Organic Food & Beverage Singapore Market Study

APRIL 2019

© Copyright EU Gateway | Business Avenues

The information and views set out in this study are those of the author(s) and do not necessarily reflect the official opinion of the European Union. Neither the European Union institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein. The contents of this publication are the sole responsibility of EU Gateway | Business Avenues and can in no way be taken to reflect the views of the European Union. The purpose of this report is to give European companies selected for participation in the EU Gateway | Business Avenues Programme an introductory understanding of the target markets countries and support them in defining their strategy towards those markets. For more information, visit www.eu-gateway.eu.

EU Business Avenues in South East Asia

Central Management Unit

Singapore Market Study

April 2019

Submitted to the European Commission on 23 April 2019

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Table of Contents

LIST OF FIGURES ...... 7

LIST OF TABLES ...... 8

TABLE OF ABBREVIATIONS ...... 10

1. EXECUTIVE SUMMARY ...... 12

2. WHAT ARE THE CHARACTERISTICS OF SINGAPORE? ...... 20

2.1 POLITICAL OVERVIEW ...... 20 2.2 ECONOMIC OVERVIEW ...... 21 2.3 TRADE OVERVIEW ...... 22 2.4 MARKET ACCESS ...... 25 2.5 BUSINESS AND COMPETITIVE ENVIRONMENT ...... 26 2.6 AGRICULTURE ...... 27

3. MARKET OVERVIEW & EU ENTRY OPPORTUNITIES IN SINGAPORE ...... 31

3.1 MARKET OVERVIEW OF THE ORGANIC FOOD & BEVERAGE SECTOR ...... 31 3.1.1 Introduction to the Singapore Food & Beverage Market ...... 31 3.1.2 Overview of the Organic Food & Beverage Market ...... 37 3.1.3 Market Outlook ...... 40 3.1.4 Importers, Retail & Distribution ...... 42 3.1.5 Government Initiatives ...... 49 3.2 ORGANIC BABY FOOD ...... 54 3.2.1 Market Overview ...... 54 3.3 ORGANIC CEREAL / CEREAL PRODUCTS ...... 60 3.3.1 Market Overview ...... 60 3.4 ORGANIC DAIRY ...... 65 3.4.1 Market Overview ...... 65 3.5 ORGANIC BAKERY PRODUCTS ...... 70 3.5.1 Market Overview ...... 70 3.6 ORGANIC SPREADS ...... 76 3.6.1 Market Overview ...... 76 3.7 ORGANIC CONFECTIONERY ...... 79 3.7.1 Market Overview ...... 79 3.8 ORGANIC SAUCES, DRESSINGS AND CONDIMENTS ...... 84 3.8.1 Market Overview ...... 84

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3.9 ORGANIC OILS AND FATS...... 89 3.9.1 Market Overview ...... 89 3.10 ORGANIC INGREDIENTS ...... 94 3.10.1 Market Overview ...... 94 3.11 ORGANIC BEER, WINE AND SPIRITS ...... 98 3.11.1 Market Overview ...... 98 3.12 ORGANIC JUICE ...... 106 3.12.1 Market Overview ...... 106 3.13 ORGANIC TEA, COFFEE AND COCOA ...... 110 3.13.1 Market Overview ...... 110 3.14 ORGANIC FRUITS AND VEGETABLES ...... 114 3.14.1 Market Overview ...... 114 3.15 ORGANIC MEAT / MEAT PRODUCTS ...... 118 3.15.1 Market Overview ...... 118 3.16 ORGANIC SEAFOOD / SEAFOOD PRODUCTS ...... 121 3.16.1 Market Overview ...... 121 3.17 EU ENTRY OPPORTUNITIES IN THE ORGANIC FOOD AND BEVERAGE SECTOR...... 126

4. REGULATIONS ...... 130

4.1 KEY GOVERNMENT AGENCIES ...... 130 4.2 KEY REGULATIONS ...... 132 4.2.1 Singapore Regulation on Food Products ...... 132 4.2.2 General Labelling Requirements ...... 135 4.2.3 Additional Labelling Requirements ...... 138 4.2.4 Nutrition, Health & Other Claims...... 140 4.2.5 Application for Use of New Health Claims ...... 145 4.2.6 Singapore – EU Organic Equivalence Agreement ...... 148 4.3 FOOD CERTIFICATION AND PRODUCT REGISTRATION ...... 149 4.3.1 Manufacturing Facilities Registration ...... 149 4.3.2 Organic Labelling ...... 155 4.4 IMPORT REGULATIONS ...... 157 4.5 IMPORT PROCESSES ...... 158 4.5.1 Before Import ...... 158 4.5.2 Customs ...... 159 4.5.3 After Import ...... 159

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5. ANNEX ...... 162

5.1 LIST OF USEFUL CONTACTS ...... 162 5.2 STARTING A BUSINESS IN SINGAPORE ...... 164 5.3 USEFUL STATISTICS ...... 169 5.4 BIBLIOGRAPHY ...... 186

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List of Figures

Figure 1: Map of Singapore ...... 20 Figure 2: EU-Singapore FTA ...... 23 Figure 3: Sky Greens offers Vertical Farming Technologies on Non-arable Land ...... 28 Figure 4: Indoor Vertical Farming with Climate Control by Panasonic Factory Solutions ...... 29 Figure 5: Commercial rooftop farming in Singapore ...... 30 Figure 6: Maxwell Road Hawker Centre offers Local Street Food ...... 31 Figure 7: CE LA VI Restaurant and SkyBar, a Fine Dining Restaurant ...... 33 Figure 8: Suppliers of Fresh & Processed Food to Singapore ...... 35 Figure 9: Top EU Agri-Food Products Exports to Singapore in 2017 ...... 36 Figure 10: Organic Specialty Corner at NTUC FairPrice ...... 38 Figure 11: A Stall which sells 70% Organic Products in Ang Mo Kio Wet Market...... 41 Figure 12: Zenxin’s Organic Green Oak Lettuce from Thailand, Priced at S$ 2.80 ...... 41 Figure 13: Organic Fruits and Vegetables...... 44 Figure 14: Oatly Organic Milk ...... 49 Figure 15: The Singapore Food Agency ...... 50 Figure 16: The Healthier Choice Symbol (HCS) ...... 52 Figure 17: Organic Baby Food by Plum Organic (UK) ...... 55 Figure 18: Organic Sprouted Porridge Oats by Rude Health (UK) ...... 60 Figure 19: Naturel Organic Brown Rice by Lam Soon ...... 61 Figure 20: Bio Organic Chocolate Breakfast Bars ...... 63 Figure 21: Huber’s Butchery has an extensive selection of Dairy Products ...... 67 Figure 22: Organic bakeries by Bud of Joy ...... 73 Figure 23: La Finestra sul Cielo’s Organic Sweet Avena Cakes ...... 75 Figure 24: Royce Store in Singapore ...... 79 Figure 25: Diablo Sugar-free Chocolates ...... 80 Figure 26: Pierrot Gourmand Gummies ...... 83 Figure 27: Some of Mekhala Living’s Organic Asian Pastes ...... 85 Figure 28: Arogaia Herbs available in Singapore ...... 88 Figure 29: OKI Premium Corn Oil, with the Healthier Choice Symbol ...... 90 Figure 30: La Tourangelle’s Organic Virgin Coconut Oil ...... 93 Figure 31: Smith Street Taps, Craft Beers for the Man in the Street ...... 98 Figure 32: The new Tiger Black and Tiger White ...... 100 Figure 33: Freshly Squeezed Organic Juices by Antidote...... 107 Figure 34: Organic Coffee from Boncafé ...... 113 Figure 35: The Food Singaporeans Eat ...... 114 Figure 36: Onllne Retailer Sasha's Fine Foods’ Blog, giving Advice to Consumers ...... 118 Figure 37: The Marine Stewardship Council or Aquaculture Stewardship Council Labels ...... 123 Figure 38: Singapore Food Agency’s Organisation Chart ...... 130 Figure 39: Organic Certification Recognised by SFA ...... 156 Figure 40: Processes to Follow Before Importing Food Products into Singapore ...... 158 Figure 41: General Flowchart for Importing Goods into Singapore ...... 159

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List of Tables

Table 1: Ease of Doing Business in Singapore 2019 ...... 26 Table 2: Top 20 Agri-Food Products Exported from the EU to Singapore, 2013 - 2017 ...... 37 Table 3: Price Comparison between Organic and Non-Organic Baby Food Products ...... 58 Table 4: Price Comparison between Organic and Non-Organic Cereals / Cereal Products ...... 63 Table 5: Import Value and Share of Top 10 Source Markets - Dairy Products, 2017 ...... 65 Table 6: Price Comparison between Organic and Non-Organic Dairy Products ...... 69 Table 7: Import Value and Share of Top 10 Source Markets - Bakery Products, 2016 ...... 71 Table 8: Price Comparison between Organic and Non-Organic Bakery Products ...... 74 Table 9: Price Comparison between Organic and Non-Organic Spread Products ...... 78 Table 10: Price Comparison between Organic and Non-Organic Confectionery Products ...... 82 Table 11: Price Comparison between Organic and Non-Organic Sauces, Dressings & Condiments ...... 87 Table 12: Import Value and Share of Top 10 Source Markets - Edible Oils & Fats, 2017 ...... 91 Table 13: Price Comparison between Organic and Non-Organic Oil and Fats Products ...... 92 Table 14: Imports of Grains (Both Organic and Not) by Singapore (US$ thousands) ...... 96 Table 15: Price Comparison between Organic and Non-Organic Beer, Wines and Spirits Products ...... 104 Table 16: Price Comparison between Organic and Non-Organic Juice Products ...... 108 Table 17: Price Comparison between Organic and Non-Organic Tea, Coffee and Cocoa Products ...... 112 Table 18: Price Comparison between Organic and Non-Organic Fruit and Vegetables Products ...... 116 Table 19: Price Comparison between Organic and Non-Organic Minced Pork...... 119 Table 20: Import Value and Share of Top 10 Source Markets - Seafood, 2014-2018 ...... 122 Table 21: Price Comparison between Organic and Non-Organic Seafood and Seafood Products ...... 124 Table 22: Checklist for General Labelling Requirements ...... 138 Table 23: Imports of Food preparations for infant use, put up for retail sale, of flour, groats, meal, starch and similar products ...... 169 Table 24: Exports of Food preparations for infant use, put up for retail sale, of flour, groats, meal, starch and similar products ...... 169 Table 25: Imports of Cereals ...... 170 Table 26: Exports of Cereals ...... 170 Table 27: Imports of Dairy produce; birds' eggs; natural honey; edible products of animal origin, n.e.s ...... 171 Table 28: Exports of Dairy produce; birds' eggs; natural honey; edible products of animal origin, n.e.s ...... 171 Table 29: Imports of Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa ...... 172 Table 30: Exports of Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa ...... 172

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Table 31: Imports of Butter, incl. dehydrated butter and ghee, and other fats and oils derived from milk; dairy ...... 173 Table 32: Exports of Butter, incl. dehydrated butter and ghee, and other fats and oils derived from milk; dairy ...... 173 Table 33: Imports of Sugars and sugar confectionery ...... 174 Table 34: Exports of Sugars and sugar confectionery ...... 174 Table 35: Imports of Sauce and preparations therefor; mixed condiments and mixed seasonings; mustard flour and similar products ...... 175 Table 36: Exports of Sauce and preparations therefor; mixed condiments and mixed seasonings; mustard flour and similar products ...... 175 Table 37: Imports of Olive oil and its fractions obtained from the fruit of the olive tree ...... 176 Table 38: Exports of Olive oil and its fractions obtained from the fruit of the olive tree ...... 176 Table 39: Imports of Plants and parts of plants, incl. seeds and fruits ...... 177 Table 40: Exports of Plants and parts of plants, incl. seeds and fruits ...... 177 Table 41: Imports of Beer made from malt ...... 178 Table 42: Exports of Beer made from malt ...... 178 Table 43: Imports of Wine of fresh grapes, incl. fortified wines; grapes must, partly fermented ...... 179 Table 44: Exports of Wine of fresh grapes, incl. fortified wines; grapes must, partly fermented ...... 179 Table 45: Imports of Fruit juices, incl. grape must, and vegetable juices, unfermented, not containing added spirit ...... 180 Table 46: Exports of Fruit juices, incl. grape must, and vegetable juices, unfermented, not containing added spirit ...... 180 Table 47: Imports of Coffee, tea, maté and spices ...... 181 Table 48: Exports of Coffee, tea, maté and spices ...... 181 Table 49: Imports of Edible vegetables and certain roots and tubers ...... 182 Table 50: Exports of Edible vegetables and certain roots and tubers ...... 182 Table 51: Imports of Edible fruit and nuts; peel of citrus fruit or melons ...... 183 Table 52: Exports of Edible fruit and nuts; peel of citrus fruit or melons ...... 183 Table 53: Imports of Meat and edible meat offal ...... 184 Table 54: Exports of Meat and edible meat offal ...... 184 Table 55: Imports of Fish and crustaceans, molluscs and other aquatic invertebrates ...... 185 Table 56: Exports of Fish and crustaceans, molluscs and other aquatic invertebrates ...... 185

