Retail Foods Annual 2011

An Expert's View about Retail Sales in Singapore

Posted on: 12 Jan 2012

As a consumer market, Singapore is one of the wealthiest in Asia. Its GDP per capita was $43,900 in 2010.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/13/2011 GAIN Report Number: Singapore Retail Foods Annual 2011 Approved By: Chris P. Rittgers Prepared By: Stanton, Emms & Sia Report Highlights: Singapore, an ASEAN member state, is a city state with a population now just over 5 million. As a consumer market, it is one of the wealthiest in Asia. Its GDP per capita was $43,900 in 2010. Agriculture, processed food, and drink imports were valued at $9.7 billion in 2010, which is slightly less than India (reported at $10.3 billion in 2010). Singapore produces very little in the way of food and is a re-export base for many products, including retail packed products, and is also a showcase of products for the rest of Southeast Asia. Singapore has a dynamic and highly segmented retail market, with several retailers carrying a diverse range of products, from basic in-house labeled products to high end specialty and organic foods. Demand is underpinned by an affluent domestic population, and also one of the largest expatriate communities in East Asia. Tariffs are only levied on alcoholic drinks. Post: Singapore Executive Summary: MARKET SUMMARY 1. Singapore in summary Singapore is an ASEAN member state located in the heart of the ASEAN (Southeast Asia) region. ASEAN is making great strides towards more economic integration. Singapore is ASEAN’s most affluent nation, with a GDP per capita of $43,900 in 2010. Its economic growth patterns tend to track global trends because its export manufacturing sector has key targets in North America, Europe and Japan. Current estimates of economic growth are becoming increasingly cautious because of the problems in the EU. Analysts suggest that its medium term growth is likely to average between 3% and 5% per annum, which would be largely supported by its involvement with a dynamic Asian regional economy. Although its domestic population is small at around 5 million, it is one of Asia’s largest importers of agricultural products, processed foods, and drinks. Imports of such products were valued at US$ 9.7 billion in 2010, which is slightly smaller than India, whose imports were valued at US$ 10.3 billion in that year. The high value of imports exists because Singapore does not produce much food and is a re-export base for many products that are ultimately consumed in other parts of Asia. In essence, it is a free trade port acting as a base for products that can be marketed through its re-export channels. A multitude of products are re-exported, some of which are important to U.S. commercial interests, e.g. frozen meat and poultry, fresh fruits and vegetables, confectionery, cookies, canned foods, sauces, soft drinks, alcoholic drinks and pet food. Singapore’s domestic population is quite well segmented and ranges from lower income to the super-rich, and the strategies of the food and drink retailing industry reflect these different consumer groups. The bulk of the population is regarded as middle income consumers, who are gainfully employed and lead a relatively comfortable lifestyle. Native Singaporeans are the largest pool of active consumers and will continue to drive increased consumption of imported food and beverages in the future. In addition, Singapore’s large population of expatriates, including a large American community, is a market for a wide range of products. 2. Singapore’s food retail and wholesale market According to the government’s 2009 retail industry survey: Singapore’s food and drink retailing sector comprises about 2,900 supermarkets, hypermarkets, department stores, convenience stores and provisions shops that sell food and drinks. In addition to this, Singapore also has around 1,200 other specialty food and drinks outlets. The sector, which employs around 36,000 people, reported total sales of US$ 8.2 billion in 2009. While the large number of outlets implies a fragmented market, actually food and drink retailing is now concentrated in the supermarket, convenience store and chain store sub-sector, with total sales of around US$ 4.84 billion in 2010. These channels are the most important targets for imports. Modern retailers now control up to 60 percent of retail sales of packaged food and drinks. The same retailers control lower shares of sales of confectionery, ice cream and soft drinks (between 60% and 70% share). The balance of the industry comprises a large number of small family owned shops, which range from neighborhood grocery (Mom and Pop-type) stores to high end specialty shops, e.g. retailing wines and spirits, butchers, bakeries and confectionery shops. The sector also includes traditional wet and dry markets, but these only carry limited products that are relevant to U.S. exporters, including fresh produce, i.e. apples, oranges, grapes, plums, potatoes and celery. These neighborhood-based markets are still important because the older generation (over 45 years of age) and lower and middle income groups like to shop in them for fresh products, i.e. meats, poultry, fish, seafood and fresh produce. They are also developing into an occasional shopping outlet for wealthy Singaporeans, many of whom only use them on weekends. Due to government policy, these markets will continue to be part of the retail industry in the foreseeable future. Singapore’s wholesaling industry involved in the food trade is highly fragmented, comprising 3,400 firms with total sales of around US$ 7.1 billion in 2010. Many of these are family-owned businesses involved in re-exports of products from Singapore. Some are also regional marketing operations of multinationals, e.g. those involved in the alcoholic drinks industry. As Singapore imports most of its foodstuffs, the global changes in commodity and freight prices have a direct impact on retail food sales. In some cases, i.e. staple foods, this impact is delayed as retailers refrain from increasing prices for fear of damaging their markets. Singaporeans are generally price sensitive, and become even more so in times of economic uncertainty and actual economic downturn. Singaporeans still have quite high levels of consumer confidence, but there are developing concerns about a range of issues, including the economic problems in Europe, the continuing slowdown in the USA, slowing exports, potentially impending shortages in food supplies (due to floods in Southeast Asia), increasing food commodity and crude oil prices, the strong dollar, a possible property bubble, and imported inflation. 