Overview
Focus shifts to essential and competitively priced goods
FMCG products generally move from the retailer to the consumer rapidly and include products that are purchased on a frequent basis with a short lifespan. In line with the International Standard Industrial Classification (ISIC), Fast Moving Consumer Goods are classified as food products, beverages, tobacco, cosmetics and toiletries, over-the-counter pharmaceuticals, detergents and electronics. FMCG products reach end-consumers through retail stores and require investments or partnerships with logistics operations for distribution of goods. With limited local manufacturing operations, Singapore also extensively imports many FMCG products.
The industry went through heavy transformation with the pandemic as consumers faced tight budgets and reduced incomes. Demand for luxury products and cosmetics declined as essential goods and health products were prioritised. Further, as Singaporeans resorted to eat at home more regularly, the FMCG food segment witnessed value growth across all categories, with more emphasis on convenience foods.
However, the industry is slowly being revived with demand picking up post-lockdown. In January 2022, retail sales picked up by 11.8% YoY, mainly due to growth in sales of cosmetics & medicinal goods (+22.3% YoY), food & alcohol (+16.3% YoY), petrol service (+25.5% YoY), wearing apparel (+28.3% YoY) and watches & jewellery (+29.0% YoY).
Consumer Goods Safety Requirements (CGSR) Regulations safeguard consumers from unsafe general consumer goods
Consumer goods are required to meet the necessary safety standards, which are monitored by the Consumer Product Safety Office. If not adhered to, the authority can permit the sale of goods to be halted in the market, while directing suppliers to caution users against the potential dangers of such products. If non-complied, the penalty would be a fine with/or imprisonment.
In particular, items such as cosmetics are regulated under the Health Sciences Authority (HSA) and are expected to meet the requirements of the Health Products Act and the Health Products Regulations 2007 under the direction of the ASEAN Cosmetic Directive (ACD). Further, food and beverage licences, telecommunication dealers’ licences, tobacco licences, manufacturers’ or marketing product licences in the case of sale of cosmetics and toiletries are required as well.
Key Trends
Pandemic escalates changes in supply chain dynamics
The pandemic affected the consumer products businesses in various ways. While some were able to cover the costs through the increase in the demand for hygiene products, others were drastically affected as the demand for professional goods fell.
Supply chains were interrupted as procurement from global group companies and manufacturing plants was suspended. Further, there was more manpower required to handle manufacturing due to the virus spreading. Therefore, robust supply chains are required to avoid disruption, resulting in automation, to avoid relying on manpower alone. Bigger players with global channels and multiple portfolios progressed better than others during the circuit breaker. For instance, industrial giants such as Nestlé Singapore Pte Ltd and Kraft Foods Singapore Pte Ltd have vast portfolios of snacks, confectionery, cooking ingredients, dairy and staple foods.
E-commerce sales thrive; sets promising platform towards FMCG growth
The pre-pandemic years of 2017 and 2018 indicated that the FMCG industry size contracted by 0.5% (as per Q4 of 2018) as sales values dropped. Segments of the industry such as food contracted by 0.3% and non-food by 0.9% (as per Q4 of 2018). As a result, the entire market contracted from SGD 4.28 billion (2017) to SGD 4.26 billion (2018).
There was increased pressure and heated competition for brands and retailers as the footfall decreased and overheads increased. On the other hand, e-commerce recorded an exemplary growth rate of 52% in 2018. It served as a fresh medium providing greater opportunity to access a variety of products for consumers at their own convenience.
With the onset of COVID-19, stores across the country were forced to close doors, transforming consumer behaviour. The demand for daily necessities such as instant food, frozen food and hygiene products rose, while the demand for luxury items such as cosmetics and sunscreen fell.
Singaporeans have resorted to purchasing more online and utilising more home delivery services. Further, in a consumer survey conducted by BVA BDRC (Asia), it was discovered that 54% of the survey population stated using online shopping more than before the lockdown, including 4% for the first time. This trend may follow as 30% of the surveyed population stated that they will continue to shop more online than pre-pandemic.
