food and beverage industry trends

In 2023, Singapore’s Food and Beverage industry is going through a transformative phase, witnessing the emergence of several trends that are shaping its growth.

From the rise of health-conscious choices to technological innovations, we are excited to explore the key trends propelling the food and beverage industry’s evolution in this article.

Understanding these trends becomes paramount for F&B businesses to adapt to the dynamic landscape, overcome imminent challenges, and develop effective strategies to thrive and outshine intense competition.

Top 50 Food and Beverage F&B Companies in Singapore

Singapore’s F&B industry presents a captivating landscape with abundant opportunities for both small and large F&B companies to achieve substantial long-term profits and establish a robust presence in the country.

Let’s now discover which companies have earned their place among the top 50 in this highly competitive yet lucrative F&B market in Singapore.

According to, here are the top 50 F&B companies in Singapore

  1. Nestlé
  2. Mondelēz International
  3. The Coca-Cola Company
  4. Diageo
  5. Danone
  6. The HEINEKEN Company
  7. Mars
  8. PepsiCo
  9. Ferero
  10. FrieslandCampina
  11. Carlsberg Group
  12. Kellogg Company
  13. Red Bull
  14. Ajinomoto
  15. Roquette
  16. Bunge Limited
  17. Ingredion
  18. Campbell Soup Company
  19. Fonterra
  20. General Mills
  21. McCormick & Company
  22. ADM
  23. Secret Recipe
  24. Tyson Foods
  25. Nestlé USA
  26. XXX Energy Drink
  27. Wilmar
  28. Yakult
  29. Kraft Heinz Company
  30. Gloria Jean’s Coffees
  31. The Hershey Company
  32. Dutch Lady Milk Industries
  33. Coca-Cola FEMSA
  34. Pernod Ricard
  35. Moët Hennessy
  36. Tyson
  37. Lactalis
  38. Thorntons (UK)
  39. OLDTOWN White Coffee
  40. Häagen-Dazs
  41. Suntory Group
  42. Bee Cheng Hiang
  43. Mamee-Double Decker
  44. Coca-Cola Bottling Company United
  45. William Grant & Sons
  46. Arla Fruits
  47. Tutti Frutti Frozen Yogurt
  48. Puratos
  49. Glanbia Performance Nutrition
  50. illy

The Top Trends in the F&B Industry in Singapore

food and beverage

Being aware of the latest trends is of utmost importance for food and beverage businesses in Singapore. It enables them to adapt to changes, address challenges, and develop effective strategies to thrive and distinguish themselves in the competitive market.

Below are the emerging trends in the F&B industry in Singapore:

1# Growing Demand for ‘Naturally Healthy’ Foods

The demand for ‘naturally healthy’ foods, which naturally contain beneficial substances for health, is on the rise. Packaged food, especially snacks, now incorporates ingredients like ‘super’ seeds and whole grains to cater to this trend.

2# Premium Supermarkets Catering to Higher-Income Consumers

Higher-income consumers in Singapore are seeking higher quality food and imported ingredients to create restaurant-style meals at home. As a result, there is an increased demand for premium supermarkets offering a wide range of high-quality products.

3# Supermarkets and Convenience Stores Thriving

Supermarkets and convenience stores remain popular among Singaporean consumers due to their affordability. During the pandemic, consumers became more price-sensitive, which benefited these retail formats. Traditional grocery retailers in residential neighborhoods also experienced an increase in sales during COVID-19 restrictions.

By 2025, supermarket sales are projected to reach around US$2.4 billion, while convenience store sales are expected to reach US$3.9 billion. In contrast, hypermarkets are facing intense competition and are likely to experience a decline in sales.

4# Sustainability as a Key Consumer Concern

Similar to global trends, sustainability has become a significant consideration for consumers in Singapore. There is a growing demand for organic foods, plant-based foods, and eco-friendly products. Concerns about the environmental impact of pesticides and the potential health effects of genetically modified ingredients, antibiotics, and hormones drive the demand for organic foods.

Additionally, the interest in plant-based foods is on the rise, leading retailers and foodservice venues to offer a variety of plant-based options. Consumers also prefer eco-friendly and recyclable packaging materials.