3. Singapore’s food imports Singapore’s imports of all agricultural products, processed food and drinks increased to US$ 9.7 billion in 2010, up from US$ 5.7 billion in 2006. The USA’s share of Singapore’s imports is small and ranged from 5.8% to 7% over the past 5 years (see chart below). Source: Official Trade Statistics As can be seen from the Chart above: Singapore’s imports rebounded after the global recession in 2008, and grew in 2010. The collapse in imports in 2009 arose because economic growth in Singapore (a major exporter of high tech and specialty products), is linked directly to the state of its markets for these products, which are concentrated in Europe, North America and Japan; The USA is one of many suppliers of food products to Singapore. Singapore is not a major producer of agrifoods or processed food and drinks; consequently, its imports of these products are diverse and broad based (see table below). Singapore Imports of Agrifoods, Processed Food and Drinks – US$ 9.7 Billion in 2010 Imports of Agrifoods, Processed Food and Drinks US$ % Beverages 1,800 20 Dairy products 1,083 12 Fish and seafood 707 8 Meat and poultry 660 7 Oils and fats 649 7 Cocoa and its products 544 6 Misc processed foods 509 6 Fruits, fresh/dried 470 5 Vegetables, fresh/dried 411 5 Processed cereal and starch products 400 4 Sugar and its products 383 4 Processed fish and meat 371 4 Cereals, unprocessed 305 3 Processed vegetables and fruits 241 3 Coffee, tea and spices 216 2 Other products 378 4 Source: Official Trade Statistics Imports are diverse because of little domestic production and also because re-exporters 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 2010. 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 product categories are consumed in Singapore, e.g. chilled foods, e.g. dairy and meats, perishable fruits and vegetables, and some types of frozen foods. 4. Advantages and challenges for U.S. exporters in Singapore’s retail market Advantages (Sector Strengths and Market Challenges (Sector Weaknesses and Competitive Opportunities) Threats) Singapore is reliant on imports for virtually Singapore’s retail food market is now in a all of its food and drink supplies. This maturing state, i.e. still growing but not situation will not change in future. growing at the rapid rates seen in the past 10 years or so (Note: The Singapore Singapore is one of the wealthiest markets in government now has a policy that will Asia, and it is a key location for expatriate reduce growth in immigration into families to reside in East Asia. This situation Singapore and so much slower population will not change in future. It also has a very growth rates than in the past). small lower income group, so virtually the whole population is a target market. Singaporeans are generally price sensitive when it comes to buying everyday food Singaporeans have a sophisticated diet that items, e.g. meat and poultry, fresh fruits and includes a wide range of foreign concept vegetables, breakfast cereals (a younger foods, which has expanded on the back of generation product) and soft drinks. This is demand from the younger generation (under underpinned by imported food price inflation 40s). over the past 5 years. It has provided opportunities for ASEAN-made and Chinese Singaporeans are open to products that are suppliers to increase their market shares at high quality and value-for-money. The the expense of traditional exporters. population has a large number of single adults who are very clearly indulgent in their U.S. exporters must compete with factories spending patterns when economic times are of Asian/ASEAN based multinationals, good. This benefits premium imported China (upgrading supply bases), and the meats, some dairy products, exotic fruits, “traditional” supply bases in Australia, the confectionery, wines and spirits, gift items EU and New Zealand. and pet foods. U.S. exporters cannot always service Singaporeans generally perceive the USA Singaporean importers, retailers and end and its brand-owners as quality suppliers of consumers in a way that closely meets their food and drink products. demand requirements and expectations, e.g. on order sizes, packaging sizes and formats, U.S. brand-owners and products have good taste, pricing that “fits” the market (marking shares in some of Singapore’s mainstream to market), and for promotional support. This market segments (breakfast cereals and some trait is viewed negatively by importers. fresh fruits) and smaller niches (organics). Some products that are exported from the USA are not understood by Singaporeans and are never explained to them, e.g. ready- to-consume prepared TV dinners. Such products do not have a “fit” in local food culture. Further economic sluggishness in Western Europe and the U.S. could have negative impacts on Singapore’s economic prospects over the next 3 years. A possible bubble in the private housing market is also of concern. II. ROAD MAP FOR MARKET ENTRY 5. Entry strategy Singapore is a highly competitive market that operates in an environment where: (i) There are very powerful retailers that 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. 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; (ii) The mass “middle income group” market in Singapore, i.e. the bulk of Singaporeans, is price sensitive towards foreign food and drinks that are more expensive than local products; and, (iii) Marketing and distribution costs are extremely high for new product launches and also high for the on-going maintenance of market shares and positions. Local products now include market leading ASEAN-made products imported from Malaysia, Indonesia, Philippines, Vietnam and Thailand. This includes food and drink made by multinationals who have factories in the ASEAN region, manufacturing products that were once imported, e.g. ice cream, tea, sugar confectionery, chocolate, cookies, breakfast cereals, snacks of various types, soups and soft drinks. The sector is continuously evolving as retailers drive to reduce costs and overhead, through: (i) more retailer labeled products on shelves; and, (ii) more direct buying by retailers, including specialty products such as organics, and niche products that are specifically demanded by expatriates. In view of the challenges from “retailer power” that exist in the market, importers prefer to work with exporters that: (i) are fully committed to develop their markets in Singapore, in terms of a willingness to deal with local demands for promotional campaigns, products and packages that fit into demand conditions; (ii) have a product and brand that is unique enough to break into the market; and, (iii) are flexible in terms of their short term returns and profit goals, and, very importantly, have 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. U.S. exporters should not assume anything about the Singapore market or demand for their products, and should be prepared for high learning costs, actual costs (wasted listing fees, promotional costs, etc.), and the disappointment of failure to build any form of market. It is very important that exporters with an interest in developing a market in Singapore perform research on their own specific opportunities to confirm and clarify exactly where market potential exists for their products. This should include what the product’s unique selling advantages are under Singapore market scenarios. In addition to this research, it is also important to: (i) study what successful U.S. exporters have done in practice to build their retail markets in Singapore, e.g. the benchmarks that have been set by U.S. origin dried fruits, breakfast cereals, certain fresh fruits, nuts and vegetables, and non-Asian sauces; (ii) develop a sound export business and marketing strategy under which their products are well targeted, well segmented, well distributed and well differentiated from the competition in a very competitive market; and, (iii) identify and appoint a knowledgeable and experienced and fully resourced importer-distributor as a strategic partner to activate the new export business and marketing strategy for the Singapore market. Some points that US exporters should consider questioning when planning to enter the Singapore retail market are as follows: (a) where the product fits in the retail market, e.g. as a mass market item, high-end niche item, novelty/exotic item, seasonal festive/gift item, targeted at western expatriates, etc. (b) price competitiveness of the US products versus comparable brands already in the market. (c) packaging size and quality that meets with customers’ expectations. (d) U.S. products which can be readily accepted as alternatives/substitutes to competing products. (e) U.S. products that can readily fit into local food culture. (f) U.S. organic products and health food products that can meet retailer’s requirements. (g) U.S. products which provide convenience to customers. (h) The level of promotion, commitment to brand support and consumer education necessary for successful launch and development of a new-to-market product. (i) Ability to meet retailer purchasing requirements and specifications. 