Organic Beverages in Singapore

PROSPECTS

Higher price for organic products may impede growth

Organic beverages is still a small category in Singapore and continues to be dominated by organic hot drinks. While the overall category has seen growing interest from health-conscious consumers, many consumers still prioritise taste and price during their purchase considerations and may not be willing to pay more to accommodate the additional cost associated with having the products certified organic, and thus demand for organic beverages is still considered niche in Singapore.

Greater variety of products can be found across the category

While still a relatively small category, greater variety of organic beverage products can be found in Singapore. Beyond organic hot drinks, which currently dominates the category, organic soft drinks also show growth potential in the future, for example with kombucha gaining better visibility in retail.

COMPETITIVE LANDSCAPE

Organic coffee remains niche despite greater variety in the market

Despite the greater variety of organic coffee variants available, with not only organic coffee beans and organic standard fresh ground coffee, but also organic coffee pods, organic coffee sales remain small. Growth for these products is still rather limited compared to overall coffee pods or standard fresh ground coffee as consumers are not yet willing to pay the price premium associated with having the products certified organic.

Unilever enters organic beverages with Pukka Tea

In 2019, Unilever Singapore launched Pukka Tea, a brand of tea it acquired in 2017. Renowned for its fruit and herbal blends, the brand also uses 100% organic products, Fairtrade and FairWild accreditation for its wild-collected herbs.

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