June 2013
FOOD AND BEVERAGE
MARKET SINGAPORE
OFFICIAL PROGRAMME
FOOD AND BEVERAGE MARKET
SINGAPORE
Singapore, located in the heart of Southeast Asia and right
between India and China, is one of the smallest countries in
Asia, with a population of about 5 million. Yet it is one of
Asia’s largest importers of food products. In 2011, Singapore
imported US$12.1 billion worth of agricultural products,
processed food and drinks, making it the country with the
highest food consumption levels in Southeast Asia on a per
capita basis.
Language: English
Number of pages: 70
Author: Orissa International Pte Ltd in cooperation with the
Swiss Business Hub ASEAN
Other Reports: Are you interested in Reports for other
sectors and countries? Please find more Reports here:
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Contents
1. EXECUTIVE SUMMARY _______________________5
2. SINGAPORE PROFILE & ECONOMY ____________6
5.11.1. Alcoholic Drinks ________________________ 42
5.11.2. Hot Drinks ___________________________ 43
5.11.3. Soft Drinks ___________________________ 44
5.12. Private Labels __________________________ 45
3. CONSUMER TRENDS_________________________8
5.12.1. NTUC FairPrice Co-operative _______________ 45
4. REGULATORY ENVIRONMENT_________________9
5.12.2. Dairy Farm International Holdings___________ 46
4.1. Food Industry Authorities ____________________ 9
5.12.3. Sheng Siong Supermarket _________________ 46
4.1.1. Certifications ___________________________ 9
5.13. Foodservice / HoReCa ____________________ 47
4.1.2. Labeling ______________________________ 10
5.14. Industry Trends _________________________ 48
4.2. Import Procedures _________________________ 11
5.14.1. Food Supply __________________________ 48
4.3. Tariffs ________________________________ 12
5.14.2. Food Safety and Quality __________________ 48
5. FOOD INDUSTRY ___________________________13
6. FOOD DISTRIBUTION _______________________ 51
5.1. Retail _________________________________ 13
6.1. Route to Market ___________________________51
5.1.1. Market Size ____________________________ 13
6.1.1. FairPrice Group __________________________51
5.1.2. Market Structure ________________________ 14
6.1.2. Dairy Farm Group ________________________51
5.1.3. Competition ___________________________ 15
6.1.3. Sheng Siong ___________________________ 52
5.1.4. Challenges ____________________________ 22
6.2. National Distributors ______________________ 53
5.1.5. Players _______________________________ 22
6.3. Pricing ________________________________ 55
5.2. Specialty and Gourmet Stores ________________ 23
5.3. Organic & Natural Foods____________________ 24
5.4. Functional Foods _________________________ 26
5.5. Processed / Packaged Foods _________________ 28
7. OPPORTUNITIES & CHALLENGES ____________ 57
7.1. Opportunities ___________________________ 57
7.2. Challenges _____________________________ 58
5.5.1. Frozen Processed Food ____________________ 28
8. EXPORT CHECK LIST _______________________ 59
5.6. Dried Processed Food ______________________ 30
8.1. Readiness to Export _______________________ 59
5.7. Ready Meals in Singapore ___________________ 33
8.2. Market Research _________________________ 60
5.8. Sauces, Dressings and Condiments in Singapore ____ 35
8.3. Trade Fairs _____________________________ 61
5.9. Chocolate Confectionary ____________________ 39
8.4. Regulatory – Registering Product in Singapore ____ 61
5.10. Biscuits_______________________________ 41
8.5. Finding a Distributor / Importer ______________ 62
5.11. Beverages _____________________________ 42
8.6. Regulatory – Adapting to the Local Legislation ____ 63
Contents
8.7. Logistics and Imports ______________________ 63
8.8. Product Launch__________________________ 64
9. APPENDIX _________________________________65
9.1. Trade Shows ____________________________ 65
9.1.1. Food & Hotel Asia 2014 (FHA) _______________ 65
9.2. Trade Agencies & Associations ________________ 65
9.3. Publications ____________________________ 66
9.4. Import Duties ___________________________ 66
1. Executive Summary
Singapore, located in the heart of Southeast Asia and right between India and China, is one of the smallest countries in Asia,
with a population of about 5 million. Yet it is one of Asia’s largest importers of food products. In 2011, Singapore imported
US$12.1 billion worth of agricultural products, processed food and drinks, making it the country with the highest food
consumption levels in Southeast Asia on a per capita basis.
There are many reasons why Singapore would be a very compelling market for Swiss exporters. Firstly, it has a very attractive
consumer base. Singapore is the richest economy within the Association of Southeast Asian Nations (ASEAN), and the 3rd
richest country in the world1. The bulk of the population is regarded as middle income consumers who lead a comfortable
lifestyle and have aspirations for fine living. They are the largest pool of active consumers and will continue to drive increased
consumption of imported food, especially from countries like Switzerland. There is also the top tier of income earners
comprising both Singaporeans and expatriates with an annual income of more than US$150,000 which is influencing the food
and beverage market. Major retailers are increasingly setting aside shelf space for premium food and beverage products, and
more world-renowned chefs are setting up fine dining restaurants in Singapore to take advantage of this growing consumer
class. Finally, the large tourist numbers that visit Singapore every year are also adding to consumer demand. In 2012,
Singapore attracted over 10 million visitors to its shores, as large as other famous tourist destinations in Asia like Thailand.
Secondly, Singapore is one of the most open markets in the world. The 2011 World Bank “Ease of Doing Business” Index ranks
Singapore as the best country in the world to do business – ahead of Hong Kong and New Zealand. The language of business
here is English, so there is not much need to change labeling of products if they are already in that language. The AgriVeterinary Authority of Singapore, the regulatory authority controlling the imports of food and beverage products into
Singapore, does not impose onerous import requirements, although there have been concerns expressed by foreign exporters
about the difficulty of meeting Singapore’s microbiological standards for meat exports.
Thirdly, Singapore does not produce much food due to limited land and resources. It imports more than 90% of its food
products. Singapore’s food and beverage industry is expected to continue growing in the near future, albeit at a much slower
rate. Food retail in particular, which represents 40% of total retail spending in Singapore, is expected to increase as a result of
higher incomes and rising visitor arrivals.
While there are many positive reasons for Swiss exporters to look at the Singapore market, there are also some challenges to
consider. Given the attraction and openness of the Singapore market, competition is very stiff. On one hand, other foreign
exporters globally are looking at opportunities in Asia as their own local markets slow down due to the global economic crisis,
but the competition also comes from regional suppliers in Asia. This includes multinationals like Nestle which have their own
manufacturing bases in countries like Thailand.
Similarly than in Switzerland, as purchasing of food and beverage products becomes concentrated within supermarkets and
hypermarkets, these players have very strong purchasing power, and dictate terms to exporters and distributors like listing fees
and promotions.
Distributors are also now more particular about the type of exporters they work with. They expect suppliers to support them in
terms of advertising and promotion, and will only really prefer working with suppliers which take a long term view of the
market and are prepared to put in the necessary financial and resource commitment to support their distributors.
The Singapore market remains an attractive market for Swiss exporters.
1
Source: World Economic Outlook Database – Oct 2012, IMF
FOOD AND BEVERAGE MARKET SINGAPORE
5
2. Singapore Profile & Economy
Situated at the crossroads between India and China, and located in heart of Southeast Asia, Singapore is one of the smallest
countries in Asia, with a population of about 5 million. Yet Singapore is one of the most open, competitive and richest markets
in the world. The 2011 World Bank “Ease of Doing Business” Index ranks Singapore as the best country in the world to do
business – ahead of Hong Kong and New Zealand. Singapore is also ranked third in the World Economic Forum’s Global
Competitiveness Report behind Switzerland and Sweden. It is the richest economy within the Association of Southeast Asian
Nations (ASEAN), and the 3rd richest country in the world, according to the 2012 Forbes List of the World’s Richest Countries,
just behind Qatar and Luxembourg, with a GDP (PPP-adjusted) per capita of US$56,694.
In 2010, Singapore had a total population of 5.1 million, with a population growth rate of 0.8%. Approximately 60% of the total
population is comprised of Singapore citizens, and the remainder comprises foreigners working in Singapore. These foreigners
include professionals, managers, executives and technicians (PMETS) working on expatriate or local terms, domestic helpers
(live-in maids), blue collar workers working in an industrial or construction environment and very high net worth individuals
(VNNWI) who have made Singapore their home while they do business in the region.
SINGAPORE DEMOGRAPHICS (2010)
5.1 MILLION
POPULATION
POPULATION GROWTH 0.8%
0-14 YEARS: 13.8%
AGE STRUCTURE
15-64 YEARS: 77%
65 YEARS +: 9.2%
40.1 YEARS
MEDIAN AGE
82.1 YEARS
LIFE EXPECTANCY
Source: Singapore Statistics
The ethnic composition of Singapore citizens is mainly Chinese, at 76.8% of the population, with a smaller presence of Malays
(13.9%) and Indians (7.9%) Mandarin, English, Malay and Tamil are the four official languages, but the primary medium of
instruction in schools and the language of business in Singapore is English. Due to its relatively small size, Singapore is
completely urbanized, with 100% of the population living in urban areas.
The Singapore economic model is a mix of free-market policies and practices and government intervention in macroeconomic
management. Given that Singapore has a relatively small domestic market, the country’s economic strategy has always been to
open its economy to foreign investment, position itself as a hub for companies seeking to do business in South East Asia or the
greater Asia-Pacific region, and to attract manufacturing investment that is capital intensive and which requires good
infrastructure, rather than industries that are labor intensive. Such policies have attracted numerous multinational companies
to establish a direct presence here, enabling Singapore to grow into one of the most advanced and technologically driven
economies in the world. In 2010, Singapore was rated as the third fastest growing economy in the world with a real GDP
growth rate of 14.47%. It is the only Asian country to have AAA credit ratings from all three major credit rating agencies –
Standard & Poor’s, Moody’s and Fitch. According to the 2011 Index of Economic Freedom, Singapore is the 2nd freest economy
in the world. Singapore’s business freedom score is exceptionally high – it takes three days to start a business in Singapore
compared to the world’s average of thirty-four days. Apart from strong business and regulatory policies, other factors such as
the country’s strategic geographic position, a vast natural seaport, a highly skilled workforce and a favorable tax regime have
created a conducive business environment for companies and industries.
Services (72.8 %) and manufacturing (27.2%) made up the bulk of Singapore’s GDP. Within the manufacturing sector,
Singapore has specialized in electronics manufacturing for the past forty years. The petroleum and petrochemicals industry in
Singapore is one of the biggest in the world. Singapore imports oil from other countries before refining them for further use to
other countries. Singapore is the third largest oil refining center in the world, behind Rotterdam and Houston. Biomedical and
FOOD AND BEVERAGE MARKET SINGAPORE
6
pharmaceutical manufacturing are relatively newer industry sectors that have developed in Singapore in the last 10 years.
There is a current thrust to further develop the aerospace sector. Supporting clusters in precision engineering and metal
fabrication to support these industries have also grown in tandem with these clusters.
Singapore is also a global leader in services, particularly in finance. The banking system is considered to be among the
strongest in the world. Singapore has the fourth largest foreign exchange market in the world after London, New York and
Tokyo. The Singapore Government Securities is the only Asian market, besides Japan, to be part of the Citigroup World Bond
Index. The Singapore Exchange (SGX) was also the first demutualized, integrated securities and derivatives exchange in AsiaPacific. Singapore is recognized as one of the premier asset management centers in Asia with more than 200 international
asset management firms.
Apart from finance, tourism is now another major service industry in Singapore. In 2011, tourist arrivals to Singapore hit a
record high of 11.638 million visitors with tourist receipts of more than S$18.8 billion. Thanks to government initiatives,
tourism has diversified into niche markets such as medical tourism, the gambling industry and the MICE (Meetings,
Incentives, Conferencing and Exhibitions) industry. With the advent of the two new integrated resorts, tourism expenditure in
sightseeing and entertainment grew by an astonishing 1834% in 2011.
International trade is highly important for Singapore, as it has virtually no natural resources. Singapore is the 14th largest
exporter and the 15th largest importer in the world. A large percentage of trade is conducted to meet domestic demand for
energy, food, and other necessities. Singapore also regularly engages in entrepôt trade, whereby industries and businesses in
the country import raw materials, before refining them for re-export. 47% of Singapore’s exports consist of re-exports.
According to the WTO, Singapore has the highest trade to GDP ratio in the world at 407.9%.
As a strong advocate of free trade, Singapore has relatively few trade barriers. Trade partners with Most Favored Nation (MFN)
have zero tariff rates applied to their products apart from six lines for alcoholic beverages. There are however some import
restrictions based mainly on environmental, health, and public security concerns. The import of rice also requires import
licensing in order to ensure food security and price stability.
Source: Geology.com
FOOD AND BEVERAGE MARKET SINGAPORE
7
3. Consumer Trends
Singapore has a diverse demographic base which has impacted consumer trends in the country.
This demographic base includes:
High Income and Upper-Middle Income Local Consumers – Singapore’s median household monthly income
increased from $3,640 in 2000 to $5,000 in 2010. The proportion of resident households earning $6,000 increased from 27
percent in 2000 to 43 percent in 2010 while the proportion earning at least $15,000 more than doubled from 4.1 percent in
2000 to 10 percent in 2010. This segment of consumers is very well educated and ‘westernized’ and is made up of two main
groups: middle-aged PMETs (mainly aged 40-64) who have higher disposable income, and whose sophistication of taste comes
largely from travel, and a younger group of PMETs (those in their twenties and thirties) who has grown up on modern western
cafes, the media and influence from their peers.
The Expatriate Community – Singapore’s recent immigration policy of attracting foreign talent has attracted many western
expatriates from Europe, the Americas and Australia to relocate to the city state. While many come as high-income employees
of multinational firms, a growing number of expatriates are also wealthy individuals who have set up a second home in
Singapore as their base in Asia. Yet another group is made up of independent businessmen who have arrived in Singapore on
the EntrePass scheme, which is a special resident visa for businessmen who bring capital into the country and employ
Singaporeans.
Growing Number of Inbound Tourists – Singapore attracted a record of more than 11 million visitors in 2011 according
to Singapore’s Tourism Board statistics (not including visitors from Malaysia who travel to Singapore via the causeway). This
was a 20.2 percent increase over 2010. The key drivers for this surge of visitor arrivals are:
Increasing frequency of flights into the city-state from regional countries
The opening of the two casinos (Marina Bay Sands and Resorts World)
Increasing number of meetings, incentives, conferences and exhibitions
New tourist attractions (Gardens by the Bay, River Safari, Universal Studios)
Special high profile events (The Formula One Night Race, The World Gourmet Summit)
International Concerts/Visual and Performing Arts events
As a result of this demographic base, some clear consumer trends can be seen:
Singaporean consumers are increasingly leading hectic lifestyles, and often do not have sufficient time to prepare freshly
cooked meals. As such, this group either tends to eat out quite a bit, or they purchase processed and packaged foods which
require limited preparation.
Due to growing Western influence in the country, a number of households are purchasing foods common to the West such as
pasta and roast beef. Households are also consuming more cereals and breads for breakfast instead of traditional breakfast
options (i.e. rice porridge).
Singaporeans are also increasingly willing to purchase value added food and beverages at a premium due to higher incomes.
As Singapore consumers are increasingly aware of health and safety issues, there is a higher demand for healthier products as
well as unprocessed and functional foods, and food and beverage items which are packaged and labeled with nutritional
information. Items like wholegrain food items, low-fat dairy products and enriched bread, are seen as healthier alternatives.
Rising disposable incomes and increased awareness about healthier living have increased the demand for organic products,
and decreased the demand for genetically-modified foods. These types of food items have become increasingly popular with
high-income households, parents of young children and professionals. There has also been a decrease in the amount of calories
and fats consumed, which fell by 1% and 4% respectively, between 2007 and 2010.
FOOD AND BEVERAGE MARKET SINGAPORE
8
While the demographic trends mentioned above should bode well for the consumption of food and drinks, clouds are
appearing over the horizon. A major factor that is coming into play is the aging of the local population and the Singapore
Government’s plan to limit inward migration and the granting of work permits and employment passes to foreign nationals.
The latter is a result of complaints from its electorate over the rapid pace of such migration and employment between 2006
and 2010, and the government’s desire to increase productivity by limiting the number of foreigners companies can hire.
Currently, almost 40% of the total population in Singapore comprises non-citizens. This tightening of rules has started to have
a visible impact on the consumer confidence of the foreign population, and will lead to slower population growth in Singapore
in the future.
Consumer confidence is also leaning towards one of growing pessimism. Given the uncertain economic forecasts for 2013 given
Singapore’s exposure to the global economy and the uncertainty in the Eurozone, the US and even China, the Singapore
Government has predicted a 1-3% growth rate in Singapore in the foreseeable future. Retailers are reporting that consumer
confidence in the broader population was low in 2012. This situation has arisen because of the weaker economic conditions.
Inflation is reported at be around 5%, which is very high on a historical basis for Singapore. While the government is
controlling inflation of basic products, the costs of housing, transportation and power/water continue to increase. Trade
sources comment that the lack of consumer confidence has resulted in many consumers becoming involved in “bargain
hunting/seeking” in retail channels. This trend is supported by a recent Nielsen survey of on-line shopping in Singapore, which
revealed that close to 60% of Singapore’s on-line shoppers are seeking bargains, which is much higher than the Asia Pacific
average at around 40%. Retailers comment that in some categories, the bulk of sales are now being made only when a price
promotion is run and, that in many cases, only the brand being promoted sells in high volumes.
4. Regulatory Environment
4.1. FOOD INDUSTRY AUTHORITIES
The Agri-Food & Veterinary Authority of Singapore (AVA) is the main government agency that ensures
food safety and health standards, which governs all food products imported into Singapore. It is a
statutory board established in the year 2000 as a result of the restructuring of the country’s Primary
Production Department. Some of AVA’s key functions are to ensure food safety, resilience of food
supply, the safeguarding of animal and plant health and promoting agro-technology.
AVA adopts a stringent science-based risk analysis and management approach based on international
standards to evaluate and ensure food safety. Swiss exporters are required to meet AVA approval before exporting their
products to Singapore. Some of the key regulations they should be aware of include:
4.1.1. Certifications
In addition to looking for AVA approval, Swiss exporters should also have HACCP certification or ISO 22000.
HACCP, which stands for “Hazard analysis and critical control points”, is referred as the prevention of hazards instead of
finished product inspection. It is defined as a “systematic prevention approach to food safety and pharmaceutical safety that
identifies physical, allergenic, chemical and biological hazards in production processes that can cause the finished product to
be unsafe, and designs measurements to reduce these risks to a safe level.” HACCP is thus a certification to demonstrate high
levels of safety processes and standards.
FOOD AND BEVERAGE MARKET SINGAPORE
9
ISO 22000 deals with food safety and is developed by International Organization for Standardization. ISO 22000 international
standard specifies the requirements for a food safety management system that involves interactive communication, system
management, prerequisite programs and HACCP principles.
4.1.2. Labeling
Labels are required on imported food and must specify the country of origin.
A food label should contain core information such as the prescribed food name, list of ingredients, mandatory warning,
advisory statements or allergens declarations, net weight or volume, date mark, nutritional information panel, instructions for
use or storage, country of origin, the name and address of the business and manufacturer and importer. Repackaged foods
must be labeled to show (in English) the appropriate designation of food content printed in capital letters at least 1/16 inch
high; whether foods are compounded, mixed or blended; the minimum quantity stated in metric net weight or measure; the
name and address of the manufacturer or seller; and the country of origin. Illustrations must accurately describe the true
nature or origin of the food. Foods having defined standards must be labeled to conform to those standards and be free from
added foreign substances. Packages of food described as “enriched”, “fortified”, “vitaminized” or in any other way that implies
that the article contains added vitamins or minerals must show the quantity of vitamins or minerals added per metric unit.
The following checklist below was extracted from “A Guide to Food Labeling and Advertisements in Singapore” prepared by
the Agri-Food & Veterinary Authority (AVA) in Singapore. It is to assist industry members to self-check food labels and
advertisements before sale / publication. This Guidebook aims to provide food importers, manufacturers and retailers with a
better understanding of the labeling requirements of the Food Regulations, as well as the permitted and prohibited claims for
use in food labels and advertisements.
Swiss companies seeking to get a better understanding of the requirements to import food and beverage products into
Singapore are strongly encouraged to peruse the AVA website.
Some of the key web links have been included below:



http://www.ava.gov.sg/
http://www.ava.gov.sg/FoodSector/ImportExportTransOfFood/ReqToImportExportTransshipFood/
http://www.ava.gov.sg/Legislation/ListOfLegislation/
The guide to understanding the labeling and advertisement of food and beverage products can be found on here:
http://www.ava.gov.sg/NR/rdonlyres/B96B0EC2-1D1E-4448-9C25ABD8470D2BF4/20119/AGuidetoFoodLabellingandAdvertisementsVersionOctob.pdf
Labeling Checklist for Singapore
Item
Labeling Requirements
GENERAL LABELING
1.
Product Name: An acceptable common name or description which is sufficient to indicate
the true nature of the product
2.
Ingredients List: All ingredients and additives used in the product are listed in descending
order by proportion of weight.
3.
Quantity: The minimum quantity of the food in the package expressed in terms of
volumetric measure (for liquid food products) or net weight (for solid food products).
4.
Imported Food: Name of the country of origin of the product. Name and address of the
importer, distributor or agent in Singapore.
5.
Locally manufactured food: Name and address of the manufacturer, packer or local vendor.
FOOD AND BEVERAGE MARKET SINGAPORE
10
Remarks
6.
Are item numbers (1) to (5)printed in English
7.
Are item numbers (1) to (3) printed in letters not less than 1.5mm in height
USE OF CLAIMS ON FOOD LABELS AND ADVERTISEMENTS
8.
If the products carry nutrition claims, claims on vitamins and minerals and health claims,
are they of the permitted ones?
Information found on pages 16 28* of AVA guide
9.
If the products carry permitted claims, do they meet the criteria to make the claims?
Information found on pages 16 28* of AVA guide
10.
Are the claims phrased appropriately?
Information found on pages 16 28* of AVA guide
11.
If manufacturer would like to apply for use of existing nutrient specific diet related health
claims, have they applied for the use of the claims?
Information found on pages 24 27* of AVA guide
12.
a) Do the products carry non-permitted claims?
Information found on pages 15*
of AVA guide
b) Have they deleted the claims?
13.
Did they apply for new health claims which are well substantiated by the current scientific
evidence?
Refer to page 28* of AVA guide
ADDITIONAL LABELING REQUIREMENTS
14.
Is the product labeled with the expiry date?
Refer to pages 7 - 8* of AVA
guide
15.
If the product contains artificial sweetener, have they labeled its content based on the
specific requirement?
Refer to pages 8 - 9* of AVA
guide
16.
If the product is a special purpose food, have they labeled the product with specific
information required?
Refer to pages 9 - 11* of AVA
guide
17.
Does the product need to be labeled with a warning statement?
Refer to page 14* of AVA guide
18.
If permitted nutrition claims, claims on vitamins and minerals and health claims are used, is
the nutrition information panel provided?
Refer to pages 11 - 12* of AVA
guide
19.
Other specific requirements for certain food categories?
Refer to page 13* of AVA guide
20.
Are there any prohibited claims and have they deleted them?
Refer to page 15* of AVA guide
Note: The checklist provided served only as a guide and not as any forms of certification or approval of food labels.
Source: Agri-Food & Veterinary Authority of Singapore
4.2. IMPORT PROCEDURES
Companies must make an inward declaration for all goods imported into Singapore. All imports require an import permit
although this is largely a statistical requirement for most goods. Details can be found at:
www.customs.gov.sg/leftNav/trad/Permits+and+Documentation.htm .
Import of trade samples for which the total value is below US$286 (S$400) is not subject to payment of duty and/or GST. In
addition, no permit is required for their import.
Bona fide trade samples (excluding liquors and tobacco) may be imported if they are imported solely for the purpose of
soliciting orders for goods to be supplied from abroad, for demonstration in Singapore to enable manufacturers in Singapore to
produce such articles to fulfill orders from abroad or by a manufacturer for the purpose of copying, testing or experimenting
before
they
produce
such
articles
in
Singapore.
More
information
can
be
found
at
www.customs.gov.sg/leftNav/trav/Business+Travellers.htm .
FOOD AND BEVERAGE MARKET SINGAPORE
11
Every imported shipment of meat and poultry is tested by AVA. AVA does not accept raw and uncooked poultry and meat
products that contain salmonella bacteria that exceed AVA’s microbiological standards. There have been some complaints that
AVA’s standards are unrealistically stringent; in fact, the US Government has indicated on one of their official websites that
some of their meat exporters are unable to comply with AVA’s requirements and have highlighted this issue as a potential trade
barrier.
4.3. TARIFFS
Singapore is generally a free port and an open economy. More than 99% of all imports into Singapore enter the country dutyfree. For social and/or environmental reasons, Singapore levies high excise taxes on beer, wine and liquor, tobacco products,
motor vehicles and petroleum products.
Singapore levies a 7% Goods and Services Tax (GST). For dutiable goods, the taxable value for GST is calculated based on the
CIF (Cost, Insurance and Freight) value plus all duties and other charges. In the case of non-dutiable foods, GST will be based
on the CIF value plus any commission and other incidental charges whether or not shown on the invoice. If the goods are
dutiable, the GST will be collected simultaneously with the duties. Special provisions pertain to goods stored in licensed
warehouses and free trade zones. More information can be found @ www.iras.gov.sg and www.customs.gov.sg.
For customs clearance, importers are required to obtain an IN Permit through Trade Net®, an electronic trade platform, and
to pay 7% Goods and Services Tax before goods are imported into Singapore. The process is usually completed in less than 48
hours.
In Singapore, valuation for customs purposes is based on the Customs Valuation Code (CVC). The primary basis for Customs
value is the transaction value of the imported goods when sold for export to Singapore. Where goods are dutiable, ad valorem
or specific rates may be applied. An ad valorem rate, which is most commonly applied, is a percentage of the Customs value of
the imported goods. A specific rate is a specified amount per unit of weight of other quantity.
Cost, insurance, freight, handling charges and all other charges incidental to the sale and delivery of the goods are taken into
account when the duty is assessed. Exporters are required to ensure that the declared values of goods have not been
undervalued or the Customs and Excise Department will increase the values declared. Severe penalties may be imposed on
traders attempting to evade duty.
FOOD AND BEVERAGE MARKET SINGAPORE
12
5. Food Industry
5.1. RETAIL
5.1.1. Market Size
As Singapore does not produce much food, it imports more than 90% of its food products. It is one of Asia’s largest importers
of agricultural products and processed foods. In 2011, Singapore imported US$12.1 billion worth of agricultural products,
processed food and drinks. In fact, the country has the highest food consumption levels in Southeast Asia on a per capita basis.
Due to high per capita consumption growth, Singapore’s food and beverage industry is expected to continue growing in the
near future. Food retail in particular, which represents 40% of total retail spending in Singapore, is expected to increase as a
result of higher incomes and rising visitor arrivals.
Carbohydrates are a staple item in Singapore cuisine; as a result, bread and cereal products were the most purchased food
items in 2010, making up 21% of total food spending. Meat and seafood each comprised 17% of total food spending, while
vegetables made up 13% and dairy products accounted for 11% of total food expenditure.
Trends in Singapore’s Import of Agrifoods, Processed Food and Drinks (2006 – 2011, in US$ ‘000)
14'000'000
12'000'000
10'000'000
8'000'000
6'000'000
4'000'000
2'000'000
0
2006
2007
2008
2009
2010
2011
Source: COMTRADE
Singapore’s imports are diverse, largely because its domestic production is not broad based and, additionally, because its reexporters are trading a wide range of products into the Asian region.
Beverage imports lead the market because of the strategy of using Singapore as a hub for re-exporting alcoholic drinks. As an
example, re-exports of spirits, i.e. whisky, cognac, vodka, etc., comprised around 90% of total imports in 2011. Re-exports also
tend to be high in frozen meat, poultry and offal, certain fresh and dried fruits and vegetables, confectionery, canned products,
beer and soft drinks and juices. The bulk of many other products categories are consumed in Singapore, e.g. chilled foods, e.g.
dairy and meats, perishable fruits and vegetables, and some types of frozen foods.
FOOD AND BEVERAGE MARKET SINGAPORE
13
Singapore Imports of Agrifoods, Processed Food and Drinks in 2011
Processed
vegetables & fruits
4%
Processed fish &
meat
4%
Sugar and its
products
4%
Vegetables, fish /
dried
4%
Beverages
20%
Processed cereal
& starch products
4%
Cereals,
unprocessed
3%
Other products
4%
Cocoa and its
products
5%
Oils & fats
10%
Coffee, tea &
spices
4%
Misc processed
foods
5%
Dairy products
12%
Meat & poultry
7%
Fish & seafood
7%
Fruits, fresh / dried
5%
Source: COMTRADE
5.1.2. Market Structure
There are 4 major groups of food retailers in Singapore comprising large retailers, convenience stores, petrol stations and
traditional stores.
According to the government’s 2010 retail industry report, there are about 3,000 supermarkets, hypermarkets, department
stores, convenience stores and provision shops in Singapore that sells agrifoods, processed food and drinks. Singapore also has
an additional 1,300 specialty food and drinks outlets. About US$9.1 billion total sales was reported in 2010, and about 38,000
people were employed in the sector.
Supermarket chains and hypermarkets hold 80% of the market share, with convenience stores and traditional stores holding
about 19% of the market share. Traditional stores hold only 3% of market share but comprise of 70% coverage of total food
retailers in Singapore. In this category, wet markets, provision shops and sundry shops are included. Wet markets sells fresh
meat and produce, provision shops are traditional convenience stores located within public housing neighborhoods, and
sundry shops sells traditional Asian cooking ingredients such as preserved goods and spices.
FOOD AND BEVERAGE MARKET SINGAPORE
14
Singapore also has a highly fragmented wholesale industry in the food sector, where its 3,400 firms generated total sales of
about US$7.1 billion in 2010. Many are family owned businesses involved in re-exports of products from Singapore. Some of
these companies are responsible for multinationals’ regional marketing operations.
Currently, only 6% of online shoppers purchase food. This is due to longer operating hours by the major supermarkets such as
Cold Storage and NTUC FairPrice. Most Cold Storage supermarkets are open daily from 9 am to 10 pm, and most NTUC
FairPrice supermarkets are open from 7am or 8am to 10pm or 11pm daily, depending on the location. Some NTUC FairPrice
supermarkets are open 24 hours daily. Due to such long business operating hours and easy access to supermarkets, internet
orders have not taken off as much as perhaps in other countries. However more than 80% of the Singapore population has
internet access, so online retailing as a channel may increase in future.
5.1.3. Competition
The table below provides an overview of competition in the market segments
Overview of Competition in the Market Segment
Market and Its
Size
Beef, fresh /
chilled and
frozen
Pork,
fresh/chilled
and frozen
Poultry, frozen
Net imports:
102,476 tons.
(Note: Chicken
Major Supply
Countries
Strengths of Key Supply Countries

Australia – 42%

New Zealand – 23%

Brazil – 20%

Uruguay – 7%
Australia and New Zealand (mainly food service,
with a low level presence in retail) have full
access for all of their products, which local
buyers consider as good quality and price
competitive.

USA – 6%

Brazil – 34%

Australia – 17%

Netherlands – 14%

USA – 11%

Brazil – 56%


USA – 32%
Argentina – 9%
FOOD AND BEVERAGE MARKET SINGAPORE
15
Advantages and
Disadvantages of Local
Suppliers
Beef is not produced in
Singapore
Brazil price-competes in the frozen beef
segment, which now has an expanded presence
in supermarkets. It is gradually expanding its
market share due to weak market conditions.
Brazil dominates the frozen segment with valuefor-money pork of a quality acceptable to local
users, some in retail channels. Australia
(Australian Pork and AIRPORK brands)
dominates the fresh/chilled market on the back
of its proximity and ability to export high
volumes to Singapore. Netherlands frozen pork
is in retail channels packed under private or
retailer labels. While there is still consumer
resistance to frozen pork, Australia has been
gradually losing market share to Brazil due to
increased price sensitivity and weaker consumer
confidence since 2008 and Brazilian access to
the major retailers under their brands, e.g. in
FairPrice. Brazilian frozen pork pricing is about
30% less than Australian fresh pork.
Indonesian live pigs are
imported and slaughtered
in Singapore, and the pork
is sold through wet markets
(chilled retail stalls) and
supermarkets. It is
acceptable to Singaporeans
and is part of the country’s
food security for staple
foods.
Brazil (e.g. Borella, Sadia, Frangosul and Seara)
competes on price and its products are
acceptable to users in Singapore. The USA is now
Malaysian live chickens are
imported and slaughtered
in Singapore. This fresh
chicken is the dominant
accounts for
99% of imports.
Turkey and duck
imports (net of
re-exports) are
niche markets
Offal, frozen
(not poultry)
Cheese in all
forms
Butter and dairy
spreads
Yogurt
Liquid milk

Australia – 26%

New Zealand –
26%

Netherlands – 11%

Denmark – 10%

USA – 2%

Australia – 42%

New Zealand – 15%

USA – 12%

France – 7%

Italy – 4%

Australia – 27%

Netherlands – 26%

New Zealand –
20%

France – 11%

USA – 4%

Malaysia – 38%

Australia – 23%

Thailand – 15%

Switzerland – 9%

Germany – 7%

USA – 6%

Australia – 42%

Thailand – 31%

Indonesia – 11%

New Zealand – 5%

India – 2%

USA – 0.3%
FOOD AND BEVERAGE MARKET SINGAPORE
16
a niche player in retail channels.
product in the market and is
in high demand based on
traditional demand traits.
Private or retailer label packed frozen halal
certified bovine offal, mainly imported from
Australia, is readily available in supermarkets.
Offal from pigs slaughtered
in Singapore dominates the
market for such products.
No substantial quantities of
bovine offal are produced in
Singapore.
Fonterra’s brands from Australia and New
Zealand are leading players, along with some
other Australian brands, e.g. Lactos, Dairy
Farmers and Bega. President (France) and Arla
(Denmark) also have a strong retail presence,
with President making a big marketing push for
new share in the processed cheese segment.
Singapore does not produce
any retail packed cheeses.
Australia has a number of brands in the market,
e.g. Golden Churn, including some private label
products. Anchor (New Zealand), President
(France) and some other EU brands (Lurpak)
have a strong presence
No retail packed butter is
produced in Singapore.
The strongest imported brands are Alive (Fraser
& Neave Malaysia), which is the leading
imported brand, Yoplait and Bulla (Australia),
Meiji (Thailand) and Emmi (Switzerland). U.S.
yogurts are niche players in high
Malaysia Dairy Industries
produces Marigold yoghurt,
which has been tailored to
Singaporean local tastes. It
leads the yogurt market and
is an aggressive competitor
for all imported brands in
the chilled dairy sections of
supermarkets and
hypermarkets.
The strongest imported products in the market
are Farmhouse (local brand), Marigold (local
brand) and Pura, all of which are from Australia,
and Meiji (Thailand) and Greenfields
(Indonesia). The retailer in-house brands of milk
are also imported from Australia.
The local dairy companies
are very strong competitors
with good brands and some
imported liquid milks in
their portfolios. The local
brands include Magnolia,
Farmhouse, Daisy (Fraser &
Neave), and the brands of
Malaysian Dairy Industries,
namely HL (the market
leader) and Marigold.
Ice cream
Apples and
pears
Grapes and
raisins
Soft fruits,
temperate
varieties
Stone fruits,
including
avocado
Edible nuts,
temperate
climate
products
Potatoes, fresh
table

Malaysia – 52%

Thailand – 19%

France – 5%

USA – 4%

Indonesia – 3%

Australia – 3%

China – 49%

South Africa – 20%

New Zealand – 9%

USA – 9%

France – 7%

Argentina – 3%

USA – 45%

South Africa – 23%

Australia – 12%

Chile – 7%

Egypt – 5%

USA – 54%

South Korea – 26%

Australia – 8%

New Zealand – 5%

Egypt – 2%

USA – 46%

Australia – 23%

South Africa – 9%

China – 5%

New Zealand – 5%

Chile – 4%

USA – 55%

China – 23%

Australia – 9%

Iran – 7%

Italy – 3%

China – 35%

Bangladesh – 22%
FOOD AND BEVERAGE MARKET SINGAPORE
17
Wall’s (Unilever), Nestlé and Fraser & Neave are
fighting each other for market share in the mass
market from their production bases in Malaysia
and Thailand. This activity now includes a much
larger selection of novelty ice creams than in the
past. They are also involved in an expansion into
the premium area of the market, where they now
compete with Häagen-Dazs (France) and Ben &
Jerry’s (USA).
Local supply is negligible
when compared to imports.
The market is generally price competitive due to
retailer strategies and preference for lower cost
products, e.g. from China and South Africa. In
addition to apples (Fuji variety only), China also
supplies highly popular Chinese pears. New
Zealand and France (EU financed) are supported
by strong branded advertising campaigns,
promotions and good physical distribution.
Singapore does not produce
apples and pears.
The USA dominates in its season because of its
competitiveness on quality, salability,
profitability for channel members, promotional
support and branding (including in raisins) and
supply capacity. In the other season, South
Africa and Australia (close to year round supply
capability in green grapes) compete, with South
Africa winning due to its more competitive
pricing.
Not produced in Singapore.
High quality chilled distribution channels into
Singapore, ability to deliver quality, and seasonal
promotional activities support all activity in this
market.
Not produced in Singapore.
High quality chilled distribution channels into
Singapore and seasonal promotional activities
support the USA and Australian positions in this
market.
Not produced in Singapore.
Competition revolves around traditional
commodities from China and Iran, and branded
snacks (USA mainly under local brands, which
are well distributed) and some level of seasonal
demand.
Not produced in Singapore.
This market is generally price competitive, with
the USA and, to a lesser extent, Australia
involved in marketing higher quality potatoes in
Not produced in Singapore.
Broccoli and
cauliflower,
fresh
Lettuce headtype, fresh

USA – 13%

Indonesia – 9%

Australia – 7%

China – 85%

Australia – 10%

Malaysia – 3%

USA – 1%

China – 34%

USA – 27%

Malaysia – 24%
(China took leadership
in this market from the
USA)
Asparagus,
fresh
Celery, fresh
Coffee, ground
roasted

