- Certified coffee has been increasing in popularity in the past few years. Organic coffee has seen in increase in demand as it is considered safer.
- People are willing to pay more for a more unique coffee experience.

2. Changes in consumer's income could lead to an effect on the demand for coffee
- With rising consumer income and affluence, consumers will be able to buy more goods such as coffee which would increase demand for coffee.
-  Singapore’s GDP growth forecast for 2021 to “6.0 to 7.0 per cent”, from “4.0 to 6.0 per cent”

3. Change in taste and preference of consumers could decrease supply of other coffee beans
- With people being more shifted towards organic coffee beans over other substitutes, the supply of other types of coffee beans could decrease.

4. Climate change affecting the growth of coffee crops
- As the temperature rise, quality coffee beans will become more difficult to grow.
- And studies suggested that by 2050. About haft, the land used for high-quality coffee will be unproductive.
- Since, Singapore coffee beans supply is mostly imported it will only mean that the supply would be limited or see a drastic increase in price.

5. Mobility of Goods causes supply to change
- The COVID-19 pandemic has affected the transportation of goods around the world. As coffee beans are usually sourced from other countries, with the many country borders being closed down, it creates impediments for international trade. As coffee is considered an essential consumer good, with the decrease in supply, the demand is bound to increase

Based on our research, we think that the likely price elasticity of the coffee industry is inelastic.

 - Certified coffee has been increasing in popularity in the past few years. Organic coffee has seen in increase in demand as it is considered safer.
- People are willing to pay more for a more unique coffee experience.

2. Changes in consumer's income could lead to an effect on the demand for coffee
- With rising consumer income and affluence, consumers will be able to buy more goods such as coffee which would increase demand for coffee.
-  Singapore’s GDP growth forecast for 2021 to “6.0 to 7.0 per cent”, from “4.0 to 6.0 per cent”

3. Change in taste and preference of consumers could decrease supply of other coffee beans
- With people being more shifted towards organic coffee beans over other substitutes, the supply of other types of coffee beans could decrease.

4. Climate change affecting the growth of coffee crops
- As the temperature rise, quality coffee beans will become more difficult to grow.
- And studies suggested that by 2050. About haft, the land used for high-quality coffee will be unproductive.
- Since, Singapore coffee beans supply is mostly imported it will only mean that the supply would be limited or see a drastic increase in price.

5. Mobility of Goods causes supply to change
- The COVID-19 pandemic has affected the transportation of goods around the world. As coffee beans are usually sourced from other countries, with the many country borders being closed down, it creates impediments for international trade. As coffee is considered an essential consumer good, with the decrease in supply, the demand is bound to increase

Based on our research, we think that the likely price elasticity of the coffee industry is inelastic. 

Current Labour Market situation [CJ]
- Total employment declined by a significantly smaller extent in Q3 2021, mainly because resident employment “increased strongly”, said the Ministry of Manpower (MOM) in its latest labor market report.
- Resident employment increased by 19,100;
- Non-resident employment fell by 21,500;
- In total, a net decrease by 2,400 was recorded which is way lower than the 16,300 decline in Q2.
- Resident unemployment rate now stands at 3.5%, while the citizen unemployment rate is 3.7%.

- Despite improving unemployment rates, the uneven recovery in the labor market is showing that F&B services, arts, entertainment & recreation, accommodation, and retail trade to be trailing behind. [Qihui]
- With border restrictions affecting the inflow of foreign labor, it has contributed to the substantial decrease in work permit holders in sectors namely F&B services, construction, manufacturing, and administrative & support services.
- Number of job vacancies and the ratio of job vacancies to unemployed persons are projected to continue to remain high until border restrictions are lifted.

- [With the above data, it is undeniably obvious that sectors like the F&B services will continue to be affected by unexpected situations like restrictions.] [Qihui]


Government Measures [Qihui]
- Wage support and loan schemes should be extended and measures implemented to defray costs to help local firms recover amid the new post-pandemic economy.
- In accordance with SBF (Singapore Business Federation), they recommend that the 25% wage support under the Job Support Scheme for sectors affected by Covid-19 curbs, such as F&B services be extended by three more months after the nation's stabilization phase. [CJ]
- Overall aim of the above suggestion is to assist companies to ride on local, regional, and global growth momentum.
- It is also said that those in certain consumer-oriented businesses will continue to face uncertainty, cost pressures, and business sustainability risks.
- [with the ongoing pandemic, it is still unknown as to when it will end or what is to come, the F&B services sector will then continue to face uncertainty or even further challenges.]