FOOD & BEVERAGE INDUSTRY IN

SINGAPoRe

About Food &Beverage(F & B) industry

The food industry is a complex, global collective of diverse businesses that
supply most of the food consumed by the world population. Only
subsistence farmers, those who survive on what they grow, can be
considered outside of the scope of the modern food industry.

MISSION:
TO FOOD AND BEVERAGE MANAGEMENT ASSOCIATION AIMS TO
PROMOTE THE HIGHEST PROFESSIONAL STANDARDS AND WILL
CONTINUALLY STRIVE IN THE AREAS OF MANAGEMENT
SKILLS,EDUCATIONS AND RECRUITMENT OF THE FOODS AND
BEVERAGES INDUSTRY IN SINGAPORE WITH A GLOBAL
PERSPECTIVE

objectives
To provide a platform for social and business interaction between
members
To engage in and promote industry best practices through crossmodal learning with a global focus while retaining local flavour
To discuss industry practices and challenges
To promote and organize schemes of assistance for continued
education in Food and Beverage and relevant fields
To be affiliated with, and become a member of related associations
having similar aims and objectives
To strengthen the relationships between supply partners and the
industry
To increase awareness of the profession, and to do all other lawful
things the Executive Committee may deem to be in the best interest
of the Association

The food industry includes:

Agriculture
Manufacturing
Food processing
Marketing
Wholesale &Distribution
Food service
Regulation
Education
Research & Development
Financial service

SINGAPoRE
Singapore is the leading global city-state and island country in southeast
Asia.
Population(2014)-5,469,700
Density-7,615/km2
GDP(nominal)-US$56,319
HDI(2013)-0.901
Currency-Singapore dollar(SGD)

FOOD SERVICE SECTOR IN SINGAPORE

Singapore continues to be one of the most developed food markets in
Southeast Asia. With high disposable incomes, the average monthly per
capita food expenditure is C$220, based on the Singapore Statistics
Household Expenditure Survey. This amount comprises an average
monthly per capita expenditure of C$100 and C$120 on non-cooked and
cooked food respectively. Due to the dearth of agricultural land on the
island, Singaporeans are more dependent on imported food and beverage,
resulting in higher expenditure on food products compared to neighbouring
countries.Recognised as a trendsetter and an important gateway to the
region, Singapore tends to be a strategic entry point for key exporters who
are looking to tap into the vast regional markets.Singapore experienced a
substantial population growth of 17.8% from 2006 to 2011, reaching a total
of more than 5 million people (Statistics Singapore, 2012). However, this
population growth was mainly driven by immigration as Singapore has a
higher proportion of foreign residents than neighboring Asian countries.
This diverse demographic profile influences the local culinary culture by
integrating a variety of regional and international cuisines, which can be
found everywhere across the country.
Singapores food and beverage (F&B) services industry contributed
approximately C$9.81bn or 3.5% to the countrys total GDP in 2012. On a
per capita basis, Singapore has the highest food consumption levels in

Southeast Asia,accounting for 3% of GDP. Due to limited domestic

agricultural
production and rapid urbanization, the country imports more than 90% of
its food products, particularly from other Asian countries. Imports of F&B
account for over 8% of GDP in 2012.
Singapores consumer foodservice industry recorded US$7.5 billion in total
retail sales in 2011, a 3.3% growth from the previous year. The substantial
growth of the industry in recent years was supported by the opening of two
prominent integrated resorts and shopping malls, which provided
opportunities for new players to enter the market, and for existing players
to expand. However, future growth in outlet numbers will likely remain
slow at a Compound Annual Growth Rate (CAGR) of 0.7% for 2011 to
2016.

Sector Challenges and Threats

The retail market in Singapore is maturing rapidly and there is less
room for growth. The physical size of the market also limits the
expansion of retailers who have to deal with increasing product
variety but shrinking shelf space in their stores.
The retail and foodservice market is highly competitive and not easy
to penetrate. Poorly differentiated products that are not well
supported with activities face challenges in gaining market presence.

S.W.O.T Analysis of F&B

(a) STRENGTHS
The 24 hours delivery schedule makes its unique
The delivery service spares its customers the travel inconvenience to
the shop
As it sell non perishable goods, storage wouldt be a problem in short
term.

 Strategic location of the business, surrounded by the potential

customer.
Largest Geographical coverage
Excellence relationship with media and its channel partner

(b) WEAKNESS
The business is starting, it will not be able to offer a huge verity of
brands and also it will start selling only the most popular drinks. some
problem with snacks.
Its price are going to be higher then a supermarket due to the delivery
service and fuel price.
Inadequate promotion in the current competition market.

(c) OPPORTUNITIES
Improve countries political situation.
Increase demand among the customers.
Ensuring timely and quality supply.
Increase Industrialisation.