Likewise, value and innovation are anticipated post-pandemic from FMCG players as traditional sales models have been transformed due to e-commerce. One of the ways that brands and FMCG companies can benefit from the surge of e-commerce is through the collection of data. The data collected gives a great opportunity for businesses to study their consumers and their preferences. Further, brand loyalty can be built with the information collected.
Direct engagement with consumers has led smaller players to contend with industry giants
The FMCG industry in Singapore has consistently been controlled by industry giants such as Nestlé, Procter & Gamble and Unilever. However, prior to the pandemic, a smaller pool of startup companies initiated competition in the industry. Their entry is strengthened through the use of social media platforms creating lower barriers to entry, and have facilitated direct connections with consumers.
Industry leaders have regularly resorted to mass marketing, a hefty sales force and investments in manufacturing plants. However, smaller corporations with minor marketing budgets have successfully captured the online consumer community and sold products on online platforms eliminating the main offline retail channels. Digital consumerism, the evolution of moving away from physical stores, coupled with producers connecting directly with their consumers in innovative and attractive ways, are the reasons for the success of smaller startups such as Supernova and SkinnyMint.
Focus on sustainability gains momentum as Singaporeans seek organic and natural ingredients
Strong performance was recorded in the natural and organic product categories as Singaporeans are conforming towards using products manufactured using natural ingredients. The segment of ‘natural and botanic’ goods moved ahead of non-natural goods segments in most cases by recording sales of 25%, 13% and 11% for hair colourant, haircare and facial care respectively.
In a recent survey conducted by Nielsen, it was concluded that more than 80% of Singaporeans were prepared to pay premium prices for natural ingredients and sustainable products. As a result, brands need to understand the significance of ingredients and the level of analysis consumers use when purchasing these products. Gaining an edge in sustainability for brands lies in finding the correct balance between what is healthy for both the consumer and the environment.
Key Statistics
- According to a consumer survey by Statista, changes (increases) in FMCG consumption as of the end of 2020 were: Fresh Fruit and Vegetables 44%, Frozen Fruits 38%, Food Cupboard Items 34%, Junk Food 33%, Bakery Goods 26%, Dairy Items 22%, Alcohol 17% and Cosmetics 7%.
- 43% of consumers have spent less on fashion related products since the pandemic and 79% of consumers still prefer online purchasing as opposed to visiting physical stores.
- The growth of Singapore’s FMCG sector was 15.5% YoY as of 2020.
- The YoY retail sales increase recorded as of January 2022 were: Food and Alcohol 16.3%, Cosmetics, Toiletries and Medical Goods 22.3%, Apparel and Footwear 28.3%, Watches and Jewellery 29%, and Computers and Telecommunication 5%.
Top Singapore MNCs in FMCG Sector
NESTLE SINGAPORE (PTE) LTD
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BRITISH-AMERICAN TOBACCO (SINGAPORE) PRIVATE LIMITED
British American Tobacco Pvt. Ltd., which was established in 1902, is a company that manufactures, imports, and sells tobacco products. Tobacco ingredients, cigarettes, cigars, pipe tobacco, and smokeless snus make up the company’s product portfolio. Customers from around the world are served by British-American Tobacco Singapore. It has offices, factories, technology hubs, and research and development centres, and its employees spend time on the road assisting and advising tobacco growers and retailers who sell goods. The company’s products - including Vuse, Velo, Grizzly, Kodiak, and Camel Snus - are offered in 175 markets, and are regulated by the Food and Drug Administration (FDA).
COCA-COLA SINGAPORE BEVERAGES PTE. LTD.
The Coca Cola Company was incorporated in 1886. Its products are available in over 200 countries across the globe. A subsidiary, Coca-Cola Singapore Beverages Pte. Ltd. was incorporated in 1997. In 2010, the Singapore manufacturing plant began operations. It manufactures, markets, and distributes over 40 distinct beverage options such as Coca-Cola, Authentic Tea House, Sprite, Fanta, Heaven and Earth, and other brands. The beverages are packaged in permitted containers, such as cans and refillable and nonrefillable glass and plastic bottles, and sold to retailers directly or through wholesalers or other bottlers.
