Country Market Profile: Singapore
Market Overview
Euromonitor reports that after strong economic performance in 2021, Singapore
experienced a considerable slowdown in 2022, due to persisting global supply chain
disruptions, rising inflation and weaker foreign demand. In 2023, the country’s economic
development continued to decelerate amid continuing global inflationary pressures,
tightening monetary policy, and persisting economic uncertainties. To shield from
economic pressures, Singapore’s government is set to further support households and
businesses.
• Following real gross domestic product (GDP) growth of 3.6% in 2022, Singapore’s
economy is expected to expand at an average annual real rate of only 0.9% in 2023
before rebounding to growth of 2.3% in 2024.
• Inflation in Singapore is forecast to slow down to 4% in 2023 from 6.2% in 2022.
• While Singapore’s merchandise exports increased by 14.4% and imports rose by
17.7% during 2022, the country remained a net exporter of goods.
• Gross fixed capital formation (GFCF) continued to increase over 2022, accounting for
22.9% of GDP.
• The public debt-to-GDP ratio in Singapore fell to 139% in 2022, standing above the
regional average of 96.6%
Singapore is very dependent on imports of food and energy, given the small size of its
geographical territory that prohibits agriculture, while the country has limited natural
resources. Total goods imports accounted for 101.8% of GDP in 2022. The city-state’s
open economy and high reliance on imports make Singapore’s external sector extremely
vulnerable to global fluctuations in trade, with demand and supply changes considerably
affecting the economy.
Singapore is expected to remain one of the wealthiest nations in the world. An advanced
technology sector and extensive free trade policies have cemented Singapore’s image as
an attractive location for international companies, contributing significantly to the
increase in the highest earning class.
The wealthy and affluent consumer segment is forecast to grow continuously in both
numbers and net wealth, supported by a favorable tax regime, driving expenditure on
“inconspicuous consumption” categories, such as education, health goods, and medical
services. Also, the country will continue to boast one of the highest savings per capita
levels globally, forecast to continue rising over the period to 2030. These combined
factors will help to support discretionary spending in Singapore.
The U.S.-Singapore Free Trade Agreement (FTA) has been in effect since 2004.
Singapore also has many bilateral and regional FTAs including with Australia, China,
Costa Rica, India, Japan, Jordan, New Zealand, Republic of Korea, Panama, Peru, Sri
Lanka, European Union, United Kingdom, and Turkey. Singapore is a participant in the
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Regional Comprehensive Economic Partnership regional trade negotiations, which
include the 10 Association of Southeast Asian Nations (ASEAN) countries plus
Australia, China, Japan, Republic of Korea, India, and New Zealand.
Finally, the city-state is a member of the 11-member Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP), which was formally created in March
2018. At the end of 2020, Singapore became a member of the largest trade bloc in the
world, the Regional Comprehensive Economic Partnership (RCEP)
The population reached 5.9 million in 2023, (CIA World Factbook Est.), up from 4.3
million in 2000. By 2030, officials expect the population to be 6.9 million. Singapore’s
society is aging even while the population grows. The median age was 38.9 years in
2023, nearly 5.2 years greater than in 2000. The number of elderly (those over 65 years)
represented 13% of total population in 2023 and the share will rise to 25.3% by 2030.
The proportion of the population aged 65 or over is growing and the youth population is
shrinking. Singapore is projected to experience one of the largest percentage point
increases in the elderly share of the population at 21% between 2019 and 2050, according
to the United Nations (UN). The working-age population (aged 15-64) will gradually
decrease, leaving fewer workers to economically support the elderly population.
USDA’s Office of Agricultural Affairs, OAA, in Singapore, hereinafter referred to as
FAS Post Singapore, reports that Singapore’s highly import dependent, multi-billion-
dollar food industry is driven by robust consumer spending, high disposable incomes, and
intense urbanization. The country’s trade and regulatory policies are focused on ensuring
a consistent foreign supply of safe, high-quality food and agricultural products.
Singapore’s total agricultural and related product import in 2022 reached US$18.9
billion, roughly 9% of which was sourced from United States. (Source: Trade Date
Monitor.)
Market Opportunities and Key Issues for U.S. Processed Food Exporters in
Singapore
Market Opportunities:
• Singapore is highly dependent on imports for almost all its food requirements.
• Large, wealthy, and affluent population with high disposable incomes and a well-
traveled and educated population drives demand for premium products.
• Preference for high quality, wholesome, and natural products (although the market is
niche). Younger generations with higher spending power often purchase imported
meats, premium fruits, wines, spirits and beers, and pet food.
• A large resident expatriate community helps increase the influence of Western trends
and eating habits and the proliferation of western-style restaurants and fast-food
chains.
• Consumers generally perceive “Made in USA” or “Imported from USA” and U.S.
brands as signs of high-quality food and drink products.
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Key Issues:
• Extremely high rental and operating costs in Singapore make promotional marketing
activities more challenging.
• Competition in the Singaporean market is more intense in recent years, with countries
such as China picking up significant market share.