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Table of Abbreviations

ACRA Accounting and Corporate Regulatory Authority AEC ASEAN Economic Community AFTA ASEAN Free Trade Area APF Agriculture Productivity Fund AQS Average Quantity System ASEAN Association of Southeast Asia Nations AVA Agri-Food & Veterinary Authority of Singapore BCU Basic Capability Upgrading (Scheme) CA Companies Act CCP Cargo Clearance Permit DBS The Development Bank of Singapore DFI Dairy Farm International (Holdings) ECJ European Court of Justice EDB Economic Development Board EP Employment Pass EUSFTA European Union – Singapore Free Trade Agreement F&B Food and Beverages FAS Foreign Agricultural Service FiBL Research Institute of Organic Agriculture FTA Free Trade Agreement FVA Singapore Fruits & Vegetables Exporters and Importers Association GATS Global Agriculture Trade Systems GDP Gross Domestic Product GNI Gross National Income GST Goods and Services Tax HACCP Hazard Analysis and Critical Control Point HCS Healthier Choice Symbol HDB Housing & Development Board HPB of Singapore IDF International Diabetes Federation IFOAM International Federation of Organic Agriculture Movements ISO International Organization for Standardization ITC International Trade Centre JTC Jurong Town Corporation MQS Minimum Quantity System NEA National Environment Agency NH Naturally Healthy NTUC National Trades Union Congress PE Productivity Enhancement (Scheme) PPD Primary Production Department

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PPP Purchasing Power Parity R&D Research and Development SFA Singapore Food Agency SPRING Standard, Productivity and Innovation Board STB TPP Trans-Pacific Partnership UHT Ultra-Heat Treated UN Comtrade United Nations Commodity Trade Statistics Database USDA The United States Department of Agriculture

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1. Executive Summary

Singapore is a modern bustling city that has adopted the conveniences of modern life and technology. Western culture is embraced, and plays a big role in brand and lifestyle consumerism. The city-state, which is recognised as a leading financial and high-tech hub of the region, is a high-income, free-market economy in South East Asia. Currently home to a population of over 5 million, consisting of both locals and foreigners, Singapore grew by 3.2% in 2018 to record a GDP of S$ 487.1 billion (EUR 317.9 billion).

Singapore has a wide variety of cuisines, which intertwines Chinese, Malay, Indian and western influences. While Singaporeans take great pride in the local ethnic cuisine, the country’s food landscape is changing with the introduction of more foreign foods. Its are stocked with fine grocery items like truffle oil, handmade pastas, organic cheeses, fine meats, and organic produce. With this change, consumer tastes and preferences are also evolving. Singaporeans are becoming increasingly discerning about what they eat and preferring, more often than not, the healthier alternative with natural ingredients and no artificial flavours, preservative or colours.

Consumers now read the nutritional labels of the food and drinks they consume, with many opting to limit or avoid unhealthy ingredients such as salt, sugar and fat. They are now specifically looking for products with nutritional benefits, and are also paying attention to products grown and processed in accordance with Fair Trade Practices. Responsible retailers are also making great efforts to keep the cost of organic food manageable, by working directly with their suppliers, and eliminating superfluous middlemen. Within this context, it is an opportune time for European companies in the organic food and beverage sector to consider the potential of the market and the opportunities it offers.

Organic Baby Food

Organic baby food is one of the fastest growing organic sub-sectors in Singapore. The growth in the organic baby food segment is largely driven by greater awareness amongst parents of the need to provide safe and healthy food to their babies and toddlers, in the wake of various food

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scams happening around the world. More parents are choosing organic for their infants, and are able to do so, given their rising disposable incomes, and smaller family units. Despite the recent bad press about the skyrocketing cost of baby food and baby milk formula, there is a small range of organic baby food products that are priced more or less on a par with conventional ones, making it easier for parents to make the switch to the organic variants.

Organic Cereals / Cereal Products

Cereals and cereal products are consumed daily by Singaporeans. Ready-to-eat cereals are favoured as a quick, healthy option for breakfast. Sales of organic cereals and cereal products are growing in line with the demand from a more health-conscious consumer. Being an Asian country, the organic rice sector is also promising, as it represents a food category that Singaporeans are familiar with. The market is currently served by a handful of organic rice brands, with room for new players.

Organic Dairy

Singapore is a mature market for dairy products. Growing awareness of the health benefits of dairy products, combined with rising incomes, have caused dairy consumption to grow at a high rate, making it the largest packaged food sub-sector in Singapore. Today, dairy products are considered a household staple item and consumed regularly by the family. An extensive range of non-organic dairy offerings is available in the market. Currently, only a few brands of organic fresh and UHT milk, butters, cheeses and yoghurts are present in the market, creating an opportunity for European companies to extend the range of organic dairy in the market.

Organic Bakery Products

Singaporeans have an appreciation for authentic, quality baked goods, as evidenced by the large number of small individual bakeries that have saturated the market, and the presence of well- established bakery chains and brands. However, foreign pastry and bakery brands, such as PAUL, Mayson Keyser and the Clinton Street Baking Company are making their way to Asia, using Singapore as their first point of entry. Singaporeans are responding by consuming more

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bakery products. The opportunity in Singapore is not only limited to the finished goods, but also for the raw materials as more organic cafés are popping up in the city, necessitating organic raw materials for their artisanal organic breads, biscuits, cakes and pastries.

Organic Spreads

Organic spreads remain a niche segment in Singapore. Only a few brands of organic spreads are sold in major supermarkets, the majority are distributed through organic specialty stores and in online stores. A possible reason is the availability and familiarity of the market with traditional brands and types of spreads, making consumers reluctant to switch to new offerings. Another reason is the backlash against products with high sugar and fat, which has led to more conscious consumption of spreads. European companies looking to market their organic spreads in Singapore may consider distributing via the many niche grocers that have opened in Singapore, as there remains a market for unique gourmet products made in small batches, which are not very common in Singapore.

Organic Confectionery

The organic confectionery segment is growing as consumers continue to indulge in chocolates and sweets, but become more aware of the ingredients used. Growth in the organic confectionery sector is in sync with the rise of the organic baby food sector in Singapore, as both segments are targeted at babies and children, and share the same drivers.

In line with global trends, the health-conscious consumer in Singapore has switched to dark chocolate, regarding it as an indulgent but healthy snack, and a relatively guilt-free purchase. New chocolate bars, chocolate-themed restaurants and specialist confectionery retailers that have set up in Singapore attest to the growing demand and opportunities in the sector.

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Organic Sauces, Dressings & Condiments

The potential opportunity for organic sauces, dressings and condiments remains as yet undeveloped in Singapore. Although Singaporeans may be looking for alternatives to conventional Asian cooking sauces that typically contain excessive oil, salt, sugar and monosodium glutamate and artificial ingredients to improve , shelf life and colour, only a small handful of alternative Asian organic cooking sauces are available in major supermarkets. Most mainstream supermarkets carry a relatively small selection of organic pasta sauces, which have not made a significant impact on the market as yet.

In the long run, the western-style organic sauces, dressings and condiments sector is expected to do well, as younger millennials who have not learnt the intricacies of traditional cooking methods switch to cooking simpler western meals. The convenience factor of sauces, dressings and condiments will also continue to drive the market, as Singaporeans are putting in an increasing number of working hours even when they get home, due to the convenience and availability of the internet.

Organic Oils & Fats

The organic oils and fats sub-sector is not expected to grow significantly in the coming years. This is generally due to the availability of other healthy oils and fats in the market, which remain a viable option for the local consumer. Singaporeans seem to be uncertain about the differences between organic oils and fats, and other healthy variants available in the market. It should be noted that many consumers use both organic and non-organic oils, based on the type of cuisines they are preparing, highlighting the fact that they do not fully understand the benefit of organic oils, or choose not to act on their understanding of it. Coconut oil has made a big comeback in Singapore, as it has around the world. With only a handful of organic extra-virgin olive oil brands dominating the market (Naturel, Borges, Bertolli), there remains room in the market for competing products that can offer both quality and affordability. Companies that look to enter the market should focus on creating a trusted, ethical brand and educating the market on the benefit of the

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organic oil and fats. Singapore is also a good market for European companies offering high-quality artisanal luxury oils to cater to the high-end market.

Organic Ingredients

Virtually all food ingredients consumed in Singapore are imported from abroad, representing an interesting opportunity for European companies wishing to export to the Singapore market. Singaporeans are eager to experiment with new food ingredients, and local consumers have already developed a taste for European products. The market for healthy food ingredients has been growing over the last years, with individually wrapped products particularly appreciated. Various organic food ingredients such as flours, grains, herbal products, grains, and vegetarian ingredients are in demand. There are also opportunities to supply organic ingredients to the flourishing foodservice sector in Singapore, from cafes and bakeries, to high-end restaurants, as many establishments are starting to latch on to the popular trend of going organic.

Organic Beer, Wines & Spirits

As every other food group is being conquered by the organic movement, it is natural for the “organic consciousness” to extend to alcoholic beverages. In Singapore, while the market for organic beer, wines and spirits is small, it is expected to develop over the next few years. There are already a good number of companies offering organic beer, wines and spirits in the country, demonstrating a well-receptive market. Consumers of organic alcoholic beverages are attracted by the quality of the ingredients that go into the making of the alcoholic beverage, which significantly improves its taste and smoothness. Singapore has witnessed an increase of natural, organic and biodynamic wines peppering the food and beverage scene in recent years. With notable restaurants such as Burnt Ends, Open Farm Community and Gattopardo Ristorante di Mare offering organic wine alternatives, the road is being paved for wine enthusiasts to sample a different way of drinking. In addition, premium craft beers and gin have witnessed a surge in popularity in recent years.

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Organic Juice

The organic juice sub-sector is a promising segment in Singapore, given the country’s increasing health concerns over a growing incidence of lifestyle diseases such as obesity, diabetes and high blood pressure in the country. Affluent consumers are willing to pay more to get healthier juices for consumption, and the market is responding well by providing a variety of options in this category. In particular, there is a small but growing demand for organic cold pressed juices in the country that can be attributed to increasing awareness about higher nutritional content of cold pressed juices as compared to conventional juices. More juice bars have appeared in the foodservice scene, promoting organic juice cleanses - these are going down well with a growing number of Singaporeans using them to help revitalise and detox the body, and aid in weight loss.

Organic Tea, Coffee & Cocoa

The organic tea, coffee and cocoa sub-sector is a niche market in Singapore, with a very small base of discerning connoisseurs that consume such products. Products for this segment are associated with a premium lifestyle, and cater to a small proportion of the population, while the mass market has not as yet realised the existence of organic brands in the tea, coffee and cocoa sub-sector. Nevertheless, Singapore is developing a strong coffee culture, with a growing presence of specialty cafes and coffee roasters catering to coffee lovers eager for new experiences. Currently, the mass-market fad in the country in the hot beverages sector is coffee capsules and machines - these rely on convenience and an array of flavours – and are fast winning over local consumers. Events such as the Singapore Coffee Festival help to draw attention to new coffee purveyors, which bodes well for the future of the organic coffee market in Singapore.

Organic Fruits & Vegetables

The popularity of organic food in Singapore began with fruit and vegetables, and as such, this is the most developed organic sub-sector in Singapore. Local consumers are well aware of the dangers of pesticides and chemical residues on fruits and vegetables, given the Agri-Food and Veterinary Authority of Singapore’s (AVA) campaigns to educate the public on this matter. Today,

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a wide range of organic fruit and vegetables are found in wet markets, and most supermarkets devote a section of their fresh food display to organic fruits and vegetables. While price-sensitive consumers may give the processed organic food sector a miss, the affordability of organic fruits and vegetables (in particular green leafy vegetables) makes them attractive. Singapore is highly reliant on imported fruits and vegetables, with the government monitoring developments in this sub-sector closely to ensure the country’s food security. It addresses this by ensuring it has diversified sources for fruits and vegetables, and helping to connect local distributors with new sources, making it relatively easy to enter the market.