PROCTER & GAMBLE INTERNATIONAL OPERATIONS SA SINGAPORE BRANCH
Procter & Gamble International Operations SA Singapore Branch is part of a multinational consumer goods firm headquartered in the United States. Procter & Gamble began as a soap and candle firm almost 180 years ago. It offers products such as pharmaceuticals, baby care, beauty care, fabric and home care, feminine care, food and beverages, healthcare, snacking, and pet care goods. The Procter & Gamble Company won the Product of the Year Award in 2019, the Top 25 Most Innovative Client Companies in 2020, and Best Sustainable Packaging Innovation in 2019.
MEAD JOHNSON NUTRITION (ASIA PACIFIC) PTE. LTD.
Repeated company as per the Client -
L'OREAL SINGAPORE PTE. LTD.
L'Oréal Singapore Pte. Ltd., which was established in 1990, is a multinational cosmetics brand. It is headquartered in Paris. The company’s focus drives the scientific brilliance and restless innovation in everything from makeup and skincare, to haircare and hair colour products. L'Oréal Singapore has a Research & Innovation Center for advanced skin biology, clinical research, and open innovation. L'Oréal is available in all retail channels, including mass market, department stores, pharmacies, drugstores, hair salons, travel retail, branded retail, and e-commerce. It is Singapore's first and only beauty company to be conferred the 3R Award by the National Environment Agency.
UNILEVER SINGAPORE PTE. LIMITED
Unilever Singapore Pte. Ltd. was incorporated in 1971. Unilever is a global consumer goods company that manufactures and sells over 400 brands across 190 countries. Singapore is home to the global beauty and personal care brands Lifebuoy, Lux, Closeup, Rexona, and Pond's. Unilever collaborates with thousands of suppliers on goods and services, and on ingredients and raw materials, which are transformed into products at 300+ factories spread across 69 countries. These products are subsequently delivered to 25 million retailers, ranging from supermarkets to small convenience stores, as well as through new rapidly developing channels including e-commerce and direct-to-consumer marketing.
POKKA PTE. LTD.
Established in 1977, POKKA Pte. Ltd. is a subsidiary of POKKA SAPPORO Food & Beverage Ltd., Japan, and is a leading beverage company in Singapore and the Asia-Pacific. The company produces and sells a wide variety of beverages under the brand name POKKA. It is now a brand in the ready-to-drink beverage market not only in Singapore but also in over 50 other Asian, Middle Eastern, and European nations. It operates and leverages its extensive distribution network to assist in the introduction and management of its multiple multi-national agency brands, such as Evian and Red Bull.
MEIJI SEIKA (SINGAPORE) PRIVATE LIMITED
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CONCENTRATE MANUFACTURING (SINGAPORE) PTE. LTD.
Incorporated in 2008, Concentrate Manufacturing Singapore Pte. Ltd. is a multinational food and beverage conglomerate under PepsiCo. It produces beverage flavour concentrates for all Pepsi beverage brands, and supplies bottling plants in Asia, the Pacific and North America. PepsiCo's product portfolio offers a diverse range of meals and beverages in more than 200 countries and territories worldwide. PepsiCo's portfolio includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. Concentrate Manufacturing was named one of America's Best Large Employers from 2021-22. It was awarded Governance Professional of the Year in 2016, and Rabobank's Excellence in Food and Agriculture Leadership Award in 2020.