Thailand – 44%

USA – 29%

Australia – 15%

Peru – 8%

USA – 67%

China – 22%

Malaysia – 7%

Australia – 3%

USA – 56%*

Indonesia – 15%

Malaysia – 8%

Italy – 3%

Germany – 2%*
FOOD AND BEVERAGE MARKET SINGAPORE
18
supermarkets.
China now dominates this market and is
increasing its share of a growing market. This
situation exists because of its price
competitiveness and quality versus Australia.
Chinese product quality is now similar in the
“eyes of consumers” and its export pricing is
between 40% and 50% of Australia’s pricing, a
situation that is now reported to be linked to
significant subsidies being paid to Chinese
farmers. Some concerns are reported to be
developing in the consumer market over the
safety of Chinese fresh produce in the light of
some news that is circulating locally about the
contamination of Chinese fresh produce with
various types of chemicals, including banned
pesticides, found in the Hong Kong market.
Not produced in Singapore.
China took leadership in this market from the
USA for the first time in recent history in 2011.
This resulted from a major B2B sales push to
expand exports, China’s price remaining at
around 75% of the U.S. price and a B2B (mainly
retailer industry) perception that Chinese lettuce
has now started to match that of the USA’s
lettuce, at a time when Singapore’s market has
become more price sensitive. Malaysia is mainly
supplying hydroponic products which are
marketed differently to U.S. products.
Singapore does not produce
products that compete with
U.S. imported products.
Thailand, which supplies younger (thinner)
asparagus, operates in a different segment to
asparagus imported from the USA. Thai products
have a mass market target. The USA leads the
seasonal premium market.
Not produced in Singapore.
The USA leads this market because of its
competitiveness in terms of price, quality and
supply, distribution and marketing capabilities.
China has continued to build its market share
(up from 15% in 2010), largely at the expense of
the USA’s share. It has reached more than 20%
for the first time since 2007.
Not produced in Singapore.
The strong local brands marginalize imported
brands to niches or the food service market (a
key U.S. target due to corporate demand-pull).
The highest profile premium brands in retailers
are all from the EU, e.g. Illy, Melitta, Lavazza,
Eduscho and Cafe Direct. The highest profile
U.S. retail brand is Folger. Nestlé has just started
to play in this market.
Singapore has a strong
coffee producing industry,
with the dominant players
in the premium segment
being Boncafe, the market
leader, and Sarika (Suzuki
brand).
(Mainly imports for use
in food service outlets
including major modern
coffee shop chains.)
Processed meats
and poultry, not
chilled
Sausages, not
fresh chilled
Sugar
confectionery,
not chewing
gum
Chocolate
confectionery

Thailand – 47%

China – 22%

Malaysia – 15%

USA – 6%

Brazil – 3%

Brazil – 34%

France – 30%

USA – 17%

Denmark – 12%

Malaysia – 4%

Malaysia – 28%

China – 18%

USA – 9%

Indonesia – 7%

Thailand – 6%

Taiwan – 5%

Germany – 4%

Malaysia – 13%

USA – 12%

Australia – 11%

Italy – 10%

Switzerland – 6%

New Zealand – 4%
FOOD AND BEVERAGE MARKET SINGAPORE
19
This market is dominated by a range of frozen,
pre-cooked chicken, and Asian-style canned
products from Thailand (including Chareon
Pokphand frozen products) and Malaysia
(various brands), and canned products from
China. The key non- Asian brands in this market
are mainly canned beef and pork-based
products, i.e. Spam (USA), Libby’s (Brazil) and
Tulip (EU produced).
Growing stronger on the
new investments in
production facilities for
processed meats, both
chilled and canned,
underpinned by a strategy
that the products are better
quality than imported
alternatives.
This is a price-driven commodity-type market,
which is underpinned by strong physical
distribution, gaining good access to retail display
space and, importantly, periodic price
promotions. The highest profile supplies in
frozen sausages are Perdix (Brazil), Doux
(France) and Rockingham and Valley Chef, with
Tulip (Denmark) being the leader in canned
sausages. Retailer in-house labeled frozen
sausages (produced in Brazil and Malaysia) are
taking market share from imported brands. The
USA lost market share to France in 2011 because
of its higher pricing than French products.
The local sausage industry
has a focus on producing
premium fresh/chilled
sausages and traditional
dried Chinese-style
sausages. Although a
competitive industry, it
does not compete directly
with imported products,
which tend to be either
commodity products
(frozen or canned
frankfurters) or branded
better quality “more
authentic” chilled products.
This market is dominated by products from
Malaysia (several brands) and multinational
brands with operations in ASEAN and China,
including Mars, Wrigley (also supplying its U.S.
products, but not chewing gum due to a
regulatory restriction), Nestlé, Kraft (Cadbury
Adams), Perfetti Van Melle. Some high profile
brands are also imported from Germany
(Werther’s and Haribo) and Japan. These
businesses all support their brands through wide
spread distribution and periodic advertising and
promotions.
Singapore is not a major
producer of sugar
confectionery, although it
has a strong position in the
medicated sweets segment.
High levels of competition for retail shelf space
between Cadbury (Australia and New Zealand),
Mars (Australia and China), Hershey (USA and
China), Ferrero (Italy), Nestlé (Malaysia, UK
Australia and USA), Lindt and Frey
(Switzerland) and others from Malaysia. Europe
also has high profile and very active brands from
Singapore is a chocolate
producer but does not
operate as a major player in
the mass retail market.
Germany, Belgium, France, Switzerland and the
UK, which tend to operate in the premium food
gift market.
Cookies (Sweet
Biscuits)

Malaysia – 42%

Indonesia – 13%

China – 7%

Thailand – 6%

UK – 6%

USA – 4%

China – 40%

USA – 16%

Philippines – 13%

Malaysia – 11%

Thailand – 6%

UK – 3%
Snack foods,
extruded types
and potato
based

Malaysia – 65%

USA - 15%

Thailand – 13%
Frozen potatoes

USA – 77%

Canada – 15%

USA – 41%

Thailand – 28%

China – 9%

Japan – 3%

Belgium – 3%

Malaysia – 27%

Indonesia – 16%

USA – 14%

China – 7%

South Korea – 4%
Breakfast
cereals,
including oats
Frozen
vegetables
Fruit juices
FOOD AND BEVERAGE MARKET SINGAPORE
20
Malaysia is very strong with the branded and
wide product portfolios if Kraft (also supply from
Indonesia, China and the USA), Munchy’s and
Perfect Foods dominating the retailers’ shelves
and brand shares. A range of EU brands also
have a solid presence with the UK having the
largest share with McVities, Burtons, Fox’s and
Walkers being its most prominent players.
Singapore has a sizeable
biscuit producer, Khong
Guan, which is involved in
this segment, although its
clientele are reported to be
older Singaporeans.
Another key producer, Meiji
Seika, operates in the
children’s area of the biscuit
market.
A market with strong and well supported brands
dominated by Quaker (China), Nestlé
(Philippines), Kellogg’s (Thailand and the USA)
and Post (USA).
Singapore does not produce
breakfast cereals.
A market with brands supported by very strong
distribution capabilities. Extruded snacks
dominate the market with well over 75% of sales.
The companies/ brands involved include Kraft
Foods (Malaysia), Mamee Double Decker
(Malaysia), URC (Malaysia), Pringles (Malaysia),
Calbee (Thailand and Malaysia) and Frito-Lay
(USA and Mexico).
Most snacks marketed
under Singapore owned
brands are now produced in
neighboring Malaysia.
French fries and hash browns are marketed
under Singapore private labels, e.g. Farmland
(U.S. origin), with Ore Ida (USA) and McCain
(Canada) also have quite strong distribution
access to retailers.
Not produced in Singapore.
The highest profile brands in supermarkets and
hypermarkets today are now retailer in-house
branded products. Thailand is a niche player in
frozen green soybeans. Simplot (various origins),
Emborg (Belgium/EU), and Watties (NZ) are the
highest profile independent brands.
Singapore is not producing
any frozen vegetables.
Asian sourced fruit juices tend to be food service
products or juice drinks. The USA is the leader in
chilled retail-packed fruit juices, due to high
quality products, strong brands and very good
distribution coverage.
Singapore has a strong
industry involved in the
production of fruit juices,
including Fraser & Neave,
Malaysia Dairy Industries
and Pokka Singapore, all
aggressively competing for
market share.
Canned and
bottled
vegetables
Sauces, nonAsian types
Soups
Soft drinks
Beer
Wine, not
sparkling

China – 26%

USA – 19%

Thailand – 16%

Malaysia – 14%

Italy – 8%

Spain – 4%

USA – 72%

Australia – 9%

UK – 5%

Netherlands – 4%

Italy – 2%

Malaysia – 55%

Australia – 16%

USA – 11%

Malaysia – 59%

Thailand – 9%

Taiwan – 6%

China – 3%

New Zealand – 2%

USA – 1%

Malaysia – 33%

Germany – 10%

Netherlands – 10%

India – 9%

South Korea – 9%

Other ASEAN – 5%

USA – 1%

Australia – 31%

France – 26%

Chile – 9%

Italy – 7%

New Zealand – 6%

USA – 6%
FOOD AND BEVERAGE MARKET SINGAPORE
21
China and Thailand have a focus on canned
indigenous vegetables. The USA has a strong
niche due to good relationships with strong
importer-distributors. Malaysia is mainly
supplying baked beans.
Although Singapore does
have a canning industry, it
is not involved in this
market.
Heinz (USA) has a sizeable portfolio of nonAsian sauces on the shelves, along with strong
presence from a range of Australian made sauces
(including Unilever and Masterfoods), the UK
(Lea & Perrins) and Netherlands (HP).
Singapore’s industry only
produces Asian-type sauces.
Campbell Soups (Malaysia and USA) dominate
this market, with some competition from Heinz,
mainly from Australia.
No retail packed soups are
produced in Singapore.
Malaysia dominates imports with supplies of
good quality cordials, fruit juices, sports drinks
and Asian soft drinks at very competitive prices,
with Fraser & Neave a major importer from
Malaysia. Taiwan has a focus on supplying niche
Asian-type products, with Yeo Hiap Seng
contract packing some of these products there.
Imports from the USA and other non-Asian
countries operate in very small niches.
Singapore has a very strong
soft drink industry, which
includes Coca-Cola, Pepsico
(Yeo Hiap Seng as the
bottler) and Pokka. The
products of these producers
lead the market.
Carlsberg (Malaysia) holds second place in the
market to the local brewery. The other brands
play around the brands of APB and Carlsberg
and tend to compete on price or on premium
niche status, because they do not have the
marketing budgets or the very strong
distribution channels of the market leaders.
Germany and Netherlands maintain a sizeable
presence due to good relationships with strong
importer-distributors. South Korea and India are
niche players, with India now making a “big
play” in the budget and strong beer areas of the
market.
Asia Pacific Breweries
(APB) leads the Singapore
market with its high profile
and very well distributed
brands, withTiger,
Heineken, Guinness,
Anchor, ABC Extra Stout,
plus some niche brands. It
competes very aggressively
for market share with
Carlsberg Malaysia, which
also views Singapore as its
home market territory.
Australia dominates the retail market with a
range of products that segment it from “mass
market” (very well distributed) to premium. In
the mass market, its main competitors are South
American and some U.S. wineries. In the
premium area, its main competitors are France
(subject to high profile promotions), which has a
broad range of products, along with niche
players like New Zealand, U.S. premium labels
Singapore does not produce
any grape-based wines.
and some other EU countries.
Spirits,
including
brandy, whisky,
rum, gin, vodka
and liqueurs
Pet food in retail
packaging

UK – 57%

France – 25%

USA – 4%

Ireland - 4%

Sweden – 2%

Thailand – 35%

USA – 34%

Australia – 10%

Netherlands – 5%
UK (Scotland) whisky and French cognac owned
by multinationals continue to dominate the
market for spirits in an environment where
intensive promotion is taking place for vodka
and some liqueurs. Other products operate
within niches.
Although repacking of UK
produced whisky is reported
on-going in Singapore, it
does not produce any
alcoholic drinks that
compete in this market.
This market is dominated by the products of two
multinationals, namely Mars Pet Food and
Nestle Purina Pet Food that have plants in
Thailand and the other supply countries, i.e. the
USA for Nestle Purina, that service demand in
Singapore.
Singapore does not produce
any retail packed pet foods.
Source: USDA, Singapore Import Statistics
5.1.4. Challenges
Singapore has a maturing retail food retail market which is growing but not at a rate as in the past decade. In the supermarket
sector, growth is expected to be modest and retailers have resorted to giving discounts to attract consumers. Investment is also
likely to focus increasingly on upgrading existing outlets.
Commodity food and beverage products that are poorly differentiated or are not well supported by marketing activities in retail
channels are facing challenges. Under current weak economic conditions, the market for staples is also weak and mature. For
new product launches, marketing and distribution costs are extremely high. There are also high costs involved when companies
strive to maintain their market shares and positions.
Global changes in commodity and freight prices directly impact retail food sales, and this is a concern for Singapore as it
imports most of its food products and Singaporeans are generally price-sensitive. This is especially during periods of economic
uncertainty and downturns. A number of other issues pose challenges for the sector. These include global economic
uncertainty and downturn elsewhere such as in Europe, slowing US economy, slowing exports, increasing food commodity and
crude oil prices, the strong dollar and imported inflation.
Singapore consumer confidence also ranges from being neutral to a growing pessimism. Retailers reported a low level of
consumer confidence in 2012, as a result of weaker economic conditions. Trade sources reported that Singapore’s lack of
consumer confidence has resulted in many consumers becoming involved in “bargain hunting / seeking” in retail channels.
According to a Nielsen survey of online shopping in Singapore, almost 60% of Singapore’s online shoppers did so to seek
bargains, unlike in the rest of the Asia Pacific region where the average is only around 40%. Retailers have confirmed this trait
by revealing that for some food categories, the bulk of sales are being made only during a price promotion. In many cases, the
brand being promoted sells in high volumes.
5.1.5. Players
The key retail channels are supermarket chains and hypermarkets. They control almost 80 percent of the total retail market. In
Singapore, there are three major groups that operate these supermarkets and hypermarkets. They are:



The Dairy Farm Group
FairPrice Group
Sheng Siong
Detailed background information on these three groups has been included in Chapter 6 of this report.
FOOD AND BEVERAGE MARKET SINGAPORE
22
The reach and sales of the 3 main retailers in Singapore
Retailer Names &
Ownership
Outlet Types
Annual
Sales in
US$
No. of Outlets
Locations
FairPrice
(Local Cooperative)
Supermarkets
&
Hypermarket
$2,033
million
FairPrice Xtra (Hypermarket) – 5
FairPrice Finest (High end supermarket) –
10
FairPrice Supermarket – 96
FairPrice Express & Cheers (Convenience
stores) – 100+
Island wide
Cold Storage group* and
Giant
(Owned by DFI, a Hong
Kong based listed
company)
Supermarkets
and
hypermarket
$1,510
million
Cold Storage supermarkets – 48
The Market Place (High end supermarket) –
7
Giant (Hypermarket) – 7
Giant (Supermarket**) - 61
Island wide
Sheng Siong Supermarket
Supermarkets
$462
million
25 stores, mainly supermarkets.
Island wide
Note: (*) The Cold Storage group of supermarkets also includes Jason’s and The Market Place banners
(**) As of April 1, 2013, all Shop n Save shops had been re-branded to Giant.
Source: Singapore Retail Food Annual Report 2012 – USDA Gain Report
While these three groups dominate the supermarket / hypermarket sector, there are independent supermarkets present in
Singapore as well. Among them are Prime Supermarkets, which has 19 stores located throughout the island. Unlike the 3
chains mentioned earlier, Prime’s stores are more like mini-supermarkets, and do not carry as wide a range of products as the
bigger chains. They, too, target the low or low middle-income consumers.
Isetan and Meidi-Ya are two well-known independent operated supermarket stores with only one outlet each which primarily
targets the upper middle income groups and the Japanese community in Singapore. Both import Japanese products directly
from Japan as well as locally from Singapore based importers. Mustafa Department Store is another company that operates its
own supermarket which sells products sourced globally as well as of Indian origin and also offers a wide range of products to
customers. This channel is often used by importers to sell products that face greater challenges being sold through other more
mainstream retail channels.
Another channel for retail sales will be convenience stores or traditional stores. These stores are located throughout the
country, and in the case of convenience stores, in petrol stations as well. These two types of retailers hold a combined
approximately 18 percent of the market share. They typically cater to the low and low middle income consumers, or in the case
of convenience stores, fast moving products like bread and snack foods. They would not necessarily be a prime channel for
Swiss exporters.
5.2. SPECIALTY AND GOURMET STORES
Specialty stores in Singapore selling fine foods at higher prices than large retailers are usually independent single outlet
butcheries, wine shops and bakeries. These stores are exclusive, target high income consumers and hold 1% of the market
share.
Singapore has seen an increase in demand for gourmet products over the last 5 years. This can be attributed to an increasing
number of sophisticated diners with discerning palates and rising affluence. Singaporeans are becoming more cosmopolitan,
well-travelled and knowledgeable about gourmet produce and products. At the same time, a number of new upscale
FOOD AND BEVERAGE MARKET SINGAPORE
23
restaurants offering premium food products have also appeared on the scene. The market has responded with the sprouting of
new stores and product lines expansion in the gourmet sector.
Currently, there are at more than 14 standalone gourmet food retailers and chains with stock of between 100 to over 2,000
products, ranging from truffle oil and fleur de sel, to specialty olives, artisan preserves and boutique pastas. These stores
exclude supermarkets, organic markets and online retailers offering gourmet products.
Some of the well-known specialty stores frequented by Singapore’s highest income consumer segment are:

Culina

Cut the Mustard

Da Paolo

Dean & DeLuca

Four Seasons Gourmet Market

Hediard

Huber’s Butchery & Bistro

Jones, the Grocer

Le Bon Marche

Little Provence

Oh Deli

Spanish Delicatessen

The German Market Place

The Swiss Butchery
5.3. ORGANIC & NATURAL FOODS
The organic food market in Singapore is small. According to statistics recently obtained by Euromonitor, the retail value of
organic products was somewhere in the value of S$11 million. Packaged food took up over 90% of this value, with rice the
biggest contributor within this sub-category at about 75%. In terms of growth, however, baby food seemed to show the biggest
increase.
Market Size of Organic Food & Beverages in Singapore (2007 – 2012, S$ ‘000)
Subcategory
2007
2008
2009
2010
2011
2012
Historic
PGrowth
%
Historic
CAGR%
Organic Beverages
0.2
0.2
0.2
0.2
0.2
0.2
37
6.5
Organic Packaged Food
7.1
7.8
8.3
9.1
9.5
10.1
41.6
7.2
Organic Baby Food
0.3
0.4
0.4
0.7
0.8
0.9
178.8
22.8
Organic Bakery Products
0.5
0.5
0.5
0.6
0.6
0.6
23.8
4.4
Organic Frozen Processed Food
Excluding Ready Meals, Pizza,
Soup and Noodles
0.1
0.2
0.1
0.2
0.2
0.2
8.4
1.6
Organic Oils and Fats
0.1
0.1
0.2
0.2
0.2
0.2
35.5
6.3
Organic Pasta
0.1
0.2
0.2
0.2
0.2
0.2
26.7
4.8
Organic Rice
5.9
6.1
6.5
6.9
7.2
7.6
28.1
5.1
Source: Euromonitor International
FOOD AND BEVERAGE MARKET SINGAPORE
24
As far back as five years ago, such products were primarily bought by expatriates who could afford the higher cost of such
products. But with the increasing awareness of the worldwide organic movement, growing publicity within the local media
about the link between illnesses and potential dangers in pesticides, hormones, chemicals and genetic modifications, and the
drop in price of organic and natural foods, the market for organic and natural foods has grown significantly. Previously sold in
small grocery stores, organic produce is increasingly available in specialist organic supermarkets and mini marts. Even the
mainstream supermarkets – NTUC FairPrice, for instance – are sporting shelves dedicated to organic produce. Perhaps the
most telling sign of its growing popularity and acceptance is the shift in distribution channels for organic foods from smaller,
specialist retailers to larger supermarket chains and hypermarts, mirroring trends in the UK and U.S.
Singapore still imports almost all its organic food. There is no organic certification program within the country, and there is
very little organic food grown locally. Consumers are dependent on the certification system established by the country of
import. According to the Victorian Government Department of Primary Industries, Australia is the major importer of fresh
organic food into Singapore. Its biggest competitor is New Zealand. The USA dominates the processed organic food market.
The reason these countries dominate the market is because their countries have well-established systems of organic food
certification.
Currently, there are over 30 organic shops and 4 supermarket chains selling organic products. There are also restaurants that
claim to offer organic menus. Examples of some well-known specialist stores include:
 Brown Rice Paradise – Like the name suggests, they offer a variety of gluten/wheat/dairy-free products and organic food,
and all kinds of brown and otherwise exotic rice (Origin’s organic wild rice blend goes for S$8.90 per kilo).
 Eat Organic – among their range of products are organic chocolate bars, such as Green & Black’s dark chocolate 85%
(S$6.50) and Loving Earth’s crunchy mint raw dark chocolate (S$11.50)
 Four Seasons Organic Market – One of the largest health food chains in Singapore selling certified organic brands like
Yes Natural, Sunview and Organic Harvest. Some of their products include healthy snacks: organic rice chips (S$3.40),
organic brown rice rings (S$2.10) and organic corn cakes (S$3.50).
 SunnyChoice – They offer over 2,000 items in-store ranging from freshly-baked organic bread (from S$5) to organic meat
(from S$35 per kilo).
 SuperNature – Another major organic and health food store selling a variety of products. Brands they sell include Doves
Farm cereal flakes (S$11 for 375g) or McCann’s quick and easy steel-cut Irish oatmeal (S$9 for 454g). This store is very
popular among those looking for home delivery.
While there are many opportunities for the imports of organic products like fruits, vegetables, rice and grain, the main
opportunity for Swiss exporters would be in the processed food sector. Though there are already many imports within this food
category, opportunities are still there in certain categories, especially organic baby food products, or natural foods like
blueberries, wheat germ and flax seeds for their high nutrients.
While the organic market may be small, the natural healthy foods market is significantly bigger, with a retail value of under
S$200 million. For the purposes of this report, this category includes food and beverages on the basis of naturally containing a
substance that improves health and wellbeing beyond the product’s pure calorific value. These products are usually a healthier
alternative within a certain sector/subsector. Products included are: naturally healthy high fiber food, soy products, sour milk
drinks, nuts, honey fruit snacks, granola / muesli bars, fruit bars, olive oil and olive oil spreads within NH food and 100%
fruit/vegetable juice, super fruit juice (including cranberry juice), natural mineral water, spring water, cereal/pulse-based
drinks, other Asian specialty drinks, RTD green tea, other naturally healthy RTD tea (e.g. RTD oolong tea) green tea, herbal
tea, other naturally healthy tea, malt-based hot drinks, and other plant-based hot drinks. While many of these products are
FOOD AND BEVERAGE MARKET SINGAPORE
25
marketed on a health basis, this might not always be the case. Naturally healthy foods that are additionally fortified have been
categorized within the 'fortified/functional' category.
Juices, tea, nuts and breads are the biggest value added products within the natural foods category.
Market Size of Natural Food & Beverages (2007 – 2012; S$ ‘000)
Subcategory
2007
2008
2009
2010
2011
2012
Historic
PGrowth%
Historic
CAGR%
NH Fruit/Herbal Tea
6.78
6.89
7.27
7.58
7.72
8.07
19.00
3.54
NH Green Tea
8.88
8.75
8.91
8.92
8.78
9.06
2.11
0.42
NH Other Tea
2.65
2.57
2.61
2.57
2.48
2.52
-4.97
-1.01
NH Natural Mineral Water
11.98
11.33
11.31
11.17
11.07
11.09
-7.44
-1.53
NH Spring Water
5.96
5.78
5.76
5.66
5.59
5.60
-6.04
-1.24
NH 100% Juice
35.38
35.51
36.39
36.71
36.68
36.79
3.97
0.78
NH Superfruit Juice
11.06
11.26
11.88
12.11
12.08
12.23
10.61
2.04
NH RTD Green Tea
29.75
33.15
35.42
37.01
38.27
39.22
31.84
5.68
NH High Fiber Biscuits
1.36
1.34
2.30
2.50
2.63
2.71
98.88
14.74
NH High Fiber Bread
22.61
25.12
25.54
25.44
24.88
25.13
11.12
2.13
NH High Fiber Breakfast
Cereals
2.37
2.42
2.54
2.60
2.57
2.60
9.98
1.92
NH Soy Milk
9.65
9.56
9.74
9.85
9.78
9.91
2.61
0.52
NH Soy-based Chilled and
Shelf Stable Desserts
0.73
0.73
0.85
0.91
0.93
0.98
33.87
6.01
Source: Euromonitor International
5.4. FUNCTIONAL FOODS
Functional foods are foods that may provide health benefits beyond basic nutrition. This simple definition is also in accordance
with the major selling proposition for functional foods, where functional foods enable the consumer to lead a healthier life
without changing eating habits.
Based on this definition, functional food products are a non-homogeneous food category; it has expanded to all segments of the
food and drink market. They include packaged food and beverages products where the amount of a substance considered to be
less healthy (fat, sugar, salt, carbohydrates) has been actively reduced during production. It includes gluten-free, lactose-free
and diabetic food. It also includes fortified food and beverages.
Due to the complex nature of nutraceuticals and its links to medicines, nutraceutical products can be defined as either food or
drugs, depending on their nature, characteristics and effects on consumers. As a result, nutraceutical products can also be
considered as functional foods in Singapore due to its ambiguous nature.
Functional foods and drinks surfaced in the local market during 1990s when local producers and ASEAN-based multinational
food companies competed to introduce new product lines to create new niches, capitalizing on the emerging health trends at
that time and market expansion (Stanton, Emms & Sia, 2011). These companies include Nestlé, Danone, Unilever, Kellogg, and
Quaker Oats. Today, healthy living is an increasingly important part of the food market and food marketing. Some of
commercial products available in the local market include:
FOOD AND BEVERAGE MARKET SINGAPORE
26
Types
Probiotics
Description
Brand Producer
Milk drink containing
Lactobacillus Casei
Shirota
Yakult Japan
Vitagen
Malaysia Milk
Functional
Drink
Enriched sport drinks
with vitamins
Gatorade Pepsico
Fortified
Drink
Orange juice contains
dietary fiber and
vitamins
Sunkist 100%
Orange Juice
F&N
Cereal
Low fat whole grain
breakfast cereal with
minerals and vitamins
Nestlé
Bakery
product
Wholemeal bread with
beta-glucan for
cholesterol
Gardenia
Enriched range of
crackers from high fiber,
low salt, oat-based
Jacob’s Kraft
Note: Information compiled through market observations from local hypermarkets and manufacturers’ corporate websites.
The market for functional foods is growing steadily worldwide, is intensely competitive and many new products
are launched continuously. A report by the Agri-Food Trade Service in 2009 indicates that the annual growth
rate for functional foods globally is between about 8% to 14%, but the exact size is difficult to really determine.
Singapore seems to offer an attractive functional food and beverage niche as consumers buy more health and wellness
products, in tandem with the significant growing trend within Singapore towards healthy eating. The Singapore government,
through the Health Promotion Board (HPB), has been working with the food industry to introduce more nutritious meal
options for consumers. Customers are advised to seek out the ‘Healthier Choice’ logo, which is awarded to menu items that
meet the Health Boards criteria e.g. reduced sugar/salt or added fruit/vegetables. More consumers are paying attention to the
labeling on packaged products.
The significant segments include infant and other milk formulas, dairy-based drinks, energy drinks, sport drinks, fruit juices,
drinks with Asian herbs, cereals, energy bars, biscuits, baked products, and eggs with Omega-3. For example, a significant
number of senior citizens have opted to purchase wholegrain food items, low-fat dairy products and enriched bread, as
healthier alternatives. Singaporeans are also willing to sacrifice taste in favor of health benefits, and as a result, sales of low-fat
and low-sugar products have grown significantly. This trend can mainly be seen with dairy products including cheese, milk,
yogurt, and ice-cream. Health conscious consumers are demanding non-carbonated drinks with low-sugar content, such as
bottled water, bottled tea and fruit and vegetable juices. Purchases of these products grew by 26% over the past four years.
Parents are more willing to purchase quality food items for their children, such as food products with enhanced nutritional
qualities. The most popular are DHA-enriched milk formula, salmon, organic cereals and fish oil.
Typically, functional foods available to Singapore consumers are distributed through modern trades.
FOOD AND BEVERAGE MARKET SINGAPORE
27
Market Size of Functional Food & Beverages (2007 – 2012, in S$ ‘000)
Subcategory
2007
2008
2009
2010
2011
2012
Historic
PGrowth%
Historic
CAGR%
FF Chocolate-based
Flavored Powder Drinks
0.07
0.07
0.08
0.08
0.09
0.09
25.16
4.59
FF Plant-based and Maltbased Hot Drinks
54.16
53.60
54.60
55.45
55.30
57.17
5.56
1.09
FF Juice Drinks (up to 24%
Juice)
20.21
20.53
21.17
21.11
20.29
20.09
-0.61
-0.12
FF Nectars (25-99% Juice)
26.19
30.40
33.08
35.18
34.30
34.40
31.36
5.61
FF Sugar-free Chewing Gum
1.85
1.76
1.77
1.65
1.41
1.28
-30.45
-7.01
FF Reduced Fat Milk
28.76
27.94
28.15
28.59
28.52
29.24
1.68
0.33
FF Drinking Yoghurt
43.05
44.85
49.04
51.99
53.60
55.48
28.86
5.20
FF Spoonable Yoghurt
2.40
2.40
2.66
2.70
2.67
2.70
12.86
2.45
Source: Euromonitor International
5.5. PROCESSED / PACKAGED FOODS
Processed foods cover a very wide category, so for the purposes of this report, information on the frozen and dried processed
food, ready meals, and sauces and condiments, have been included in the report.
5.5.1. Frozen Processed Food
There is a stable demand for frozen processed food in Singapore due to the convenience of these products as well as their long
shelf life and nutritious content compared to products in chilled processed food. Within this category, frozen processed
poultry, frozen processed vegetables and frozen pizza have shown the strongest retail value growth of 3% each in frozen
processed food in 2012. Private label manufacturers have also made efforts to extend their product ranges in frozen processed
food, in particular in frozen processed vegetables, in which they offer a wide range of products at appealing prices. Due to the
tropical climate in Singapore, fresh vegetables deteriorate quickly. Also local consumers tend not to eat uncooked vegetables as
they prefer cooked vegetables due to food safety. Therefore, products in frozen processed vegetables are very convenient for
them due to a longer shelf life than fresh vegetables and the wide range of products available.
Burgers continue to account for a dominant retail value share of frozen processed red meat of as much as 91%. Other frozen
processed red meat includes beef steak such as sirloin and rib eye steak and beef and pork sausages. In frozen processed
poultry, sausages account for the largest retail value share of 39%. Vegetable mix accounts for the largest current retail value
share, of 37%, of frozen processed vegetables followed by garden peas, corn and green soybeans. Other frozen processed
vegetables include spinach, broccoli and sliced carrots, among others. Due to the convenience of these products, the wide range
of products available and their nutritional content, the popularity of frozen processed vegetables has increased among
consumers.
Due to the hectic lifestyles of consumers in Singapore, demand for convenience and healthy products is expected to be the key
driver of growth in packaged food. Frozen processed food offers convenience and nutritional value; thus, demand for frozen
processed food is expected to be stable.
The major distribution channels of frozen processed food are expected to remain supermarkets and hypermarkets as these
retailers are the only retailers that possess large scale freezer storage and which thus have the capacity to store a wide range of
FOOD AND BEVERAGE MARKET SINGAPORE
28
frozen products. Also various major supermarkets and hypermarkets retailers in Singapore have launched websites as a result
of which internet retailing of frozen processed food is expected to register growth over the forecast period due to convenience.
Sales of Frozen Processed Food by Volume (2007 – 2012, in tons)
Category
2007
2008
2009
2010
2011
2012
Frozen Bakery
634.66
647.35
634.40
637.58
642.68
649.10
Frozen Desserts
233.98
239.82
236.23
243.31
248.91
253.89
Frozen Meat Substitutes
8.80
8.90
9.10
9.20
9.30
9.40
Frozen Pizza
80.07
82.87
84.11
86.21
87.94
89.35
Frozen Processed Fish/Seafood
2,557.22
2,659.51
2,712.70
2,780.52
2,844.47
2,901.36
Frozen Processed Potatoes
1,640.44
1,689.66
1,731.90
1,783.86
1,828.45
1,865.02
- Non-Oven Frozen Potatoes
1,640.44
1,689.66
1,731.90
1,783.86
1,828.45
1,865.02
Frozen Processed Poultry
2,672.00
2,805.60
2,917.83
2,976.18
3,029.75
3,078.23
Frozen Processed Red Meat
414.59
424.95
454.70
477.44
484.12
490.41
Frozen Processed Vegetables
186.30
191.89
194.76
198.66
203.82
208.51
72.51
74.69
76.18
77.32
78.87
80.37
424.67
437.41
439.60
448.39
452.88
456.95
8,925.24
9,262.66
9,491.52
9,718.67
9,911.20
10,082.60
Frozen Ready Meals
Other Frozen Processed Food
Frozen Processed Food
Source: Euromonitor International
Sales of Frozen Processed Food by Value (2007 – 2012, S$ million)
Category
2007
2008
2009
2010
2011
2012
Frozen Bakery
5.20
5.39
5.23
5.28
5.34
5.42
Frozen Desserts
2.99
3.11
3.08
3.19
3.27
3.34
Frozen Meat Substitutes
0.19
0.19
0.20
0.20
0.20
0.20
Frozen Pizza
1.82
1.92
1.96
2.03
2.09
2.14
Frozen Processed Fish/Seafood
27.96
29.36
29.80
30.70
31.56
32.31
Frozen Processed Potatoes
4.95
5.27
5.37
5.51
5.63
5.73
- Non-Oven Frozen Potatoes
4.95
5.27
5.37
5.51
5.63
5.73
Frozen Processed Poultry
29.75
31.54
32.33
32.81
33.44
34.27
Frozen Processed Red Meat
5.11
5.27
5.53
5.69
5.78
5.86
Frozen Processed Vegetables
1.04
1.07
1.08
1.12
1.15
1.18
Frozen Ready Meals
2.09
2.18
2.23
2.28
2.33
2.39
Other Frozen Processed Food
6.74
7.04
7.11
7.29
7.40
7.49
Frozen Processed Food
87.85
92.33
93.91
96.08
98.18
100.33
Source: Euromonitor International
FOOD AND BEVERAGE MARKET SINGAPORE
29
Sales of Frozen Processed Food by Volume Growth (2007 – 2012, % volume growth)
2011/12
2007-12 CAGR
Category
2007/12 Total
Frozen Bakery
1.00
0.45
2.28
Frozen Desserts
2.00
1.65
8.51
Frozen Meat Substitutes
1.08
1.33
6.82
Frozen Pizza
1.60
2.22
11.59
Frozen Processed Fish/Seafood
2.00
2.56
13.46
Frozen Processed Potatoes
2.00
2.60
13.69
- Non-Oven Frozen Potatoes
2.00
2.60
13.69
Frozen Processed Poultry
1.60
2.87
15.20
Frozen Processed Red Meat
1.30
3.42
18.29
Frozen Processed Vegetables
2.30
2.28
11.92
Frozen Ready Meals
1.90
2.08
10.84
Other Frozen Processed Food
0.90
1.48
7.60
Frozen Processed Food
1.73
2.47
12.97
Source: Euromonitor International
5.6. DRIED PROCESSED FOOD
According to trade sources, while rice is the fundamental staple food among Asian consumers in Singapore, consumption of
rice has gradually decreased due to the increasing popularity of alternative staple foods such as noodles, bread and dried pasta.
The high level of availability of convenient alternative products such as noodles and dried pasta has made rice less attractive to
some consumers. Due to their hectic lifestyles, many Singaporean consumers seek quick and easy meals. Rice is considered to
be more time consuming to cook at home than bread, noodles and dried pasta. However, rice is expected to continue to
account for by far the largest retail value share of dried processed food in 2012. In response to the growing trend of health
consciousness, manufacturers have introduced a wider range of products such as brown rice and organic rice, which appeal to
health-conscious consumers. In 2012, pouch instant noodles achieved the strongest current retail value growth, of 8%, in dried
processed food. Products in pouch instant noodles are well accepted by local consumers, more so than products in cup instant
noodles, due to their price positioning, with the offer of multipacks, and the wide range of flavor variants. Manufacturers of
pouch instant noodles have also made continuous efforts to introduce new flavor variants, such as Korean flavor variants
among others, in order to constantly appeal to consumers.
Supermarkets are expected to remain the leading channel of retail distribution of dried processed food. This is mainly due to
the wide selection of products in various price categories and the high level of availability of products through this channel.
Also various supermarket retailers offer private label products which are expected to continue to appeal to consumers due to
their very affordable pricing.
FOOD AND BEVERAGE MARKET SINGAPORE
30
Sales of Dried Processed Food by Volume (2007 – 2012, in ‘000 tons)
Category
2007
2008
2009
2010
2011
2012
Dehydrated Soup
0.08
0.07
0.07
0.06
0.05
0.05
Dessert Mixes
0.03
0.04
0.04
0.04
0.04
0.04
Dried Pasta
1.98
2.06
2.17
2.24
2.31
2.37
Dried Ready Meals
0.13
0.13
0.14
0.14
0.14
0.15
Instant Noodles
8.25
8.59
9.04
9.42
9.78
10.21
- Cups/Bowl Instant Noodles
1.32
1.38
1.43
1.47
1.51
1.57
- Pouch Instant Noodles
6.93
7.21
7.61
7.95
8.27
8.64
Instant Soup
0.10
0.10
0.11
0.11
0.11
0.12
Plain Noodles
1.95
2.01
2.04
2.08
2.14
2.19
Rice
108.25
110.41
113.18
114.87
116.37
118.00
Dried Processed Food
120.77
123.43
126.77
128.96
130.94
133.12
Source: Euromonitor International
Sales of Dried Processed Food by Value (2007 – 2012, in S$ million)
Category
2007
2008
2009
2010
2011
2012
Dehydrated Soup
1.64
1.60
1.41
1.23
1.17
1.12
Dessert Mixes
0.55
0.58
0.58
0.60
0.61
0.62
Dried Pasta
8.31
8.93
9.25
9.62
9.95
10.28
Dried Ready Meals
2.56
2.64
2.73
2.80
2.86
2.93
Instant Noodles
43.13
48.75
56.75
65.68
70.87
76.28
- Cups/Bowl Instant Noodles
16.66
18.58
21.00
23.63
25.19
26.95
- Pouch Instant Noodles
26.47
30.18
35.75
42.05
45.68
49.33
Instant Soup
3.59
3.80
3.92
4.06
4.18
4.29
Plain Noodles
7.43
7.88
8.03
8.27
8.55
8.85
Rice
203.73
295.40
299.83
305.83
311.34
316.32
Dried Processed Food
270.94
369.59
382.50
398.08
409.52
420.70
Source: Euromonitor International
FOOD AND BEVERAGE MARKET SINGAPORE
31
Sales of Dried Processed Food by Volume Growth (2007 – 2012, % volume growth)
2011/12
2007-12 CAGR
Category
2007/12 Total
Dehydrated Soup
-3.50
-7.00
-30.42
Dessert Mixes
1.50
2.25
11.79
Dried Pasta
2.80
3.66
19.67
Dried Ready Meals
2.20
2.14
11.16
Instant Noodles
4.42
4.34
23.67
- Cups/Bowl Instant Noodles
4.00
3.50
18.75
- Pouch Instant Noodles
4.50
4.50
24.61
Instant Soup
2.30
3.17
16.91
Plain Noodles
2.70
2.44
12.80
Rice
1.40
1.74
9.00
Dried Processed Food
1.67
1.97
10.23
Source: Euromonitor International
Sales of Dried Processed Food by Value Growth (2007 – 2012, % current value growth)
2011/12
2007-12 CAGR
Category
Dehydrated Soup
2007/12 Total
-4.00
-7.31
-31.57
Dessert Mixes
1.70
2.53
13.30
Dried Pasta
3.30
4.35
23.72
Dried Ready Meals
2.50
2.74
14.47
Instant Noodles
7.64
12.08
76.86
- Cups/Bowl Instant Noodles
7.00
10.09
61.73
- Pouch Instant Noodles
8.00
13.26
86.37
Instant Soup
2.80
3.65
19.65
Plain Noodles
3.50
3.55
19.06
Rice
1.60
9.20
55.27
Dried Processed Food
2.73
9.20
55.28
Source: Euromonitor International
FOOD AND BEVERAGE MARKET SINGAPORE
32
5.7. READY MEALS IN SINGAPORE
As the lifestyles of Singaporean consumers become increasingly hectic due to
economic growth, consumers have more and more sought easy and convenient meal
options in order to save time and ready meals have benefited from this trend.
However, at the same time, the extensive range of foodservice outlets such as hawker
centers, street stalls/kiosks and home delivery/takeaway means that consumers have
easy access to prepared meals that they can take home instead of buying products in
ready meals to prepare at home. That is why ready meals have only achieved an
average retail value growth of 2% and an average retail volume growth of 2% in 2012.
However, current retail value growth is expected to be slightly stronger than retail
volume growth. The main reason for this is that consumers like to try innovative new
products in ready meals, which often have high prices due to value-added factors such
as ease of opening and microwavable packaging among other things.
Dried ready meals and frozen pizza registered the strongest retail value growth of 3% and 3% respectively in ready meals in
2012. There is an extensive range of products, in various flavor variants, size formats and price bands available in these
categories. Private label manufacturers have also been aggressive in terms of introducing new products and flavor variants in
frozen pizza, which has resulted in more choice for consumers and which has made frozen pizza more dynamic. With regard to
dried ready meals, dried porridge and dried pasta and sauce are popular among busy consumers due to the ease and
convenience of these products.
Chilled ready meals are expected to register the weakest current retail value growth in ready meals. As there are many
foodservice outlets across Singapore, chilled ready meals are not very attractive to Singaporean consumers. In addition, these
products have a relatively short shelf life, and are expensive. Frozen ready meals tend to be more popular among consumers
than chilled ready meals due to the former’s longer shelf life.
Italian ready meals and western ready meals continue to account for a dominant combined retail value share of 74% of frozen
ready meals in 2012, with this share remaining unchanged since 2010. However, Japanese ready meals have increased their
retail value share of frozen ready meals in 2012 as Singaporean consumers have become more familiar with Japanese cuisine
especially as the number of Japanese foodservice outlets expanded in Singapore over the review period. On the other hand,
Chinese ready meals have suffered a decrease in retail value share of frozen ready meals in 2012 as consumers have started to
explore other types of ethnic ready meals.
International players account for strong retail value shares of frozen ready meals as they tend to offer western ready meals in
this category. According to trade sources, Singaporean consumers also prefer to opt for products from international players in
frozen ready meals due to the authenticity of these products. Domestic manufacturers account for strong retail value shares of
canned/preserved ready meals as the preference of consumers tends to be for Asian ready meals in this category. Domestic
players are more knowledgeable than international players in terms of the taste of Asian dishes and they are thus able to offer
authentic flavors and products, which are familiar to consumers.
With regard to distribution, supermarkets and hypermarkets account for a dominant combined retail value share of 73% of
ready meals in 2012. This is because supermarkets and hypermarkets retailers engage in aggressive price promotions and they