6. Distribution channels As pointed out earlier in this report, Singapore’s distribution channels for consumer ready foods are now concentrated around supermarkets and hypermarkets. The two leading convenience store chains are also controlled by the market leading supermarket operators. 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, these channels can no longer support imported products from USA under a strategy of building a sizeable long term market share. U.S. exporters’ brands and products have to be in Singapore’s main retailing channels, i.e. supermarkets, hypermarkets and convenience stores, if they want to have a successful and sustained future in the Singapore retail channels. Major supermarket operators emphasize seasonal gift retailing, premium and specialty products, organics, and expatriate-targeted products as part of their market segmentation strategies. 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 the USA. This arises because of consolidated shipments imported either by the retailer, a part of its group, or an independent importer-distributor. 7. The retail industry and market structure 7.1 Large format stores The Table below provides information on the major retailers involved in the operation of supermarkets, hypermarkets and department stores. Retailer Name Outlet Types Annual No of Outlets Locations Procurement and Ownership Sales in Method US$ Fairprice Supermarkets 1,916 4 hypermarkets Island-wide Direct sourcing (Local and million under the Fairprice preferred with cooperative) hypermarkets Xtra banner and some agents used 8 high end for smaller volume supermarkets under supplies the FairPrice Finest banner and 94 FairPrice supermarkets, plus mini-supermarkets and a chain of convenience stores. Cold Storage Supermarkets 1,200 39 Cold Storage Island-wide Direct sourcing group * and and million. supermarkets. preferred, together Giant (Owned hypermarket 6 The Market Place with a number of by DFI, a Hong high end local preferred Kong based supermarkets and 8 agents used. listed company) hypermarkets under the Giant banner. Shop n Save Supermarkets 210 59 supermarkets. Island wide Direct sourcing (Owned by DFI, million preferred, together a Hong Kong with a number of based listed local preferred company) agents used. Sheng Siong Supermarkets 495 23 stores, mainly Island wide Local agents are Supermarket and million supermarkets. important, but this hypermarkets company is increasingly sourcing on a direct basis from overseas suppliers. Carrefour Hypermarkets 200 2 hypermarkets. Major Prefers to source million shopping on a group basis centres in directly from city suppliers. locations. *: The Cold Storage group of supermarkets also includes Jason’s and The Market Place banners. Singapore also has some smaller chains of supermarkets, the biggest of which is reported to be Prime Supermarkets, with annual sales of about US$ 15 million in 2009. In addition to this chain, it also has some other single site stores that carry imported products: (a) Two sizeable and high profile Japanese retail stores, which import Japanese products direct from Japan and source most other products locally from Singapore based importers: (i) Meidi-ya Singapore, which is an overseas branch of Meidi-ya Co Ltd, one of Japan’s food companies and a premium supermarket operator in Japan; and, (ii) Isetan Supermarket, which operates as part of Isetan (Singapore) Limited, a Singapore listed department store operator that is majority owned by Isetan Japan. (b) The Mustafa Department Store that operates a supermarket within its department store, which has a single location in the Little India area of Singapore. This store is often used by importers to sell products that they are having difficulty selling through other more mainstream retail channels. It has a wide range of products, which include products sourced from all over the world, and a strategic focus on products of Indian origin. The key channels to target for U.S. products are the following, which are used by higher income Singaporean shoppers and expatriates: (a) DFI/Cold Storage group, in particular The Market Place and Cold Storage supermarkets; and, (b) FairPrice, especially the FairPrice Finest supermarkets; (c) Carrefour; and, (d) Meidi-ya Singapore and Isetan Supermarket, both of which carry U.S. products as part of their merchandising policies, e.g. meats, fresh produce and wines. These stores accept a much wider range imported products than any others. As mentioned earlier, it is possible to buy a wide range of U.S. and other Western food and drink products in Singapore, with the main channels being the above stores. Certain U.S. origin products, e.g. fresh and dried fruits, fresh vegetables of certain types, snacks, breakfast cereals, wine, ice cream, processed meats and confectionery, will also have market opportunities in Shop n Save, Giant hypermarkets, some of the larger second-tier FairPrice stores and Sheng Siong that are frequented by expatriates. 7.2 Convenience stores and other small format stores Although having a smaller share of the food and drink retailing industry than the supermarkets and hypermarkets, Singapore’s convenience and other small format stores are very important channels for certain types of products. This sector comprises: (a) Chains with a broad based focus in terms of the products that they carry: (i) chains of convenience stores; and, (ii) small format supermarkets, known as minimarts, some of which are operated by the supermarket operators. The market leaders in this sector are: (i) 7-Eleven, which operates over 550 outlets across the island, with about 25% of them run by the earlier mentioned Cold Storage group, whose owner Dairy Farm International (DFI) is the Singapore strategic partner for 7-Eleven Incorporated; (ii) Cheers (another FairPrice group banner), which 124 outlets are operate on all across the island, including on site at Esso gas (petrol) stations in Singapore; and, (iii) FairPrice Xpress, of which there are 23 stores operating on an island wide basis with many also located at Esso gas stations. The i-Econ group of value-for-money franchised neighbourhood grocery stores, which operates under PSC Corporation Ltd group, is a diversified group of companies listed on the Singapore Stock Exchange. Although this group claims to have the largest chain of minimarts in Singapore, it is not likely to be a major channel for food and drink products exported from the USA because it’s focus is on lower and middle income consumers. Accessing the main chains of convenience stores