• Imported U.S. products are slightly more expensive than other regional suppliers.
• End-users lack knowledge on use of U.S. products and their versatility.
• U.S. exporters’ inability to service Singapore importers, retailers, and end users, i.e.,
meeting smaller packaging and reduced pricing that fits the market and providing
marketing support.
Singapore imported US$555.4 million in U.S. processed food exports in 2023, a rather
staggering decrease of 27%, ranking third in the region, and 59% of the agricultural total.
When processed food exports are more than half of the agricultural total and higher than
the consumer-oriented sector (US$496.5 million) it makes Singapore a premium
destination for high value-added foods. But the loss equates to US$207.4 million which
adds to the U.S. trade deficit in food and agricultural products.
Top U.S. exports of processed foods to Singapore in 2023 included:
• Fats And Oils – down 54%.
• Food Preparations & Ingredients – up 1%.
• Alcoholic Beverages – up 16%.
• Processed/Prepared Dairy Products – down 36%.
• Chocolate And Confectionery – up 15%.
• Processed Vegetables & Pulses – down 29%.
• Syrups & Sweeteners – down 2%.
• Snack Foods – up 7%.
Retail Sector Highlights:
Euromonitor has estimated the retail sales value of packaged foods in Singapore at nearly
US$3.3 billion in 2023. This represents an increase of 23.4% or US$625.3 million since
2019. They have also forecast the packaged food retail sales to reach US$4 billion by
2028, an increase of 17.1% or US$594.5 million from 2024.
High growth products in the forecast include:
• Cheese
• Rice, Pasta & Noodles
• Dairy (Ex. Cheese)
• Edible Oils
• Baby Food
• Processed Meat, Seafood and Alternatives to Meat
• Baked Goods
• Sweet Spreads
• Pet Food
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FAS Post Singapore reports that Singapore’s retail foods sector is highly developed and
very competitive, with total consumer-oriented imports in 2022 over US$11 billion. It has
returned to normalcy post pandemic. Three key players dominate the sector: NTUC Fair
Price Cooperative, Dairy Farm International Holdings, and Sheng Siong Supermarket
Chain. Singapore’s food retail sector has returned to normalcy post pandemic. It is one of
the most highly developed and competitive markets in the Southeast Asia region. The
industry is comprised of a range of large supermarkets/hypermarkets, convenience stores,
“mom and pop” traditional stores, and specialty retailers.
Singapore’s economy is experiencing a slowdown due to a confluence of factors
including the conflict in Ukraine, shipping delays, and general inflation. Despite these
factors, the outlook for the sector is strong as the consumer market is supported by high
disposable incomes. The Singapore Government continues to provide economic stimulus
measures and monetary aids to both businesses and individuals to mitigate economic
hardship.
NTUC Fairprice is Singapore’s largest retailer (supermarkets, hypermarkets, gas marts
and convenience stores), with a market share of 35%. Their retail formats include
FairPrice, Finest, FairPrice Xtra, and FairPrice Xpress supermarkets or hypermarkets and
Cheers is their convenience store. Housebrand/Private label lines include: FairPrice,
Gold, Home Proud, Pasar, and Pasar Organic. Their exclusive brands are Kirkland
Signature, 365, and Tesco. They are all known to procure from consolidates, distributors,
local importers and direct from exporters. They target all income groups with different
retail formats.
Dairy Farm Group is Singapore’s second largest retailer (supermarkets, hypermarkets,
gourmet stores and convenience stores). They have a market share of 15%. Their retail
format includes Cold Storage, CS Fresh and Giant supermarkets, and 7-Eleven
convenience stores. Their Housebrand/Private label lines are Meadows, Papa Alfredo,
Captain Catch, and Giant. Their exclusive brands include Waitrose & Partners, Duchy
Organics, and Alison’s Pantry. They are known to procure from consolidators,
distributors, local importers, and direct from exporters. They target middle- and upper-
income groups while the hypermarkets target middle to lower income groups.
Singapore’s third largest retailer is Sheng Siong. Their retail formats include
Supermarkets with “wet & dry” market experience. They are across the island, mostly in
suburban neighborhoods. Their Housebrand/Private label lines include Happy Family,
Tasty Bites, Jean Fresh, Homeniks, Heritage Farm, Bake For You, and PowerPlus. They
are known to procure from distributors, local importers, and direct from exporters. They
target middle to lower income groups.
Convenience is a key consideration in Singapore, especially for time-strapped working
consumers. The preference is towards modern grocery retailers that offer one-stop
shopping experience. There are an increasing number of independent specialty retail
stores selling premium gourmet and/or organic and wholesome/natural food products.
Premium supermarkets and independent specialty retail stores located in upscale
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residential areas have seen stronger growth as they cater to upper income consumers and
expatriates with higher disposable income.
Singapore is experiencing high saturation in convenience stores. As many convenience
stores are located near each other, competition is intense. To reduce costs, many
convenience store operations are making use of cutting-edge technology to pilot
unmanned stores/kiosks.