Organic Meat & Meat Products

There is an increasing consumer awareness for organic meat and meat products in Singapore, given the ease with which it is possible to order prime selections of fresh meat from a wide range of online stores that deliver straight to the door. A growing segment of consumers in Singapore want to know about what is in their meat and poultry, how it was raised and where it came from, and are also paying attention to issues surrounding animal welfare and sustainability.

Organic Seafood & Seafood Products

Singapore is a major seafood-consuming nation, and is reliant on imports for a significant proportion of consumption. The country is also a global trade hub for the export of fish and seafood, making it an important market for European companies looking to enter the Asian market. Today, Singaporeans have a greater appreciation for sustainably sourced seafood, and value organic seafood and seafood products, which are seen as a low-mercury alternative to traditional seafood. The market for shelf-stable seafood and frozen processed products are growing strongly in the Singapore market, with room for organic variants in the market.

EU Entry Opportunities

Being a high-income economy that imports most of its food, there is a growing demand for organic products in Singapore. Besides appointing agents, partners and distributors in the market, European companies can also supply directly to retail outlets, which may be interested to cut out

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middlemen. Opportunities also lie in supplying organic products to both the foodservice and the food processing sectors in Singapore. European companies will also find Singapore to be a useful stepping stone to the larger markets in South East Asia, as it offers a base with excellent infrastructure and connectivity, as well as being a country which is one of the easiest places to do business.

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2. What are the characteristics of Singapore?

Figure 1: Map of Singapore Source: Wikimedia Commons

Singapore is a small, multi-cultural and cosmopolitan city-state of 5.64 million people in the very heart of South East Asia. Its total area is recorded at 719 km2, with 10 km2 of that made up of water. Singapore experiences hot, humid and rainy conditions all year long, with north-eastern monsoon from December to March and south-western monsoon from June to September.

The country is one of the most politically stable nations among the ten Members States that make up ASEAN. Different ethnic groups live harmoniously in Singapore, which recognises English, Mandarin, Malay and Tamil as its official languages. The Chinese make up the largest ethnic group, with 74.3%, followed by Malays (13.4%), Indians (9%) and others (3.2%).

2.1 Political Overview

As a parliamentary democratic republic, Singapore’s parliament is very much modelled after the Westminster system. The Head of State is the President who is elected directly by the people through popular vote in a presidential election, following the amendments to the Constitution of

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Singapore in 1991. The current incumbent is President Halimah Yacob who is Singapore’s 8th President and the country’s first female President. She was elected in September 2017.

Since 1959, The People’s Action Party (PAP) has been the ruling party governing Singapore. Members of Parliament are chosen through a general election for a term of five years. The last general election was held in 2015 with PAP securing a landslide victory with 69.86% of the vote, winning 83 of the 89 elected seats in parliament. The three organs of state are the Executive, the Legislative and the Judiciary. The Prime Minister, Mr. Lee Hsien Loong, is the effective head of the executive branch of government since August 2004. The Supreme Court, together with subordinate courts, holds the judicial power.

2.2 Economic Overview

A leading global business hub, Singapore offers an open and trade-driven economy that was ranked 3rd globally in terms of GDP per capita (based on PPP) in 2017.1 Singapore registered a GDP growth of 3.2% in 2018, and is projected to grow by a range of 1.5% - 3.5% for 2019.2 Categorised as a high-income nation, its current GNI per capita is US$ 70,828 (EUR 62,530).3

The Singaporean government has pursued an outward-looking, export-oriented economic policy that encourages two-way flows of trade and investment. This has enabled Singapore to become a global trading hub with a trading capacity almost three times its GDP.

Singapore’s major industries include electronics, financial services, oil drilling equipment, petroleum refining, pharmaceutical manufacturing, processed food and beverages, rubber products, aerospace and ship repair, as well as its biotechnology, chemical and petrochemical industries. Singapore has also become an important financial, trade and wealth management hub for the South East Asian region and a global hub for currency and commodity trading, transhipment and oil and gas refining.

1 International Monetary Fund (2018). World Economic Outlook Database, January 2018. 2 https://www.straitstimes.com/politics/singapore-economy-grew-by-33-in-2018-enters-2019-with-renewed-vigour-and-purpose-pm-lee 3 Data.gov.sg (2018). Per Capita GNI and Per Capita GDP at Current Market Prices, Annual.

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Singapore's economic success is likely to be maintained in the future, but given the country's reliance on trade, it will be at risk of periodic slowdowns or recession when key export markets face economic pressure. However, healthy public finances, a strong net-creditor position, and solid economic fundamentals all contribute to Singapore's economic stability.

2.3 Trade Overview

Singapore continues to top global rankings when it comes to enabling trade, according to the Global Enabling Trade Report 2016, which found that the domestic market here is one of the world’s most open, with 99.7% of goods entering duty-free, while border clearing processes are the world’s best in terms of efficiency, predictability and transparency.4 Singapore ranks as the 14th largest exporter and the 16th largest importer in the world,5 making it a significant market despite its small size.

Free-trade agreements are a cornerstone of Singapore's economic policy. The country depends heavily on foreign trade and it has implemented 21 FTA agreements with 32 trading partners. It has inked bilateral trade deals with the US, Japan, Australia, New Zealand, South Korea, India, Jordan, China, India, Costa Rica, Panama, Turkey, and Peru. Singapore is also a member of the ASEAN Free Trade Area (AFTA), which plays a key role in Singapore’s intra-Asian trade. ASEAN has FTAs with China, India, Japan, South Korea, Australia and New Zealand.6 Singapore is also a party to the Trans Pacific Partnership, which was signed in March 2018 between 11 countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.7

In October 2018, the EU and Singapore signed three trade agreements, namely the EU- Singapore Free Trade Agreement; the EU-Singapore Investment Protection Agreement; and the Framework Agreement on Partnership and Cooperation. On 13 February 2019, the European Parliament gave its consent to the three agreements following a vote. The trade agreement is

4 World Economic Forum (2016). The Global Enabling Trade Report 2016. 5 https://www.foodexport.org/get-started/country-market-profiles/southeast-asia/singapore-country-profile 6 (2018). Singapore Free Trade Agreements. 7 Channel News Asia (2018). Singapore Inks New TPP Trade Pact with 10 Countries.

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likely to enter into force before the end of the current mandate of the European Commission in 2019, while the investment protection agreement will also follow ratification procedures at Member State level. The Partnership and Cooperation Agreement will need to be ratified by EU Member States and submitted to the European Parliament before it enters formally into force.

When in force, the free trade agreement will bring dividends for both parties. It will remove nearly all remaining tariffs on certain EU products, improves market access for services, reinforces intellectual property protection, competition policy and technical barriers to trade and government procurement. The Investment Protection Agreement will replace 12 existing bilateral investment treaties between Singapore and EU Member States and offer investors the option of a modern and reformed investment dispute resolution mechanism –the Investment Court System- in line with the EU’s new approach.

Figure 2: EU-Singapore FTA Source: The Straits Times

The EU is Singapore’s third largest trading partner, with bilateral trade in goods exceeding S$ 114 billion (EUR 74.4 billion) in 2018. Singapore is also an important trading partner for the EU, and is the largest EU trading partner in ASEAN. In 2018, Singapore’s total exports in

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goods to the EU were approximately S$ 49 billion (EUR 32 billion), while imports from the EU were approximately S$ 65 billion (EUR 42.4 billion), resulting in a trade balance of S$ 16 billion (EUR 10.4 billion) in favour of the EU.8

Bilateral trade in services between the EU and Singapore exceeded S$ 79 billion (EUR 51.6 billion) in 2017. The EU was Singapore’s second largest source of services imports, valued at over S$ 40 billion (EUR 26.1 billion). In turn, Singapore’s exports of services to the EU were valued at approximately S$ 39 billion (EUR 25.5 billion) in 2017.

Singapore is the EU’s top ASEAN trading partner in services. In 2016, Singapore was the seventh largest destination for EU services exports, and fifth largest source of services imports for the EU.

The EU is the largest investor in Singapore, putting EU Foreign Direct Investment (FDI) stock in Singapore at over S$ 350 billion (EUR 228.4 billion) in 2017. The robust inflow of EU FDI has also made Singapore the largest EU FDI destination in ASEAN. The top sectors for EU FDI in Singapore are manufacturing, wholesale and retail trade, and financial and insurance services.

In 2017, the existing bilateral foreign direct investment stock between the EU and Singapore was roughly EUR 344 billion, having expanded rapidly over the past years.

Singapore’s economy depends heavily on exports, particularly in consumer electronics, IT products, pharmaceuticals, petroleum products, and on a growing financial services sector. As a strong advocate of free trade, Singapore is generally a free and open economy. It has few trade barriers except for selected dutiable goods - alcohol, petroleum products, tobacco products and motor vehicles. There are some import restrictions based mainly on environmental, health, and public security concerns.

8 Ministry of Trade & Industry Singapore (2019). European Parliament Approves EU-Singapore Free Trade Agreement and EU-Singapore Investment Protection Agreement

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2.4 Market Access

There are at present over 10,000 European companies in various sectors operating in Singapore. Most of these companies are using their establishment in the city-state to serve as their regional hub to Asia. European companies looking to do business in Singapore can expect integrity, adaptability and respect for intellectual capital to be emphasised upon by a strategic-minded administration, which is attuned to the needs of companies to protect invention and innovation.

Using agents or distributors is a common and effective way to serve the Singapore market and, from there, the other countries in South East Asia. Many distributors in Singapore deal not only with the local market but also with the broader regional market. Prospective exporters to Singapore should be aware that competition is high and that buyers expect good after-sales service. When business warrants, many companies have found it useful and sometimes necessary to set up offices in Singapore.

On 31 December 2015, the ten ASEAN Member States established a common market, the ASEAN Economic Community (AEC), a boost to South East Asia's combined economic clout as the world's seventh largest economy. The AEC has an estimated economic value of US$ 2.6 trillion (EUR 2.3 trillion) annually, powered by a fast-growing market of more than 600 million people.9 Being part of the AEC makes Singapore an attractive choice for firms looking to tap the growth potential of the bloc.

Singapore’s strategic location in the heart of Asia enables businesses to access the region’s rapidly expanding markets. Singapore has strong business, cultural and linguistic links to many Asian markets. Singapore’s cultural and linguistic connections across Asia, highly qualified workforce, and openness to top global talent makes Singapore the preferred location to support the global business community in their expansion in Asia.

9 World Economic Forum (2016). The ASEAN Economic Community: What You Need to Know.

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2.5 Business and Competitive Environment

The World Bank ranked Singapore at the number two spot in its Doing Business Rank for 2019, recognising it as among the most business-friendly nations in the world. All the more significant is that Singapore has been ranked as one of the best places for doing business for more than a decade.

Well-organised governance has given rise to some of the world's finest infrastructure, including sophisticated telecommunications networks, extensive public transportation, well-managed healthcare and education, and ultra-modern air and seaport facilities.

Ease of Doing Business in Singapore 2019 Rank 2018 Rank Change in Rank Overall Rank 2 2 0 Starting a business 3 6 +3 Dealing with construction permits 8 16 +8 Getting electricity 16 12 -4 Registering property 21 19 -2 Getting credit 32 29 -3 Protecting minority investors 7 4 -3 Paying taxes 8 7 -1 Trading across borders 45 42 -3 Enforcing contracts 1 2 +1 Resolving insolvency 27 27 No change

Table 1: Ease of Doing Business in Singapore 2019 Source: World Bank

Singapore Changi Airport has received multiple awards and accolades, and is consistently ranked by numerous airport rating agencies as one of the best international airports in the world. In 2018, it handled a record 65.6 million passengers (a growth of 5.5% on 2017), 386,000 landings and take-offs, and 2.15 million tonnes of airfreight movements, making it one of the busiest airports on the globe.10 Changi International Airport is linked to 300 cities in 70 countries.

