Key Markets

Food quality, food safety, and how they affect health are now top concerns for consumers. As they become more aware about how and what they consume, they are more willing to pay for premium, healthy food from reputable sources. To appeal to young Chinese consumers, consider creating food products and packaging that offer novel, multi-sensory experiences that allow them to showcase their lifestyle and individuality on social media platforms.

Online shopping is very popular among the Chinese. In particular, fresh food e-commerce paired with quick delivery services is booming in China. Trade volume increased from 4 billion yuan (S$0.8 billion) in 2012 to 140 billion yuan (S$28.4 billion) in 2017, and is set to increase exponentially over the next few years. As more Chinese consumers develop a taste for Singapore cuisine, e-commerce is a quick way to test if your food products will do well in the Chinese market.

With one of the largest markets for modern grocery retail in Southeast Asia, buying and selling groceries is a big business in Indonesia. Figures hit US$100 billion (S$135 billion) in 2019 and are set to skyrocket in the next few years.

As the modern grocery retail segment grows at a rapid rate, there is a huge opportunity for your business to enter the market through supermarkets that offer a wider range of imported food products for consumers.

In 2018, Indonesia launched the “Making Indonesia 4.0” industry roadmap for five sectors including F&B.

Under this roadmap, public and private sectors as well as research and educational organisations will work together to drive initiatives such as building a national digital infrastructure, developing an innovation ecosystem, and incentivising technological investments. Explore how your business can ride on and contribute towards Indonesia’s push to make food manufacturing more high-tech.

An expanding Asian community and rising interest in Asian food in the Gulf Cooperation Council (GCC) countries are driving consumption of Asian cuisine. Increasingly busy lifestyles paired with growing disposable incomes have also fed a growing appetite for packaged and processed food across the Middle East.

The UAE’s food imports are expected to rise from US$100 billion (S$135 billion) in 2014 to US$400 billion (S$540 billion) in the next ten years – presenting market opportunities for your food business.

Opportunities in the UAE are not limited to food exports. Announcing an AED$30 billion (S$11 billion) economic stimulus package in June 2018, the UAE is proactively wooing foreign investment in local production – including food manufacturing – to strengthen the position of its manufacturing sector.

Tap these growing opportunities for co-investment as local food service operators seek opportunities to invest in food manufacturing facilities that complement their existing businesses. If you are ready to take your business to an investor-friendly UAE, find out how the GCC-Singapore Free Trade Agreement can benefit Singapore companies like yours.

The US is welcoming innovation in alternative protein and plant-based foods. Examples include meat-substitutes, in which major US food companies have become sizable investors. States, like California, where 14% of the food-related patents in the country were created, are also a hub for innovation in food manufacturing.

Singapore food manufacturers that seek to innovate in these areas can find interested investors in the US, as well as an open-minded consumer base to serve up new offerings.

Mainstream food brands have started to expand their product lines by including organic offerings to meet demand, with the US organic market estimated to grow at a CAGR of 8.7%, earning revenue of around US$95.1 billion by the end of 2027.

“Free from” foods are another growing trend. Demand for food products free from gluten, dairy, lactose, meat, or allergens comes from consumers who perceive these as being healthier or more natural; they are no longer solely catered to consumers with allergies.

A third trend is the use of “botanicals” in food products. This refers to the use of botanical ingredients (such as goji berries, moringa and/or turmeric) in snacks and drinks.

You will find growing demand in the US if your company specialises in wellness-based food products.

To establish a foothold in Vietnam’s food manufacturing space, it is important to tailor your strategies to best fit the different tastes and cultures of consumers in north and south Vietnam. Start by understanding the preferences of consumers from different regions so that you can develop food products that will appeal to them. Product differentiation is key; there is no 'one-size-fits-all'.

Due to the differences in culture and ways of working, there is also a need to appoint different distributors in different regions and employ area-specific strategies to succeed in the Vietnamese market.

Vietnamese consumers have a particularly keen eye for new food products. As a business breaking into this market, you have to constantly innovate and develop fresh offerings to establish a compelling presence in the Vietnamese market.

It was reported that 88% of consumers bought new products during their most recent grocery-shopping trip. With consumers always seeking out the latest products in the market, you can gain and maintain a strong competitive advantage if you are able to consistently innovate new flavours that can appeal to this consumer group.