are able to store and offer an extensive range of ready meals products. This presents consumers with many options when
choosing ready meals.
FOOD AND BEVERAGE MARKET SINGAPORE
33
Sales of Ready Meals by Volume (2007 – 2012, ‘000 tons)
Category
2007
2008
2009
2010
2011
2012
4,508.50
4,643.75
4,806.29
4,926.44
5,039.75
5,145.59
Chilled Ready Meals
263.47
225.26
214.00
209.72
210.35
211.19
Dried Ready Meals
131.69
134.33
138.36
140.43
143.24
146.39
Frozen Pizza
80.07
82.87
84.11
86.21
87.94
89.35
Frozen Ready Meals
72.51
74.69
76.18
77.32
78.87
80.37
5,056.24
5,160.90
5,318.93
5,440.13
5,560.15
5,672.88
Canned/Preserved Ready Meals
Ready Meals
Source: Euromonitor International
Sales of Ready Meals by Value (2007 – 2012, S$ million)
Category
2007
2008
2009
2010
2011
2012
Canned/Preserved Ready Meals
36.04
37.30
38.49
39.65
40.76
41.74
Chilled Ready Meals
2.48
2.13
2.01
1.95
1.95
1.96
Dried Ready Meals
2.56
2.64
2.73
2.80
2.86
2.93
Frozen Pizza
1.82
1.92
1.96
2.03
2.09
2.14
Frozen Ready Meals
2.09
2.18
2.23
2.28
2.33
2.39
Ready Meals
44.99
46.16
47.42
48.70
49.99
51.15
Source: Euromonitor International
Sales of Ready Meals by Value Growth (2007 – 2012, % current value growth)
2011/12
2007-12 CAGR
2007/12 Total
Canned/Preserved Ready Meals
2.40
2.98
15.81
Chilled Ready Meals
0.20
-4.59
-20.93
Dried Ready Meals
2.50
2.74
14.47
Frozen Pizza
2.50
3.29
17.59
Frozen Ready Meals
2.30
2.66
14.01
Ready Meals
2.32
2.60
13.70
Category
Source: Euromonitor International
Ready Meals: Vegetarian vs. Non-vegetarian % Breakdown by Type 2012 (% value analysis)
Vegetarian
Non-vegetarian
Total
Canned/Preserved Ready Meals
9.10
90.90
100.00
Chilled Ready Meals
3.70
96.30
100.00
Frozen Ready Meals
6.00
94.00
100.00
Category
Source: Euromonitor International
FOOD AND BEVERAGE MARKET SINGAPORE
34
Frozen Ready Meals % Breakdown by Ethnicity (2007 – 2012, % retail value resp)
Category
2007
2008
2009
2010
2011
2012
Chinese
12.00
12.00
11.50
11.50
11.00
10.50
Italian
46.00
46.00
46.50
46.00
46.00
46.00
Japanese
7.50
7.50
8.00
9.00
10.00
10.50
Western
27.50
27.50
27.50
27.50
27.50
27.50
Others
7.00
7.00
6.50
6.00
5.50
5.50
100.00
100.00
100.00
100.00
100.00
100.00
Total
Source: Euromonitor International
5.8. SAUCES, DRESSINGS AND CONDIMENTS IN SINGAPORE
The performance of sauces, dressings and condiments in 2012 remained the same compared to 2011. This is mainly due to the
unclear global economic condition in 2012, which made consumers reduce their daily spend on grocery items. This was also
reflected in the performance of foodservice outlets, which saw slower growth than in 2011. However, compared to other
developed countries, the demand in this category remained stable.
Wet/cooking sauces saw the fastest value growth of 5% to reach S$14 million in 2012. Due to hectic lifestyles in Singapore,
consumers are seeking convenient formats rather than making a sauce from scratch, which led the strong performance in 2012.
There are also varieties of flavors of wet cooking sauce available, which leaves little incentive for consumers to prepare a sauce
themselves. Busy consumers are willing to pay extra for easy preparation.
Soya sauce, wasabi and hoisin sauce are the most popular due to their Asian flavor. On the other hand, western types of sauce,
such as garlic, herb purees and Tahini etc. have a presence at high-end supermarkets such as Market Place, and are often
considered to be non-essential items among local consumers. Hence, the demand is likely to be limited to foreign expatriates
and affluent consumers.
Pasta sauce is also expected to see a better performance, with a 2% constant value CAGR. Pasta has become one of the major
staple foods, following rice and noodles, for which pasta sauce has contributed to the sales performance of pasta as the
manufacturers have introduced a wide variety of flavors. The fast casual dining restaurants such as Pasta Mania have also
made pasta familiar to local consumers. Due to the popularity of pasta, pasta sauce is likely to gain further shares over the
forecast period.
Since the Singaporean government is currently promoting a healthier diet to the nation, low-calorie and low cholesterol
mayonnaise and dressing are expected to see room for expansion.
The main distribution channels for sauces, dressings and condiments are supermarkets, hypermarkets and small grocery
retailers, which will not see a big change in share over the forecast period.
FOOD AND BEVERAGE MARKET SINGAPORE
35
Sales of Sauces, Dressings and Condiments by Volume (2007 – 2012, in tons)
Category
2007
2008
2009
2010
2011
2012
Cooking Sauces
2,927.77
3,067.54
3,154.62
3,244.23
3,360.38
3,471.55
- Bouillon/Stock Cubes
1,163.69
1,203.63
1,242.99
1,274.76
1,311.59
1,346.52
- Dry Sauces/Powder Mixes
67.50
70.87
72.29
73.38
74.26
74.93
- Herbs and Spices
97.31
101.20
103.22
106.84
109.73
112.47
- Monosodium Glutamate (MSG)
331.01
339.28
342.68
349.53
354.42
358.32
- Pasta Sauces
224.38
235.60
248.55
260.49
272.18
281.68
1,043.89
1,116.96
1,144.89
1,179.23
1,238.20
1,297.63
602.67
608.70
617.83
625.86
632.12
637.18
Table Sauces
8,604.59
8,869.91
9,184.29
9,471.82
9,669.80
9,827.37
- Ketchup
1,091.62
1,118.91
1,141.28
1,169.82
1,193.21
1,212.30
- Mayonnaise
217.13
223.21
228.34
233.83
237.83
240.93
- Mustard
197.22
201.16
204.18
206.22
207.87
209.12
- Oyster Sauces
822.09
846.75
876.38
898.29
916.26
930.00
- Salad Dressings
331.66
343.95
352.88
363.81
372.23
378.92
- Soy Based Sauces
4,367.46
4,498.48
4,678.42
4,842.17
4,939.01
5,003.22
- Spicy Chili/Pepper Sauces
1,373.92
1,428.88
1,493.18
1,545.44
1,588.71
1,636.37
- Vinaigrettes
102.83
104.89
105.41
106.99
108.06
108.82
- Other Table Sauces
100.67
103.69
104.21
105.25
106.62
107.68
Tomato Pastes and Purées
13.20
13.46
13.53
13.73
13.90
13.99
Other Sauces, Dressings and
Condiments
292.21
298.06
299.55
302.54
304.66
306.49
12,440.45
12,857.68
13,269.82
13,658.18
13,980.86
14,256.58
- Wet/Cooking Sauces
Pickled Products
Sauces, Dressings and Condiments
Source: Euromonitor International
FOOD AND BEVERAGE MARKET SINGAPORE
36
Sales of Sauces, Dressings and Condiments by Value (2007 – 2012, S$ million)
Category
2007
2008
2009
2010
2011
2012
27,154.30
28,685.00
29,364.36
30,212.16
31,434.42
32,617.11
- Bouillon/Stock Cubes
7,761.66
8,072.13
8,341.87
8,598.34
8,871.50
9,135.80
- Dry Sauces/Powder Mixes
2,059.64
2,172.92
2,205.51
2,227.57
2,245.39
2,267.84
- Herbs and Spices
2,489.80
2,601.84
2,627.86
2,746.89
2,823.80
2,897.22
- Monosodium Glutamate (MSG)
1,642.23
1,675.08
1,683.45
1,708.71
1,730.92
1,748.23
- Pasta Sauces
1,867.28
1,979.32
2,078.28
2,192.59
2,324.14
2,417.11
- Wet/Cooking Sauces
11,333.68
12,183.71
12,427.39
12,738.07
13,438.66
14,150.91
Pickled Products
4,431.04
4,497.50
4,542.48
4,610.62
4,647.50
4,680.03
44,365.94
46,029.35
47,200.23
48,598.30
49,885.09
50,994.57
- Ketchup
2,741.15
2,823.38
2,865.73
2,951.71
3,034.35
3,107.18
- Mayonnaise
1,758.23
1,821.62
1,848.94
1,902.77
1,956.22
2,003.87
- Mustard
2,485.23
2,515.06
2,540.21
2,560.53
2,575.89
2,593.92
- Oyster Sauces
5,785.52
5,988.01
6,077.83
6,248.01
6,435.45
6,564.16
- Salad Dressings
4,556.05
4,748.62
4,847.84
5,021.96
5,160.27
5,278.68
- Soy Based Sauces
19,064.95
19,827.55
20,521.52
21,137.16
21,729.00
22,228.77
- Spicy Chili/Pepper Sauces
5,237.57
5,499.45
5,664.43
5,891.01
6,067.74
6,261.91
- Vinaigrettes
1,723.96
1,767.06
1,784.73
1,820.43
1,842.27
1,857.01
- Other Table Sauces
1,013.28
1,038.61
1,048.99
1,064.73
1,083.89
1,099.07
73.94
75.79
76.55
77.47
78.17
78.79
Other Sauces, Dressings and
Condiments
3,931.50
4,029.78
4,070.08
4,131.13
4,164.18
4,193.33
Sauces, Dressings and Condiments
79,956.72
83,317.43
85,253.70
87,629.68
90,209.36
92,563.84
Cooking Sauces
Table Sauces
Tomato Pastes and Purées
Source: Euromonitor International
FOOD AND BEVERAGE MARKET SINGAPORE
37
Sales of Sauces, Dressings and Condiments by Volume Growth (2007 – 2012, % volume growth)
2011/12
2007-12 CAGR
Category
2007/12 Total
Cooking Sauces
3.31
3.47
18.57
- Bouillon/Stock Cubes
2.66
2.96
15.71
- Dry Sauces/Powder Mixes
0.90
2.11
11.00
- Herbs and Spices
2.50
2.94
15.58
- Monosodium Glutamate (MSG)
1.10
1.60
8.25
- Pasta Sauces
3.49
4.65
25.54
- Wet/Cooking Sauces
4.80
4.45
24.31
Pickled Products
0.80
1.12
5.73
Table Sauces
1.63
2.69
14.21
- Ketchup
1.60
2.12
11.06
- Mayonnaise
1.31
2.10
10.96
- Mustard
0.60
1.18
6.03
- Oyster Sauces
1.50
2.50
13.13
- Salad Dressings
1.80
2.70
14.25
- Soy Based Sauces
1.30
2.76
14.56
- Spicy Chili/Pepper Sauces
3.00
3.56
19.10
- Vinaigrettes
0.70
1.14
5.82
- Other Table Sauces
1.00
1.36
6.97
Tomato Pastes and Purées
0.70
1.18
6.03
Other Sauces, Dressings and
Condiments
0.60
0.96
4.89
Sauces, Dressings and Condiments
1.97
2.76
14.60
Source: Euromonitor International
FOOD AND BEVERAGE MARKET SINGAPORE
38
Sales of Sauces, Dressings and Condiments by Value Growth (2007 – 2012, % value growth)
Category
2011/12
2007-12 CAGR
2007/12 Total
- Bouillon/Stock Cubes
3.76
3.73
20.12
- Dry Sauces/Powder Mixes
2.98
3.31
17.70
- Herbs and Spices
1.00
1.94
10.11
- Monosodium Glutamate (MSG)
2.60
3.08
16.36
- Pasta Sauces
1.00
1.26
6.45
- Wet/Cooking Sauces
4.00
5.30
29.45
Dips
5.30
4.54
24.86
Table Sauces
0.70
1.10
5.62
- Barbecue Sauces
2.22
2.82
14.94
- Mayonnaise
2.40
2.54
13.35
- Mustard
2.44
2.65
13.97
- Oyster Sauces
0.70
0.86
4.37
- Salad Dressings
2.00
2.56
13.46
- Soy Based Sauces
2.29
2.99
15.86
- Spicy Chili/Pepper Sauces
2.30
3.12
16.59
- Tartar Sauces
3.20
3.64
19.56
- Worcester/Steak Sauces
0.80
1.50
7.72
Tomato Pastes and Purées
1.40
1.64
8.47
Other Sauces, Dressings and
Condiments
0.80
1.28
6.56
Sauces, Dressings and Condiments
0.70
1.30
6.66
Cooking Sauces
Source: Euromonitor International
5.9. CHOCOLATE CONFECTIONARY
In a reflection of the health and wellness trend, consumers are gradually moving towards reduced sugar chocolate
confectionery as well as dark chocolate because of its antioxidant properties. In addition, there is also a trend towards
premium high-quality chocolates as consumers develop a more sophisticated taste for chocolate and the know-how to
appreciate premium chocolate products such as those with high cocoa content.
Standard boxed assortments seemed to be the fastest growing category in 2012, as the trend of consumers indulging in
premium chocolate has led to the growth of standard boxed assortments. In addition, the trend of gift giving during festive
seasons such as Mother’s Day and Christmas also drove the growth of the standard boxed assortments sold at hypermarkets
and supermarkets.
FOOD AND BEVERAGE MARKET SINGAPORE
39
Although consumers are increasingly purchasing reduced sugar chocolate confectionery, the organic chocolate trend has not
taken off in Singapore, and organic chocolate products are expected to have little impact. The product offer remains small, with
limited choice available only at selected supermarkets and health food shops.
Chocolate confectionery is easily available via various distribution channels including hypermarkets, supermarkets and small
grocery retailers. There is likely to be more boutique chocolate outlets, within the confectionery specialists’ category, opening
in Singapore as consuming gourmet chocolates is expected to become part of the lifestyle of a growing number of consumers.
There is also likely to be raising interest in healthier chocolates among consumers, who are becoming more conscious about
their diet and nutritional intake. As such, there is expected to be raising sales for high cocoa content products which contain
more antioxidants.
Sales of Chocolate Confectionery by Volume (2007 – 2012, in tons)
Category
2007
2008
2009
2010
2011
2012
Bagged Selflines/Softlines
902.12
920.16
947.77
966.72
984.12
1,008.73
Boxed Assortments
771.43
801.80
872.90
933.17
988.44
1,037.29
- Standard Boxed Assortments
755.29
785.51
856.20
916.14
971.10
1,019.66
- Twist Wrapped Miniatures
16.13
16.29
16.70
17.03
17.34
17.64
Chocolate with Toys
36.39
36.76
37.49
38.05
38.55
38.93
Countlines
1,319.85
1,352.84
1,393.43
1,449.17
1,499.89
1,550.88
Tablets
1,307.76
1,327.37
1,393.74
1,442.52
1,485.80
1,527.40
Chocolate Confectionery
4,337.54
4,438.93
4,645.33
4,829.63
4,996.80
5,163.24
Source: Euromonitor International
Sales of Chocolate Confectionery by Value (2007 – 2012, in S$ million)
Category
2007
2008
2009
2010
2011
2012
Bagged Selflines/Softlines
17.93
18.65
19.48
20.17
20.91
21.75
Boxed Assortments
29.36
31.40
34.81
37.92
41.41
45.03
- Standard Boxed Assortments
28.92
30.94
34.35
37.44
40.92
44.52
- Twist Wrapped Miniatures
0.44
0.46
0.46
0.48
0.49
0.50
Chocolate with Toys
1.95
1.99
2.05
2.11
2.18
2.25
Countlines
27.17
28.39
29.95
31.75
33.75
35.77
Tablets
20.82
21.55
23.38
25.02
26.52
28.16
Chocolate Confectionery
97.22
101.98
109.68
116.95
124.77
132.96
Source: Euromonitor International
FOOD AND BEVERAGE MARKET SINGAPORE
40
5.10. BISCUITS
Biscuits continue to experience a higher current value sales growth. This is largely due to consumers trading up to more
expensive products and consumers preferring smaller pack sizes, which helps contribute to a higher value sales growth. Savory
crackers and biscuits experienced the highest value sales growth, but as consumers become increasingly health conscious,
more have become inclined towards savory crackers and biscuits such as wheatmeal biscuits as compared to sweet biscuits.
Within sweet biscuits, filled biscuits registered the highest current value sales.
One characteristic of the biscuit market in Singapore, unlike in temperate markets like Switzerland, is that while biscuits are
generally packed in quantities of 200-300g, the biscuits are also individually wrapped within the main package in smaller
quantities, rather than in loose packaging. Many biscuits are also individually packed, rather than in loose packaging. The
primary reason for this is the higher temperature and humidity levels in Singapore, which requires packaging to ensure that
these products have a longer shelf life.
Sales of Biscuits by Volume (2007 – 2012, in tons)
Category
2007
2008
2009
2010
2011
2012
Savory Biscuits and Crackers
4,818.06
4,914.42
5,037.28
5,238.77
5,395.94
5,530.83
Sweet Biscuits
12,461.84
12,694.55
12,582.60
12,955.58
13,270.25
13,560.03
896.11
921.20
944.23
958.39
982.35
1,004.94
-- Cookies
2,021.79
2,052.12
2,103.42
2,124.45
2,166.94
2,208.12
- Filled Biscuits
2,534.71
2,580.33
2,631.94
2,697.74
2,778.67
2,848.14
- Plain Biscuits
4,356.24
4,421.59
4,510.02
4,758.07
4,877.02
4,989.19
- Sandwich Biscuits
2,652.99
2,719.32
2,393.00
2,416.93
2,465.27
2,509.64
Biscuits
17,279.90
17,608.97
17,619.88
18,194.35
18,666.18
19,090.86
- Chocolate Coated Biscuits
Source: Euromonitor International
Sales of Biscuits by Value (2007 – 2012, in S$ million)
Category
2007
2008
2009
2010
2011
2012
Savory Biscuits and Crackers
45.22
46.57
48.21
49.65
51.39
53.44
Sweet Biscuits
125.02
128.35
128.91
131.67
135.51
139.82
- Chocolate Coated Biscuits
17.21
17.81
18.52
18.71
19.27
19.75
- Cookies
20.49
21.01
21.95
22.06
22.61
23.40
- Filled Biscuits
23.09
23.56
24.26
24.75
25.49
26.41
- Plain Biscuits
34.68
35.55
36.79
38.63
39.79
40.94
- Sandwich Biscuits
29.54
30.43
27.39
27.52
28.35
29.31
Biscuits
170.24
174.92
177.12
181.32
186.90
193.26
Source: Euromonitor International
FOOD AND BEVERAGE MARKET SINGAPORE
41
Sales of Biscuits by Total Volume Growth (2007 – 2012, % total volume growth)
2011/12
2007-12 CAGR
Category
2007/12 Total
Savory Biscuits and Crackers
2.50
2.80
14.79
Sweet Biscuits
2.18
1.70
8.81
- Chocolate Coated Biscuits
2.30
2.32
12.15
- Cookies
1.90
1.78
9.22
- Filled Biscuits
2.50
2.36
12.37
- Plain Biscuits
2.30
2.75
14.53
- Sandwich Biscuits
1.80
-1.10
-5.40
Biscuits
2.28
2.01
10.48
Source: Euromonitor International
Sales of Biscuits by Total Value Growth (2007 – 2012, % total value growth)
2010/11
2006-11 CAGR
Category
2006/11 Total
Savory Biscuits and Crackers
4.00
3.40
18.19
Sweet Biscuits
3.18
2.26
11.84
- Chocolate Coated Biscuits
2.50
2.79
14.78
- Cookies
3.50
2.69
14.20
- Filled Biscuits
3.60
2.72
14.35
- Plain Biscuits
2.90
3.38
18.06
- Sandwich Biscuits
3.40
-0.16
-0.78
Biscuits
3.41
2.57
13.53
Source: Euromonitor International
5.11. BEVERAGES
5.11.1. Alcoholic Drinks
In 20121, alcoholic drinks achieved healthy volume growth despite Singapore’s economic slowdown. Consumer spending was
positive due to the rising disposable incomes of consumers. A more vibrant social scene with the opening of more restaurants
and pubs also boosted sales.
Demand for premium products also increased due to the increasing sophistication of choice of alcoholic drinks by consumers.
Younger affluent consumers pushed up the demand for beer and cider / perry. The rise of tourist arrivals also meant that
companies focused their efforts on meeting foreign consumer need with the introduction of more premium quality products.
Different products were imported from different countries as companies sought to diversify their product portfolios. Several
off-trade and on-trade retailers also capitalized on the consumers’ willingness to spend, especially young and affluent
Singaporeans who continued to embrace the drinking culture and social scene.
FOOD AND BEVERAGE MARKET SINGAPORE
42
Sales of Alcoholic Drinks by Value (2007-2012, jn S$ million)
Beverage/ Year
2007
2008
2009
2010
2011
2012
1,394.70
1,474.70
1,572.40
1,704
1,859.90
1,995.4
Cider / Perry
6.2
6.7
8.7
12
15.3
18.1
RTDs / High-Strength
Premixes
10.4
10.6
10.7
10.7
10.9
11.0
Spirits
623.3
700.9
752.5
832.2
927.1
1,012.4
Wine
356.5
392.9
374.6
416.6
472.4
515.8
2,391.1
2,585.7
2,718.9
2,975.5
3,285.5
3,552.8
Beer
Alcoholic Drinks
Source: Euromonitor International
Sales of Alcoholic Drinks by Volume (2007-2012, in million liters)
Beverage/ Year
2007
2008
2009
2010
2011
2012
Beer
85.1
88.7
94.0
101.3
108.2
114.2
Cider / Perry
0.2
0.2
0.3
0.4
0.4
512.2
RTDs / High-Strength
Premixes
0.3
0.3
0.3
0.3
0.3
338.7
Spirits
2.8
3.0
3.2
3.5
3.7
3,965.1
Wine
6.8
7.5
7.5
8.2
9.3
10.0
Alcoholic Drinks
95.2
99.7
105.4
113.7
121.9
129.0
Source: Euromonitor International
Sales of Alcoholic Drinks by Total Volume Growth (2007 – 2012, % total volume growth)
Beverage / Year
2011 / 12
2007-12 CAGR
2007 / 12 Total
Beer
5.6
6.1
34.2
Cider / Perry
16.0
20.4
153.5
RTDs / High-Strength
Premixes
0.1
0.4
2.2
Spirits
5.9
7.3
41.9
Wine
8.0
7.9
46.4
Alcoholic Drinks
5.8
6.3
35.5
Source: Euromonitor International
5.11.2. Hot Drinks
In 2012, the sector for hot drinks retained stable strong growth due to increasing consumers’ disposable incomes. There was a
demand for time saving products and premium products as consumers became affluent with busy lifestyles. Due to the
expansion of specialty coffee shops, consumers have become more familiar with fresh brewed coffee, and thus are seeking the
authentic taste and lifestyle at home, preparing high-quality fresh brewed coffee themselves, such as Italian specialty coffee
and Starbucks’s instant coffee.
FOOD AND BEVERAGE MARKET SINGAPORE
43
Consumers in Singapore are also spending more in off-trade channels than on-trade channels, despite the fact that the density
of on-trade channels is considerably higher such as in specialty coffee shops, independent cafés, food courts and hawkers. Offtrade channels offer a much wider ranges of products at reasonable prices.
As Singaporeans became increasingly health conscious, major manufacturers are introducing healthier beverage options, such
as Horlicks 3-in-1 light malt, Nescafe Body Partner 3-in-1 with collagen and high calcium content, and 3-in-1 instant coffee
with low sugar and fat, etc.
Total Sales of Hot Drinks by Volume (2007 – 2012, in tons)
Beverage/Year
2007
2008
2009
2010
2011
2012
Coffee
9,535.5
9,696.7
10,042.2
10,515.5
10,980.8
11,329.9
Tea
1,720.9
1,763.7
1,800.8
1,844.0
1,883.2
1,918.5
Other Hot
Drinks*
8,923.5
9,110.3
9,348.4
9,684.9
10,051.6
10,396.3
Note: (*) Other hot drinks include (i) flavored powdered drinks (e.g. chocolate-base flavored Milo or malt-base Horlicks), (ii)
plant-based hot drinks (e.g. cereal).
Source: Euromonitor International
Total Sales of Hot Drinks by Total Volume Growth (2007 – 2012, % total volume growth)
Beverage/Year
2011 / 12
2006-11 CAGR
2006 / 11 Total
Coffee
3.2
3.5
18.8
Tea
1.9
2.2
11.5
Other Hot
Drinks*
3.4
3.1
16.5
Note: (*) Other hot drinks include (i) flavored powdered drinks (e.g. chocolate-base flavored Milo or malt-base Horlicks), (ii)
plant-based hot drinks (e.g. cereal).
Source: Euromonitor International
5.11.3. Soft Drinks
There are two interesting trends in the volume and value sales growth of soft drinks. The first trend is the increase in
consumption of healthier soft drinks. Rising obesity levels and Singapore’s wellness awareness campaigns have triggered
greater health awareness, and consumers are switching to healthier soft drinks, especially organic and natural products. Due to
the change in taste, more low-fat packaged food and beverages with fewer calories, including reduced sugar soft drinks, are
being sold in the market. Euromonitor reported that retail volume of regular cola carbonates decrease at a CAGR of -2% in
2012/13, while low calorie carbonates increased in retail volume by 11% over the same period. Demand for Asian RTD tea
(green tea) increased by a retail value of 7% in 2011 and 100%-juice (i.e. not from concentrate) has its growth rate tripled.
The other trend is that while off-trade purchases of soft drinks is fairly stable, on-trade consumption levels of soft drinks is
strong. This is as a result of the increasing number of visitors to Singapore that are consuming such products at restaurants
and at fast food outlets.
FOOD AND BEVERAGE MARKET SINGAPORE
44
Off-trade vs. On-trade Sales of Soft Drinks (as sold) by Value in 2011, in S$ million
Beverage/ Year
Off-Trade
On-Trade
Total
Bottled Water
37.9
102.2
140.1
Carbonates
156.7
270.7
427.4
9.8
-
9.8
177.0
161.2
338.2
8.0
-
8.0
RTD Tea
106.1
268.8
374.8
Sports and Energy Drinks
52.0
29.0
81.1
Asian Specialty Drinks
96.9
233.9
330.8
Soft Drinks
561.1
858.7
1,419.8
Concentrates
Fruit / Vegetable Juice
RTD Coffee
Source: Euromonitor International
Off-trade vs. On-trade Sales of Soft Drinks (as sold) by Volume in 2011, in million liters
Beverage/ Year
Off-Trade
On-Trade
Bottled Water
36.8
41.6
Carbonates
92.1
48.6
1.7
-
68.0
24.6
2.1
-
RTD Tea
57.6
65.2
Sports and Energy Drinks
22.0
6.0
Asian Specialty Drinks
51.8
57.1
287.2
193.3
Concentrates
Fruit / Vegetable Juice
RTD Coffee
Soft Drinks
Source: Euromonitor International
5.12. PRIVATE LABELS
Private labels were perceived to be of lower quality in comparison to branded products when they were first introduced in
Singapore. However this has changed and private labels are now perceived to offer value for money. All three main
supermarket/hypermarket players in Singapore have their own house brands.
5.12.1. NTUC FairPrice Co-operative
NTUC FairPrice has more than 2,000 products under its FairPrice and Pasar brands, which are priced 10% to 15% cheaper
than branded alternatives. The Pasar and FairPrice and Pasar labels encompass fresh produce and chilled processed food
respectively, while the FairPrice Gold Label belongs to the premium segment. There is also Pasar Organic, a range of organic
private label vegetables.
FOOD AND BEVERAGE MARKET SINGAPORE
45
NTUC FairPrice has made strong efforts to market their private label products, and this has resulted in their private labels
increasing their share of total products sold within their supermarkets. Consumers are more likely to choose private label
products when there is similar quality between their private label and branded products.
5.12.2. Dairy Farm International Holdings
Dairy Farm has two private label brands comprising over 1,600 products, called First Choice and No Frills. These products can
be found in its hypermarkets, supermarkets and convenience stores. It also carries its Guardian private label brand in its
pharmacies. No Frills was developed in 1993 and is an economy range targeted towards price-conscious consumers. First
Choice was developed in 1999 and belongs to the mid-priced range of products. A wide range of private label products
including beverages and packaged food can also be found in Dairy Farm’s supermarkets and hypermarkets.
Overall, Dairy Farm’s share of private label products is growing, are performing well and well-received by consumers in
hypermarkets and supermarkets.
5.12.3. Sheng Siong Supermarket
Sheng Siong Supermarket has a limited range of private label products which belong to the low price range. Products include
oil, frozen food and condiments, and the company is constantly exploring the expansion and introduction of new private label
products. Consumers are very receptive when private label products are introduced and they are also very well-received.
Private Label / House Brand Portfolio
House
Brand
Category(ies)
Notes
NTU FairPrice Co-operative Pte Ltd
Pasar
Vegetables, fruits
Mid-priced
FairPrice
Packaged processed food,
nuts
Mid-priced
FairPrice
Gold Label
Packaged Food, Rice, Coffee
etc.
Premium
No Frills
Cooking oil, bread, snacks,
etc.
Economy
First Choice
Snack foods, packaged food
(chilled and frozen),
vegetables, cheese, drinks
etc.
Mid-priced
Giant
Vegetables, canned food,
snacks, etc.
Economy
Shop N Save
Sweet and savory snacks
Mid-priced
Yu Pin King
Canned food (e.g. abalone)
Premium
Royal
Golden
Grain
Rice
Premium
Matahari
Premium
Rice
Premium
Tasty Bites
Frozen food
Mid-priced
FOOD AND BEVERAGE MARKET SINGAPORE
46
Happy
Family
Oil, condiments, rice, canned
food, dried food
Mid-priced
Source: Corporate Websites
Penetration of Private Label by Category (2006 – 2010, % retail value rsp)
Item / Year
2006
2007
2008
2009
2010
Bakery
2.9
3.4
4.1
4.8
5.1
Canned/ Preserved Food
3.2
3.2
3.6
3.8
4.2
Chilled Processed Food
11.3
11.2
11.6
11.6
11.7
Confectionery
0.3
0.3
0.3
0.2
0.2
Dairy
2.1
2.2
2.4
2.4
2.4
Dried Processed Food
14.8
14.8
16.9
17.3
17.3
Frozen Processed Food
5.9
6.0
6.2
