• Low-sugar ready-to-drink teas grew by 16% in Singapore, reflecting increasing health awareness.
• Functional beverage sales surged by 20% with a focus on immunity and wellness.
• Sparkling water sales rose by 12%, driven by sustainable packaging demand.
• Smart vending machines experienced an 18% increase in usage, innovating consumer convenience

Singapore – Singapore’s soft drinks market has reached a value of SGD 12 billion, according to data analytics company Euromonitor International.

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

Euromonitor International’s  World Market for Soft Drinks 2025 report highlights that while price pressures remain a factor in consumer spending, innovative product features, such as eco-conscious packaging and functional health benefits, are helping brands capture attention and drive growth.

Howard Telford, head of soft drinks research at Euromonitor International, said: “Singapore’s market shows the power of consumer-led innovation. There’s a clear shift towards health, sustainability, and digital solutions redefining how beverages are purchased and consumed.” 

16% rise in low-sugar teas reflects health-focused demand

Low-sugar and sugar-free ready-to-drink teas saw a 16 percent jump in sales in 2024, showcasing the ongoing shift towards healthier lifestyles. Teas promoting wellness benefits – such as relaxation and antioxidant properties – are particularly popular with younger and professional demographics.

Functional beverages also surged by 20 percent, 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.

Telford added: “The increasing popularity of low-sugar and functional options provides growth opportunities for brands to connect with consumers’ health priorities while maintaining product appeal.”

Smart vending machines reshape beverage retailing

The adoption of smart vending machines in Singapore has grown by 18 percent, bringing convenience and personalisation to beverage purchases. 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.

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.

Telford commented: “Smart vending machines are bridging technology and convenience, enabling brands to strengthen consumer engagement in dynamic urban centres.”

Local beverage companies captured 27 percent of category value by blending cultural relevance and affordability. Their success reflects a competitive domestic market where price-conscious consumers still seek quality and taste.

The report also notes the role of digitalisation, with e-commerce platforms transforming how consumers shop for beverages by offering personalised recommendations and enhanced convenience.