(d) THREATS
High import duty
More rigid govt regulation

 Increasing competition in market

Increasing bargaining power and facility demand by

buyer

P.E.S.T.A.L Analysis of F& B

(A) POLITICAL FACTOR
The political risk in Singapore is quite low. In fact, the Political And
Economic Risk Consultancy (PERC) states that the country enjoys the
lowest political risk in the continent. It is a democratic country. The people
elect representatives to lead the nation. Since its independence, they
cherished relative political stability. Today, the stability has translated to
peace and a better standard of living. Moreover, It has transformed into
improved business opportunities for Singapore
However, there have been reports about restriction of free speech for
opposition parties in Singapore. It is said that the value of free speech for
the parties is limited. The defamation laws require opposition parties to be
careful that political comments do not lead to costly defamation suits or
imprisonment.

(B)ECONOMICAL FACTOR
The economy of Singapore is a vibrant free-market economy. It is
developing at a very fast pace. The countrys per-capita income is the
highest in ASEAN. A corruption-free environment supports the business
sector. It is among the most competitive countries. The educated and
motivated workers strengthen it. The legal and financial business
framework helps as well.
Recently, the government has invested in diversifying the economy. As a
result, the tourism, pharmaceutical, and many other industries have
flourished.
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Some constraints on Singapores economic performance are the following:

Labor shortages
Rising labor costs
Declines in productive

(C) SOCIAL FACTOR

Socially, Singapore is like any other Eastern country. It still follows
traditional family values. It is true that the younger generation has the
tendency to follow western culture and values. The residents work hard
and fulfill the materialism desire. This urge to do well has increased nation
productivity. The business sectors can, therefore, expect higher purchasing
power from customers. Reports suggest that most Singaporeans dislike blue
collar jobs like construction.
Literacy rate in the country is very high. Primary schooling is compulsory
in Singapore. Parents must ensure childrens regular attendance. Good
command of English and Chinese languages gives Singaporeans an
advantage. It helps to attract international trade and foreign investment

(D) TECHNOLOGICAL FACTOR

The IT infrastructure in Singapore is praise-worthy. The penetration rate
for household broadband internet is over 70%. E-commerce and
eB2Cmodels have flourished in turn. More than 10Mbps of broadband
internet service is available. The widespread IT infrastructure has
encouraged multinational companies to set up regional operations in
Singapore. The government is also moving towards an electronic
government era.

(E) ENVIRONMENTAL FACTOR

The Ministry of the Environment and Anti-Pollution Unit works
relentlessly to maintain air quality and other environmental factors.
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Pollution from the transportation is the key problem in Singapores urban

areas. There was a time when Singapore was among countries with the
highest level of industrial carbon dioxide emissions.

Singapore lost almost 30% of its mangrove area. Many species are
in danger of extinction.
The Water Pollution Control and Drainage Act helps control water quality.
One of the major concerns for Singaporeans is that the country does not
have enough water to support their needs. Pollution from the industrial by
products like oil increases the problem. As a solution, water is recycled
after desalination.
As there is a lack of water resources, Singapore is dependent on Malaysian

(F) LEGAL FACTOR

The Ministry of the Environment and Anti-Pollution Unit works
relentlessly to maintain air quality and other environmental factors.
Pollution from the transportation is the key problem in Singapores urban
areas. There was a time when Singapore was among countries with the
highest level of industrial carbon dioxide emissions.
Singapore lost almost 30% of its mangrove area. Many species are in
danger of extinction.

MOST PROMISING INDUSTRY- TOURISM

In Singapore ,the Tourism sector is the most contributor to Singaporean
economy, attracting about 13,168,144 tourist on 2014.English is the official
language of Singapore ,so it is very easy for tourist to communicate with
local people of that country.
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Tourism statisticTotal visitors day was a record 44.9 million days , a growth of 17.1% or an
average of 3.86 days per visitor 22.3% visitors were day-trippers(less than
one day) 19.7% stayed for one day,17.6% members stayed for 2 days,14.7%
members stayed for 3days and the rest for 4 days and above. 76.0% of
visitors arrived by air, 10.9% by sea, and 13.2% by land. The largest age
group visitors was from 25 to 34 years old at 22.7% visitors, followed
by21.8% for those aged 35-44 and 17.9% from 45 to 55 years old.
Accommodation making up 19% food and beverage another 10% medical
receipts, representing the medical tourism industry the country was trying
to promoted, contributed 5% in particular, sightseeing/entertainment
which included expenditure at the two new integrated resorts grew by
1.834%.

Singapore tourism board promotes a different types of events every year

round for tourists. Another festival like, Singapore garden festival and
Singapore art festival also include. Singapore hosted a round of the 2008
FIA formula one world championship. The race held on a new street circuit
at marina bay was the first night-time event in formula one history . Also in
2010, Singapore hosted the inaugural youth Olympic Games, where the
Singapore tourism board which say the games is expected to generate a
minimum of 180,000 visitor nights for Singapore.

COLCLUSION

Its enterprise friendly approach boosts business as well. Singapores

continuing development has made it a major competitor in the
international market. The compulsory primary After analyzing all these
factors, It is clear that Singapore is a remarkable country. It houses
talented

and

motivated

people.

It

also

provides

great

business

opportunities. It can conclude that its business success in both domestic and
international platforms is highly benefited by government education and
hardworking citizen are contributing factors.

THANK YOU

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