and mini-markets can be very difficult for imported products. The merchandising policies in these stores and small retail display space mean that products being carried by them experience rapid turnover. For this reason, the products that are carried are generally locally/ASEAN produced and branded, or are multinational branded products, which are heavily supported by A&P (advertising and promotional) campaigns on a year- round basis in the broader Singapore market. (b) Chains that have a more specialised focus in terms of the products that they carry: (i) chains of personal care/pharmacy type stores that carry certain food and drinks; and, (ii) chains of stores that retail healthy foods and nutrition supplements. These chains include: (i) Watsons Personal Care, which has 105 stores located in major shopping centre or shopping streets across the whole of Singapore island. While this chain is focused on personal care, beauty and pharmaceuticals and nutraceuticals, it also carries a range of food and drinks targeted at the convenience seeking shopper and also gifts, e.g. chocolates and cookies. It tends to boost its range of gift food products during festive seasons. (ii) Guardian, which is part of the Cold Storage/DFI group, has about 140 stores located all over the island. Its main focus is on pharmacy operations and health and beauty products. Its range of food products is linked very closely to its core focus, e.g. dietetic-type / special needs products. (iii) Unity Pharmacy, which is owned by the NTUC Healthcare Cooperative, and operates around 50 stores located all over the island. Like Guardian, Unity is very focused on its core business, so the food and drink products carried are usually dietetic-type / special needs in nature. (iv) Nature’s Farm, a health food and supplements retail chain with 26 outlets located all across the island. There are also some smaller professionally managed chains involved this sub-sector, e.g. SuperNature (2 outlets), an organic food specialist owned by the Club 21 high fashion retail group. These chains generally seek well known and good quality products that are supported by importers and foreign brand owners. Demand for these products is linked to a range of different factors, including: (i) health and wellness; (ii) indulgence in terms of personal treats and gifts; and, (iii) value-for-money in terms of shopper judgements on price, quality and functionality. Added to this matter are the demands of the retailers for discounts, listing fees (in some cases) and promotional support, because they are also under significant competitive threat from the major retailers. 7.3 The traditional channels As mentioned earlier in this report, the traditional channels are no longer a strategic or, in most cases, a viable target for products that are exported from the U.S. When such products do enter these channels, they do so because: (i) they are good channels for basic staples and fresh fruit, e.g. apples, oranges, celery and potatoes in the wet markets; or, (ii) the importer-distributor has a problem selling the product and these channels are then used in the same way as the earlier mentioned Mustafa Department Store. Singapore’s mom and pop grocery stores now mainly carry locally made food and drinks and products that are imported from the ASEAN region and China. Some small shops also specialise in: (i) wines and spirits, usually wines; (ii) organics and healthy foods; and, (iii) confectionery and food gift type products. This sector of Singapore retailing includes a sizeable number of shops that would be classified as “hobby shops” rather than an aggressive commercial operation. 7.4 The other channels Internet shopping linked to delivery services is offered by the major retailers, e.g. FairPrice and Cold Storage, and the niche players, e.g. SuperNature and Nature’s Glory. No readily available information exists on the total annual value of internet transactions involving food and drinks in Singapore. PayPal released a report in 2011, which estimated that total on-line shopping by Singaporeans had reached US$ 1.1 billion in 2010. Food and drinks purchases were not listed in the top shopping categories cited by PayPal. The main categories included travel services, fashion, entertainment, insurance, IT/electronics products and gifts/collectables, which comprised around 80% of total on-line spending in that year. Trade sources comment that there is a sizeable amount of on-line shopping taking place in Singapore. According to a source at the Singapore Retailers Association, recent surveys have also indicated that around 80% of Singaporeans under the age of 35 years are frequent internet shoppers. Sources in the food industry believe that the only shoppers who buy their groceries on-line are those that want their groceries delivered because they have very little time to shop, or have a specific problem in visiting a retail outlet. As Singaporean’s “love to shop”, on-line shopping is not the same as visiting a supermarket and looking at the fresh produce, other products and, very importantly, the “bargains” that are available. From this standpoint, while on-line shopping, linked to home delivery services, is growing quite rapidly, it is just one of the services that retailers (both mainstream and niche) are now supplying to their clientele, and not yet a mainstream channel. III. Competition in the retail market 8.1 Overview of the nature of competition (a) Local suppliers and brand-owners who operate in the dairy, beer, soft drinks and processed meat industries, with some of the companies in these industries manufacturing some of their market leading products in other ASEAN countries, e.g. Malaysia and Thailand; (b) Major Competitors: Australia (wide range of products), New Zealand and some EU countries, e.g. Netherlands, Denmark, France, Italy and the UK; (c) Brazil (meats and poultry), South Africa (wines), China (fresh fruits and vegetables), Chile (wines and fresh fruits), and South Korea (berries); and, (d) The multinational food and drink companies operating in Singapore, the other ASEAN countries and China (which includes some U.S. companies). U.S. exporters and their products face a complex range of challenges if they are not well differentiated in the eyes of the consumers. One key factor is price competition from products that look similar, and that originate from China, Brazil, South Africa and the ASEAN countries, all of which are very competitive. 8.2 Competition matrix The Table below provides an overview of competition in the market segments that are covered by this report. Market and Its Major Supply Strengths of Key Supply Advantages and Size Countries Countries Disadvantages of Local Suppliers Beef, fresh/chilled Australia – Australia and New Zealand Beef is not produced in and frozen 38%. (mainly food service, with a Singapore. New Zealand – low level presence in retail) Net imports: 25%. have full access for all of 18,538 tonnes. Brazil – 16%. their products, which local Uruguay – 12%. buyers consider as good USA – 5%. quality and price competitive. Brazil price-competes in the frozen beef segment, which now has an expanded presence in supermarkets. Trends in gross imports Product group 2008 Tonnes 2009 Tonnes 2010 Tonnes Beef, fresh/chilled 3,173 3,617 4,030 Beef, frozen 18,584 19,347 20,040 Source: GTIS Pork, fresh/chilled Brazil – 37%. Brazil dominates the frozen Indonesian live pigs are and frozen Australia – 18%. segment with value-for- imported and slaughtered Netherlands – 8%. money pork of a quality in Singapore, and the pork Net imports: USA – 8%. acceptable to local users, is sold through wet 71,661 tonnes. some in retail channels. markets (chilled retail Australia (Australian Pork stalls) and supermarkets. and AIRPORK brands) It is acceptable to dominates the fresh/chilled Singaporeans and is part market on the back of its of the country’s food proximity and ability to security for staple foods. export high volumes to Singapore. Netherlands frozen pork is in retail channels packed under private or retailer labels. Trends in gross imports Product group 2008 Tonnes 2009 Tonnes 2010 Tonnes Pork, fresh/chilled and frozen 70,382 74,989 79,631 Source: GTIS Poultry, frozen Brazil – 67%. Brazil (e.g. Perdigao and Malaysian live chickens USA – 27%. Seara) competes on price and are imported and Net imports: Argentina – 3%. its products are acceptable to slaughtered in Singapore. 