Overview
Beer is the drink of choice for majority of Singaporeans
In 2021, Singapore’s alcoholic beverage consumption totalled nearly 143 million litres, which translates into a sales value of nearly USD 3 billion. Beer is the dominant category, accounting for approximately 88% of consumption, with pilsner being the preferred choice. Asia Pacific Breweries holds approximately 42% of the beer market, with its brands Tiger Beer and Heineken ranking first (~18%) and third (~12%) respectively, by brand share based on volume.
Wine accounts for almost 10% of the market yet holds the largest share of online alcohol sales. Primary import destinations include France, Australia, the United States, Italy and New Zealand. The local wine market is fragmented, with the top 10 brands accounting for only around 33% share by volume. Octopus Group, through its full-service distribution arm SingBev, holds the largest share (~19%).
Spirits such as whisky, cognac, vodka and soju make up the remainder, with the UK, France and Mexico being the major import markets for the category. Pernod Ricard is the market leader for spirits with a 26% share. Brand share is also highly fragmented with the top 10 labels holding less than 50% of the market.
On-trade premises such as restaurants, bars and hotels account for the majority of sales in the city state, however, online channels have gained traction as a growth driver in recent years albeit from a low base.
Affluence and favourable demographics underpin strong demand despite high prices
Middle- and upper-income households make up nearly 95% of homes in Singapore as of 2021, and are projected to reach 97% over the next four years. The share of drinking age adults in the city is also expected to grow from approximately 83% to 86% by 2050. These demographic trends – coupled with relocation of capital and expats amid political instability in Hong Kong, and a rebound of tourism – bode well for the local alcoholic beverages sector. Singapore is also seen as a gateway for regional wine exports with re-exports accounting for 50% in volume terms and 79% in value terms of imports.
Strict regulations and high taxes to keep growth in check
Singapore maintains strict regulations on the sale and consumption of alcohol. The legal drinking age is 18 years, and the sale and consumption of alcohol is restricted to limited trading hours during 7am to 10.30pm on weekdays and 7am to 7pm on weekends, public holidays and the day prior. Moreover, the Liquor Control (Supply and Consumption) Act 2015 provides for establishing permanent or temporary Liquor Control Zones (LCZs) with added restrictions. Currently, Little India and Geylang are designated as LCZs.
The city state also imposes high taxes on alcohol, making it one of the most expensive locations to purchase beer in the world. Excise tax ranges from SGD 60-88 per litre, and alcohol is subjected to a further 7% goods and services tax (GST). Singapore is set to hike GST to 8% in 2023 with a further increase to 9% in 2024. In addition, local players are required to pay an annual licence fee between SGD 8,400-31,600 depending on product and output volume, and are allowed to only establish within approved food zones which usually incur higher rent rates. Rent at Mandai Foodlink, for example, is three times that of similar floor area at a regular industrial zone.
Key Trends
Consumption of alcoholic beverages to rebound following pandemic slump
Singapore’s alcoholic beverages market saw a modest growth trajectory pre-pandemic with sales growing around approximately 4% on average between 2016 and 2019. The market, however, witnessed a 9% contraction in 2020 amid closure of on-trade premises and mobility restrictions, as Singapore enforced a nationwide lockdown (referred to as the circuit breaker) between April and June. Nevertheless, the sector outlook remains promising with average growth projected at approximately 3% over the next few years taking consumption volume to nearly 157 litres by 2025, as restrictions including group size limits ease and tourism rebounds.
Millennial drinkers unlock niche market opportunities
In 2021, the 20 to 39-year-old demographic group formed approximately 30% of Singapore’s population, and is expected to lead the overall market through niche categories. Millennial drinkers seek novelty and are more open to tasting new brands and flavours. This has bolstered demand for craft beers and spirits, regional drinks (particularly Soju), as well as no-and low-alcohol drinks in recent years, although from a very low base. Craft beer, for example, accounted for only around 3% of total beer consumption in 2020.