10 https://www.straitstimes.com/singapore/transport/changi-airport-handles-all-time-high-of-656m-passengers-in-2018-traffic-increase

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Singapore is one of the world’s premier hub ports, offering a breadth and range of maritime services that few can match. The Port of Singapore recorded a total of 630 million tonnes in cargo in 2018, while annual vessel arrival tonnage reached 2.79 billion gross tonnes.11 It is currently the busiest transhipment port in the world, connecting Singapore to over 600 ports in over 120 countries. Other modern infrastructure in the country includes extensive lines of roads and railroads, which ensure efficient movement of people and goods.

The tax system is well established and considered to be investor-friendly, reflecting Singapore's overall favourable attitude towards foreign investment. The government is keen to attract foreign investment and is unlikely to undertake tax or other measures that might dissuade such investment. The responsibility to handle tax issues is vested in the Inland Revenue Authority of Singapore. It offers various taxation schemes for individuals residing and corporations operating in Singapore. Tax incentives are available to R&D activities of all industries and a special tax regime for the banking, fund management, leasing and shipping sectors.

To encourage enhancement in economic and technological development, tax incentives in the form of reduction of tax rate or exemption from applicable tax are offered to various industries including manufacturing and services, investment and financial services, shipping and trading. Apart from that, Singapore also offers regional and international headquarters tax incentives to corporations operating from the country to serve international and regional markets.

2.6 Agriculture

Singapore is a small island which utilises less than 1% of its arable land for agricultural purposes. According to World Bank data, agricultural land in Singapore was reported at 20.9% in 1961; this share fell to 0.9% by 2016.12 It experienced the most rapid reduction of arable land during its industrialisation phase in the 1980s, which saw farmland transformed into industrial parks and housing areas. During this period, the agriculture sector in the country experienced a shift from subsistence mode of farming to intensive mode of farming, where rubber estates, fruit orchards,

11 http://www.seatrade-maritime.com/news/asia/singapore-container-port-volumes-up-8-7-in-2018.html 12 http://data.worldbank.org/indicator/AG.LND.AGRI.ZS?locations=SG

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tobacco and fodder grass plantations were gradually phased out together with poultry, cattle, goat and pig farms to give way to the focused production of key food items.

With limited resources available for farming, the country has resorted to importing over 90% of its food supply for its own needs. The government’s effort, through the Agri-Food & Veterinary Authority (AVA), (which has been reinvented to form the Singapore Food Agency as of 1 April 2019), has put some effort into securing Singapore’s food supply by developing Agrotechnology Parks in the country. First developed in 1980s and 1990s, Agrotechnology Parks were designed to accommodate modern and productive commercial farms for key food items. Today over 200 farms (three are hen layer farms, about 50 are leafy vegetable farms and about 130 are fish farms) are currently operating in close to 600 hectares of the parks, producing livestock, milk, aquarium and food fish, fruits, orchids, eggs, vegetables, ornamental and aquatic plants, among others.

Singapore’s goal is to become a leading urban agriculture and aquaculture technology hub with a food production model that can be exported to the region. The country, which already has high standards for food safety and quality, strong capabilities in R&D, engineering, and biotech, and strong adjacent industries like food manufacturing and urban logistics, is looking to build on these strengths and use emerging technologies to transform its food industry.

Figure 3: Sky Greens offers Vertical Farming Technologies on Non-arable Land Source: Agri-Food & Veterinary Authority of Singapore (AVA)

As part of a range of measures, Singapore plans to open an agri-food innovation park in Sungei Kadut. The 18-hectare facility will be ready in phases from the second quarter of 2021, and will

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bring together high-tech farming and research and development activities, which include indoor plant factories, insect farms, and animal feed production facilities.

The Singaporean government is also looking at ways to improve farming techniques on the island. The country is exploring innovations in food production, such as in indoor, multi-tier farming automation and precision agriculture via sensors and the internet of things, in order to raise local production in a resource-restricted environment. Modern farms in Singapore are already utilising advanced farming technologies to address the rising demand for fresh fruits and vegetables in the land-scarce island. Singapore’s indoor vertical farms today produce five times more leafy greens than conventional farming systems.

Vertical, rooftop and community farms make a small but encouraging contribution to supplying safe and affordable food to Singaporean tables. Currently, only a small amount is produced locally – 13% of vegetables, 9% of fish and 24% of eggs13, which makes up less than 10% of its nutritional needs. In March 2019, Singapore announced its “30 by 30” target, which aims to produce 30% of its nutritional needs domestically by 2030. This will include vegetables cultivated in climate- controlled greenhouses under special LED lighting to maximise yields, and fish farmed at sea in contained systems.

Figure 4: Indoor Vertical Farming with Climate Control by Panasonic Factory Solutions Source: Agri-Food & Veterinary Authority of Singapore (AVA)

13 https://www.ava.gov.sg/explore-by-sections/food/singapore-food-supply/the-food-we-eat

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As agriculture is a small industry in Singapore, there is limited organic farming development in the country. Organic farms producing locally tend to be small in size, with limited offerings available. Many of these farms complement their organic products with imported products as well. An example of such a farm is the Quan Fa Organic Farm, which is located in Lim Chu Kang in northwest Singapore. Quan Fa specialises in growing leafy vegetables, while importing organic fruits and other vegetables from Australia. It provides free delivery services to its customers, with a minimum purchase set at S$ 60 (approximately EUR 39). Other organic farms in Singapore are Bollywood Veggies in Kranji, Green Circle Eco-Farm and Kin Yan Agrotech.

There are also a few Singaporean companies that own farms producing organic vegetables in neighbouring countries such as Malaysia, Brunei and Thailand. Such farms include Zenxin Organic Food Singapore, which has an organic park in Johor in Malaysia. Similar to Quan Fa, Zenxin also provides free delivery services to its customers in Singapore, with a minimum purchase of S$ 150 (approximately EUR 98), and also offers other imported organic products through its website.

Beyond technology, Singapore has been looking to unlock more spaces to grow food locally, including underutilised or alternative spaces like vacant state buildings, rooftops and the deep sea.

Figure 5: Commercial rooftop farming in Singapore Source: The Straits Times

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3. Market Overview & EU Entry Opportunities in Singapore

3.1 Market Overview of the Organic Food & Beverage Sector

3.1.1 Introduction to the Singapore Food & Beverage Market

The food and beverage market in Singapore is often described as vibrant due to the country’s multi-ethnic background, with the influence of Chinese, Malay, Indonesian, Peranakan, Indian, and western traditions. Often described as a “cultural melting pot”, both local and foreign cuisines are readily available in foodservice establishments across the country. Singapore’s colourful dining scene ranges from hawker centres offering inexpensive street food to high-end restaurants with international culinary talents. In fact, in March 2019, the country made a bid for its distinctive hawker culture to be added to UNESCO's Representative List of the Intangible Cultural Heritage of Humanity.

Figure 6: Maxwell Road Hawker Centre offers Local Street Food Source: The Best Singapore

As an Asian country, rice remains a staple food for Singaporeans, usually accompanied with meat, seafood or vegetables. The island is famous for its seafood. Noodles are also commonly found in eateries in the country, alongside local desserts or snacks. However, western-style packaged food and beverage sales are also on an upward trajectory. Western food such as pasta, bread and cereals has become the daily diet fare, both at home and when dining out. Supermarket

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shelves are filled with a wide variety of packaged food and beverages sourced internationally, to meet the growing consumer demand.

Food consumption patterns in Singapore have been influenced by the large number of foreign nationals in the country - expatriates who live and work in the country, as well as tourists who visit it. The country attracted 18.5 million international visitors in 2018, generating a revenue of S$ 26 billion (EUR 17 billion) in the first 9 months of 2018.14 The top five tourism source markets in 2018 were China, Indonesia, India, Australia and Japan. The UK and Germany, at the eleventh and fifteenth spots respectively, are among the top EU countries with the most tourists visiting Singapore.15 Revenue generated from tourism on food and beverage was close to S$ 1.9 billion (EUR 1.2 billion) between January and September of 2018, representing 9% of tourism receipts.16

Recent International Monetary Fund data ranks Singapore as the fourth richest country in the world, in terms of per capita gross domestic product (GDP), adjusted for purchasing power (PPP). Singapore ranks behind only Qatar, Luxembourg and Macau.17 The median monthly household income increased from S$ 9,023 (EUR 5,889) in 2017 to S$ 9,293 (EUR 6,064) in 2018, representing a 2.6% increase in real terms. From 2013 to 2018, median monthly household income increased by 16.65% cumulatively in real terms.18

According to the Singaporean government's survey of household expenditure undertaken in 201319, the typical household in Singapore spent about S$ 1,334 (EUR 870.6) per month on food, which represents 28% of their total monthly budget. Of this, approximately S$ 400 to S$ 500 (EUR 261 to EUR 326) per month is typically spent on groceries, which include food, beverage, alcohol and tobacco. The top quintile households spent 14 times as much on dining out, and pubs than the bottom quintile households.20

14 https://www.stb.gov.sg/statistics-and-market-insights/MarketStatistics/STB%20Q3%202018%20Final.pdf 15 https://www.stb.gov.sg/statistics-and-market-insights/MarketStatistics/STB%20Q3%202018%20Final.pdf 16 https://www.stb.gov.sg/news-and-publications/Documents/Annex%20A_YIR%20presentation%20deck_final%20(003).pdf 17 http://www.imf.org/external/datamapper/PPPPC@WEO/THA 18 https://www.singstat.gov.sg/-/media/files/publications/households/pp-s25.pdf 19 The latest household expenditure survey was undertaken in 2018, with results expected to be released in April 2019 onwards. 20 https://www.valuechampion.sg/average-household-budget-singapore

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Singapore’s dynamic food dining scene comprises over 15,600 establishments offering a diverse array of dining formats and options. The sector employs over 160,000 employees and contributes to operating receipts of S$ 8.7 billion (EUR 5.7 billion).21 The country’s affluent population is able and willing to spend on unique dining experiences when dining out. Food and beverage services were up 5.9% year on year in January 2019, at S$ 862 million (EUR 563). Fast food outlets, food caterers and restaurants saw year-on-year sales growth of between 7.5% and 10.8%.22

Singapore has a vibrant drinks scene to complement its diverse range of dining options. Five of its bars are listed in the World’s 50 Best Bars list in 2018, with Manhattan at the Regent Singapore being named both the third best bar in the world, and the best in Asia; while Atlas at Parkview Square took the 8th spot.

Figure 7: CE LA VI Restaurant and SkyBar, a Fine Dining Restaurant Source: Marina Bay Sands

Halal dining in Singapore has boomed in the last few years. Leveraging on this, the Singapore Tourism Board (STB) promotes the ready availability of halal establishments in the country as one of its unique food and beverage offerings,23 in its campaigns to woo tourists from Indonesia, Malaysia and the Middle East. Market prospects in terms of population size and purchasing power are bright, considering that population growth forecasts for some of the Muslim-majority countries

21 https://www.aci.edu.sg/food-services-transformation-conference-2018 22 https://www.businesstimes.com.sg/government-economy/singapore-retail-sales-rise-76-in-january 23 http://www.visitsingapore.com/en_my/dining-drinks-singapore/dining.html

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are among the highest in the world, as are income growth projections. About a quarter of the world’s population is estimated to be Muslim, totalling over 1.6 billion people, with Muslims making up a majority of the population in 49 countries.24

Singapore is highly urbanised, and has a modern and dynamic grocery retail landscape, with a total of 932 supermarket outlets and convenience stores spread out across the country. Overall, Singapore's store-based grocery retailers have continued to thrive despite fierce competition. While online grocery sales have gained in popularity in recent years, it is estimated that physical grocery stores account for three-quarters of grocery retail spending in Singapore.25 A recent survey by Nielsen found that more than six in ten Singaporeans prefer shopping for groceries in brick-and-mortar retail stores.26

Singapore also has an active food manufacturing sector which plays a significant role in its economy, with more than half of its output being exported to countries such as Japan and China. In 2017, the industry contributed S$ 4.3 billion (EUR 2.8 billion) to Singapore’s GDP and employed about 48,000 workers.27 As a land-scarce nation with minimal natural agriculture resources, the food processing sector relies predominantly on imports of raw materials and ingredients.

Singapore, which imports over 90% of its food supplies, is one of Asia’s largest importers of food and beverage products. According to the Singapore Department of Statistics, in 2018 alone, the country imported a total of S$ 11.3 billion (EUR 7.4 billion) of food and live animals, and S$ 3.85 billion (EUR 2.5 billion) of beverages.

While its largest suppliers are Malaysia, Indonesia, the US, Australia and China, the country adopts a food source diversification strategy to ensure food security. Today, Singapore sources food from more than 170 countries to guard against supply disruptions.

