Singapore's grocery market to grow by 14.5% in the next 4 years
Singapore's grocery market is forecast to see steady growth to SGD9.9bn ($7.2bn) by 2023, up 14.5% from 2018, according to the latest forecasts from international food and consumer goods researcher, IGD Asia. Although Singapore is a small market in value terms, it remains strategically important for many businesses and is often seen as a benchmark for the evolution of cities in Asia.
Traditional trade still makes up about a fifth of grocery sales in Singapore, according to IGD's findings, although this is likely to reduce over the next five years as the market continues to modernise.
"All channels are forecast to boost the value of modern trade, but growth will come mainly from the expansion of online, as retailers invest to meet growing shopper demand. Indeed, online will be the fastest-growing grocery channel in Singapore over the next five years, primarily driven by Alibaba Group through its RedMart store, as well as FairPrice investing more in the channel – on current projections, RedMart will establish itself as the clear online market leader by 2023. Supermarkets and convenience channels are set to grow in line with Singapore's overall market, between 2.5% to 3.5% per year, but hypermarkets will have a CAGR of just 1.1%, as retailers focus on expanding their smaller stores and online operations. Supermarkets will remain the main grocery format in Singapore, with a value of SGD5.7bn and accounting for 57.4% of sales by 2023. At more than half the total market value, protecting and growing sales in this channel should be a top priority for retailers and suppliers", explained Nick Miles, Head of Asia-Pacific at IGD.
Supermarkets will remain the main grocery format in Singapore, with a value of SGD5.7bn ($4.1bn) and accounting for 57.4% of sales by 2023, according to the report.
"Supermarkets and convenience channels are set to grow in line with Singapore's overall market, between 2.5% to 3.5% per year, but hypermarkets will have a CAGR of just 1.1%, as retailers focus on expanding their smaller stores and online operations", added Nick Miles.
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