‘Craft’ is understood to refer to beer or spirits made in small quantities by micro- and small-scale independent entities, and Singapore was home to over 20 micro-breweries and distilleries in 2019, with 2020 seeing a few more new entrants. Small-batch exclusivity, extensive variety and a focus on quality are the core value propositions that these brands offer. Brand differentiation is done through development of unique local or regional flavours, such as Singapore Distillery’s rose-blend gin inspired by the local bandung drink, and Compendium’s Rojak gin. Local restaurants and hotels have picked up on this trend and now tend to offer a number of craft options to their patrons.
‘Drinking less, but drinking better’ augurs well for premiumisation
Singaporeans are generally considered health conscious, more so following the coronavirus pandemic. The younger generation especially are choosing to drink less or are opting for their preferred drink without the alcohol. Low or no-alcohol drinks also present an opportunity for non-drinkers to socialize with those who do, unlocking a new segment of the market. Demand for this category is expected to rise by approximately 19% in Asia-Pacific by 2024, well ahead of the overall alcoholic beverages market. Moreover, consumers appear willing to pay premium prices in social settings for these drinks; Melati, a non-alcoholic aperitif, for example costs SGD 68 per 500ml bottle comparable to some alcoholic alternatives.
Shift to online channels to sustain post pandemic aided by off-trade demand
Online sales channels were a clear beneficiary across segments during the circuit breaker period, in part supported by Singaporeans being more comfortable with digitisation. This holds true for the alcoholic beverages market as more people choose to buy online and consume at home. Notably, buyers were willing to trade up, particularly in the wine category. However, incentives and price discounts are considered a significant sway factor when buyers choose to trade up for more expensive drinks.
Key Statistics
- General retail prices of beer (per litre) are as follows: economy – below SGD 6; domestic mid-range – SGD 6-9; domestic premium/imported mid-range – SGD 9-15; imported premium – above SGD 15. Multipack promotions are common while some offer free gifts during peak seasons.
- General retail prices of wine (750ml) are as follows: economy – SGD 18-32; medium – SGD 33-65; premium – above SGD 65. Non-price promotions are typically more successful although 10-20% discounts are occasionally offered.
- General retail prices of spirits (750ml) are as follows: economy – under SGD 40; medium – SGD 40-75; premium – above SGD 75. Free gifts are common promotional offers during peak seasons while price discounts are uncommon.
- On-trade account for the majority of beer (65%) and spirits (85%) sales, while off-trade takes 70% of wine sales. Within off-trade, supermarkets are the preferred channel across segments.
Top Singapore MNCs in Alcoholic Beverage
Diageo Singapore Supply Pte. Ltd.
Diageo Singapore Supply represents the global alcoholic beverage company Diageo in Singapore. Headquartered in the UK, Diageo PLC was formed in 1997 with the merger of Grand Metropolitan and Guinness, and currently operates in more than 180 countries across the globe. Incorporated in 1992, Diageo Singapore Supply was formerly known as United Distillers South East and Central Asia. It is involved in the wholesale and retail of liquor, soft drinks and beverages. Diageo counts over 200 world-leading brands in its portfolio, including Johnnie Walker Scotch whisky, Tanqueray gin, Smirnoff vodka, Guinness stout, and Baileys cream liqueur.
Muntons Ingredients Asia Private Limited
Muntons Ingredients Asia, which was established in Singapore in 2011, is part of Muntons’ global network. A supplier of malts and malted ingredients, Muntons is a company based in the UK. It produces brewing malts (such as base malts, crystal malts and speciality malts); brewing extracts (including pale ale malt extract, wheat malt extract and roasted malt extract); distilling malts and extracts; beer kits; and home brewing ingredients. Sustainability is at the heart of Muntons’ operations. While the company has focused on energy-saving measures at its plants, it also ensures that its goods are supplied in a socially acceptable manner.
Carlsberg Singapore Pte Ltd
Carlsberg Singapore was established in 2001. It is part of the global Carlsberg network and provides international brands of beer, stout and cider. Carlsberg Danish Pilsner is the top ranked imported beer in Singapore, and the country’s second best-selling brand of beer. Other brands provided by Carlsberg Singapore include Carlsberg Smooth Draught, Carlsberg Special Brew, 1664 Lager, 1664 Blanc, Somersby Ciders, SKOL, Danish Royal Stout, Connor’s Stout Porter, Asahi and Jolly Shandy. In 2016 and 2017, Carlsberg Singapore was conferred the Singapore Packaging Award for reducing, reusing and recycling packaging waste.