24 http://www.pewresearch.org/fact-tank/2017/01/31/worlds-muslim-population-more-widespread-than-you-might-think/ 25 https://secure.fundsupermart.com/fsm/article/view/13552/why-singapore-s-grocery-retailers-are-a-buy 26 https://www.nielsen.com/sg/en/insights/reports/2016/what-motivates-singaporeans-to-shop-at-store.print.html 27 https://www.businesstimes.com.sg/opinion/how-singapores-food-industry-is-shaking-things-up

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Figure 8: Suppliers of Fresh & Processed Food to Singapore Source: Agri-Food & Veterinary Authority of Singapore

The EU is regarded as an important source market, with imports of spirits and liqueurs dominating imports in 2017. Singapore’s agrifood imports from the EU amounted to over EUR 2.2 billion in 2017, making it the EU’s 15th largest trading partner in the agri-food sector.

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Figure 9: Top EU Agri-Food Products Exports to Singapore in 2017 Source: EU Commission Directorate-General for Agriculture and Rural Development

The historic values of exports for various food and beverage sub-sectors from 2013 to 2017 are indicated below.

Exports Value (EUR Million) % Agri-Food Products Share in Change 2013 2014 2015 2016 2017 all agri 2016- 2017 2017

1 Spirits and liqueurs 1 040 795 857 843 892 40.5 -5.8

2 Wine, vermouth, cider and vinegar 307 347 362 339 403 18.3 18.9

Chocolate, confectionery and ice 3 75 88 98 93 102 4.6 9.7 cream

4 Pork meat, fresh, chilled and frozen 44 63 67 67 75 3.4 11.9

5 Milk powders and whey 86 99 75 54 89 4.0 64.8

6 Food preparations, not specified 41 43 48 51 50 2.3 -2.0

Infant food and other cereals, flour, 7 64 68 48 41 30 1.4 -26.8 starch or milk preparations

8 Pasta, pastry, biscuits and bread 32 36 39 40 41 1.9 2.5

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Exports Value (EUR Million) % Agri-Food Products Share in Change 2013 2014 2015 2016 2017 all agri 2016- 2017 2017

9 Cigars and cigarettes 25 15 18 39 41 1.9 5.1

10 Beer 35 31 35 32 35 1.6 9.4

11 Butter 35 32 32 31 34 1.5 9.7

12 Pet food 18 24 19 25 223 1.0 -12.0

13 Cheese 16 18 20 24 23 1.0 -4.2

Preparations of vegetables, fruit or 14 16 17 23 22 24 1.1 9.1 nuts

15 Essential oils 14 14 19 21 25 1.1 19.0

Offal, animal fats and other meats, 16 14 16 15 20 17 0.8 -15.0 fresh, chilled and frozen

17 Waters and soft drinks 19 16 19 19 18 0.8 -5.3

18 Vegetables, fresh, chilled and dried 11 13 16 19 22 1.0 15.8

Fruit, fresh or dried, excl. citrus & 19 10 14 18 19 19 0.9 0.0 tropical fruit

20 Fatty acids and waxes 12 14 32 18 21 1.0 16.7

21 Remaining Agri-food products 205 172 190 195 213 9.7 9.2

Table 2: Top 20 Agri-Food Products Exported from the EU to Singapore, 2013 - 2017 Source: Agri-Food Trade Statistical Factsheet: European Union – Singapore

3.1.2 Overview of the Organic Food & Beverage Market

Consumers in Singapore are becoming increasingly discerning about their food choices, and their food preferences are evolving to include more healthy options. While organic food is readily available in the country, the market is relatively small, making up only 0.5% of the total packaged food market. 28 This is attributed to the fact that consumers in Singapore tend to be price-sensitive

28 http://www.unindustria.treviso.it/confindustria/treviso/istituzionale.nsf/($linkacross)/F0044BCE158D099FC125813600383D8D/$file/Food% 20and%20Beverage%20Singapore%20Market%20Entry%20Handbook-2016_%20EU%20Commission.pdf

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and are deterred by the high prices of organic products. Typically, organic packaged food and beverages in Singapore can be between 100% and 400% more expensive than the conventional counterparts.29 In addition, as there are only a few organic foodservice establishments in the country, consumption of organic food and beverages is still very much centred on home cooking and dining.

Figure 10: Organic Specialty Corner at NTUC FairPrice Source: NTUC

Organic fresh vegetables and fruits are enjoying growing market penetration, with many supermarkets now offering a range of organic vegetables sourced from farms in the US, Europe, Australia, Malaysia, Indonesia, and even from local farms. According to a recent report by Victorian Government Department of Primary Industries, Australia is the leading supplier of fresh organic food in Singapore. On the other hand, the US is the main exporter of processed organic foods into the country.

The US Department of Agriculture’s (USDA) Global Agriculture Trade Systems (GATS) data reveals that Singapore ranked as the 12th largest export market for American organic

29 https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Organic%20Foods%20_Singapore_Singapore_3-27-2017.pdf

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produce between 2011 and 2016, with an average annual export value of US$ 2.84 million (EUR 3.4 million).30 The top five organic products exported by the US globally include apples, lettuce, grapes, strawberries and spinach. Singapore’s imports represent 1% of the US’ total exports of organic produce.

Several packaged food sub-sectors, in particular organic baby food, have performed well. This is largely because Singaporean parents are becoming more concerned about the safety and nutritional value of food consumed by their children, and therefore willing to switch to organic alternatives. Meanwhile, other key organic sectors are confectionery and organic edible oil.

A review of the range of organic products available on mainstream supermarket shelves in Singapore reveal that selected organic packaged food categories are well-represented in the country. The bigger categories of organic products include baby food, breakfast cereals, confectionery, rice and pasta, and olive oil, while the presence of other organic product categories such as dairy and snacks remain small.

On the other hand, the market for organic beverages (excluding alcoholic beverages) has not taken off, as these products are still considered as luxury items by local consumers. In addition, local consumers still need to be educated on the potential health benefits from drinking organic beverages. With this, the organic beverages segment is yet to enter the mainstream, and premium organic beverages are available only at premium outlets, and come with premium price tags.

Among the companies that offers organic packaged food in Singapore, local company Lam Soon is the dominant player with almost half the market share of the total organic packaged food market. The Lam Soon Group’s business activities comprise of plantation/milling, refining of cooking oil, and manufacturing of margarine, specialty fats, soap and detergent and oleochemicals. Naturel, the organic brand it carries, is used on a range of organic products, namely olive oil, rice, pasta and pasta sauce, which are sourced and certified by internationally recognised certifying bodies.

30 https://ota.com/sites/default/files/indexed_files/OTATradeReport.pdf

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Another local company Ban Choon Marketing is a leading importer and distributor of organic products, with a wide range of organic fresh produce, meat, grocery and non-food products. It distributes a range of fresh produce grown in the farms owned by Indonesia’s PT Momenta Agrikultura under the Harvest brand.

Bellamy’s Organic, an Australian company, exports baby and toddler foods to its customers in Singapore and, in response to on-going demand, has opened an office in Singapore.

Key players in the organic beverages sector are Boncafé, which is owned by the Italian coffee company Massimo Zanetti Beverage Group, and Clipper Tea, a U.K. brand.

Most organic products sold in the country are certified to organic standards established by other countries, such as the EU, the US, Japan, Australia and bear the seal of international certifying bodies such as Bio Inspecta, EU Organic Farming, Eco Cert, and USDA, among others.

3.1.3 Market Outlook

The demand for organic products is projected to grow over the next few years, albeit at a low single-digit pace. Growth in the market is largely driven by consumer appetite for natural, unprocessed, healthy food.31

Generally, there is increased awareness and acceptance of organic products in Singapore, since most mainstream and neighbourhood supermarkets carry a growing range of fresh and processed organic products. A number of small, family-run specialist health food stores and stalls have sprouted up in heartland neighbourhoods and markets across Singapore, which offer inexpensive organic options to the average Singaporean.32 Meanwhile, affluent Singaporeans, expatriates and health-conscious millennials frequent higher-end niche grocers and also buy from the growing number of specialist online grocers and local websites that offer a choice range of premium organic products.

31 https://www.todayonline.com/lifestyle/food/market-market 32 https://www.straitstimes.com/singapore/health/neighbourhood-supermarkets-are-going-big-with-organic-products-to-meet-growing

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Figure 11: A Stall which sells 70% Organic Products in Ang Mo Kio Wet Market. Source: Happycow.net

The increasing affordability of selected organic products is also playing a part, with organic leafy greens and vegetables sourced from Malaysia, Indonesia and Thailand being much cheaper than their counterparts from Australia or the US.

Figure 12: Zenxin’s Organic Green Oak Lettuce from Thailand, Priced at S$ 2.80 Source: Zenxin

Sales of organic milk formula and baby food are also expected to grow further as Singaporean parents have demonstrated a strong willingness to invest their resources into ensuring the well-

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being of their children. Many organic milk formula and baby food manufacturers are capitalising on the strong perception among Singaporean parents that premium organic products in the two sub-sectors are more trustworthy, and hence safer for their children.

In many countries that have displayed a strong sense of local food advocacy, purchase decisions tend to exemplify growing concerns over environmental issues, food miles, and the support for local communities. It is interesting to note, however, that in Singapore, there is limited consideration of the impact of non-organic farming on the environment, and that these factors that have yet to hold the same level of significance.33

3.1.4 Importers, Retail & Distribution

As an open economy, there are many companies in Singapore that produce, process or distribute packaged food and beverages. While many of these companies import raw materials or finished products for local consumption, a significant portion is re-exported to the region. Due to its high buying power and good infrastructure, Singapore is known as an entry port for transhipment of imported products. Annually, some 25% of Singapore’s food imports are re-exported to the region and beyond.34

Notable importers in Singapore include Ban Choon Marketing Pte Ltd (http://www.banchoon.com.sg), Hupco Pte Ltd (http://www.hupco.com.sg/), Freshmart Singapore Pte Ltd (http://www.fmart.com.sg), and Zenxin Agri-Organic Food Pte Ltd (http://www.zenxin.com.my/). Most of them are also distributors and wholesalers serving the Singapore market. These companies commonly import fresh organic products, such as fresh fruits and vegetables, meat, grocery and non-food products. Zenxin has its own organic farms in Malaysia, whose products are imported into Singapore for distribution.

Singaporeans typically purchase organic packaged food from supermarkets, specialist gourmet stores and traditional grocery retailers (such as wet markets and independent small grocers). Internet retailers have also become a popular distribution channels for organic packaged food

33 https://www.todayonline.com/lifestyle/food/market-market 34 https://www.austrade.gov.au/australian/export/export-markets/countries/singapore/industries/Food-and-beverage

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behind grocery retailers and supermarkets. However, in general, Singaporeans still prefer to purchase organic packaged food from stores that will enable to them to touch and feel the product before purchasing.

A scan of the market reveals that a similar trend is reflected for organic beverage distribution in Singapore, with both supermarkets, specialist stores and traditional grocery retailers being the key distribution channels. For organic beverages, supermarkets have a leading edge over other channels.35

Supermarkets

Today, all the key supermarket retailers in Singapore sell organic food and beverages. These include NTUC FairPrice, Cold Storage Supermarket and Supermarket.

NTUC FairPrice Cooperative

NTUC FairPrice Cooperative (https://www.fairprice.com.sg) is the leading grocery retailer in Singapore. Its retail network is comprised of 230 outlets, including FairPrice supermarkets, FairPrice Finest, FairPrice Xtra, FairPrice Xpress and Cheers convenience stores. The retailer is focusing on the low- to middle-income population, with FairPrice Finest targeting the more affluent consumers.

In 1985, the retailer started to market its own in-house brand of basic necessities for Singaporean households with an average price of 10% to 15% cheaper than other brands. In July 2008, Pasar Organic was introduced in FairPrice supermarkets to push organic products to consumers at a more affordable price. With the most extensive retail network, FairPrice’s reach is across market segments and locations around the island, and is suitable for importers targeting the mass market in Singapore. NTUC FairPrice sources for food products through local importers, consolidators and distributors.