96,905 tonnes. users in Singapore. The USA This fresh chicken is the is now a niche player in retail dominant product in the (Note: Chicken channels. market and is in high accounts for 99% demand based on of imports. Turkey traditional demand traits. and duck imports (net of re-exports) are niche markets comprising 604 and 434 tonnes respectively). Trends in gross imports Product group 2008 Tonnes 2009 Tonnes 2010 Tonnes Poultry in all forms 105,728 100,411 105,963 Source: GTIS Offal, frozen (not Australia – Private or retailer label Offal from pigs poultry). 30%. packed frozen halal certified slaughtered in Singapore New Zealand – bovine offal, mainly imported dominates the market for Net imports: 18%. from Australia, is readily such products. No 12,191 tonnes. Netherlands – available in supermarkets. substantial quantities of 10%. bovine offal are produced Ireland – 8% in Singapore. USA – 2%. Cheese in all Australia – Fonterra’s brands from Singapore does not forms. 43%. Australia and New Zealand produce any retail packed New Zealand – are leading players, along cheeses. Net imports: 9,734 18%. with some other Australian tonnes. USA – 7%. brands, e.g. Lactos, Dairy France – 6%. Farmers and Bega. President Denmark – 5%. (France) and Arla (Denmark) also have a strong retail presence. Butter and dairy Australia – Australia has a number of No retail packed butter is spreads. 29%. brands in the market, e.g. produced in Singapore. Netherlands – Golden Churn, including Net imports: 23%. some private label products. 15,185 tonnes. New Zealand – Anchor (New Zealand), 19%. President (France) and some France – 11%. other EU brands (Lurpak) Germany – 6%. have a strong presence in retail. USA – 3%. Yogurt. Malaysia – The strongest imported Malaysia Dairy Industries 39%. brands are Alive (Fraser & produces Marigold Net imports: 7,362 Australia – Neave Malaysia), which is yoghurt, which has been tonnes. 21%. the leading imported brand, tailored to Singaporean Thailand – Yoplait and Bulla (Australia), local tastes. It leads the 16%. Meiji (Thailand) and Emmi yogurt market and is an Switzerland – (Switzerland). aggressive competitor for 7%. all imported brands in the Germany – 6%. chilled dairy sections of supermarkets and USA – 4%. hypermarkets. Liquid milk. Australia – Strong imported brands with The local dairy companies 34%. good distribution are are very strong Net imports: 62.5 Thailand – Australian, which include competitors with good million litres. 30%. Marigold (local brand), brands and some imported Indonesia – Farmhouse (local brand) and liquid milks in their 11%. Pura, Meiji (Thailand), portfolios. The local New Zealand – Greenfields (Indonesia). The brands include Magnolia, 7%. leading retailers also market Farmhouse, Daisy (Fraser India – 3%. Australian liquid milk under & Neave), and the brands their in-house brands. of Malaysian Dairy USA – 0.3%. Industries, namely HL (the market leader) and Marigold. Ice cream. Malaysia – Strong brands and physical Local supply is negligible 58%. distribution from Malaysia when compared to Net imports: Thailand – and Thailand, which are imports. 14,443 tonnes. 17%. production bases for Wall’s USA – 4%. (Unilever), Nestlé and Fraser France – 4%. & Neave (Meadowgold and Australia – 3%. King’s). The other countries are premium ice cream suppliers, e.g. Ben & Jerry’s (USA) and Haagen Dazs (France). Apples and pears. China – 55%. The market is generally price Singapore does not South Africa – competitive due to retailer produce apples and pears. Net imports: 20%. strategies. In addition to 61,864 tonnes. USA – 9%. apples (Fuji variety), China New Zealand – also supplies highly popular 7%. Chinese pears. New Zealand France – 7%. and France are supported by strong promotions and good physical distribution. Trends in gross imports Product group 2008 Tonnes 2009 Tonnes 2010 Tonnes Apples 47,177 45,828 47,749 Pears 23,527 21,917 23,573 Source: GTIS Citrus fruits, not China – 36%. This market is generally price Singapore does not tropical. USA – 28%. sensitive due to retailer produce these fruits. South Africa – strategies, which supports the Net imports: 16%. position of China (dominant 59,039 tonnes. Australia – 9%. in Mandarins), South Africa Egypt – 3%. and Egypt in the market. Trends in gross imports Product group 2008 Tonnes 2009 Tonnes 2010 Tonnes Oranges 41,414 40,942 41,744 Mandarins 19,604 16,838 19,468 Grapefruit (with Pomelo) 4,118 4,022 4,530 Source: GTIS Grapes and USA – 49%. The USA dominates in its Not produced in raisins. South Africa – season because of its Singapore. 23%. competitiveness on quality, Net imports: Australia – saleability, profitability for 12,772 tonnes. 12%. channel members, Chile – 5%. promotional support and Egypt – 3%. 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. Trends in gross imports Product group 2008 Tonnes 2009 Tonnes 2010 Tonnes Grapes, fresh or dried 15,656 16,627 16,392 Source: GTIS Soft fruits, USA – 47%. High quality chilled Not produced in temperate South Korea – distribution channels into Singapore. varieties. 34%. Singapore, ability to deliver Australia – 8%. quality. and seasonal Net imports: 3,563 New Zealand – promotional activities support tonnes. 4%. all activity in this market. Egypt – 3%. Stone fruits, USA – 46%. High quality chilled Not produced in including avocado. Australia – distribution channels into Singapore. 28%. Singapore and seasonal Net imports: 7,315 South Africa – promotional activities support tonnes. 6%. the USA and Australian China – 5%. positions in this market. New Zealand – 3%. Chile – 3%. Trends in gross imports Product group 2008 Tonnes 2009 Tonnes 2010 Tonnes Plums 3,192 3,492 3,322 Peaches and nectarines 1,991 1,813 1,877 Avocado 747 978 1,285 Source: GTIS Middle Eastern Iran – 32%. These products are imported Not produced in type dates. Egypt – 16%. to meet seasonal demand, Singapore. Israel – 15%. mainly related to Muslim Net imports: 637 Saudi Arabia – festivals. The Middle East tonnes. 7%. dominates because the retail UAE – 4%. market is generally price USA – 4%. sensitive. Edible nuts, USA – 53%. Competition revolves around Not produced in temperate climate China – 26%. traditionally commodities Singapore. products. Iran – 6%. (China and Iran), branded Australia – 5%. snacks (USA mainly under Net imports: 1,805 Italy – 4%. local brands, which are well tonnes. distributed) and some level of seasonal demand. Potatoes, fresh China – 36%. This market is generally price Not produced in table. Bangladesh – competitive, with the USA Singapore. 