Top Singapore Large Local Enterprises in FMCG Sector
FRASER AND NEAVE, LIMITED
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YEO HIAP SENG LIMITED
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DELFI LIMITED
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ASIA PACIFIC BREWERIES (SINGAPORE) PTE LTD
Asia Pacific Breweries Pte. Ltd. is one of Singapore's sustainable breweries, established in 1931. It produces beers, including the brand Tiger Beer. Heineken International and Asia Pacific Breweries merged in 2012 under the name of Heineken. The company's premium beer and cider brands include Heineken, Guinness, Strongbow, Archipelago specialty beer, and low- and non-alcohol beers. Asia Pacific Breweries presently owns 45 breweries in 19 Asia-Pacific nations, selling over 50 beer brands and varieties. India, Malaysia, Vietnam, China, New Zealand, Papua New Guinea, Solomon Islands, New Caledonia, and Sri Lanka all have breweries under the Heineken brand.
SIS '88 PTE LTD
SIS ’88 Pte. Ltd., which was incorporated in 1967, is a supplier of sugar to the retail sector, as well as the food and beverage manufacturing industries. It offers varied pack size options for consumers. SIS primarily distributes sugar to the domestic market while also exporting its products internationally. The company established its export business in 1988 while catering to the Middle East and Southeast Asia. SIS is one of the biggest imported sugar brands in the UAE. Mitsui Sugar Co. Ltd. and Mitsui & Co., Ltd. bought 70 percent and 30 percent of shares respectively, in SIS '88 in 2018, and became its largest shareholders. SIS is a member of Bonsucro, the global platform for sugarcane sustainability.
KHONG GUAN BISCUIT FACTORY (SINGAPORE) PRIVATE LIMITED
Established in 1947, Khong Guan Biscuit Factory (Singapore) Pte. Ltd. is a biscuit manufacturing firm. The company produces biscuits, crackers, wafers, cookies, and chocolate-related items. Khong Guan Biscuit Factory has customers across the globe. It supplies over 40 countries including Middle Eastern nations, Hong Kong, Japan, Australia, European countries, Canada, and the United States. Its factories in Malaysia and other nations in Southeast Asia quickly followed, with its technical team designing and manufacturing production lines.
PRIMA LIMITED
Prima Limited was incorporated in 1961. It was Singapore's first flour mill, announcing the start of locally milled wheat flour replacing imported flour. The group has grown into a global food corporation, with manufacturing bases in Singapore, Sri Lanka, China, and Australia. Prima Limited products are distributed to clients in over 40 markets across five continents via an extensive network. Flour milling, food production, agro-food, food service, bakery franchising, bakery equipment and systems, baking and culinary education, and trading and distribution are among Prima’s core functions.
NGO CHEW HONG EDIBLE OIL PTE. LTD.
Ngo Chew Hong Edible Oil Pte. Ltd. is an edible oil and fat manufacturing firm established in the 1950s. It is a subsidiary of the MEWAH group of companies. Ngo Chew Hong provides a wide range of high-quality products, including palm-based vegetable cooking oils, vegetable ghee, soft oils, lauric oils, and bakery and confectionery fats. The company also expanded its product line to include rice, condensed milk, tomato paste, savoury premixes, and home and personal care items such as soap, washing powder, and so on. These are distributed under the brand name OKI, as well as other brands such as Turkey, Mona, and Dukes. Ngo Chew Hong has offices in Africa, Asia Pacific, the CIS, Europe, the Middle East, and the Indian subcontinent.
UNIVERSAL INTEGRATED CORPORATION CONSUMER PRODUCTS PTE. LTD.
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MALAYSIA DAIRY INDUSTRIES PRIVATE LIMITED
In 1963, Malaysia Dairy Industries Pte. Ltd. (MDI) was formed as a joint venture between Singaporean partners and the Australian Dairy Produce Board. MDI is a dairy and beverage firm that manufactures a variety of products such as sweetened condensed milk, evaporated milk, juices, pasteurized milk, yogurt, yogurt drink, jelly, and puddings. MDI sells its products to countries across the globe. The company exports 90% of its manufacturing output of sweetened condensed milk and evaporated milk to over 50 countries throughout the world.