35 https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Organic%20Foods%20_Singapore_Singapore_3-27-2017.pdf

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Figure 13: Organic Fruits and Vegetables Source: NTUC FairPrice Cooperative

Cold Storage Supermarket

Cold Storage Supermarket (https://coldstorage.com.sg/) is owned by Hong Kong headquartered Dairy Farm International Holdings (DFI) (http://www.dairyfarmgroup.com). Cold Storage has 3 core brands – Cold Storage, Market Place and Jasons – and a network of 53 stores islandwide.36

The wide variety of retail categories enables DFI to reach different market segments in Singapore, with Giant focusing on the low- to middle-income population, Cold Storage supermarkets targeting the middle- to upper-income population, and Market Place by Jasons as well as Jasons The Gourmet Grocer positioned for the upper- middle to high-income population. A wide range of organic products can be found in Cold Storage Supermarket and DFI’s chain of retail stores. DFI procures from consolidators, distributors and local importers. It also sources directly from foreign companies abroad to cut costs incurred from middlemen in order to pass the savings to customers.

According to stock brokerage Maybank Kim Eng Securities, Cold Storage has been losing market share in Singapore. It attributes this to increasing price consciousness among Singaporean

36 https://coldstorage.com.sg/corporate/page/our-story

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consumers on the one hand and more premium food options being rolled out by online retailers on the other. Giant’s huge supermarket outlets are also facing disruption from online retailers.37

Sheng Siong Supermarket

Sheng Siong Supermarket (www.shengsiong.com.sg/) is a grocery retailer offering fresh food and groceries in Singapore. It has 54 stores commonly located in residential areas in public housing estates, known in Singapore as HDB estates. This retailer targets the lower income population by focusing more on the daily needs of its customers and thus sources only from neighbouring countries and markets their products at affordable prices. It deals with local importers, consolidators and distributors to procure food products and often promotes them through promotions such as Food Fair and Korean Food Fair, which are popular among its consumers. Since 2014, some of Sheng Siong's outlets have dedicated a section just for organic products. These outlets stock as many as 500 organic items, including vegetables and dry food such as brown rice.38

Specialty Stores

Other than those supermarkets mentioned above, it is also common for consumers in Singapore to obtain organic food and beverages at independent specialty organic stores such as The Organic Grocer, Brown Rice Paradise, Mahota Commune and SuperNature.

The Organic Grocer

The Organic Grocer (http://theorganicgrocer.com.sg/) is a single store located at the Mohamed Sultan Road that offers a wide range of organic products including household essentials. Established in 2010, it sources organic products directly from farms and wholesalers based in Australia and the US. Besides selling through its store, The Organic Grocer also has an online channel where consumers can also buy organic products. The minimum purchase for an online order is S$ 50

37 https://research.sginvestors.io/2018/04/sheng-siong-group-ssg-sp-maybank-kim-eng-2018-04-02.html 38 https://www.tnp.sg/news/singapore/neighbourhood-supermarkets-going-big-organic-products

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(EUR 33), with free delivery services given for purchases of at least S$ 150 (EUR 98), otherwise a delivery fee of S$ 15 (EUR 9.80) is imposed.

Brown Rice Paradise

Another notable single organic specialty store in Singapore is Brown Rice Paradise (www.mybrp.com.sg/). Established in 1994, it is one of the first specialty stores in the island offering natural and organic products. The store, which is located in Tanglin Mall, offers a wide range of natural, organic baby food and baby care products, organic groceries as well as personal care and household products containing organic ingredients.

Mahota Commune

Mahota Commune (http://www.mahota.sg/) is a unique concept which was introduced to Singapore in mid-2016. Rather than operating as a retail store focusing on natural and organic products, Mahota established itself as a multi-concept wellness centre in a 20,000-sq ft space, combining the functions of a farm, market, kitchen, pantry, clinic and lifestyle centre. Mahota Market offers organic and natural produce, while Mahota Kitchen enables consumers to taste the cooking and servings in a café-like atmosphere. Mahota Life encompasses workshops, activities and events like wine and cheese tastings, cooking classes and specialty coffee appreciation.

Online Stores

RedMart

RedMart (https://redmart.lazada.sg/#home), which was founded in 2011, is Singapore’s leading online supermarket, offering an extensive selection of high-quality fresh food, household essentials and premium speciality products. The company is a pioneering e-commerce and logistics company. It has a direct retail offering and a marketplace platform for independent brands to sell on its state-of-the-art website and mobile application. RedMart was bought over by the Alibaba-backed Lazada Group in 2016, a move aimed at catering to the rising number of Singaporean consumers that increasingly buy their groceries online. RedMart offers one of the

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most extensive selections of organic products – a search on its online platform for organic products yields over 6,000 options.

OpenTaste

Singaporeans also have the option to buy fresh fruits, vegetables, meat, seafood and dairy products directly from farms using websites such as OpenTaste (www.opentaste.sg), which helps to connect consumers to over 200 farms and food manufacturers across various countries, such as the US, Spain, Netherlands, Australia, Japan, Malaysia, and Egypt, among others. OpenTaste is an innovative online marketplace for fresh food. It has built an effective perishable produce logistics service, gathering products from over 200 farms and food manufacturers in various countries such as Australia, the US, Egypt, Malaysia, Norway, Spain, and Japan, among others. The company delivers these products in the shortest possible time from farm to consumer.

Specialist Online Stores

Various online specialist stores offer a range of premium products in Singapore, such as Wine- family.com for wine; Beanstobars.sg for chocolates; Hookcoffee.com.sg for premium coffee; Liquorbar.sg for spirits, and Momobud.sg for fresh fruits, among others.

European Companies

European companies planning to market their products through established retailers in Singapore are advised to work with local importers, consolidators and distributors as these are the common means of distributing food products in the country. Some of the retailers are capable of sourcing directly from foreign companies, such as DFI and The Organic Grocer. There are also specialty stores that source directly from certain regions such as The Organic Frog (http://www.theorganicfrog.com), which supplies organic products directly from France.39 Many business deals are done through meetings in international trade shows and food-sourcing missions organised by government agencies like AVA.

39 http://voilah.sg/organic-frog/

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European companies whose organic products are already being distributed in Singapore include the Lactalis Group from France; Alce Nero S.p.A. from Italy; TerraSana from the Netherlands; Hipp GmbH & Co from Germany; Oatly from Sweden; and Domaine Valentin Zusslin from France among others.

The Lactalis Group

Lactalis is a global dairy company headquartered in Laval, France, which owns a number of brands for milk, yoghurt, cheese, butter and cream. The brands that are available in Singapore include President, Galbani, Lactel and Q.B.B. It has set up Lactalis Singapore Pte Ltd in 1991 as a subsidiary and acquired a local ghee specialist company Q.B.B. in 2012. Lactalis organic products can be found in most major supermarkets in Singapore.

Alce Nero

Alce Nero is an organic food cooperative company producing a wide range of products including olive oil, pasta, sauces, condiments and beverages. In 2008, Alce Nero formed an exclusive partnership with a Swiss company, Denis Group to develop the brand in Asia, namely in Japan, Malaysia, Thailand, Hong Kong and in China. Today, Alce Nero’s products can be found in over 80 supermarkets and 20 specialty organic stores across Singapore.40

TerraSana

TerraSana, which is based in the Netherlands, engages in the sale of organically grown products. It offers an extensive range of products such as cereals, dried fruits, herbs, mueslis, nuts, pulses, rice, seeds, olives, pasta, pesto, tomato products, vinegar, preserves, and ready meals, among others. The company sells its products through outlets in the Netherlands, Belgium, Germany, Austria, and the United Kingdom. In Singapore, a selection of TerraSana’s products are available through an online marketplace OpenTaste.

40 http://alcenero.asia/locator.html

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Oatly

Oatly, which produces organic oatmilk, operates out of the southern region of Sweden. The Oatly brand is available in more than 20 countries throughout Europe and Asia. Its highly popular organic oakmilk is readily available in Singapore in both supermarkets and online stores.

Figure 14: Oatly Organic Milk Source: Oatly

Domaine Valentin Zusslin

Established in 1691, the wine estate Domaine Valentin Zusslin is based in the east of France. It converted to 100% biodynamic farming in 1997. The domaine is certified by Demeter, Ecocert and Biodyvin. Its biodynamic wines are available on RedMart.

3.1.5 Government Initiatives

The Singapore government has a strong focus on the food sector, and has undertaken various initiatives to ensure the country’s food security, further develop the local agritech and food processing industries, as well as restructure the food services sector. In addition, the government is actively involved in efforts to reduce the high sugar intake among Singaporeans – a major contributor to obesity and diabetes.

On 1 April 2019, a new government agency was formed, called the Singapore Food Agency (SFA). A statutory board, it comes under the Ministry of the Environment and Water Resources (MEWR),

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and takes over food-related work currently being done by the Agri-Food and Veterinary Authority of Singapore (AVA), the National Environment Agency (NEA) and the Health Sciences Authority (HSA).

Figure 15: The Singapore Food Agency Source: Agri-Food & Veterinary Authority of Singapore (AVA)

The newly-formed SFA will holistically respond to food safety incidents wherever these occur along the food supply chain. On food security, it will oversee the implementation of new measures that require importers of key food items to have plans and preventive strategies to mitigate the impact of food supply disruptions. The agency will also partner businesses to transform the local food industry by leveraging emerging opportunities – including new food production methods and novel food products – to enhance food supply resilience and grow Singapore into an agri-food hub.

To boost the branding of local crops and help consumers better identify organic produce, Singapore launched its first organic standard, the Singapore Standard (SS) 632: 2017 Organic Primary Produce in April 2018. It is tailored to the country’s local conditions and encompasses the principles of organic agriculture (i.e. health, ecology, fairness, and care) for traditional organic farming, peri-urban and urban organic farming, breaking bulk and repacking of organic produce. It provides the requirements for primary produce such as grains, mushrooms, fresh vegetables,

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fresh herbs and fresh fruits and covering processes such as production, post-harvest practices, import, packing and re-packing, storage, transport and labelling of organic primary produce.41

In 2016, Singapore launched the Food Manufacturing Industry Transformation Map, with the aim of developing the country into a leading food and nutrition hub in Asia with globally competitive food companies. Spring Singapore, which is Singapore’s economic development agency, wants to help food manufacturers find new ways to differentiate themselves from the competition. Since the “Made in Singapore” label has become highly regarded for quality and safety, the agency will leverage on this strong reputation to help companies develop new products or product extensions based on lifestyle and health trends.42 This national plan to revamp industries is expected to increase productivity at an average of 4.5% and create 2,000 new jobs between 2016 and 2020.

Also in 2016, the Agri-Food & Veterinary Authority of Singapore (AVA) made an amendment to a regulation under the Sales of Food Act (Food Regulation) to address confusion arising among consumers in Singapore on organic-labelled products and other products labelled as natural or healthier. Food products labelled as “organic” (or using similar terms) must be certified as organic under an inspection and certification system that complies with the Codex Guidelines for the Production, Processing, Labelling and Marketing of Organically Produced Foods, GL 32-1999; or similar. The Codex guidelines set out the principles of organic production at farm, preparation, storage, transport, labelling and marketing stages, and provides an indication of accepted permitted inputs for soil fertilising and conditioning, plant pest and disease control, food additives and processing aids.

The government has been pushing for healthy diets through various programmes under the Health Promotion Board (HPB), including Healthier Choice Symbol (HCS) Programme, Healthier Dining Programme, Healthier Dining Grant and Healthier Ingredient Development Scheme. These programmes are targeted at promoting healthy lifestyle among Singaporeans, under the Singapore Healthy Living Masterplan launched by the Ministry of Health in 2014, and focus largely

41 http://www.smfederation.org.sg/account/eventdetails?eventId=E20180309067 42 https://www.spring.gov.sg/NewsEvents/PR/Pages/Food-Manufacturing-Industry-Transformation-Map-to-Develop-Singapore-into- Asia%E2%80%99s-Leading-Food-and-Nutrition-Hub-20161118.aspx

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on encouraging Singaporeans to consume more fruits, vegetables and whole grains, while reducing their intake of sugar and oils.

The Healthier Dining Programme basically supports food businesses in offering healthy foods and drinks to their customers, while the Healthier Dining Grant is for the businesses to develop and promote healthier menu options. The Healthier Ingredient Development Scheme focuses on assisting food manufacturers of oils and grain staples (mainly rice and noodles) in Singapore to innovate and develop a wider variety of healthier ingredients that suit the local taste, apart from supporting the industry in promoting the acceptance of such ingredients by food and beverage businesses. The Healthier Choice Symbol (HCS) is the symbol placed on packaged foods to assist consumers doing grocery shopping in finding healthier options. Today, the HCS can be found on about 2,600 different food products in over 70 categories including breakfast cereals, sauces, convenience meals and beverages, indicating food and ingredients that are lower in calories, contain less total fat, reduced sugar and sodium content, contain wholegrains, or use healthier oil or cooking methods.