15%. and, to a lesser extent, Net imports: USA – 13%. Australia involved in 40,698 tonnes Indonesia – marketing in supermarkets. 11%. Australia – 8%. Broccoli and China – 83%. China now dominates this Not produced in cauliflower, fresh. Australia – market because of its price Singapore. 12%. competitiveness and quality Net imports: Malaysia – 3%. versus Australia. Chinese 14,595 tonnes. product quality is now similar USA – 0.6%. in the eyes of consumers and its export pricing is between 40% and 50% of Australia’s pricing. Lettuce head-type, USA – 39%. The USA is the dominant Singapore does not fresh. China – 28%. player because of its quality produce products that Malaysia – and reasonable pricing. compete with U.S. Net imports: 9,955 20%. Although China’s price is imported products. tonnes. between 70% and 75% of U.S. price, its lettuce has quality problems when in the Singapore distribution channels. Malaysia is mainly supplying hydroponic products which are marketed differently to U.S. products. Asparagus, fresh. Thailand – Thailand, which supplies Not produced in 46%. younger (thinner) asparagus, Singapore. Net imports: 1,118 USA – 32%. operates in a different tonnes. Australia – segment to asparagus 14%. imported from the USA. Thai Peru – 5%. products have a mass market target. The USA leads the seasonal premium market. Celery, fresh USA – 72%. The USA leads this market Not produced in China – 15%. because of its Singapore. Net imports: 5,100 Malaysia – competitiveness in terms of tonnes. 10%. price, quality and supply, Australia – 3%. distribution and marketing capabilities. Coffee, ground USA – 59%. The strong local brands Singapore has a strong roasted Indonesia – marginalise imported brands coffee producing industry, 13%. to niches or the food service with the dominant players Net imports: 2,324 Malaysia – 7%. market (a key U.S. target due in the premium segment tonnes. Italy – 4%. to corporate demand-pull). being Boncafe, the market The highest profile premium leader, and Sarika (Suzuki brands in retailers are all brand). from the EU, e.g. Melitta, Lavazza and Cafe Direct. The highest profile U.S. retail brand is Folger. Nestlé has just started to play in this market. Tea leaf and bags, Indonesia – The brands in this market are Singapore is not a major green and black 28%. supported by strong player in the market for retail packed. Sri Lanka – advertising and promotions retail packed leaf teas and 10%. and distribution capabilities, tea bags. Net imports: 1,450 USA – 6%. including Lipton (Unilever), tonnes. India – 6%. the market leader, which Malaysia – 5%. supplies most of its products from Indonesia, Dilmah (Sri Lanka) and Boh (Malaysia). The UK (Twinings, an important premium brand) is the leader in the premium and super premium niches. Processed meats Thailand – This market is dominated by Growing stronger on the and poultry, not 47%. a range of frozen and Asian- new investments in chilled. China – 22%. style canned products from production facilities for Malaysia – Thailand (Chareon Pokphand processed meats, both Net imports: 16%. frozen products) and chilled and canned. 24,427 tonnes. USA – 6%. Malaysia (various brands), Brazil – 4%. 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). Sausages, not Brazil – 40%. Strong physical distribution, The local sausage industry fresh chilled. USA – 20%. access to retail display space has a focus on producing Denmark – and periodic price premium fresh/chilled Net imports: 6,321 18%. promotions are the most sausages and traditional tonnes. France – 16%. important factor in this price dried Chinese-style Malaysia – 4%. driven commodity-style sausages. Although a market. The highest profile competitive industry, it suppliers in the market are does not compete directly Perdix (Brazil), Doux with imported products, (France), Dewfresh which tend to be either (Denmark origin), commodity products Rockingham and Valley Chef (frozen or canned (USA) and, in canned, Tulip frankfurters) or branded (Denmark). better quality “more authentic” chilled products. Processed fish and Malaysia – This market is dominated by Singapore has a frozen seafood, higher 29%. price competitive ASEAN- fish and seafood industry processed Thailand – made and branded canned that competes with products only. 20%. and frozen products, which products from the other Vietnam – 14%. includes a large segment ASEAN countries. Net imports: involving tuna based 38,306 tonnes. USA – 0.7%. products and sardines/mackerel. Competition tends to revolve around access retailers’ shelves and price. Sugar Malaysia – Malaysian local producers Singapore is not a major confectionery. 27%. (several brands) and producer of sugar China – 20%. multinationals with confectionery, although it Net imports: Indonesia – 9%. production in China (Mars), has a strong position in 10,760 tonnes. Thailand – 8%. Indonesia (Nestlé), Thailand the medicated sweets Taiwan – 6%. (Cadbury Adams) and segment. Vietnam (Perfetti) dominate USA – 5%. this market. These businesses have brands that are well supported by very wide spread distribution. Chocolate USA – 16%. High levels of competition Singapore is a chocolate confectionery. Australia – for retail shelf space between producer but does not 12%. Cadbury (Australia and New operate as a major player Net imports: Malaysia – Zealand), Mars (Australia in the mass retail market. 14,304 tonnes. 11%. and China), Hershey (USA New Zealand – and China), Ferrero (Italy), 9%. Nestlé (Malaysia, UK Italy – 8%. Australia and USA) and others from Malaysia. Europe also has high profile and very active brands from Germany, Belgium, France, Switzerland and the UK, which tend to operate in the premium food gift market. Cookies (Sweet Malaysia – Malaysia is very strong with Singapore has a sizeable Biscuits). 46%. the branded and wide product biscuit producer, Khong Indonesia – ranges of Kraft, Munchy’s Guan, which is involved Net imports: 12%. and Perfect Foods in this segment, although 18,068 tonnes. USA – 7%. dominating the retailers’ its clientele are reported to Thailand – 7%. shelves and brand shares. be older Singaporeans. China – 6%. Kraft’s operations in Indonesia (Oreo), USA (various brands) and China (Chips Ahoy) are also key competitors in this segment. Breakfast cereals, China – 44%. A market with strong and Singapore does not including oats. USA – 15%. well supported brands produce breakfast Philippines – dominated cereals. Net imports: 5,447 11%. by Quaker (China), Nestlé tonnes. Thailand – 6%. (Philippines), Kellogg’s Malaysia – 5%. (Thailand and the USA) and Post (USA). Snack foods, Malaysia – A market with brands Most snacks marketed extruded types and 72%. supported by very strong under Singapore owned potato based. Thailand – distribution capabilities. The brands are now produced 15%. companies/brands involved in neighbouring Malaysia. Net imports: 6,900 USA - 5%. include Kraft Foods tonnes. (Malaysia), Mamee Double Decker (Malaysia), URC (Malaysia), Pringles (Malaysia), Calbee (Thailand and Malaysia) and Frito-Lay (USA and Mexico). Frozen potatoes. USA – 48%. French fries and hash browns Not produced in New Zealand – are marketed under Singapore. Net imports: 25%. Singapore private labels, e.g. 18,824 tonnes. Canada – 14%. Farmland (U.S. origin), with Netherlands – Ore Ida (USA), Watties (New 8%. Zealand) and McCain (Canada) also have quite strong distribution access to retailers. Frozen vegetables. USA – 39%. The highest profile brands in Singapore is not China – 23%. supermarkets and producing any frozen Net imports: 1,173 Thailand – hypermarkets today are now vegetables. tonnes. 