5# Convenience Drives Packaged Foods Demand

As consumers in Singapore return to school and work, convenience becomes a top priority. They seek convenient, packaged foods that can be easily carried on-the-go. Prepared meals, which can be quickly heated in the microwave or oven, are also in high demand. The prepared meals segment is projected to grow at a Compound Annual Growth Rate (CAGR) of 7.00% by 2027.

Frozen foods, pasta, noodles, and soups are other notable areas of growth in the convenience foods space. The frozen food market size was valued at USD 244.3 billion in 2020 and is projected to reach a value of about USD 312.3 billion by 2025, with a Compound Annual Growth Rate (CAGR) of 5.0%.

These growth trends are attributed to developments in the retail landscape, rising demand for convenience food, and technological advancements in the industry.

Singaporean consumers also tend to order takeaway or delivery and eat out more frequently compared to their global counterparts, as time constraints limit their cooking or baking activities.

6# E-commerce Growth and Online Grocery Shopping

Online grocery shopping is expected to grow in Singapore, with the number of e-commerce users projected to reach 4.33m users by 2027.

Currently, around 3.33 million consumers in Singapore shop online. The country’s middle-class digital natives spend nearly 9 hours online daily. The F&B e-commerce market is forecasted to grow annually by 19.02 % until 2027.

7# Increased Online Food and Beverage Expenditure

Online spending on food and beverages witnessed a substantial rise in 2021, following the surge observed in 2020 due to store closures during the pandemic. According to Data Reportal 2022 data, food purchased through e-commerce skyrocketed by 785%, reaching a value of US$151.7 million, while beverages saw a notable increase of 68.1% to US$42.79 million.

8# Recovery of the Foodservice Sector Post-COVID-19

Following a growth rate of 22% in 2022, Singapore’s food and beverage industry is projected to grow by 8% in 2023. The spotlight will be on the foodservice sector after years of closures and lockdowns, leading to pent-up demand.

Singapore’s restaurant and cafe scene is undergoing a revival, with significant developments such as the arrival of the Michelin Guide, a focus on sustainability and transparency, and a thriving coffee culture. While eating out is making a comeback, food delivery services like GrabFood and FoodPanda continue to be popular as consumers seek convenience.

9# Economic Shifts and Consumer Trends

Singapore’s economy, which grew by 3.6% in 2022, is expected to “moderate significantly” in 2023, according to the Monetary Authority of Singapore (MAS). Despite this, improved labor market conditions have bolstered consumer spending, leading to increased demand for premium, organic, and fresh foods.

However, the MAS forecasts that higher consumer prices and interest rates will restrain spending, leading to a GDP growth of between 0.5% and 2.5% in 2023.

The manufacturing sector, including a significant portion of the F&B industry, contracted by 6% in the first quarter of 2023, steeper than the 2.6% contraction recorded in the previous quarter. Despite these challenges, the F&B industry remains a vibrant and essential part of Singapore’s economy, offering a wide range of opportunities for businesses of all sizes.


Top Challenges Facing the F&B Industry in Singapore

food and beverage industry

The F&B industry in Singapore encounters several obstacles that impede its growth and development, including the following. However, it’s crucial to recognize that where challenges exist, there are also opportunities.

Challenges 1: Escalating Costs Affecting Profitability

One of the primary challenges faced by the F&B industry in Singapore is the mounting costs of food ingredients, rent, and utilities. This puts considerable strain on food outlets to offer competitive prices while ensuring sustainable profitability. As a result, some establishments may be compelled to raise their prices, potentially impacting customer retention.

Challenges 2: Shortage of Skilled Labor

The food and beverage sector in Singapore heavily relies on foreign workers, but stricter government policies have led to a scarcity of skilled labor within the industry. Finding and retaining qualified staff has become a significant challenge for food establishments.

Challenges 3: Intense Competition for Market Share

Singapore’s F&B industry is characterized by intense competition, with numerous players striving to capture their share of the market. The constant opening of new restaurants and cafes further amplifies the competitive landscape, making it challenging for existing businesses to maintain their market position and differentiate themselves from the crowd.


Final Thoughts: Navigating the Challenges in Singapore’s F&B Industry

The F&B industry in Singapore, encompassing restaurants and cafes, is facing a heightened level of competition. The potential and demand are present, but the challenge lies in capitalizing on these opportunities, enhancing competitiveness, and distinguishing oneself in a saturated market.

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What is New Retail Revolution?

Ecommerce vs Physical Stores: Era of Digital Transformation

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