Figure 16: The Healthier Choice Symbol (HCS) Source: Health Promotion Board of Singapore

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Singapore has the second-highest proportion of diabetics among developed nations, a new report by the International Diabetes Federation (IDF) revealed. It is projected that diabetes will affect more than one million Singaporeans by 2050.43 To address the issue, Singapore’s Ministry of Health launched the War on Diabetes programme under its initiatives for 2016. The programme is aimed at promoting a healthy lifestyle and reducing obesity rates among Singaporeans; strengthening early screening and intervention to enable early detection of the disease; and supporting better control of diabetes to slow down its progression and reduce complications.44

As part of its campaign, the government is encouraging people to opt for healthier food options. Singapore, which already bans the sale of medium- to high-sugar drinks in schools and government premises, may well become the first country in the world to ban the sale of packaged drinks with high sugar content altogether, which is one of the moves the Ministry of Health (MOH) is contemplating. The MOH and the Health Promotion Board are presently seeking feedback on four proposed measures to cut sugar intake, which include:

◼ A total ban on pre-packed high-sugar drinks;

◼ Single or tiered taxes on high-sugar drinks;

◼ Mandatory front-of-pack labelling on sugar/nutrition content; and

◼ A ban on advertisements for high-sugar drinks on all platforms, including social media and buses.

The MOH also announced in March 2019 that it is planning a ban on partially hydrogenated oils, which are a key source of artificial trans-fat. Fats and oils on sale in Singapore are currently allowed to contain up to 2% of trans fat, under a limit set in 2013. This has helped to reduce Singaporeans' average daily trans-fat intake from 2.1g in 2010 to 1g last year. The new ban will also apply to packaged food, like noodles and cookies.

43 https://www.moh.gov.sg/content/moh_web/home/pressRoom/highlights/2016/Budget2016/the-fight-against-diabetes.html 44 http://www.straitstimes.com/singapore/health/moh-declares-war-against-diabetes

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3.2 Organic Baby Food

3.2.1 Market Overview

Organic baby food is one of the fastest growing categories among organic packaged food as it has already gained a strong following from parents that trust organic baby food to be more superior and healthier than non-organic ones. Growth in the sub-sector is driven by the increasing awareness among young parents of the need to feed their young children with healthy foods starting from an early age and the increasing number of affluent, dual-income earners in households in the country. Smaller household sizes coupled with higher disposable incomes enable parents to spend more on their babies, and to focus on the quality of food, and this includes buying products that are healthier even if more expensive.

Singapore has strict regulations and guidelines for infant food and formula, which are categorised as special purpose food. These products do have some specific requirements for composition, such as protein, carbohydrate, fat, minerals, and vitamins, labelling requirements, processing provisions as well as regulations prohibiting the use of chemical preservatives, nitrites and nitrates, among others. Legislation relating to Special Purpose Food is available on the official website managed by the Legislation Division of the Attorney-General's Chambers of Singapore.45 In 2017, the Agri-Food and Veterinary Authority (AVA) strengthened its restrictions on labelling and advertising of infant formula milk. Formula milk manufacturers will not be able to use nutrition and health claims, as well as images that make drinking formula milk look attractive.

Under soon-to-be introduced guidelines, infant formula firms will also be barred from providing both financial and in-kind inducements to hospitals to promote their brands to mothers. Public hospitals that offer maternity services are already prohibited from entering into sponsorship and payment arrangements with formula companies. The new rules are part of the revised code of ethics by a committee administered by the Health Promotion Board.

45 http://statutes.agc.gov.sg/aol/search/display/view.w3p;ident=c813ea12-553f-4a60-b601- 165f9b5975d9;page=0;query=DocId%3A%224eb60232-5482-4aaf-98f7- 4442df0a88ef%22%20Status%3Ainforce%20Depth%3A0;rec=0#pr247-he-.

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Popular brands of organic baby food in the country include Healthy Times from the US, Ella’s Kitchen from the UK, Australia’s Bellamy’s Organic, German brand HiPP, which provide a range of western-style baby food products such as melt-in-the-mouth snacks, baby rusks, biscuits and crackers, fruit or vegetable purees and smoothies, porridge, and ready-to-eat baby meals. Typical ingredients include fruits such as apple, banana, apricots, strawberries, or mango; vegetables such as spinach, carrots, or butternut squash; grains such as rice, wheat or oats; and dairy products such as milk, cheese and yoghurt.

A few unique products and flavours are also in the market, such as Good Gout’s zucchini and goat cheese risotto, Idlong organic rice cakes (which contain rice and seaweed), as well as a small range of baby food preparations with unusual ingredients such as eggplant or salmon, usually for older babies.

Usually, soft baby food preparations are packaged in stand-up pouches or single-feed glass jars. The latter, especially, is popular in Singapore. For example, Heinz launched the Heinz Organic Biologique baby food range in Singapore in the middle of 2012, while Ella’s Kitchen is another supplier offering similar products. Other than its attractive and convenient packaging designs, the plastic screw closures shaped like a mushroom is also wider and serves an anti-choke solution for babies and toddlers.

Figure 17: Organic Baby Food by Plum Organic (UK) Source: The Organic Grocer

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In 2018, there was a recall of baby food pouches from Canadian company Love Child Organics after an alert was issued by the Canadian Food Inspection Agency of packaging defects that may allow the entry of spoilage micro-organisms. According to AVA, the importer voluntarily recalled the implicated product from sale and consumers who had purchased the implicated products were advised not to consume them.

Table 3 (on the next page) contains the pricing details of baby food products sold in Singapore. While there are a few exceptions to this rule, generally organic baby food in Singapore is significantly more expensive than non-organic baby food and formula.

In recent years, the high prices of formula milk have made headlines in Singapore’s mainstream press. Local newspapers reported that the average price of a 900g tin of formula milk had increased by 120% over the last decade to S$ 56.06 (EUR 36.6), outstripping the increases for other dairy products and household staples. The ensuing outcry led to the set-up of a minister- led taskforce to address the rising prices of formula milk in Singapore.

As part of the measures taken, the government has announced that it will simplify and streamline import requirements as well as remove unnecessary barriers to entry in order to bring in more formula milk options. Supermarkets are now working with suppliers to expand sourcing options to ensure a greater variety of affordable options. Following calls for more affordable options, supermarket chain NTUC FairPrice launched a new range of formula milk from Australia, under its housebrand label. The FairPrice Gold formula milk is priced between S$ 27 and S$ 29 (EUR 17.6 and EUR 18.9) for a 900g tin, and is available in three types - for infants up to six months of age, between six months and a year old, as well as for those who are one and older.

It should be noted that in the baby formula category, manufacturers strengthen their "premium" positioning by importing their products from Europe, Australia and New Zealand. A report released by the Competition Commission of Singapore highlighted that insufficient understanding of the nutritional content of Formula Milk and the dietary requirements of infants and young children have often led parents to perceive that the more expensive or premium products are of higher

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quality.46 In 2015, an estimated 95% of formula milk sales in 2015 were for "premium" and specialty milk, with just 5% for "standard" milk, which typically costs less than half the price.47 In February 2018, the minister-led taskforce reported that between May to November 2017, sales for lower-priced infant formula milk products costing an average of $35 or less per 900g increased by 36.5%,48 highlighting a trend to switch to less premium products.

According to Nielson, nine in ten mothers in Singapore engaged in either partial or full breastfeeding in 2018. As a result, formula milk value sales decreased by 11% from 2016 to 2017, and 10% from 2017 to 2018.49

Item (Baby Food) Organic Conventional

Domestic Imported Domestic Imported

Brand NA HiPP Junior Organic S-26 Progress Gold Enfagrow A+ Stage 3 Stage 3 Follow-On Stage 3 Marigold Original Growing Up Milk Formula Formula Milk Weight (grams) NA 400 900 900 Price (Euro) NA 17.66 26.97 29.73

Unit Value (Euro / 100g) NA 3.69 3.00 3.30 Price difference in % for NA (9.27) domestic vs imported (Euro/100g) Price difference in % for NA 11.75 organic vs conventional (Euro/100g) Brand NA Plum Organics NA Gerber Graduates My Super Puffs First Puffs Classic Strawberry And Beet Weight (grams) NA 42 NA 42 Price (Euro) NA 4.92 NA 4.56

Unit Value (Euro / 100g) NA 11.72 NA 10.86 Price difference in % for NA NA domestic vs imported (Euro/100g) Price difference in % for NA 7.91 organic vs conventional (Euro/100g)

46 https://www.ccs.gov.sg/media-and-publications/media-releases/formula-milk-market-inquiry-findings 47 https://www.ccs.gov.sg/media-and-publications/media-releases/formula-milk-market-inquiry-findings 48 https://www.straitstimes.com/singapore/greater-consumer-awareness-more-affordable-options-contribute-to-fall-in-average-prices 49 https://sbr.com.sg/food-beverage/news/infant-formula-market-dries-mothers-return-breastfeeding-report

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Item (Baby Food) Organic Conventional

Domestic Imported Domestic Imported

Brand NA Ella's Kitchen NA GERBER 1st Foods Organic Prunes 6+ Prunes Months Weight (grams) NA 70 NA 80 Price (Euro) NA 1.97 NA 1.12

Unit Value (Euro / 100g) NA 2.81 NA 1.39 Price difference in % for NA NA domestic vs imported (Euro/100g) Price difference in % for NA 101.68 organic vs conventional (Euro/100g) Table 3: Price Comparison between Organic and Non-Organic Baby Food Products Source: Orissa International from Online Store Checks

As households in Singapore remain small, and economic conditions of domestic consumers improve, young parents in dual-income households are willing to spend more on their children to provide them with better nutrition, and are receptive to organic packaged food products, making this a promising market for European companies in the organic baby food sector.

In the long run, it should be noted that Singapore, like many other developed countries, is experiencing a decline in its birth rate, which has fallen to 1.16 in 2018 compared to 1.74 in 1980. The government has launched various initiatives to increase birth rate in Singapore, such as mandating the allowance of parental leave for new parents, but the impact of such initiatives have not been felt as yet.

Only a small selection of organic baby food brands is sold in supermarkets. Australian and American products dominate the sub-sector, with the US’ Healthy Times and Australia’s Bellamy being the most popular brands in the market. Other brands that are also readily available include the Gerber organic range by Nestle, Heinz’s range of organic baby food, the U.K.’s Organix, among others. A wider range of organic baby food is available through specialist organic stores and online retailers.

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European companies that have presence in the market include:

◼ Ella’s Kitchen (UK): Ella's Kitchen makes fruit smoothies for toddlers and kids, as well as organic baby food. Its products are available in supermarkets such as Cold Storage and through online channels such as RedMart.

◼ HiPP (Germany): HiPP offers a range of organic infant formula milk and follow-on milk, as well as organic cereals, soft fruit purees and juices for babies. Its products are readily available in supermarkets such as Cold Storage, pharmacies such as Guardian, specialist stores such as Mothercare, as well as through online channels such as RedMart. Its distributor in Singapore is Ban Choon Marketing.

◼ Holle (Germany): Holle baby food GmbH makes baby food in organic and biodynamic quality. The company has sites in Riehen (Switzerland) and in Grünsfeld near Tauberbischofsheim (Germany). The product range includes infant formula, baby porridges, jars and fruit and vegetable pouches. Baby weaning oil, teas and snacks complete the extensive range. Its products are distributed in Singapore by Chadil Pte Ltd.

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3.3 Organic Cereal / Cereal Products

3.3.1 Market Overview

Cereals and cereal products are commonly consumed in Singapore, which has assimilated western lifestyles and eating habits. Organic options for this segment include breakfast cereals, pasta, rice and noodles, which are readily available in the market.

Breakfast cereals, particularly ready-to-eat cereals, are popular due to their ease of preparation, and also because it is considered a healthy start to a day. The ongoing war against diabetes and the growing consciousness of hidden sugar in food is leading many to pay more attention to labels, and to opt for healthier cereal options, a trend which is helping to push sales in the organic breakfast cereals category. The category, being niche, remains small, with most supermarkets carrying a wide range of non-organic brands of breakfast cereals, and only a few organic options for the more health-conscious consumers.