Top Singapore SMEs in FMCG Sector
GARDENIA FOODS (S) PTE LTD
Gardenia Foods (S) Pte. Ltd., which was established in 1978, is a subsidiary of QAF Limited. It offers flour mixes or doughs such as biscuit mixes, doughnut mixes, pancake mixes, and others. The Gardenia brand of packaged bread is a popular product in Singapore, Malaysia, and the Philippines. Gardenia Foods delivers Gardenia bread straight to supermarkets, convenience stores, and general trade outlets throughout Singapore, Malaysia, and the Philippines. In 2017, Gardenia was named as a Superbrand, and a Top Influential Brand in the bread category.
PEARLIE WHITE PRIVATE LIMITED
Pearlie White Pte. Ltd. is an oral care brand incorporated in 1869. It caters to oral care needs such as teeth whitening, teeth sensitivity relief, and protection for healthy teeth and gums with over 50 oral care products. Pearlie White’s product range includes toothpaste, toothbrushes, mouth rinse, floss, interdental brushes, portable dental care items, home use dental instruments, and denture care. Pearlie White is headquartered in Singapore and has full R&D and manufacturing capabilities for its toothpaste, mouth rinse, and breath spray products.
FASSLER GOURMET PTE LTD
Fassler Gourmet Pte. Ltd., which was established in Singapore in 1991, is a seafood smokehouse firm. Fassler specializes in cold and hot smoked salmon and game fish that are ready to eat. It also produces frozen soups, sauces, and ready-to-eat meals. Fassler's primary business is B2B, with customers from the HORECA (hotels, restaurants, and cafes), retail, and export sectors. In 2015, Fassler Gourmet received Marine Stewardship Council and Aqua-cultural Stewardship Council Chain-of-Custody accreditation for sustainably sourced seafood, and the Agri-food and Veterinary Authority of Singapore's (AVA) Food Safety Excellence Platinum Award.
HIGHLANDERS INTERNATIONAL PTE. LTD.
Incorporated in Singapore in 1999, Highlanders International Pte. Ltd. is an Asian food manufacturing firm which produces distinctive brown rice products. The company’s products are currently being exported to countries such as Australia, Hong Kong, Malaysia, and the Philippines. Highlanders' Brown Rice Tea and Rainbow Congee are two of its special products - the company has won multiple honours for these products. Highlanders develops, tests and supervises its products throughout the manufacturing process.
GARDEN PICKS FOOD MANUFACTURING LLP
Garden Picks Food Manufacturing LLP was established in Singapore in 2009. The company is a dried fruit and nut importer, OEM service provider, and packer. Since its operations began more than a decade ago, Garden Picks’ product line has expanded to over 100 varieties, including nuts, dried fruits, superfoods, snacks, cereals, and nut butters. It now operates from four commercial facilities, including office headquarters, two warehousing facilities, and an AVA-licensed manufacturing and packing facility. Garden Picks Food Manufacturing’s clients include well-known restaurant chains, hotels, airlines, and merchants.
T. G. KIAT & CO (PTE) LTD
T. G. Kiat & Co. (Pte) Ltd. was incorporated in 1935, and is reputed for its Rose Brand Syrup. Many people have come to appreciate Rose Brand Syrup as a superior drink because of its traditional recipe and quality ingredients. RoseRush rose drink, which comes in a 250ml can and is ready to drink, is also a product of T. G. Kiat & Co. It has been exported to various nations, including the United Kingdom, the United States, Hong Kong, Australia, France, Brunei, Bahrain, Kuwait, and Dubai.
KLEEN-PAK PRODUCTS PTE. LTD.
Kleen-Pak Products Pte. Ltd. was established in 2003. It is a manufacturer of high-quality wet wipes in Southeast Asia, as well as a specialist contract manufacturer of finished, shelf-ready wet wipes products. The company has an extensive portfolio of wet wipes ranging from national brands to private-labels and contract packaging in a wide range of applications, folding forms, nonwoven substrate alternatives, product formulas, and package styles. Kleen-Pak Products is headquartered in Singapore, and its manufacturing plants are in Singapore and Vietnam. Its operations and management systems are ISO 9001, ISO 13485, ISO 22716, and ASEAN Cosmetic GMP certified.