Best Product Prospects:
FAS Post Singapore reports that top prospective U.S. products for the sector include food
preparations, dairy, fresh fruit, processed vegetables, beef and poultry products, bakery
goods, cereals and pasta, and tree nuts.
Foodservice Sector Highlights:
FAS Post Singapore reports that the country’s hotel, restaurant, and institutional (HRI)
sector is also highly developed and competitive. As COVID-19 restrictions eased, the
country hosted 6.3 million visitors in 2022, with revenue spending at US$11 billion. The
tourism sector is expected to recover to pre-pandemic levels in 2024. Combined with the
return of major summits and an upswing in domestic patronage, the HRI sector is looking
at significant potential growth. Singapore is expecting 12 to 14 million arrivals and up to
$16 billion in revenue in 2023.
The foodservice industry, which includes hotels, restaurants, casual dining, fast food
outlets and local food stalls, is highly diverse with a broad range of Asian and Western
cuisines widely available. The sector continues to face challenges of escalating overhead
costs of food ingredients, rent, utilities, and a general lack of skilled labor in the market.
There are 430 total properties providing 70,000 total rooms (source: SG Tourism Board
in Singapore). The hotel industry is a core industry within the tourism sector and
contributes about 20% of total tourism receipts. Apart from lodging, the properties make
a significant portion of their revenue from the sale of food and beverages to the public.
Major upscale hotel brands usually house high-end restaurants. Hotel food and beverage
supplies are usually procured from local foodservice suppliers.
Singapore Airport Terminal Services Limited (SATS) is the main ground handling and
in-flight catering service provider at the Singapore Changi Airport. SATS manages about
80% of the airport’s food services including airline catering, food distribution, logistics,
and industrial catering. For commercial catering, SATS provides catering for large scale
markets: military, hospitals, food retail stores, and event catering (including MICE -
meetings, incentives, conventions, and exhibitions events. Aside from SATS, caterers in
Singapore are typically small to medium sized private enterprises that provide local and
international foods. They typically cater to schools, company events, private social
functions, and factories.
Competition in the HRI/foodservice supply market is aggressive from certain low-cost
countries in some of the U.S.’ core target markets for example, chicken (Brazil) and fish
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fillets (Vietnam). Competition from other quality countries, for example, Australia
(freight advantages), New Zealand and some European countries (for example, France
and Netherlands) because of strong and longstanding links between exporters in these
countries and their loyal importers in Singapore. European exporters also benefit from
demands for provenance (original origin of products) and also from very strong demand-
pull from European executive chefs who work in 4-star to-6-star hotels in Singapore.
Best Product Prospects:
FAS Post Singapore reports that the top U.S. product prospects for the Singaporean HRI
industry include food preparations and ingredients, dairy, fresh & processed fruit, pork,
poultry, wine and beer, and snack foods.
Food Processing Sector:
FAS Post Singapore reports that Singapore’s food processing sector is modest and is
comprised of mainly small and medium-sized enterprises. Its main products include
flavorings, sauces, ready-to-eat meals, noodles, deli meat, sausage, confectionary,
chocolates, snacks, and beverages (including beer). Almost all raw materials for the
Singaporean food processing industry are imported, as local agricultural production is
minimal.
Singapore’s highly import dependent, multi-billion-dollar food industry is driven by
robust consumer spending, high disposable incomes, and intense urbanization. The
country’s trade and regulatory policies are focused on ensuring a consistent foreign
supply of high-quality food and agricultural products. Singapore’s total agricultural and
related product imports in 2022 reached US$18.9 billion, with approximately 9% sourced
from the U.S.
Major suppliers include Australia and New Zealand (dairy products) and Malaysia and
China (fresh vegetables). The U.S. is also a key supplier of dairy products, processed
vegetables, fats and oils, food preparations, ingredients, and snacks. The U.S. is also a
major supplier of dairy products, as well as processed vegetables, fats and oils, food
preparations and ingredients, and snacks.
Most local food manufacturers are small-scale operators based in factories within
industrial areas. Larger food manufacturers are usually multinational companies, and
sometimes produce for the export market. Another general type of food manufacturer is
involved in providing food preparation services, such as the processing of meat and
vegetables, to hotels and restaurants.
Retailers import food products in bulk, and many have introduced their own house brands
for certain products. For example, 7-Eleven, part of the Dairy Farm group, has
commissioned food manufacturers to produce their own in-house brand sandwiches and
ready-to-eat meals. Introduced in 1985, NTUC’s sub-brands under the chain’s house
brand umbrella include: FairPrice Gold (premium offerings); Pasar (fresh produce, fruits,
and vegetables); Pasar Organic (fresh organic produce); and Budget (everyday items).
Smaller establishments tend to import food products directly from neighboring countries.
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Best Product Prospects:
FAS Post Singapore reports that top prospective U.S. food processing ingredient products
for the Singapore market include animal fats, dairy, vegetable oils, processed vegetables,
tree nuts, and beef products.
