertheless, since most organic beverages are imported from Western countries, international players held a substantial market share.

Boncafé is the only mainstream organic coffee manufacturer in Singapore

Boncafé is the only player to carry organic coffee in its product range. However, sales continue to be restricted by a small customer base.

Internet retailing offers wider choice

A larger variety of organic coffee is available through internet retailing. For example, online retailers like iHerb, The Organic Grocer and RedMart carry large ranges of organic coffee, tea and milk.

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