In Singapore, eating is often described as a national pastime, and food, a national obsession. It is not surprising that the food and beverage (F&B) landscape is an exciting and vibrant one, and representative of the country’s ethnic diversity. It is a confluence of Chinese, Malay, Indonesian, Indian, Peranakan and Western traditions.

With one of the highest per capita growth domestic product (GDP) in the world (S$ 72,711 per person in 2015), Singapore’s per capita food consumption level is the highest in the region. (Source: Department of Statistics, Gross Domestic Product, 23 April 2015 and Business Monitor International, Singapore Food & Drink Report, Fourth Quarter 2016). With an affluent and sophisticated consumer base, Singapore is a well-established market for Australian F&B products and produce.

Singapore is reliant on food imports for over 90 per cent of its needs, having very little agricultural land and limited domestic food production. Less than one per cent of the land area is used for agricultural purposes. Singapore imported over S$11.25 billion in food and live animals and S$3.23 billion in beverages in 2015. Malaysia, Indonesia, United States, Australia and China are Singapore’s main suppliers of food. (Source: IE Singapore, Singapore’s Annual Import of Food & Live Animals and Beverages, 28 March 2016). In 2015, Singapore was Australia’s ninth largest market for food, beverage and agribusiness products, with total exports valued at A$1.1 billion.

The most valued product categories are:

• animal fats (bovine, sheep or goat): A$263 million
• dairy: A$263 million
• red meats: A$149 million
• sugars and sugar confectionery: A$64 million
• pork: A$48 million
• molluscs and crustaceans: A$29 million
• wheat and meslin: A$34.5 million
• grapes: A$17 million
• Citrus: A$13 million
• malt: A$12 million.

Singapore was also the seven largest export market in 2015 for Australian wines valued at A$49million.

(Source: Global Trade Atlas, Australian Bureau of Statistics, 19 September 2016)

Singapore’s F&B industry can be divided into three broad segments – food retail, food service and food processing.

Food retail

Singapore’s grocery retail sector, which is dominated by supermarket chains, is highly developed and competitive. Consumers are discerning and make shopping decisions based on product quality, freshness, nutrition value, taste and food safety concerns, in addition to price.

Consumers generally look for quality products, which provide good value for money. However, for products with clear benefits, such as nutrition or quality, consumers are willing to pay a bit more. Premiumisation, food accountability and urbanisation are key factors, which impact food consumption trends. Government policy and campaigns around food and health issues are also drivers within the market.

The presence of a large expatriate population impacts buying trends and consumption. There is a strong awareness for Australian products and produce, which are recognised as ‘clean and green’ and safe. They enjoy a reputable position in the market. A handful of speciality retail stores, which carry premium products, cater to the high-end of the market and constitute a niche market.

Food service

Singapore has a thriving and constantly evolving food service sector, which is susceptible to the state of the economy. A steady stream of international visitors and the propensity of local residents to eat out keep the food service sector in Singapore vibrant. The National Nutrition Survey 2010 showed that 60 per cent of residents eat out at least four times a week (Source: Singapore Health Promotion Board).

The opening of the two integrated resorts - Marina Bay Sands and Resort World Sentosa - in 2010 provided an additional impetus to the sector with the opening of new upscale restaurants and the foray of many world-renowned celebrity chefs into Singapore.

Outside the hotel industry, the F&B services industry comprises of about 6,860 establishments, including restaurants, cafes, snack bars, food courts, fast food restaurants, food caterers, etc. ​(Source: Department of Statistic updated 26 November 2014).

Food processing

Singapore’s food processing sector is small but efficient, with value-added food production making up a significant proportion. Given the limited agricultural resources the sector is dependent on imports for ingredients and raw materials.

As a market, Singapore is restricted by a relatively small domestic market, compared to other Asian countries. The location and trading hub status make it a strategic and extremely important market for exporters.