William Grant & Sons Singapore Pte. Ltd.
William Grant & Sons Singapore, which was incorporated in 2011, is one of 50 global representative offices of the Scottish distilling company. The sixth-generation family-owned company sells to nearly 200 markets across Europe, the Americas, the Middle East, Africa and the Asia-Pacific. Its world-famous brands of whisky, rum and gin include The Balvenie, Tullamore D.E.W., Grant’s, Glenfiddich, Sailor Jerry Rum, Drambuie whisky liqueur, Monkey Shoulder and Hendrick’s Gin. William Grant & Sons advocates responsible drinking through its events, adverts and labels, while working closely with partners such as the International Alliance for Responsible Drinking (IARD).
Beam Suntory Asia Pte. Ltd.
Beam Suntory Asia, which was established in Singapore in 1971, is part of the global network of the distiller that produced the world-famous Jim Beam bourbon whisky. With nearly 5,000 employees, Beam Suntory operates offices, distilleries and sales organizations across the globe. The company produces whisky, rum, tequila, cognac, vodka, gin, cordials and liqueurs. Shinjiro Torii, who founded Suntory in 1899, is credited with creating the first whisky to suit the Japanese palate. Torii built Japan’s first malt whisky distillery in Yamazaki, which is now part of Beam Suntory’s global network.
Kirin Holdings Singapore Pte. Ltd.
Kirin Holdings Singapore was established in 2010. It is part of Kirin Holdings Japan, which traces its roots back to 1885, with the setting up of Japan Brewery Company, which was subsequently renamed Kirin Brewery Company. Kirin Holdings Singapore focuses on the food and beverage sector and the pharmaceutical industry. On behalf of Kirin Japan, the company delivers Kirin Ichiban Beer to customers in Singapore, Malaysia and Thailand. In the years ahead, Kirin Holdings Singapore plans to continue serving the South-East Asian region, keeping to its customer-oriented and quality-oriented philosophy.
Moët Hennessy Diageo Singapore Pte. Ltd.
Moët Hennessy Diageo Singapore, which was established in 1979, is a joint venture between Moët Hennessy of LVMH and Diageo. Moët Hennessy Diageo Singapore markets and distributes luxury wines and spirits from well-known brands such as Dom Pérignon, Krug, Moët & Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Ao Yun, Cape Mentelle, Château d’Yquem, Hennessy, Glenmorangie, Ardberg, Belvedere, Johnnie Walker, Singleton, Lagavulin, Talisker, Mortlach, Cragganmore, Dalwhinnie, Caol Ila, Clynelish, Oban, Smirnoff, Ketel One, Gordon’s, Tanqueray London Dry, Tanqueray 10, Don Julio Reposado, Don Julio Añejo, Baileys and Captain Morgan Spiced Rum.
Brown-Forman Worldwide L.L.C.
Brown-Forman Worldwide was set up in Singapore in 1994. The company is involved in the manufacture of wine and is a wholesaler of liquor, soft drinks and beverages. Brown-Forman is a global company that began its journey in Louisville, Kentucky, in 1870. Since then, it has become the largest American-owned spirits and wine company and, in 2021, it became the fifth-largest global spirits company, according to the International Wines and Spirits Record (IWSR). Brown-Forman has established its presence on six continents, selling its brands in more than 170 countries, with 5,200 employees in service.
Qingdao Brewery (S) Pte Ltd
Qingdao Brewery, which was established in Singapore in 1999, is a wholesaler of liquor, soft drinks and beverages. The company has established its presence in North and South America, Europe, Asia and Australia. It is the sole authorized distributor of the Chinese beer brand Tsingtao in Singapore and Malaysia. In 2017, Tsingtao was ranked among Fortune 500 companies by Global Brand Lab in its list of Top 500 Most Valuable Brands in China. It was also the leading brand in the Chinese beer industry for 14 consecutive years.
