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: www.switzerland-ge.com/study
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.
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Source: World Economic Outlook Database – Oct 2012, IMF
FOOD AND BEVERAGE MARKET SINGAPORE
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