Market Overview – Singapore

Production

As Singapore has virtually no crop or livestock production, practically all food ingredients are imported from a wide range of countries worldwide. Having very little agricultural land and limited domestic food production, Singapore currently imports almost all of the food it needs to feed its residents and the 17.4 million tourists that visited Singapore in 2017, which is over three times its population. The country's limited agricultural output is made up mostly of vegetables, poultry and eggs.

Trade

Singapore is a net importer of agri-food and seafood products. In 2017, Singapore's agri-food and seafood trade deficit was US$3 billion, with imports valued at US$13.0 billion and exports of US$10.0 billion. Singapore's agri-food and seafood imports declined at a Compound Annual Growth Rate (CAGR) of 1.0% between 2013 and 2017. Singapore's geographic location has contributed to its position as an important hub for regional headquarters of international food and agricultural companies. A major part of the freight passing through Singapore is redirected to neighbouring countries. There are no import tariffs or excise taxes on any foods and beverages, except for alcoholic beverages and tobacco products, while a Goods and Services Tax (GST) of 7% is levied on all goods and services at the point of distribution.

Canada currently accounts for less than a 1% of Singapore's total agri-food imports and is Singapore's 18^th-largest import source. Singapore's agri-food and seafood imports from Canada were valued at US$124.8 million in 2017 and grew at a CAGR of 7.1% between 2013 and 2017.

Singapore's top agri-food and seafood imports in 2017 were cigarettes, spirits, whiskies, tallow of bovine animals (sheep or goats) and food preparations. Key supplying countries were Malaysia, France, China, Australia and the United States. Canada was Singapore's 18^th-largest supplier of total agri-food and seafood products in 2017, worth US$124.8 million, which amounts to a 0.9% share.

As Singapore is virtually a free port (except for tobacco, alcohol, vehicles and gasoline), the only tangible benefit of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for the agri-food sector is that Canadian beer will be exempt from a $16/litre alcohol tariff. However, consumers still pay the cost of an excise tax.

A permit from the Agri-Food & Veterinary Authority of Singapore (AVA) is required for the importation of meat products into Singapore. Meat products are subject to microbiological testing upon arrival in Singapore. Under the CPTPP, only raw beef cuts are still permitted from cattle under 30 months for bone-in, and all ages for boneless.

Retail sales

Packaged food in Singapore recorded stable year-on-year retail value growth from 2014 to 2018 and it is expected to continue over the forecast period (2019-2023). Retail sales were valued at US$2.5 billion in 2018, with a CAGR of 3.2% from 2014 to 2018. By the year 2023, retail sales are expected to reach US$3.0 billion, registering a stronger growth rate of 3.5%.

Snack category products are expected to see the most significant sales growth in the packaged food sector over the 2019-2023 forecast period. Increased spending power and more sophisticated preferences are driving demand for more premium products within this category, such as sweet biscuits, ice creams and confectioneries. During the forecast period, many packaged food categories are reaching maturity, such as ready meals and processed fruit and vegetables.

Health and wellness food products

Consumers are becoming increasingly health conscious as a result of rising health awareness. This has led to higher demand for health and wellness variants, particularly free-from and naturally healthy products. The health and wellness sector grew by a CAGR of 1.7% from 2014 to 2018 and is expected to grow by a CAGR of 3.2% over the 2019-2023 period.

As highlighted by Singapore's Prime Minister at the 2017 National Day Rally, diabetes is a major problem in Singapore. It has the second-highest level of diabetes among developed countries, after the US. The leading causes of diabetes among Singaporeans are a lack of exercise, coupled with high consumption of sugar and simple carbohydrates such as white rice and white bread. As a result, manufacturers are expected to launch healthier variants and trendy flavours to entice consumers and boost sales over the forecast period, such as whole-grain bread, whole-grain pasta, whole-grain instant noodles and mixed grain rice.

Opportunities for Canada

On March 8, 2018, Canada signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 10 countries: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The CPTPP represents a significant step toward closer trade and investment between Canada and Singapore. Significant indirect gains are possible for Canadian producers, as Singapore being regarded as a hub and trendsetter for ASEAN may have some indirect benefits.

The CPTPP Agreement, along with NAFTA and free trade agreements with the European Union (CETA) and South Korea (CKFTA), will make Canada the only G7 nation with free trade access to the Americas, Europe and the Asia-Pacific region.

All Canadian provinces and territories are expected to benefit from the CPTPP.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Find a Trade Commissioner

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.

Market overview – Singapore
Global Analysis Report

Prepared by: François Thériault, International Market Research Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2019).

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