6.6
6.7
Ice Cream
2.5
2.5
2.6
2.7
2.7
Impulse and Indulgence Products
2.4
2.4
2.5
2.6
2.6
Meal Solutions
5.5
5.5
5.8
5.9
6.1
Noodles
2.2
2.2
2.5
2.4
2.6
Nutrition/ Staples
5.7
5.8
7.4
7.8
7.9
Oils and Fats
6.4
6.4
6.8
7.2
7.4
Packaged Food
4.5
4.6
5.6
5.8
5.9
Pasta
4.3
4.3
4.3
4.2
4.2
Ready Meals
3.7
3.7
4.1
4.1
4.5
Sauces, Dressings and
Condiments
4.4
4.4
4.6
4.7
4.8
Soup
0.8
0.8
0.8
0.7
0.8
Spreads
2.6
2.6
2.9
2.6
2.5
Sweet and Savory Snacks
3.6
3.6
4.0
4.0
4.1
Source: Euromonitor International
5.13. FOODSERVICE / HORECA
Singapore has a large and highly competitive food service industry with a vast array of hotels, restaurants, airline caterers, ship
handlers, hospitals, clubs and bars. In 2011, the Singapore food service market was valued at US$3.3 billion. It is expected to
reach US$4 billion in value in 2013, growing at a CAGR of 2%, due to the current unclear economic trend. Restaurants and fast
food outlets accounted for 38% and 12% of the total revenue in the food and beverage services industry respectively. Food
caterers held 13% of the industry.
Although the food service sector in Singapore is made up of many small single site establishments, the key players are
dominated by large international hotels with western restaurants that serve a growing number of local consumers in addition
to in-house guests. Singapore is also witnessing the emergence of a very serious fine dining scene, with two restaurants coming
FOOD AND BEVERAGE MARKET SINGAPORE
47
into the World’s 50 Best Restaurants list last year – long standing favorite Iggy’s and Jaan at the Swissotel, which swooped into
number 39 from nowhere – and two in the top 100 – Les Amis at number 78 and nouveau French diner Gunther’s at 84.
Within the integrated resorts – the city’s two new casino complexes – are a host of celeb-chefs that have recently opened
satellite outposts. Australia’s Tetsuya Wakuda, Catalan Santi Santamaria, Wolfgang Puck, Daniel Boulud and Guy Savoy now
have diners at the Marina Bay Sands. Kyoto- born Kunio Tokuoka and his astronomically priced SGD$750 tasting menu (with
17% taxes on top of that) is amongst the prizes to be savored at Sentosa Resorts World. Joël Robuchon, the world's most
decorated chef with 26 Michelin stars, has also opened two dining concepts in Resorts World Sentosa, one of which features a
dining concept of French haute cuisine that is similar to the chef's restaurants in Les Vegas, Tokyo and Paris. Legendary New
York restaurateur Mario Batali is planning a third restaurant in Singapore, twenty one months after opening Pizzeria Mozza
and Osteria Mozza at Marina Bay Sands.
Aside from restaurants, there are many fast food chains such as McDonald’s, Starbucks, Burger King, The Coffee Bean and The
Coffee Connoisseur (TCC) just to name a few. McDonald’s leads the way with over a hundred outlets, rivaled by Starbucks at
approximately 80 outlets. This is followed by Burger King at approximately 45 outlets, TCC at around 31 outlets and The Coffee
Bean at nearly 30 outlets.
Due to the greater influx of tourists and business arrivals to Singapore, restaurants registered an increased 10% in sales in
2011. As customers are resuming their original preference for quality food ingredients, the food service industry is also
reverting back to better quality but higher priced food. As an increasing number of consumers are more health-conscious,
major fast food outlets and restaurants are also offering healthier food options. McDonald’s, for example, has a salad menu and
Starbucks is offering a healthier breakfast menu. Indeed, many food service operators are trying to differentiate themselves
from their competitors by offering a healthier menu as one of the key strategic tools.
One major challenge facing the food service sector, which may have an impact on the number of restaurants here in the near
future, is the shortage of manpower as labor conditions have tightened. While there are a variety of possible scenarios that
could play out with the tight labor conditions, one prevalent thought is that more lower end restaurants may close down while
the more upscale and well-located restaurants will survive.
5.14. INDUSTRY TRENDS
As consumers in Singapore develop a more sophisticated palate, food and beverage manufacturers will need to cater to this
demand and continue to create more new products, and at a more rapid rate. This will therefore have an impact on all
segments within the supply chain, from ingredient and additives producers, to packaging, machinery and equipment
manufacturers. A summary of these trends and their impact on these various groups is summarized in the table below.
Singapore is also facing other issues which are also unique to the Singapore food and beverage industry. Among them are two
key trends: food supply and food safety and quality.
5.14.1. Food Supply
With climate change, extreme weather events will impact sustainable agricultural production, food safety and food supply
resilience. Singapore’s food supply is met largely by imports. Ensuring an adequate and safe food supply, in both normal times
and during crises, is a serious issue that the country has to address. Knowledge systems and technologies that enable food
safety assurance and sustainable supply, including the regulatory aspects of monitoring both imported and locally produced
foods, are essential to the well-being and prosperity of Singapore. Currently, local production provides about 23% of hen eggs,
7% leafy vegetables and 4% fish supply. But Singapore is interested to push the technological boundaries to increase its own
food production. At the same time, it needs to figure out how this can be done within the limited resources available in the
country, especially land and water.
5.14.2. Food Safety and Quality
i)
Nanotechnology is a pervasive technology with major impact across a range of economic sectors such as healthcare,
cosmetics, textiles, automobile and aerospace industries. The benefits of nanotechnology are broadly acknowledged and
consumer products containing nanoparticles in the food industry in particular are rapidly increasing in numbers. The
FOOD AND BEVERAGE MARKET SINGAPORE
48
novel chemical and physical properties that make engineered nanomaterials beneficial for food packaging, as an example,
may give rise to safety concerns such as their potential side effects on human health. Hence, there is an urgent need for
proper toxicological data, standardized risk assessment and predictive toxicology models for engineered nanomaterials.
ii)
For adults between 18 to 69 years in Singapore, the top four disease burdens are hypertension at 24.9%, diabetes at 8.2%,
high total cholesterol at 18.7%, and obesity at 10.8%. In addition, 4 out every 10 people are either obese or
overweight. Similar trends are observed elsewhere around the world. For example, the obesity rate in the US is at 33.8%,
and China has more than 92 million adults suffering from diabetes and nearly 150 million more are well on their way to
developing it. Added to the picture, in South East Asia, there are 58 million diabetics.
While it is well recognized that an unhealthy diet is one of the most important factors leading to this global problem, many
experts are of the opinion that functional foods might hold a key to reducing the risk of certain chronic
diseases. Functional foods are defined as foods that provide health benefits beyond basic nutrition. Functional foods are
foods, not drugs, which are intended to be consumed as part of the normal diet and contain biologically active components
that could enhance health and reduce the risks of certain diseases or address specific nutritional needs. Recent growth
rates of various categories of functional foods are estimated to range from 8 to 20% per annum, while the growth rate of
the overall food industry is in the range of only 1 to 4% per annum. The total global market of functional foods is
estimated to reach a value of at least US$90.5 billion by 2013.
However, the current functional foods market is dominated by products that are characterized by simply mixing bioactive
ingredients (e.g. vitamins and minerals) with food materials. These products in general lack technological innovation with
no propriety protection which results in many similar products in the market and therefore highly varied quality. There is
also a lack of scientific understanding of the interactions between the bioactive compounds and their environment i.e. the
food matrix and therefore there is a lack of proven efficacy for substantiation of health claims. All these contribute to the
huge challenges in the regulation of functional foods. Developing technologies that could produce next generation
functional foods which can effectively reduce the chronic disease risk factors presents a grand challenge, but also an
immense opportunity for the food industry.
iii)
In Singapore, there are increasing challenges to meet the country’s stringent food safety standards when the food products
come from diversified sources. Over the years, Singapore has experienced crisis and scandals in food supply chains
include Bovine Spongiform Encephalopathy (BSE), salmonella contaminated peanut butter, and food adulteration for
economic gains. It is clear that for food safety reasons and to protect consumers' interests, Singapore need a
comprehensive food trace system cover food production process from farm to fork.
One area being looked at is advanced molecular profiling technologies to meet this need and to trace the intrinsic component of
food products via their unique pattern of DNA, proteins or metabolites. Metabolomics, a relatively new post-genomic
discipline, has been rapidly embraced by the scientific community owing to its potential in enhancing the understanding of the
molecular components, and offer better insight of the dynamic changes of an organism or crop product
FOOD AND BEVERAGE MARKET SINGAPORE
49
Trends for the food and beverage industry
Trend
Smaller packs
Driver
Benefited Segment
Examples
Single portion biscuits; smaller milk
cartons, single portion wine bottles.
-
Lower income (C and D)
for pricing strategy
-
Machinery producers
-
Packaging producers
-
Higher income (A and B)
for convenience
-
Packaging designers
Low salt, low trans,
less sugar
-
Legislation
Consumer demand
(obesity and healthier
lifestyle)
-
Food enhancers
Flavors
Texturizing agents
Margarine with less saturated fat;
low sodium ready meals
Lighter packs (use of
less pack material)
Cost reduction and
environmental concerns
-
Machinery producers
Packaging producers
Packaging designers
Water bottles with less plastic;
smaller lids; recyclable packs.
Focus on innovation
Market – need to launch new
products and / or new packs
on a regular basis
The whole industry, in
particular packaging
producers
New drink combinations (coconut
water with juice); meal kits.
Convenience
All segments are affected, in
particular people from larger
cities
-
-
Packaging
Texturizing agents
Quality / food safety
-
Legislation
Consumer demand
The whole industry, in
particular machinery and
laboratory equipment
manufacturers
-
Indulgence and
pleasure
Foodservice
Customer demand:
customers are not willing to
give up on pleasure to eat
healthier. Industry needs to
change as little as possible
the product characteristics
(flavor, consistency,
crunchiness, etc.)
-
Lifestyle in large cities, low
unemployment rates,
increase in income
Industry as a whole,
specially ingredient and
additives suppliers and
kitchen appliances
producers
Source: Osec from desk research
FOOD AND BEVERAGE MARKET SINGAPORE
50
Food enhancers
Flavors
Texturizing agents
Packaging producers
Packaging designers
-
-
-
Easy to peel, easy to seal
Products with better resistance
to temperature variation or that
do not need refrigeration
Packaging that goes directly
into the microwave / oven.
Machinery to avoid food
manipulation (food safety);
machinery that kills bacteria
keeping the product nutrients
Equipment for faster and more
efficient laboratory analysis
More attractive packs made
with more “noble” materials
such as glass, showing appetite
appeal on the label / pack
Food with a premium and
homemade appeal
Texturizers to compensate
lower use of fat
Kitchen appliances and
equipment such as industrial
stoves.
6. Food Distribution
6.1. ROUTE TO MARKET
Singapore’s distribution channels for consumer ready foods are now concentrated around supermarkets and hypermarkets.
While there are alternative channels, e.g. the wet and dry markets, small “mom and pop” type shops, mini-marts and some
specialty food and drinks shops, trade sources comment that these channels can no longer support imported products from a
manufacturing location as far and as expensive as Switzerland if the strategy is to build a sizeable market and share in the long
term. Swiss exporters have to accept that their brands and products have to be in Singapore’s main retailing channels, i.e.
supermarkets and hypermarkets, if they want to have a successful and sustained future in the Singapore retail channels. As the
major supermarket operators are heavily into seasonal gift retailing, premium and specialty products, organics and expatriatetargeted products due to their market segmentation strategies, this position is broadly true for both niche and mass market
type products.
There are 3 major companies that dominate the Singapore food retail market: NTUC FairPrice, Dairy Farm Group and Sheng
Siong.
6.1.1. FairPrice Group
The FairPrice group of supermarkets is owned by the co-operative NTUC FairPrice Co-operative Ltd. It was founded in 1973
with the social mission of moderating the cost of living in Singapore by providing competitively-priced products for the low
income and lower-middle income consumers. From a single supermarket when it was established, it has now grown to become
Singapore’s largest retailer with a network of more than two hundred and thirty outlets including FairPrice Supermarkets,
FairPrice Xtra, FairPrice Xpress and Cheers Convenience Stores. Geographically, the FairPrice chain has the most extensive
consumer reach and across all income segments.
FairPrice supermarkets can be found in almost every residential estate in Singapore. They primarily target the low income to
the middle income consumers. But in recent years, FairPrice has also attempted to extend its reach to middle income
consumers with higher spending power with the establishment of FairPrice Finest, which sells more fine foods compared to
their other outlets. Nevertheless, in determining whether a product should be procured for FairPrice, competitive pricing is still
one of the factors taken into consideration given their role as a cooperative.
6.1.2. Dairy Farm Group
The Dairy Farm Group, which is headquartered in Hong Kong, runs many supermarket brands. Their target each consumer
segment from the highest income consumers in Singapore right down to discount stores. The supermarket brands are as
follows:
 Cold Storage
Established in 1903, “Cold Storage” is an iconic name, unique in the history of Singapore, and is the country’s oldest
supermarket operator. In 1993, Cold Storage in Singapore was acquired by the Dairy Farm Group.
FOOD AND BEVERAGE MARKET SINGAPORE
51
 The Market Place
As a premium supermarket, the Market Place supermarkets focus on the high and upper-middle income consumers although
some middle income consumers sometimes shop there.
 Giant
Giant offers fresh, groceries and general merchandise, targeting at the value conscious shoppers.
 Three-Sixty Gourmet Supermarket
There is one gourmet supermarket operated by the Dairy Farm Group situated at probably Singapore’s most expensive
shopping mall (ION Orchard). It caters to the highest income consumers in the country. They position themselves as the
“Epicurean Heaven” for all shoppers. Top luxury food brands and labels from around the world can be found at the Three-Sixty
Gourmet Supermarket. They include brands such as Fauchon, Hediard and Dean & Deluca. All types of fine food such as
special Italian vinegar, flavored oils, herbs, caviar, wine and specialty cheeses are carried at Three-Sixty. It also has a large
organic food section.
6.1.3. Sheng Siong
Sheng Siong Supermarket was founded in 1985 by three brothers. They had started out selling chilled pork at a booth in a
supermarket chain store, but when the store owner ran into financial trouble, the brothers took the plunge and ventured into
retail business by taking over the whole store. Today, they operate more than 25 supermarkets, are listed on the Singapore
Stock Exchange and are the 3rd largest supermarket chain in the country.
Sheng Siong’s stores are very much targeted at low income consumers. While they sell a whole range of products, not unlike
FairPrice and Cold Storage, most of their products are sourced from neighboring countries in South East Asia, and China.
Their “Taiwan Food Fair” and “Korean Food Fair” promotions are popular among consumers.
The strategies of the retailers in segmenting the market means that it is possible for a shopper to buy a huge range of different
products from across the world, including many products that are in the supermarkets or other large format stores in
Switzerland. This arises because of consolidated shipments imported either by the retailer, a part of its group, or an
independent importer-distributor.
FOOD AND BEVERAGE MARKET SINGAPORE
52
Distribution of Consumer Ready Food and Drinks in
Singapore
Procurement Method by Major Supermarkets,
Hypermarkets and Departmental Stores in Singapore
Retailer Names &
Ownership
Procurement Method
FairPrice
(Local Cooperative)
Direct sourcing preferred
with some distributors used
for smaller volume supplies.
Cold Storage group*
and Giant (**)
(Owned by DFI, a Hong
Kong based listed
company)
Direct sourcing preferred,
together with a number of
local distributors
Sheng Siong
Supermarket
Local agents are important,
but this company is
increasingly sourcing on a
direct basis from overseas
suppliers.
Note: (*) The Cold Storage group of supermarkets also includes Jason’s and The Market Place banners
(**) As of April 1, 2013, Shop n Save had been rebranded as Giant.
Source: USDA Gain Report
6.2. NATIONAL DISTRIBUTORS
Singapore’s distribution channels for consumer ready foods are currently concentrated around supermarkets and
hypermarkets. The 2 leading convenience store operators, Dairy Farm and NTUC FairPrice, control most of the supermarkets
in Singapore. Local distributors are usually used when exporters bring food products into Singapore. Exporters are also
advised to work with only one distributor to avoid a result in price wars and brand dilution, and to appoint a distributor with
an established network so as to reach the exporter’s target segment. Distributors manage importing, storage and distribution to
buyers, and most distributors are also responsible for marketing and promotion. It is also increasingly common to sell directly
through to retailers.
FOOD AND BEVERAGE MARKET SINGAPORE
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Major F&B Distributors in Singapore
Company
Type of Product Distributed
Brands Represented
Interstate Market (2007)
Pte Ltd / FairPrice
Beverages, cake roll, chocolates,
cookies, snacks, desserts, puddings,
nuts, biscuits, potato chips, breakfast
bars, canned food, cereals, dressings,
dried food, instant condiments, instant
porridge, honey, noodles, oil, organic
health food, pasta and sauce, rice,
spread, sugar, seasoning
F&N, Yeo’s, Tai Hua, FairPrice, Kraft, Lady’s
Choice, Capilano, Nuzeabee, A1, Chng Kee, Lee
Kum Kee, Mak Nyonya, Prima Taste, Maggi,
Knorr, Koka, Myojo, Nong Shim, Indofood, Maggi,
Chief, Duck, New Moon, Sunbeam, Soyalite,
Bragg, Black Gold, Natur-Organic, Agnesi, Barilla,
Leggo, Prego, San Remo, Double FP, Dragonfly,
Golden Phoenix, Royal Umbrella, Heinz,
Delmonte, Alphen, Cadbury, Arnotts, Camel,
Cowhead, Calbee, Jack & Jill.
Q.B. Food Trading Pte Ltd
Fruit drinks, yogurt, soda, mineral
water, cheese, frozen meat, dessert,
frozen bread/ pizza, frozen potato/
vegetable, further processed meat,
pasta, seasoning/ condiment, snack
Berry up, Buffalowing, Café Aurora, Cape Herb
and Spice, Cellone’s, Cholula, Country Prime Dry
Pepperoni, Daisho, De Celco, De Nigris, Delicious,
Ebara, Ehrmann, Furmano’s, Giovanna Pavarotii
Bal Samic, Granarolo, Happy Cow, Healthy
People, House, Independent, Jack Ling’s,
Johnsonville, Knead it Bakery, La Corvinia,
Lemnos, Mc Cormick, Mizkan, Moore’s, Nutino,
Pierce Food, Plochman’s, Primo, Route II,
Rutherford & Meyer, Saputo, Sealord, Sujon,
Sweet Nature, Tatua, Tosa Reihoku, Tradition,
Vicenzi, Vittoria,Yamasa
Benfoods (S) Pte Ltd
Wine & beverages, fresh/frozen
seafood, processed seafood, frozen
meals and meat cuts, dairy products,
edible oil, ready to eat food, others
Cowhead, Farmland, Oriental Fortune, Haton,
Orchard Fresh, Spices of the Orient
Culina Pte Ltd
Seafood fresh/frozen/ processed,
frozen meals and meat cuts, bakery
products, canned food, cereals,
confectionary, dairy products, edible
oil, frozen food/pastry/ desserts, frozen
vegetables, gourmet/ specialty, maple
syrup, organic, salad dressings, snacks,
wine, juices, mineral water
Alain, Milliat, Rangers Valley, Orlienas, Kaviari,
Pronto Fresco, Mulocr, Poujauran, Rocklife
Seaffoods, FranceFish, Royal Oyster, Kobe,
Plantin, Chiteau d’ Estoublon, ceas, de Mont Saint
Michel, Ortiz, Tetsuya’s, Kinkawooka Shell Fish,
Petuna
Auric Pacific Marketing
Seafood- fresh/ frozen/ processed, deli
Angus, Gourmett, Buttercup, Countre, Pure
Pte Ltd
meats, frozen meals and meat cuts,
Creamy Butter, Baker’s Pride, Delicious,
bakery products, canned food,
Sunshine, Top-One, Food Junction, Kokor,
confectionary, dairy products, frozen
Malones, Tetsu, Delifrance
Torres, Ruffino, Cakebread Cellars, Sequoia
Grove, Inniskillin, Caymus Vineyards, Joseph
Phelps, Marimar, St. Francis, Miguel torres,
Brown Brothers, Torbreck, Plantagenet Wines,
Chateaude Laubade, Vignobles Lesgourgues,
Champagne Taittinger, Knappstein, Leroy,
Bridgewater mill,
food/ pastry/ desserts, frozen
vegetables, gourmet/ specialty, health
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54
Barossa Valley Estate, Castello Banfi, Champagne
food, maple syrup/ jams/ spreads,
Jacquart, Cono Sur, Cellini, Gerard Bertrand,
organic, ready to eat, wine, juices
Hardys, Kim Crawford, Nederburg, Robert
Mondavi, Tatachilla, Taylors, Placido, Voss, VnC
Cocktail and Grolsch
Angliss Singapore Pte Ltd
Seafood- frozen/ fresh, frozen meals,
Dew Fresh, Dew Pride, Catch of the Day, Master
bakery products, dairy products, frozen
Butchery, Amosco, Garden Cuisine
vegetables, organic, ready to eat
DKSH Singapore
Biscuits, Chocolates, Sweets, Potato
Frito Lay, Tulip, Campbell Soup
Chips, Confectionary
Shiro Corporation Pte Ltd
Canned abalone, canned shellfish,
Jade
frozen lobster, frozen snow crab and
crab meat, cold appetizer, finger food,
dessert, pastry puffs, pasta
6.3. PRICING
The decision in determining the price of a product is heavily dependent on the nature of the product sold. For instance,
consumers are more price sensitive to necessities than luxury goods. According to New Zealand Trade and Enterprise’s Food
and Beverage Market profile in 2011, the typical mark ups that occur along the supply chain are 10% for shipping cost, 5% to
7% for transportation cost, and 15% to 20% for distribution and retail mark up costs.
For comparison purposes, we have added a list of products and their retail prices for comparison purposes.
Figure 2 – Examples of imported foods in Singapore
Product / Brand
EMMI
Price
S$9.80
Fondue 400g
PRESIDENT
Product / Brand
LINDT
Price
S$9.90
Milk Hazelnut
Gold Bar 300G
S$4.80
Grated
Emmental
Cheese 100g
FOOD AND BEVERAGE MARKET SINGAPORE
55
Image
KAMBLY
Butterfly Biscuits
100G
S$5.40
Image
MOVENPICK
S$6.10
Swiss Tub Ice
Cream 175ml
BAILEYS
SOMERSBY
S$16.80
Apple Cider 4s
330 ML
$67.05
Irish Cream 70cl
Source: FairPrice & Cold Storage Corporate Website
Swiss exporters must also take into account the listing fees that need to be paid to supermarket retailers here. Trade interviews
have indicated that the listing fees are dependent on:
1)
2)
3)
4)
Product Category – is the product fast moving or a seasonal item? A fast moving product commands a higher listing
fee.
No. of store locations the products will be placed at
The position of products on the shelves. Products placed at eye-ball level will command a higher listing fee.
No. of SKUs
When a new product is placed in the stores, importers need to pay a one-time initial listing fee, followed by a monthly
placement fee, covering costs such as admin fee, anti-theft fee, etc. Supermarkets may also ask distributors to cover the cost of
advertising and promotion. As such, listing fees can range from several ten to hundreds of thousands of dollars.
Among the three supermarket / hypermarket chain (FairPrice, Cold Storage and Sheng Siong), Cold Storage has the highest
listing fee (by a few percent), followed by FairPrice and Sheng Siong.
Importers we spoke to were reluctant to provide an exact amount as to how much they are paying for listing fees due to
confidentiality reasons. One importer, however, indicated that a hypermarket he was targeting quoted him S$5000 per
product per store. This importer also indicated that in his opinion, shelving fees in Singapore were very competitive and
relatively cheap compared with other established markets (e.g. Australia, US, Japan) he has dealt with.
FOOD AND BEVERAGE MARKET SINGAPORE
56
7. Opportunities & Challenges
7.1. OPPORTUNITIES
According to Food Export- Midwest, a US government funded agricultural support group helping US food and beverage
companies penetrate new export markets, demand in Singapore is and will be driven by the following products:









Dairy products
Fresh and processed fruits and vegetables
Frozen food
Healthy/ organic/ specialty food
Poultry and red meats
Seafood
Snack food
Wine and beer
Other processed food
Anecdotally, this trend seems to be confirmed by Business Monitor’s forecasts, which indicates that sales of processed food
products, alcoholic drinks, soft drinks and mass grocery retails ranges from a positive 2.8% to 6.5%. Hence, there is potential
growth in these sectors which Swiss F&B companies may wish to consider venturing into and to seek new business
opportunities here.
2012 BMI CAGR Forecasts to 2016
Product
Percentag
e (%)
CAGR
forecast to
2016
Food Consumption
+3.1%;
+3.2%
Alcoholic Drink Value
Sales
+9.6%;
+6.5%
Soft Drinks Value Sales
+5.0%;
+3.5%
Mass Grocery Retail
Sales
+3.0%;
+2.8%
Source: BMI Industry View - Singapore - Q4 2012
As Swiss exporters consider the opportunities to sell their foods and beverages in Singapore, they should also take the
following factors into consideration:
 Singapore is reliant on imports for virtually all of its food and drink supplies and will always remain this way
 Singapore is one of the wealthiest markets in Southeast Asia, and it is a key location for expatriate families to reside in East
Asia. It also has a very small lower income group, so virtually the whole population is a target market.
 Singaporeans have a modernized diet that includes a wide range of foreign concept foods, which has expanded on the back of
demand from the younger generation (under 40s).
 Singaporeans are open to products from developed markets that are of high quality and value-for-money.
FOOD AND BEVERAGE MARKET SINGAPORE
57
 The population has a large number of single adults who are very clearly indulgent in their spending patterns when economic
times are good. This benefits premium imported meats, some dairy products, exotic fruits, confectionery, wines and spirits,
gift items and pet foods, segments that fit well with what Switzerland has to offer in terms of exports.
7.2. CHALLENGES
A key challenge in Singapore is that it is a highly competitive market. The major supermarket and hypermarket operators
control the whole retail market by actively segmenting it around different store concepts (and store brands/banners) and
merchandising strategies that target the low income group through to the high income groups and expatriates. As a result,
retailers control access to shoppers and have very strong bargaining power over suppliers of all forms of food and drinks, fresh,
frozen and shelf stable retail packed. Marketing and distribution costs are extremely high for new product launches and also
high for the on-going maintenance of market shares and positions.
This situation is further compounded by the fact that retailers are very profit margin driven because of their very high
overheads, especially store rentals. This has led to a situation where:
 Private label products has become more evident on shelves
 Retailers are buying directly, bypassing the middleman, namely distributors. This is especially so for specialty products like
organics and niche products that are specifically demanded by expatriates.
Another challenge is that local products now include market leading ASEAN-made products imported from Malaysia,
Indonesia, Philippines, Vietnam and Thailand. This supply scenario now includes food and drink produced by multinationals
that now have factories in the ASEAN region, negating the need for them to import from their home countries where these
products were originally imported from. This trend can be clearly seen in products such as ice cream, tea, sugar confectionery,
chocolate, cookies, breakfast cereals, snacks of various types, soups and soft drinks.
In view of these challenges, importers and distributors now are much more focused and demanding of their suppliers that they
want to work with. They expect their suppliers to be fully committed to develop their markets in Singapore, in terms of
willingness to:





deal with local demands for promotional campaigns
develop products and packages that fit local demand requirements
have a product and brand that is unique enough to break into the market
be flexible in terms of returns and profit goals
adopt a medium to long term strategy and action plan to build their market in Singapore.
This situation exists because suppliers in Singapore have very little power to deal with the demands of retailers when it comes
to accessing retail space for their products. Trade sources comment that everything now revolves around the cost of accessing
such space, maintaining a listing (avoid delisting) and so the ability to consistently access shoppers.
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8. Export Check List
8.1. READINESS TO EXPORT
Is your company already exporting to
other countries?
Singapore is an open market with very few barriers to entry. While this makes it
very attractive to foreign exporters, it also means that Singapore is a very
competitive market which requires commitment from a Swiss exporter who is
willing to invest in marketing and product promotion to differentiate their
products from other suppliers in the market.
Is your company willing to invest in
product launch, traveling, trade fairs,
adaptation of labels and marketing
materials, registration process, market
research and to find the ideal partner?
There are ways to save costs on your internationalization process, but your
company will still need to invest in this new market. Using specialists from
Singapore (who can assist you from there, avoiding trips) and sharing costs with
your Singapore partner are some of the ways to spend less on the initial costs.
Will your company focus on a small
number of countries?
Exporting to a new country is always a challenge, so it is recommended that
your company focus on one or only a few countries at a time.
Is your company willing and able to make
product adaptations if the local market
and / or legislation requires so?
When learning more about the local market and regulatory aspects you might
find out that some product or package adaptations might be necessary.
Do you have a strategy for export to
Singapore?
During the course of the project, your strategy may change, according to the
market research findings, for example. It is key, though, that you have in mind a
few initial aspects:
Are you using Osec’s network in order to
take the most of it in your new markets?
FOOD AND BEVERAGE MARKET SINGAPORE
59
-
which products you want to focus on what is your investment budget on this
new market
-
what kind of information you still need before you can take decisions
-
what is the ideal partner profile
Osec and the Swiss Business Hubs with their network of experts can assist you in
exporting to Singapore and other countries with a wide range of services that
will fit exactly your needs.
8.2. MARKET RESEARCH
How much do you know about
Singapore?
Research and collect as much information as possible about Singapore – always
from trusted sources.
Useful sources may be Osec and the Swiss Business Hubs and their network of
experts, the Chambers of Commerce, your suppliers and customers already
present in the market, trade associations, etc.
Do you know if Singapore is the right
market for your product?
Even if you are an experienced exporter, you may need further research in order
to understand better how the Singapore market will receive your product.
Osec offers a menu of market research services that will provide the basis for
making a strategic decision.
Do you know the right place to launch
your product?
While there are no geographic issues with regards to selling your products in
Singapore given the size of the country, the market is fragmented in terms of
retail channels and a clear strategy is needed as to what is the ideal route to
market.
Osec’s services can help you decide where to start.
Do you know your competitors, their
products, strengths, weaknesses and
pricing strategy?
Competition in Singapore is fierce. It is key to understand who are your
competitors, how they are operating in Singapore, what are their prices, who
are their customers, what are their product sizes and packages, what is their
market position, etc.
A customized competition analysis is one of the services offered by Osec and the
Swiss Business Hub Singapore and will be tailor made to your company needs.
Is your product competitive in Singapore?
After you find out your competitors’ prices, how do you know if your own
product is competitive?
It is recommend having a landed cost analysis, which will show you, starting
from your FOB price, how much your product will cost in Singapore after all
taxes. This service can be rendered by a local customs broker and will not only
help you to understand your price compared to your competitor’s but will be also
prove useful in your negotiation with a future local partner (for setting
commission, margins, targets, etc.).
Osec offers this service counting on the assistance of local experts.
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8.3. TRADE FAIRS
Do you know the most important
Singapore food and beverage trade fairs?
There are a few but significant trade shows in Singapore. A list is published at the end of
this report.
Checking if your competitors are exhibiting and the size of their booth (when a map is
available) will give you a good hint if your company should or not be present. Also check if
other Swiss companies are exhibiting – maybe you can ask them for their inputs on the
fair.
Having a booth on a trade fair is a high investment, and ideally you should visit the trade
fairs prior to exhibiting to check if it is worth it. Sometimes, due to costs or time, this is not
possible, so you may hire local assistance for that.
Osec and its network partners can assist you with obtaining further information on trade
fairs, including visiting the trade fairs for you and reporting the main findings.
Do you know how to save costs on trade
fairs?
There are a number of ways your company can save costs and time when exhibiting at a
trade fair:
-
if you know other Swiss companies who will be at the fair, why not contact them to
share a booth?
-
in case you have already a local partner, you can try to negotiate sharing the trade
fair costs. Just remember that your partner might be exhibiting other products as
well. If this is arranged and you will not visit the fair, you should ask your partner for
photos, details on the visitors as well as all expenses receipts.
8.4. REGULATORY – REGISTERING PRODUCT IN SINGAPORE
Are the ingredients of your product and
packaging material allowed? Does your
labeling conform to the requirements in
Singapore?
The Agriculture and Veterinary Authority of Singapore has a comprehensive
and detailed website which provides details on what is allowed with regards to
packaging and ingredients. It also provides details on what is permissible or
required to be stated in labeling.
You will also need to check other ingredients of your product, since additives,
transgenic ingredients, organics and also packaging materials have specific
legislation.
Register your trademark
Trademark registration can take as long as a year, so it is recommended to start
the process as soon as you decide to start business with Singapore.
It is recommended to use a specialized trademark registration office / patent law
office to conduct the process.
You may rely on the Swiss Business Hub for indications of specialized offices.
Do you know your product Harmonized
System (HS) Code?
Check with a Singapore customs broker and with your local partner the most
appropriate code as this affects taxes and import licensing.
With the HS code, you will be able to check if the product needs an import license
prior to shipment.
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8.5. FINDING A DISTRIBUTOR / IMPORTER
Do you know what kind of partner you
are looking for?
Name the must have, the nice to have and the don’ts of your ideal partner. This
profile may change during search, but it is starting point.
Some aspects to think about:
-
Do you already know candidates for a
partnership?
level of experience or expertise
language skills
clients and market served
need for exclusivity
size (company or one-man-show)
need for warehouse for keeping inventory
type of import license
geographic coverage
type of partner: distributor, importer or representative
Maybe your company has already done business with Singapore, visited the
country a few times or was even contacted by Singapore companies and has a
few names of potential local partners.
It is highly recommended to check the candidates, be they companies or persons.
Checking their background, experience, creditworthiness and comparing their
expertise and reputation can avoid future problems.
Osec, through its local experts, can provide partner verification services for your
company.
Identify a number of potential partners –
do not consider only one option.
The selection of your local business partner is probably the single most
important step in your export project. This should not be left to luck. A thorough
partner search is highly recommended.
Osec and the Swiss Business Hub Singapore have assisted hundreds of Swiss
SME in the selection process, through business contact checks. This service
extends from the compilation of a checked long list of company addresses to the
analysis of which candidates best meet your criteria. The result is a short list of
potential partners.
Have you considered a partnership with a
local manufacturer with complementary
products or acquiring a local competitor?
Even if you have your pre-set distribution model, you may consider alternatives,
including acquiring a local competitor, with expertise and a customer base
already established.
Osec and the Swiss Business Hub Singapore may indicate M&A experts from
their network to you.
Meeting the candidates
Study your partner candidates’ profiles in advance and make sure you have
enough time to meet them. It is not unlikely, if the conversation goes well, that
they might invite you for another meeting or dinner, so leave some open spaces
on your schedule for such occasions.
Osec and the Swiss Business Hub Singapore offer services to help you preparing
your schedule, including all trip arrangements.
Put an effort on promoting your company
/ product
When meeting the potential partners, have in mind that you might need to
persuade them to work with you. Present your company and products well to
leave a good impression.
Careful when bringing samples of your product (food / beverage) – it is
recommended to check if those are allowed to be brought in your luggage.
Define with your partner the marketing
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62
If you found the right partner you need to start negotiating a few aspects
budget, sales forecast, client goals and
period for reviews.
regarding sales goals, product registration, costs sharing, development of
promotional materials, marketing budget, financial resources remittance
(amount and periodicity), product launching plan, trade fairs, need for
additional staff, training program in Switzerland or Singapore, etc.
Take advantage of your partner’s expertise and past experiences.
Establishing a contract
It is recommended that the first contract is signed for a shorter period of time
(e.g. one year). It must contain your representative’s / distributor’s obligations
and goals, exclusivity clauses (if agreed), financial agreements on commissions,
etc. A confidentially clause is also recommended.
The contract should be elaborated / analyzed by a lawyer, considering both
Swiss and Singapore laws. It is likely that your standard contract is not
applicable or valid in Singapore.
For lawyers recommendations, contact the Swiss Business Hub.
8.6. REGULATORY – ADAPTING TO THE LOCAL LEGISLATION
Labeling Requirements
A food label should contain core information such as the prescribed food name, list
of ingredients, mandatory warning, advisory statements or allergens declarations,
net weight or volume, date mark, nutritional information panel, instructions for use
or storage, country of origin, the name and address of the business and
manufacturer and importer. Repackaged foods must be labeled to show (in English)
the appropriate designation of food content – whether foods are compounded, mixed
or blended; the minimum quantity stated in metric net weight or measure; the name
and address of the manufacturer or seller; and the country of origin. Illustrations
must accurately describe the true nature or origin of the food.
Packages of food described as “enriched”, “fortified”, “vitaminized” or in any other
way that implies that the article contains added vitamins or minerals must show the
quantity of vitamins or minerals added per metric unit.
8.7. LOGISTICS AND IMPORTS
How is your product going to be
shipped to Singapore? Have you
considered the lead time?
Depending on the type of transportation and the customs clearance time, goods
can take more than a month to arrive at the final destination. Having the
documentation clear and containing the correct information will avoid delays.
Necessary certificates
All imports require an import permit. Make sure you have all necessary certificates
according to the Singapore regulations shipped with the export documents. More
details can be found at
www.customs.gov.sg/leftNav/trad/Permits+and+Documentation.htm.
Bona Fide Trade Samples
Import of trade samples for which the total value is below US$286 (S$400) is not
subject to payment of duty and/or GST. In addition, no permit is required for their
import. Bona fide trade samples (excluding liquors and tobacco) may be imported
if they are imported solely for the purpose of soliciting orders for goods to be
supplied from abroad, for demonstration in Singapore to enable manufacturers in
Singapore to produce such articles to fulfill orders from abroad or by a
manufacturer for the purpose of copying, testing or experimenting before they
produce such articles in Singapore. More information can be found at
www.customs.gov.sg/leftNav/trav/Business+Travellers.htm.
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8.8. PRODUCT LAUNCH
Are you going to launch the product on a
trade fair or event?
If you are planning a special launch event with your partner, make sure that:
-
products / samples will arrive on time (consider extra lead time due to
customs)
you picked a date considering local holidays and hired the venue in advance
The Swiss Business Hub Singapore may provide services to assist you in the
organization of your product launch.
Are your partner and their team well
trained and prepared for launch?
Your local partner’s staff is your company’s door opener and face in Singapore –
they need to be prepared and know your product well.
Do you have a clear pricing strategy?
Have you thought about warranty and
exchange policies and negotiated this
with your partner?
When launching the product, your clients will expect to know about prices, terms
and conditions. Make sure you have discussed and arranged your pricing
strategy, warranty, exchange policies, etc. with your local partner.
Does your importer have stocks for
launch?
Launching a product and not being able to sell immediately due to customs
delays, for example, will be frustrating to your customer and damage your
image. Make sure the products arrive before launch.
Have you thought about advertising on
specialized publications?
Consider this possibility with your local partner, but check first about the target
readers of the publication and the expected results.
Have you scheduled a program for
continuous training?
You should train your partner before launch, but it is important that you follow
up and organize additional training sessions periodically.
Visit some clients with your partner when possible, so you have a feeling of their
needs and doubts.
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9. Appendix
9.1. TRADE SHOWS
9.1.1. Food & Hotel Asia 2014 (FHA)
This is Asia’s largest international exhibition on food and drinks, hotel, restaurant & catering equipment and supplier &
services, which will be held on 8 - 11 April 2014, in Singapore Expo. This event is organized by Singapore Exhibition Services
Pte Ltd. A conference is also included.
The biennial FHA is powered by its specialized events namely Food Asia, Hotel Asia, Bakery & Pastry, Hospitality Style Asia
and Hospitality Technology; and the newly launched Specialty Coffee & Tea. It is estimated that 2,800 exhibitors from 70
countries / regions will be participating in FHA2014.
Website: www.foodnhotelasia.com
9.2. TRADE AGENCIES & ASSOCIATIONS
Agri Food & Veterinary Authority of Singapore
Website: www.ava.gov.sg
Health Promotion Board, Singapore
Website: www.hpb.gov.sg
Inland Revenue Authority of Singapore
Website: www.iras.gov.sg
Restaurant Association of Singapore RAS
Website: www.ras.org.sg
Shatec Institute
Website: www.shatec.sg
Singapore Coffee Association (SCA)
Website: www.singaporecoffee.org
Singapore Customs
Website: www.customs.gov.sg
Singapore Food Manufacturers Association (SFMA)
Website: www.sfma.org.sg
Singapore Fruits and Vegetables Importers and Exporters Association (SFVA)
Website: www.singaporefva.com
Singapore Hotel Association (SHA)
Website: www.sha.org.sg
Spring Singapore
Website: www.spring.gov.sg
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Swiss Business Association, Singapore
Website: www.swissbusiness.org.sg
The Food and Beverage Managers’ Association (FBMA)
Website: www.fbma.sg
9.3. PUBLICATIONS
Appetite Asia
Website: www.appetite-asia.com
Cuisine & Wine Asia
Website: www.asiacuisine.com.sg
Epicure Asia
Website: http://epicureasia.com/
Expat Living
Website: www.expatliving.sg
Food and Travel Magazine
Website: www.foodandtravel.com/travel/gourmet-traveller/category/republic-of-singapore
The Peak Magazine
Website: www.thepeakmagazine.com/sg/peak-selections-gourmet-and-travel
Wine and Dine
Website: www.wineanddine.com.sg
9.4. IMPORT DUTIES
Singapore Import Duties
HS Code
Product Description
Customs Duty
Excise Duty
21069061
Alcoholic preparations in liquid form as raw material
for making composite concentrates of a kind used for
the manufacture of alcoholic beverages
Nil
$70.00 per liter of alcohol*
21069062
Alcoholic preparations in other forms being raw
material for making composite concentrates of a kind
used for the manufacture of alcoholic beverages
Nil
$90.00 per kg
21069064
Alcoholic composite concentrates in liquid form for
simple dilution with water of a kind used for the
manufacture of alcoholic beverages
Nil
$70.00 per liter of alcohol*
21069065
Alcoholic composite concentrates in other forms for
simple dilution with water of a kind used for the
manufacture of alcoholic beverages
Nil
$90.00 per kg
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21069066
Other alcoholic preparations in liquid form of a kind
used for the manufacture of alcoholic beverages
Nil
$70.00 per liter of alcohol*
21069067
Other alcoholic preparations in other forms of a kind
used for the manufacture of alcoholic beverages
Nil
$90.00 per kg
22030010
Stout or porter
$16.00 per liter of
alcohol
$48.00 per liter of alcohol*
22030090
Other beer including ale
$16.00 per liter of
alcohol
$48.00 per liter of alcohol*
22041000
Sparkling wine
Nil
$70.00 per liter of alcohol*
22043020
Other grape must over 15% alcoholic
Nil
$70.00 per liter of alcohol*
22051010
Vermouth & other wine of fresh grape flavored with
plants or aromatic substances not over 15% alcoholic
in containers of 2l or less
Nil
$70.00 per liter of alcohol*
22051020
Vermouth & other wine of fresh grape flavored with
plants or aromatic substances over 15% alcoholic in
containers of 2l or less
Nil
$70.00 per liter of alcohol*
22059010
Vermouth & other wine of fresh grape flavored with
plants or aromatic substances not over 15% alcoholic
in containers of more than 2l
Nil
$70.00 per liter of alcohol*
22059020
Vermouth & other wine of fresh grape flavored with
plants or aromatic substances over 15% alcoholic in
containers of more than 2l
Nil
$70.00 per liter of alcohol*
22060010
Cider & perry
Nil
$48.00 per liter of alcohol*
22060020
Sake
Nil
$70.00 per liter of alcohol*
22060030
Toddy
Nil
$70.00 per liter of alcohol*
22060040
Shandy
Nil
$70.00 per liter of alcohol*
22060091
Other rice wine
Nil
$70.00 per liter of alcohol*
22060099
Other fermented beverages mixtures of fermented
beverages & mixtures of fermented beverages & nonalcoholic beverages
Nil
$70.00 per liter of alcohol*
22071000
Undenatured ethyl alcohol of alcoholic strength by vol
of 80% or more
Nil
$70.00 per liter of alcohol*
22082050
Brandy obtained by distilling grape wine or grape marc
Nil
$70.00 per liter of alcohol*
22082090
Other spirits obtained by distilling grape wine or grape
marc
Nil
$70.00 per liter of alcohol*
22083000
Whiskies
Nil
$70.00 per liter of alcohol*
22084000
Rum & other spirits distilled from fermented sugar-
Nil
$70.00 per liter of alcohol*
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cane products
22085000
Gin & geneva
Nil
$70.00 per liter of alcohol*
22086000
Vodka
Nil
$70.00 per liter of alcohol*
22087000
Liqueurs & cordials
Nil
$70.00 per liter of alcohol*
22089010
Medicated samsu not over 40% alcoholic
$8.00 per liter of
alcohol
$70.00 per liter of alcohol*
Source: Singapore Customs
Note: Formulae for computation of duty payable on liquors:
Duty = Total quantity in litre x $70.00 x % of alcoholic strength
FOOD AND BEVERAGE MARKET SINGAPORE
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ExportHelp
www.switzerland-ge.com/exporthelp
exporthelp@switzerland-ge.com
T 0844 811 812
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CH-8006 Zürich
T +41 44 365 51 51
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Avenue d’Ouchy 47 – CP 315
CH-1001 Lausanne
T +41 21 613 35 70
www.switzerland-ge.com
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