S'poreans drinking more coffee

S'poreans drinking more coffee
By Yvonne Chan | Posted: 15 March 2013 2343 hrs
     
SINGAPORE: Singaporeans are drinking more coffee -- brewing demand has raised coffee bean imports to S$1.4 billion in 2011, up from S$1.1 billion in 2008.

The overall coffee consumption is also set to increase by 2.5 to three per cent per annum, with growth led by indie or small entrepreneur owned cafes at a rate of four per cent per annum.

At Southeast Asia's first and largest gathering of tea and coffee industries, Cafe Asia 2013 and the International Coffee & Tea Industry Expo, 95 exhibitors from 22 countries have come to hawk their wares and tap into Asia's huge coffee drinking potential.

According to the ASEAN Coffee Federation and Singapore Coffee Association, local coffee (for example, those consumed in kopitiams) still forms the main base of coffee drinkers in Singapore, with 10,000 to 12,000 tonnes consumed yearly.

This is followed by instant coffee at 2,000 tonnes per annum, and then retail coffee chains and indie cafes (including specialty coffee) at 1000 to 1500 tonnes yearly.

Costing between S$3 to S$6 a cup, indie cafes typically specialise in roasting their own coffees, with machines that do not come cheap.

Rainer Van Der Beek, vice president of sales and marketing at Probat, said: "The smallest shop roaster, a tabletop machine with a one kilogram batch size, is around 11,000 euros. And it goes further up to around 26,000 euros for a 12kg batch size.

"We see the demand for some industry equipment here in Singapore but I expect the biggest increase in numbers with regards to specialty roasters, small roasters. I wouldn't wonder that we sell within the next year, about 10 to 15 units here in Singapore."

With Asia's rising affluence, coffee experts said the demand for specialty coffee in Singapore is set to rise even further. But local coffee players aren't to be outdone, with many innovating to cater to more sophisticated palates.

Victor Mah, president of the ASEAN Coffee Federation and Singapore Coffee Association, said: "You have people like Toastbox for instance, they actually do train their staff on how to brew coffee and they've made attempts to use better grade coffee and improve hygiene standards. Price-wise, it's a far cheaper brew than going to one of the more specialised cafes.

"A lot of them are looking overseas. You know, Boncafe has been around for 50 years. And they've moved into a lot of other markets -- Malaysia, Middle East, Thailand. The indie shops have also created niche markets overseas."

Some market players feel there is still room to grow in this somewhat saturated market, by gaining sole distributorship of certain coffee beans.

Evangeline Wong, director of JBM Coffee Asia, said: "Singaporeans these days are very cosmopolitan, very well-travelled, they're looking for finer things in life. Customers will keep coming back if we provide the right service and right attitude and of course, a good cup of coffee."

Still, the perennial problem of high rental costs and labour shortages continue to confront coffee purveyors here -- not quite their cup of tea.

-CNA/ac

- wong chee tat :)