The Singapore Beer Industry Association 2024 white paper finds a robust beer sector in the country
The Singapore Beer Industry Association (SBIA) has released its 2024 white paper, prepared by Aroca Consulting Group, on the country’s thriving beer industry and its impact on the nation’s economic growth, social progress, and environmental responsibility.
According to the paper, the industry generated SGD1.5 billion (USD1.12 billion) annually in its direct economic impact, and created about 1,200 jobs.
The SBIA is an industry association comprising major international brewers such as Asia Pacific Breweries Singapore, Carlsberg Singapore, and Anheuser-Busch InBev; and it helps steward the growth of the beer industry and its contribution to social and economic progress in Singapore.
Underlying the white paper was a survey of 600 Singaporean citizens and permanent residents, supplemented by several focused group discussions conducted by the SBIA. In-depth interviews were also held with expatriates and tourists in Singapore to understand their consumption habits and views on the local F&B industry. Interviews with various F&B operators and retailers were also organised to assess the impact of alcoholic beverages on their businesses.
Analysis of the survey results showed that the beer industry was stimulating substantial additional economic activity, and inducing employment across multiple sectors, such as food and beverage, hospitality, and tourism. These industries collectively bolstered Singapore’s GDP by SGD13 billion and support over 265,000 jobs for the local workforce.
In 2022, a staggering 134 million litres of beer was sold, and this volume is expected to reach 140 million litres by 2025, indicating the integral roles beer plays in Singapore’s local culinary culture and in building a vibrant tourism landscape.
The report warned, however, that a rising cost of living and increasing taxes will affect consumption habits and lower demand among local consumers and tourists. These findings were particularly noted in tourists polled who commented that the prices of food and beverages, particularly alcohol, are significantly more expensive in Singapore than in other countries in the region. They would also lower their consumption if prices were to climb further. 74% thought that alcohol is somewhat expensive or overpriced in Singapore.
Still, based on the public perception survey on alcohol consumption, 77% of respondents said that a thriving F&B sector is crucial for Singapore in attracting tourists and maintaining a robust local economy.
There has also been a shift in alcohol consumption habits since the COVID-19 pandemic, with 51% reporting that they now drink more at home. While this change may be attributed to habits formed because of the strict safe distancing measures imposed during the pandemic, the perceived rising cost of dining out also could be a contributing factor.
The public perception survey found that beer, with its lower alcohol content, continues to be Singapore’s most popular alcoholic beverage, with 75% of respondents listing it as their favourite alcoholic drink. Moreover, the unique quality of beer as a social catalyst that connects people of different backgrounds together has made it an intrinsic part of Singapore’s local culture, whether enjoyed at heartland coffee shops or at major events such as Beerfest Asia, Oktoberfest, and the Singapore Grand Prix.
Beyond its refreshing appeal, beer’s lower alcohol content and widely available zero-alcohol options allow socialisation while promoting responsible consumption, says the report. As one of the lowest-strength alcohol drink options for consumers, beer plays a positive role in social development. Major brewers have also been ensuring that their products are marketed and consumed responsibly, actively engaging in initiatives that educate and equip F&B service staff to ensure safe and enjoyable drinking experiences.
