Singapore soft drinks market hits $12b

Sales in low-sugar ready-to-drink teas and functional beverages surged.

Singapore’s soft drinks market has reached a value of $12b, according to a report by Euromonitor published in February 2025.

The report said that the growth has been driven by consumers’ preferences for healthier drinks, sustainability-focused innovations, and the increasing adoption of digital solutions like smart vending machines.

Howard Telford, head of soft drinks research at Euromonitor International, said there has been a 16% rise in sales of low-sugar teas in 2024, reflecting a health-focused demand.

“Teas promoting wellness benefits – such as relaxation and antioxidant properties – are particularly popular with younger and professional demographics,” Telford said.

Meanwhile, functional beverages also surged by 20%, driven by immunity-boosting and wellness-oriented drinks. Consumers are actively seeking products enriched with probiotics, vitamins, and minerals that align with their health-first approach to food and drink.

On the tech side, smart vending machines reshape beverage retailing, with the adoption of smart vending machines in Singapore growing by 18%. These vending systems, equipped with cashless payment options and customisable product recommendations, have gained a foothold in urban areas like shopping malls and office complexes.

Telford said they noticed that brands are using smart vending machines to offer limited-edition products and curated options tailored to local preferences. This approach not only enhances user experience but also provides real-time consumer insights for companies.

Local beverage companies captured 27% of category value by blending cultural relevance and affordability.