PAN SEAS ENTERPRISES PRIVATE LIMITED
Established in 1966, Pan Seas Enterprises Pte. Ltd. is a food and seafood manufacturer, processor, and distributor in Singapore. It offers consumers quality seafood at reasonable prices. Pan Seas Enterprises provides customers with services such as descaling, gutting, fileting, and processing. Supplying its products to the market, Pan Seas Enterprises provides daily delivery services using its own fleet of cold trucks and delivery vans. Fish, shellfish, snacks, sea cucumbers, ready-to-cook meals, bundle deals, and wholesale are among the products and services offered by the company.
FRESHENING INDUSTRIES PTE. LTD.
Freshening Industries Pte. Ltd. was incorporated in Singapore in 1994. It is a wet wipes manufacturer and a valued distributor of hygiene and food-service packaging and supplies for food service, healthcare, and hospitality institutions. Smartowel, Zappy, HospiCare, and Alpak are well-known local brands offered by the firm. Freshening Industries is also present in Southeast Asian and Asia-Pacific countries such as Malaysia, Indonesia, Hong Kong, and China. Freshening Industries has won the Operational Excellence Award in 2014, and Healthcare Supplier Award and Continuous Improvement Award in 2017.
ALPS GROUP PTE. LTD.
Established in 2012, Alps Group Pte. Ltd. develops and manufactures toxin-free and environmentally friendly daily consumables. Alps Group also specializes in food packaging, offering a wide range of options for various types of cuisines and enterprises such as restaurants, hotels, and hospitals. The Alps Group's premium consumer items are created from sustainable, tree-free bamboo. Its CloverSoft Toilet and Facial Tissues are well-known and popular among customers. Antibacterial hand wash, Bare Eco Water, body wash, hand sanitisers, laundry pods, mosquito and insect repellent patch, and tissues and toilet rolls are among the products offered by the Alps Group.
Top 10 Fastest-Growing FMCG Sector Companies in Singapore
RM FOOD MANUFACTURING PTE. LTD.
Repeated company as per the Client -
HEALTH FOOD MATTERS PTE. LTD.
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IMPOSSIBLE FOODS SINGAPORE PTE. LTD.
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POKKA PTE. LTD.
Established in 1977, POKKA Pte. Ltd. is a subsidiary of POKKA SAPPORO Food & Beverage Ltd., Japan, and is a leading beverage company in Singapore and the Asia-Pacific. The company produces and sells a wide variety of beverages under the brand name POKKA. It is now a brand in the ready-to-drink beverage market not only in Singapore but also in over 50 other Asian, Middle Eastern, and European nations. It operates and leverages its extensive distribution network to assist in the introduction and management of its multiple multi-national agency brands, such as Evian and Red Bull.
FORTUNE FOOD MANUFACTURING PTE LTD
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EBUY PTE. LTD.
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TIONG LIAN FOOD PTE. LTD.
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VANCE CHEMICALS PTE. LTD.
Vance Chemicals Pte. Ltd., which was incorporated in 1999, is a Singapore-based chemical firm. Mr. McKenic, Mrs. McKenic, and GK-GermKiller are manufactured by Vance Chemicals. Isochem International sold the Mr. McKenic brand and its accompanying R&D and manufacturing facilities to Vance Chemicals in December 2009. The 9-in-1 Technology Oil, the company's flagship product, was specially designed to address the growing demand for non-flammable, penetrating lubricants with corrosion-preventing effect. The company offers products that clean, disinfect, degrease, lubricate, polish, and protect both at work and at home. Its global distribution network has expanded to the UK, Europe, the US, China, Southeast Asia, Africa, and the Middle East.
PROLIFE FOODS SINGAPORE PTE. LTD.
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ASIA DESSERT GURU PTE. LTD.
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