Top Singapore Large Local Enterprises in Alcoholic Beverage
Archipelago Brewery Co. (1941) Pte. Limited
Archipelago Brewery is Singapore’s first commercial brewery. Set up in 1931, it stays true to its German heritage with small batch brewing techniques. With a tagline that says ‘Singapore’s Craft Brewery’, Archipelago serves up several options for beer aficionados. Hints of calamansi lime, pandan leaves, passion fruit, citrus, chocolate, caramel and coffee, ensure Archipelago’s beers have a wide appeal. Singapore Blonde Ale, Tropical Pale Ale, Summer IPA, Bohemian Lager, Belgian Witbier, Irish Ale and Limited Brew make up the brewery’s current offering. Archipelago Brewery has won recognition at the Brewing Industry International Awards, Australian International Beer Awards and Brew NZ.
Top Singapore SMEs in Alcoholic Beverage
Brewerkz Brewing Co Pte. Ltd.
The Brewerkz Brewing Company was incorporated in Singapore in 2016. The Brewerkz brewery at Kampong Ampat offers award-winning favourites such as Golden Ale, India Pale Ale, Bohemian Pilsner and Oatmeal Stout. At the Asia Beer Championship in 2021, Brewerkz bagged five awards with Gold Medals for Mildly Dark Mild and Rye In Peace, a Silver Medal for Smoked Rye Dunkel, and Bronze Medals for Yellow Submarine and Deer Kick. In 2020, Brewerkz was rated the Best Brewer in Singapore by RateBeer – The Top 100 Best Brewers in the World.
RedDot BrewHouse Pte. Ltd.
RedDot BrewHouse was established in 2007. It is recognized as Singapore’s first locally owned craft brewery cum restaurant. RedDot BrewHouse’s authentic hand-crafted beers include its signature brews Czech Pilsner, Monster Green Lager, Summer Ale, Weizen, Sauvignon Ale and India Pale Ale. The RedDot BrewHouse Restaurant serves up an array of dishes to complement its beers, including Pinoy Pork Sisig, RedDot Guava Salad, RedDot Beer Sausage, RedDot Cod Fish & Chips, RedDot Spicy Crab Meat Linguine, as well as a selection of pizza, finger food and dessert. RedDot BrewHouse has been featured in CNA Lifestyle and The Straits Times/Life.
LeVeL33 Pte. Ltd.
Described as the world’s highest urban microbrewery, LeVeL33 is a craft brewery restaurant, offering stunning views of Marina Bay and the city skyline, 156 metres above ground level. LeVeL33’s freshly brewed craft beer includes Blond Lager, Wheat Beer, India Pale Ale and Stout, as well as seasonal favourites Pilsner, Session Ale and Festbier during Oktoberfest – all of which perfectly complement the cuisine at the rooftop sky bar and restaurant. The restaurant takes inspiration from the brewing process, and uses beer and beer ingredients in its ‘ContemBrewery’ cuisine.
The Craft Alliance Pte. Ltd.
Popularly known as Singapore’s first gypsy brewer, Brewlander was launched in 2017, almost a decade after John Wei – Brewlander’s Founder and ‘Yeast Whisperer’ – developed a passion for home brewing and began winning amateur competitions. By 2020, Brewlander’s humble origins gave way to a fully automated brewery that took shape during the coronavirus pandemic lockdown period. Brewlander’s beers include Scale Ale NEIPA, Freedom Lager, Inception IPA, Courage Double IPA, Respect Porter and Love Wild IPA. In 2019, Brewlander emerged the winner at the World’s Best Beer Awards and at the Asia Beer Awards.
Brass Lion Pte. Ltd.
Brass Lion was incorporated in 2017, and the company set up its distillery at Alexandra Terrace, Singapore. The Brass Lion Distillery prides itself on creating its flagship spirit, The Singapore Dry Gin. Other spirits in its portfolio are Cacao Gin, Butterfly Pea Gin, Pahit Pink Gin, Navy Strength Gin and Barrel Aged Gin. Brass Lion Distillery’s Gin School offers gin enthusiasts the opportunity to distil their own spirits under the guidance of a ‘ginstructor’. A four-hour gin-making session to create their own recipes and distil the spirits, is followed by bottling and personalizing their very own gin to take home.
Trouble Brewing Pte. Ltd.