19%. retailer in-house branded Canada – 6%. products. Thailand is a niche Japan – 5%. player in frozen green soybeans. Simplot (various origins), , Watties (NZ) and Emborg (EU) are the highest profile independent brands. Fruit juices. Malaysia – Asian sourced fruit juices Singapore has a strong 24%. tend to be food service industry involved in the Net imports: USA – 15%. products or juice drinks. The production of fruit juices, 34,927 tonnes. China – 14%. USA is the leader in chilled including Fraser & Neave, Indonesia – 8%. retail packed fruit juices, due Malaysia Dairy Industries South Korea – to high quality products, and Pokka Singapore, 4%. strong brands and very good which aggressively distribution coverage. compete with each other for market share. Canned and China – 23%. China and Thailand have a Although Singapore does bottled vegetables. Thailand – focus on canned indigenous have a canning industry, it 21%. vegetables. Italy and Spain is not involved in this Net imports: 8,871 USA – 17%. are mainly supplying canned market. tonnes. Italy – 7%. or bottled olives. Spain – 3%. Sauces, non-Asian USA – 71%. Heinz (USA) has a sizeable Singapore’s industry only types. Australia – portfolio of non-Asian sauces produces Asian-type 11%. on the shelves, along with sauces. Net imports: 3,093 UK – 5%. strong presences from a range tonnes. Netherlands – of Australian made sauces 5%. (including Unilever and Germany – 2%. Masterfoods, the UK (Lea & Perrins) and Netherlands (HP). Soups Malaysia – Campbell Soups (Malaysia No retail packed soups are 60%. and USA) dominate this produced in Singapore. Net imports: 6,199 Australia – market, with some tonnes. 11%. competition from Heinz, USA – 10%. mainly from Australia. Soft drinks. Malaysia – Malaysia dominates the Singapore has a very 54%. market for imports with strong soft drink industry, Net imports: 167 Thailand – supplies of good quality which includes Coca- million litres. 12%. cordials, fruit juices, sports Cola, Pepsico (Yeo Hiap Taiwan – 9%. drinks and Asian soft drinks Seng as the bottler) and China – 5%. at very competitive prices, Pokka. The products of New Zealand – with Fraser & Neave a major these producers lead the 4%. importer from Malaysia. market. Taiwan has a focus on USA – 1.3%. 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. Beer. Malaysia – Carlsberg (Malaysia) holds Asia Pacific Breweries 34%. second place in the market to (APB) leads the Singapore Net imports: 55.8 Germany – the local brewery. The other market with its high million litres. 12%. brands play around the profile and very well India – 9%. brands of APB and Carlsberg distributed brands, which Netherlands – and tend to compete on price include Tiger, Heineken, 9%. or on premium niche status, Guinness, Anchor, ABC South Korea – because they do not have the Extra Stout, plus some 8%. marketing budgets or the very niche brands. It competes strong distribution channels very aggressively for USA – 0.7%. of the market leaders. India is market share with quite a recent entrant and is Carlsberg Malaysia, operating in the budget and which also views strong beer areas of the Singapore as its home market. market territory. Wine, not Australia – Australia dominates the retail Singapore does not sparkling. 32%. market with a range of produce any grape-based France – 22%. products that segment it from wines. Net imports: 10.5 Chile – 12%. “mass market” (very well million litres. Italy – 6%. distributed) to premium. In New Zealand – the mass market, its main 6%. competitors are South USA – 5%. 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 and some other EU countries. Spirits, including UK – 56%. UK (Scotland) whisky and Although repacking of brandy, whisky, France – 27%. French cognac owned by UK produced whisky is rum, gin, vodka USA – 4%. multinationals continue to reported to on-going in and liqueurs. Ireland - 3%. dominate the market for Singapore, it does not Sweden – 2%. spirits in an environment produce any alcoholic Net imports: 5.8 where intensive promotion is drinks that compete in this million litres. taking place for vodka and market. some liqueurs. Other products operate within niches. Pet food in retail Thailand – This market is dominated by Singapore does not packaging 58%. the products of two produce any retail packed Australia – multinationals, namely Mars pet foods. Net imports: 9,193 21%. Pet Food and Nestle Purina tonnes. France – 6%. Pet Food that have plants in Thailand and the other supply USA – 2%. countries that service demand in Singapore. Trends in gross imports Product group 2008 Tonnes 2009 Tonnes 2010 Tonnes Pet foods, including dog and cat food 9,815 9,069 9,589 Source: GTIS Singapore has a very large market for fish and seafood. The bulk of sales through retail channels are warm water (tropical) fish rather than cool water fish as is supplied by the USA. Singapore’s large format stores supply a small range of cool water products, most of which have developed demand over the past 20 years. The high end supermarkets that service expatriates and the upper income Singaporeans tend to have a larger range due to the demands of their clientele. Retailers comment that only a small number of non-tropical fresh/chilled or frozen fish and seafood products are viable for sale through supermarkets. The characteristics of such products are reported to be: - well promoted, e.g. Norwegian fresh/chilled salmon; or, - have a good distribution channel, price and functionality, e.g. Norwegian frozen cod; or, - are unique, when compared to the competition, e.g. smoked salmon (Scotland, Norway, Australia and New Zealand), other smoked fish (usually to cover expatriate demand) and shellfish such as mussels (New Zealand) and clams (North America). The main challenge for cool-water products is the extremely high levels of competition that exist from much better known, more widely available and more competitively priced tropical species, which are easier to use in local cooking. This is a big challenge to developing a viable presence in retail channels for cool-water products. While this is the case, there are opportunities for seasonal cool-water products if they are well promoted to shoppers, e.g. Shanghai hairy crabs. The retail markets for salmon, smoked salmon, cod and retail packed mussels were developed from zero base in the 1990s through years of marketing and consumer education, such that they now have good demand from Singaporeans, especially salmon. This has been a real success story for Norway’s exporters and their importers over this 20 year period. Market Major Supply Strengths of Key Supply Advantages and and Its Countries Countries Disadvantages of Local Size Suppliers Salmon, Norway – 86% Norway is a highly aggressive Singapore does not produce fresh Australia – promoter of its fresh/chilled salmon this type of fish. chilled 13%. in Singapore. It is the market maker New Zealand and its product is retailed at a price Net – 1%. that is acceptable to Singaporeans, imports: who now know how to cook this fish 2,270 USA – Not at home. tonnes. involved in this market. Smoked Norway – Norway has very good access to Singapore does not produce salmon 76%. supermarket shelves in outlets that much of this type of product