A Thriving Economy
Located in Southeast Asia, Singapore is one of Asia’s bustling modern economies! The economy is dynamic and thriving, boasting one of the world’s 10th highest GDPs per capita at an impressive US$59,797. Plus, household incomes continue to grow, encouraging the growth of an expanding middle class population among Singapore’s 5.87 million citizens. This translates into higher disposable incomes, increasing the propensity to spend.
The Singaporean Consumer
So, who is the Singaporean consumer? They’re enthusiastic about both local and international products, with the interest in foreign foods rising steadily. This has prompted retailers like Little Farms and Ryan’s Grocery to create curated lines of high quality Australian F&B products.
The Singapoean consumer is budget conscious and seeks value-for-money but not at the expense of quality too. They care more and more about ethics and sustainability, choosing to buy products like sustainably caught seafood and prepared to pay higher prices for it too. They’re also increasingly opting for healthier products, including organic, vegetarian and functional foods. And, they’re experimental, willing to try exotic and innovative food, from salted egg to mala.
Open for Trade
And, what’s the trading environment in Singapore like? Singapore’s doors are open for trade, with 24 free trade agreements in place. The country’s membership with ASEAN is particularly promising, offering reduced tariffs for Australian exporters. Plus, with their second place ranking on the global Ease of Doing Business Index and a reliance on imports for 90% of food products, the opportunity to export is ripe!
Dynamic Foods & Beverage Categories
Now, where exactly does the market opportunity lie for food and agribusinesses? Well, Singapore’s food industry is expected to grow by 3.86% p.a. to 2026, reaching a US$6.72 billion valuation by 2026 while the beverage industry is set to grow to US$6.04 billion. When we take a closer dive into F&B categories, we can see that spirits, wines, baked products, meat substitutes and canned foods will see particularly dynamic annual growth rates above 5% to 2026.
What does all this mean for exporters? Well, Singapore represents a wealth of opportunity for Australian food and agribusinesses. Despite being over 6,000 kilometres apart, Singapore and Australia have a lot in common. This includes high disposable incomes and a tendency to seek out health and wellness products. So, Australian food and agribusinesses are well placed to grasp the opportunities available in Singapore!
If you’d like to uncover more market insights on Singapore or other export markets, don’t hesitate to get in touch with the Export Connect team!
We hope you’ve found these insights on the Singapore market helpful. As always, if you’ve got any questions or want to discuss export opportunities for your company, feel free to drop us a line at Export Connect – we’d love to hear from you.