More Middle Eastern consumers are looking for brands that align with their values, for example local sourcing and sustainability. In an age of social media, consumers are looking beyond pricing when making drink brand choices, and seeking those brands that resonate more with their values.
Renowned coffee chains from China and Kenangan Coffee in Indonesia have entered Singapore as a stepping stone for their international expansion. The strategy to enter Singapore is attributed to its status as a financial hub, as well as its visibility for international investors leading to future expansion. At the same time, local consumers are sophisticated, open to trying new flavours, and are willing to spend for their daily caffeine fix.
Premiumisation forms the foundation of modern spirits demand and has proved remarkably resilient over the trials of the last few years. Yet, it is not invulnerable to external pressures. Consumers are now having to reassess spending habits given the prolonged strain on disposable incomes, and, unavoidably, rates of premiumisation are slowing.
Craft gin continues to gain prominence among younger consumers in India. Historically, a perceived lack of high-quality domestically-produced gin has hindered its consumption, as imported alternatives tend to be expensive. Recognising a gap in the market, several local entrepreneurs launched their own, home-grown craft gin brands, which were made primarily from indigenous botanicals.
Concentrates are becoming increasingly popular due to their affordability and specific functional benefits. While they are generally still a cheaper alternative to ready-to-drink beverages, consumers are now seeking more premium powder mix options with health, flavour, sugar reduction, convenience, and functionality as the main drivers.
After sharp retail price increases over the last two years, global soft drinks volume dipped significantly in 2023. Value-focused consumers are shifting into large format warehouse clubs, hard discounters and trading back to private label or B-brands in some categories. Yet a new value equation means more than simply seeking lower prices, with opportunities created by alternative formats, new functional need-states and category blurring premium innovation.