Trouble Brewing was established in 2017, and the company set up a brewery in Tuas. Its range of beers, which are available in 100 outlets across Singapore, include Limited Edition Mumbo Jumbo, Singapore Lager, Road Hog, Dodgy Tip Pale Ale, Middle Child, Pips Out, Stolen Boat and Brick Head Pilsner. Trouble Brewing has a seltzer range in three flavours: Joe’s Lime Seltzer, Joe’s Peach Seltzer and Joe’s Grapefruit Seltzer. The company also offers a range of cocktails from its sister company, Temple Street. All of these products are available through Trouble Brewing’s same day delivery service for orders above $60.
Botani Pte. Ltd.
Botani was founded in 2017, and its distillery is located in Singapore’s leafy residential district, Tanglin. Its famous brand of gin, Tanglin, was launched in 2018. European juniper, Indian vanilla, and spices from Malaysia and Indonesia are part of the Tanglin recipe. Singapore Gin, Orchid Gin, Cacao Gin Liqueur, Black Powder Gin and Barrel Aged Gin are popular spirits from the Tanglin range. A visit to the Tanglin distillery at Dempsey Hill – Singapore’s first gin distillery – offers visitors a tour of the Tanglin Creations Lab, an introduction to Tanglin’s history, and a chance to taste spirits in the Tanglin Gin Jungle.
The Orientalist Spirits Pte. Ltd.
The Orientalist Spirits was incorporated in 2017. Promising artisanal spirits from the Orient, the company produces the world’s first triple-blended vodka (Origins Vodka), the world’s first all-Asian-blended whisky (8YO Dragon Whisky), and gin with gunpowder tea (Gunpowder Gin). Ingredients such as Korean Omija berries, Tibetan highland barley, Kampot peppercorn and Siberian ginseng flavour the recipes of the Orientalist Spirits range. Among Orientalist Spirits’ many awards are the Gold Award for Origins Vodka (SIP Awards 2020 – USA), Masters (highest award) for Origins Vodka (Vodka Masters Asia 2019) and the Gold Award for Gunpowder Gin (SIP Awards 2020 – USA).
Rachelle The Rabbit Meadery Pte. Ltd.
In 2016, Rachelle The Rabbit Meadery was established and subsequently relaunched as Compendium Spirits. Three years later, Compendium Spirits launched its flagship spirits: Rojak Gin and Chendol Gin. The company abides by a stringent and laborious process of brewing, fermentation, distillation and selective ageing. Its product range includes Hom Mali Rice Whiskey, Kopi-O Liqueur, Blanco Rum, Straits Vodka, Teh-O Liqueur, Spiced Rum, Melaka Arrack, Rachelle’s Apricot Tea Mead, Pineapple Tart Soju, Rachelle’s Fireball Mead, Ondeh Ondeh Soju, Dark Rum and Bandung Soju. Compendium Spirits has been featured in Lifestyle Asia, Le Guide Michelin, Passion Made Possible and The Straits Times.
Lion City Meadery (Pte. Ltd.)
Lion City Meadery was incorporated in 2018. A craft mead brewery and distributor, Lion City Meadery was born out of a shared love of mead between two friends, Sanjay Jegatheesan and Justin Herson. Lion City Meadery’s products include Classic, Hibiscus & Blueberry, Spiced, Chrysanthemum, Longan & Red Dates, Spice Boys Porter and Pucker Up. Consumers have the choice of purchasing their favourite drinks online, or at several outlets across the island’s City, Central and West regions. Lion City Meadery has been featured in Lifestyle Asia, SG Magazine, AsiaOne, SilverKris, Beer Asia, The Straits Times and City Nomads.
Top Singapore Fastest-Growing Companies in Alcoholic Beverage
Kirin Holdings Singapore Pte. Ltd.
Kirin Holdings Singapore was established in 2010. It is part of Kirin Holdings Japan, which traces its roots back to 1885, with the setting up of Japan Brewery Company, which was subsequently renamed Kirin Brewery Company. Kirin Holdings Singapore focuses on the food and beverage sector and the pharmaceutical industry. On behalf of Kirin Japan, the company delivers Kirin Ichiban Beer to customers in Singapore, Malaysia and Thailand. In the years ahead, Kirin Holdings Singapore plans to continue serving the South-East Asian region, keeping to its customer-oriented and quality-oriented philosophy.