Denmark – service Singapore’s middle and for the mainstream retail Net 12%. upper income groups. Norway, and market. imports: New Zealand the food service industry and 173 – 5%. sandwich chains in Singapore, have tonnes. UK – 3%. educated Singaporeans on how they France – 2%. can use smoked salmon at home, if they wish to do so. New Zealand and USA – the UK (Scottish) have good access Negligible to shelves in high end retailers. supplies. Cod, USA – 69%. Frozen cod is generally retailed as a Singapore does not produce frozen Australia – generic frozen product in many of this type of fish. 11%. Singapore’s supermarkets without Net Germany 5%. any clear definition of its country of imports: Norway – 5%. origin. Norway occasionally 190 promotes its product at the same tonnes. time as its salmon promotions. Mackerel, Tropical Demand pull for the tropical species While Singapore does have frozen species – 59%. which have a strategic fit in the local locally caught supplies of a Norway – diet. tropical species of this fish, Net 23%. For cool-water mackerel, supply- it is used in a different way imports: Japan – 13%. push from Norwegian and Japanese to cool-water mackerel, 2,751 China – 3%. suppliers with good distribution which has links to Korean, tonnes. Germany – channels. The market is underpinned Japanese and some northern 1%. by food service demand, with retail Chinese cooking styles. being a sizeable niche with demand from Japanese and Korean expatriates being important. Mussels, New Zealand New Zealand has very strong The bulk of locally landed frozen – 78%. marketing and distribution for its mussels will be sold fresh China – 9%. mussels in shelf and meat in through wet markets and to Net Chile – 5%. Singapore supermarkets and food service buyers. imports: Malaysia – hypermarkets. 348 4%. tonnes. USA – 3%. Scallops, Japan – 32%. The market leaders in retail channels None produced for frozen Australia – have a focus on quality packed marketing in retail channels, 27%. products and have good access to the although if available some Net USA – 16%. frozen distribution cabinets in may be sold through the wet imports: Hong Kong mainstream supermarkets and markets. 634 SAR – 13%. hypermarkets. Imported products tonnes. also have demand in food service channels. IV. Best product prospects 10. Tariff and market access status in Singapore today The only tariffs on food products are levied on alcoholic beverages. A listing of Customs Duty and Excise Duty applicable to alcoholic beverages can be obtained from http://www.customs.gov.sg. Market access for most products is quite straightforward. While this is the case, the Agri-Food and Veterinary Authority (AVA) is very strict when it comes to the potential for livestock diseases or contamination events that may harm the Singapore population (which includes large numbers of foreigners, both residents and tourists) or its food security. The AVA will, and does, ban imports of products. U.S. beef imports are limited to boneless beef under 30 months of age for example. U.S. bone-in beef imports are still banned, and AVA enforces regid microbiological testing on meat and poultry imports. 11. Products present in the retail market which have good sales potential Product Net Market Growth Key Constraints to Market Attractive for Imports Rate Per Annum* Market Development the USA in 2010 Poultry, frozen 96,905 Overall, very slow Competition from local Very attractive in the tonnes. growth due to slaughtering of imported turkey niche (600 stable demand. live poultry and from tonnes) and moderately Turkey demand lower cost producers, attractive in chicken could grow at mainly in Brazil. This has market and duck (400 around 3% per now marginalised U.S. tonnes) niche, with an annum. products to niches in emphasis of higher mainstream retailers. quality demand and niches. Citrus fruits 59,039 Very slow growth Very strong competition Attractive due to high tonnes. due to mature from China, and price demand, albeit in a very demand. sensitivity amongst retail slow growing market. buyers. Grapes and 12,772 2% to 4% per Price sensitivity amongst Attractive due to high raisins tonnes. annum, as demand consumers, although U.S. demand, albeit in a slow is starting to products are well liked growing market. mature. because of the quality of their taste. Soft fruits, 3,563 5% to 10% per Price sensitivity in the Very attractive, as temperate tonnes. annum. supply chain, ranging from higher incomes are importer to end consumer creating more demand, and some price especially for competition, in strawberries. strawberries, with South Korean products. Stone fruits, 7,315 4% to 6% per Price sensitivity in the Very attractive, as including tonnes. annum. supply chain from higher incomes are avocado importers through retail creating more demand. buyers to end consumers. Edible nuts 1,805 Quite static with A mature market with Attractive as there is tonnes. limited drivers for price competition, mainly solid demand for U.S. demand in quite a from Chinese products. origin nuts, albeit that mature market. the market is now quite mature. Lettuce, head 9,955 4% to 6% per Although the USA is the Attractive as there is type fresh tonnes. annum. market leader, competition good demand for U.S. from Asia suppliers is origin lettuce because it intensifying as their meets with demand products and supply requirements, albeit that capabilities improve, with is more expensive than China being the developing competing products. “major threat”. Asparagus, 1,118 4% to 6% per Price sensitivity amongst Attractive as there is fresh tonnes. annum. consumers in a market that growing demand for has Thai asparagus, albeit better quality asparagus lower quality than U.S. when it is in season and asparagus, almost all year available. round. Celery, fresh 5,100 2% to 3% per There is limited Attractive as there is tonnes. annum. competition for U.S. solid demand for U.S. products in this market origin celery. because of strong U.S. supply capabilities. Chocolate 14,304 3% to 6% per Very strong competition Moderately attractive for confectionery tonnes. annum. from multinationals in the niche building in higher mass market and EU quality products. imports in the niches. Cookies, sweet 18,068 2% to 3% per Strong competition from Moderately attractive for biscuits tonnes. annum. multinational brands made niche building in higher in Asia and also from quality cookies. imported EU brands in the niche markets. Breakfast 5,447 6% to 8% per Very strong competition Attractive as more cereals, tonnes. annum. from Kellogg’s and Nestle, younger generation including oats who are segmenting the Singaporeans are market around different consuming breakfast quality products for cereals, plus expat different income and age demand, which is very groups. important. Snack foods, 6,900 Around 3% per Very strong competition Moderately attractive, if extruded and Tonnes. annum. from ASEAN-made building niches for potato based products, plus Frito-Lay, differentiated products. which has a good range of U.S. and Australia products in the market. Frozen 18,824 5% to 7% per The main challenge for Very attractive as U.S. potatoes tonnes. annum. independent U.S. brands is products have quite solid retailer house branded and demand. private label products that are starting to dominate frozen food displays. Frozen 1,173 Very slow growth Co
Posted: 12 January 2012

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