Food and Beverage Services


Singapore, together with Hong Kong and Australia is ranked as one of the major eating capitals in the Asia Pacific region. (Report on Singapore's Food Service Industry 2001, Canadian High Commission). According to the Singapore Department of Statistics, there are about 4,500 establishments and the industry has engaged a workforce of 65,000. The total value added generated by the Food & Beverage industry was $1,249 million in 2004 and food caters were the most cost-effective, with the highest average annual employee remuneration in 2004.

Total number of Food & Beverage services amounts to 3,884 (including, restaurants, fast food outlets, food caterers, cafes, coffee houses, snack bars, canteens and pubs). The industry is not just supported by the local population, but also by the large number of tourists that flocked to the island state.

With a population of over 5.2 billion, Singapore is an entirely Cosmopolitan country. The food and beverages industry of Singapore has contributed approximately 3.5% to the total GDP of the nation. Singapore is the foremost in food consumption levels in South East Asia on the per capita basis contributing to about 3% of the GDP.

Singapore is rapidly urbanizing and due to the agricultural limitations, it imports 90% of its food products especially from other Asian countries. The main factors contributing to the growth of F&B industry in Singapore are expanding middle class and rise in their disposable incomes and increase in number of working women. F&B industry is expected to show even more growth due to the extremely encouraging per capita consumption growth.

Singapore has a large retail market and food retail spending contributes to about 40% to the total retail market. Rising tourism and growth in higher incomes has resulted in this growth. However, there are a few key drivers like Urbanization, food accountability and premiums that have played an important role.

Singapore has a vibrant and diverse food scene to cater to different taste buds. With outlets of major brands like McDonalds, Burger King, Pizza Hut, Subway,the fast-food scene in Singapore is well established. Coffee culture has also hit the country and one can find cafes like Starbucks, Coffee Club, Coffee Bean and Tea Leaf at every corner. This year, Singapore's catering firm Kriston Food and Beverage and kaya toast chain Ya Kun International are opening an outlet each in Tokyo to sell Singapore-style food.

Regulatory Authorities



Importers that purchase goods from overseas market look for some kind of certification or accreditation. The following are the agencies that administer the food and beverages market of Singapore.

AVA
Agri-Food and Veterinary authority of Singapore is the government authority that confirms health standards and food safety. All the importers look for an AVA approval before considering the food import as safe, fit for consumption and of high quality.

HACCP
Along with an AVA certification, most importers look for an HACCP approval too, especially by those distributors who supply food products to Chefs. This certification ensures that high level of safety procedures and standards have been maintained while processing the food.

ISO 22000
The next best alternative for companies that do not have HACCP approval is to obtain an IS0 22000 certification.

Food Services market



Singaporean market is well developed and has a strong preference for Australian food products. The food service segment of Singapore is intricate and has a wide variety ranging from a large number of street and market food stalls to very popular food and beverages chains, high class hotels and five star hotels. Together this whole segment is estimated to be doing a business of US$ 2.2 billion. Singapore has large multifaceted food offerings from many different cultures and on an average every Singaporean eats out at least once each day. Victorian companies are doing very well in this market segment with their high end hotel and restaurant chains that are entirely supported by a high import and distribution network across Singapore. Companies that supply dairy products, controlled meat, horticulture products in addition to snack food, seafood and Wines are very prominent in the Victorian market segment.

The Hotel, Restaurants and Institutions (HRI) sector is a major food service segment in Singapore. It is dominated two major groups namely the Kopitiam Group and the Tung Lok Group. Kopitiam group has more than seventy establishments in Singapore which are basically in the form of food halls comprising of many food stalls within it. The other group is into pastries and festive food through medium to high end restaurant chains.

Beverages Services Market



In the soft drinks market of Singapore, the dominating player is F&N foods as per the reports of the year 2011. Fraser and Neave Ltd. Is into soft drinks, foods, dairy and brewery sectors in Singapore. It has a turnover of over US$4 billion. It is licensed to distribute brands like Heineken and Coca Cola which is a very popular brand in Singapore.

Total revenues of $1.4 billion and $690.5 were generated by the alcoholic drinks market and beer market in Singapore respectively, in the year 2009.

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