Figure 18: Organic Sprouted Porridge Oats by Rude Health (UK) Source: The Organic Grocer

Given that rice is a staple in Singapore, organic rice is the largest organic packaged food category in retail value terms. While the market for organic rice has been on an upwards over the last few years, naturally healthy (NH)50 rice is also gaining market share. NH rice, such as natural brown

50 Meaning rice that naturally contains substances that improves health and wellbeing beyond the product’s pure calorific value

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rice or mixed rice, is more affordable compared to organic rice in the market and is popular among health-conscious mid- to low- income consumers. For example, the Naturel Organic Brown Rice is priced at S$ 10.80 (EUR 7) per kilogramme while FairPrice Thailand Brown Unpolished Rice sells at around half the price, at S$ 5.50 (EUR 3.6) per kilogramme. In addition, the advantages of NH rice are more apparent to domestic consumers as they can be narrowed down to a specific health benefits such as digestive health and is marketed as an ideal option for Type 2 diabetes patients. Despite the price differential, the organic rice segment generally performs well in Singapore.

Figure 19: Naturel Organic Brown Rice by Lam Soon Source: Lam Soon

Other familiar brands of organic rice that are present in Singapore include Lundberg, and Imagine by Westbrae Natural, both from the US. Other than these two brands, a range of organic rice variants are offered under local brand Naturel, which is the leading brand for this segment.

Organic pasta is generally considered to be a poor performing sector. Organic variants of dried pasta are still an emerging trend and the mass market has yet to make the switch to organic pasta. Compared to mass-produced, non-organic dried pasta (which is found in all supermarkets),

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the availability of organic pasta is usually limited to the select supermarkets targeting higher income consumers such as FairPrice Finest and Cold Storage.

These premium retail outlets typically carry fewer options for organic pasta, and cater mainly to expatriates rather than domestic consumers. Some brands found in Singapore include Alce Nero of Italy, New Zealand’s Ceres Organics and Naturel by Singapore’s Lam Soon. Unlike rice, pasta is not a pantry staple in Singapore and thus consumers tend not to be too experimental when making pasta, preferring instead to stick to the standard inexpensive non-organic version.

The following table contains the pricing information for selected organic cereal and cereal products sold in Singapore.

Item (Cereals/Cereal Products ) Organic Conventional Domestic Imported Domestic Imported Brand NA EnviroKidz Nestle Koko Crunch NA Organic Koala Crisp Cereal Weight (grams) NA 325 330 NA Price (Euro) NA 5.22 3.71 NA

Unit Value (Euro / 100g) NA 1.61 1.12 NA Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA NA conventional (Euro/100g) Brand NA Dr Gram Organic Quaker Whole Rolled RedMart Rolled Oats Instant Rolled Oats (from Australia branded Oats by RedMart) Weight (grams) NA 500 800 1,000 Price (Euro) NA 3.15 3.51 3.12

Unit Value (Euro / 100g) NA 0.63 0.44 0.31 Price difference in % for domestic NA 40.79 vs imported (Euro/100g) Price difference in % for organic vs NA 102.11 conventional (Euro/100g) Brand NA Rude Health NA Dongwon YangBan Rice Organic Daily Porridge With Red Bean Porridge Oats And Chestnut Weight (grams) NA 500 NA 285 Price (Euro) NA 4.53 NA 2.26 Unit Value (Euro / 100g) NA 0.91 NA 0.79

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Item (Cereals/Cereal Products ) Organic Conventional

Domestic Imported Domestic Imported Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA 14.00 conventional (Euro/100g) Table 4: Price Comparison between Organic and Non-Organic Cereals / Cereal Products Source: Orissa International from Online Store Checks

While Singaporean brand Naturel dominates the market for rice, various organic brands are present in the market in the organic breakfast cereal category. For example, premium supermarkets in Singapore carry Nature’s Path breakfast cereals from Canada, Familia muesli from Switzerland, Cowhead organic oats from Australia, and several others. In the organic pasta sub-category, main brands available are Australia’s San Remo and Ceres Organics, Italy’s Alce Nero.

European companies that have presence in the market include:

◼ Alce Nero (Italy): see profile in Section 3.1.4

◼ Carrefour (France): French retailer Carrefour has been promoting the production and marketing of organic products through its Bio brand – the range now features more than 1800 own-brand products. In Singapore, its organic breakfast cereals, muesli and bars are available on RedMart.

Figure 20: Carrefour Bio Organic Chocolate Breakfast Bars Source: RedMart

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◼ Probios (Italy): Since it was founded in 1978 in Italy, Probios has been offering a wide choice of organic foods including breakfast cereals, pasta and rice. In Singapore its products are available in specialist organic grocery stores, such as SuperNature.

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3.4 Organic Dairy

3.4.1 Market Overview

Singapore is considered a mature market for dairy products. According to the data provided by the International Trade Centre (ITC), a total of over US$ 1 billion (EUR 882.8 million) worth of dairy products were imported by Singapore in 2017, with leading import partners being New Zealand, Malaysia and Australia. Singapore's imports in this category represents 1.2% of total global imports, positioning it as the world's 20th largest importer of dairy produce (including birds’ eggs, natural honey, and edible products of animal origin not elsewhere specified, according to the ITC. Top European suppliers of dairy products to the country are France, the Netherlands, Germany and Denmark.

Partner Value Imported in 2017 (US$ '000) Share in Singapore's Imports (%)

World 1,003,775 100

1 New Zealand 271,065 27

2 Australia 154,323 15.4 3 Malaysia 144,165 14.4 4 Indonesia 70,767 7.1 5 Thailand 54,874 5.5 6 France 53,604 5.3 7 Netherlands 36,215 3.6 8 USA 35,605 3.5 9 Germany 29,826 3 10 Denmark 23,314 2.3 Table 5: Import Value and Share of Top 10 Source Markets - Dairy Products, 2017 Source: UN Comtrade

Key players that dominate the Singapore dairy market include Malaysia Dairy Industries, F&N/Thai Beverage, Meiji Holdings, Yakult Honsha, Fonterra, Nestle and Royal Friesland

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Campina. Due to the short shelf life of dairy products, key players including Malaysia Dairy Industries, F&N, Meiji and Yakult have factory presence in Singapore.

Home-grown food manufacturer SMC Food 21 has, in May 2018, proposed setting up a one-stop hub for the dairy industry here, to give Singapore companies a boost in tapping the region's growing demand for products such as infant milk powder, cheese, yogurt, chocolate and ice cream. The proposed facility could offer food manufacturing companies a suite of shared services such as R&D labs, yogurt and cheese processing, as well as warehousing. In addition, the hub could facilitate technology transfer between multinational dairy companies and local firms, as well as develop deep skills in the food manufacturing workforce.

The retail market value for the total dairy sector is estimated to be valued at US$ 0.5 billion (EUR 0.4 billion) in 2018.51 However, it is interesting to note that a recent FrieslandCampina study on milk consumption trends in Singapore found that consumption of milk among adult Singaporeans is declining, with around 50% of adult Singaporeans not directly consuming milk anymore,52 although milk and milk products continue to be used for cooking and baking. Growth in other dairy categories, such as cheese, butter, ice cream, yoghurt and sour milk is also generally slowing, as consumers prefer less fat in their diets.

The organic dairy product sub-sector in Singapore remains a niche market. Today, a carefully curated range of organic dairy products can be found on the shelves of premium retail outlets and artisanal cheese shops in Singapore, both in their physical and online stores. The range of products that can be found in retail outlets includes organic milk, organic butters and cheeses and organic yoghurt.

51 http://www.craftdrivenresearch.com/dairy-products-singapore/ 52 https://www.dairyreporter.com/Article/2018/06/21/FrieslandCampina-study-looks-at-milk-consumption-trends-in-Singapore

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Figure 21: Huber’s Butchery has an extensive selection of Gourmet Dairy Products Source: Robb Report

In NTUC FairPrice supermarkets (which cater mainly to the locals), the most commonly available organic dairy category is organic milk, both fresh and UHT (ultra-high temperature) processed milk. Popular organic dairy products are supplied by foreign companies, such as Holland Organics from the Netherlands, True Organic from Australia, and Stremick's Heritage Foods and Organic Valley, both from the US. There is limited availability of organic yoghurt, butter and cheese. There are no known local Singaporean companies producing organic dairy products currently in the market; all the organic dairy brands present in the Singapore market are imported into the country.

Organic dairy products in Singapore have to compete with alternative healthy dairy products that are now readily available in the market. With a wide variety of healthy, better-for-you, fortified and functional dairy products introduced to the market, consumers are now spoilt with choices for healthier and more reasonably-priced dairy products. Such products include reduced/low/zero fat milk, pre/pro-biotic drinking yoghurt, and light cream cheese. The same companies that distribute alternative healthy dairy products to Singapore also offer the organic variants, in order to compete in the niche but growing organic market as well.

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The following table contains pricing information for selected organic dairy products sold in Singapore.

Item (Dairy) Organic Conventional

Domestic Imported Domestic Imported

Brand NA Organic Valley Cheddar Stringles NA Seriously Strong Mild Red Cheese Cheddar Cheese Weight (grams) NA 170 NA 200 Price (Euro) NA 7.84 NA 7.48

Unit Value (Euro / 100g) NA 4.61 NA 3.74 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic NA 23.32 vs conventional (Euro/100g) Brand NA Jones The Grocer Roquefort NA Castello Blue Cheese Organic Blue Cheese Traditional Weight (grams) NA 150 NA 100 Price (Euro) NA 9.84 NA 4.27

Unit Value (Euro / 100g) NA 6.56 NA 4.27 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic NA 53.85 vs conventional (Euro/100g) Brand NA Holland Organics Fresh Milk Whole NA Farmhouse Low Fat Milk Fat Weight (grams) NA 1,000 NA 2,000 Price (Euro) NA 4.53 NA 4.10

Unit Value (Euro / 100g) NA 0.45 NA 0.21 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic NA 120.80 vs conventional (Euro/100g) Brand NA Rachel's Organic Low Fat Greek NA Lancashire Farm Coconut Style Natural Bio-Live Yogurt Low Fat Bio Yoghurt

Weight (grams) NA 450 NA 450 Price (Euro) NA 5.09 NA 5.18

Unit Value (Euro / 100g) NA 1.13 NA 1.15 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic NA (1.90) vs conventional (Euro/100g)

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Item (Dairy) Organic Conventional

Domestic Imported Domestic Imported

Brand NA Pacific Organic Soy Unsweetened NA Nutrisoy Omega Soymilk - Original Non-Dairy Beverage Less Sugar

Weight (grams) NA 946 NA 1,000 Price (Euro) NA 4.27 NA 1.54

Unit Value (Euro / 100g) NA 0.45 NA 0.15 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic NA 192.38 vs conventional (Euro/100g) Table 6: Price Comparison between Organic and Non-Organic Dairy Products Source: Orissa International from Online Store Checks

Organic dairy products available in Singapore are mainly imported from the US, Australia and the Netherlands. In particular, Australian products dominate the organic milk sub-sector.

European companies that have presence in the market include:

◼ Holland Organics (Netherlands): Holland Organics, a brand owned by Bevcorp BV, is the single largest and oldest producer of organic dairy products in the Netherlands. it processes more than one hundred million litres of milk per year. Its products are sold in Cold Storage, NTUC Finest, RedMart and Organic Stores across Singapore.

◼ Minerva (Greece): Minerva SA, a company established more than 100 years ago, is one of Greece’s largest food companies. Initially focusing on the olive oil sub-sector, it has expanded to other product categories, including organic feta cheese, made from sheep and goat milk. The organic cheese is readily available in supermarkets in Singapore.

◼ Président (France): Président Cheese is a premiere cheesemaker in France, and is part of Groupe Lactalis. Founded in 1933 in Laval, France, it offers a wide range of specialty cheeses, including Président organic camembert, which is sold in FairPrice supermarkets in Singapore.

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3.5 Organic Bakery Products

3.5.1 Market Overview

Singaporeans have developed an appreciation for wheat, a trend that has led to bakery products, namely bread, sweet and savoury biscuits, cakes and pastries, being established as staples, with the former being consumed for breakfast and the latter three for snacks and desserts. The expatriate market here adds to the demand as well. The growth of the bakery products market is sustained by an increasing demand for healthier food, and is supported by the abundance of local and imported bakery products available in retail and food service outlets across Singapore.

Apart from this, the expanding middle class, changing dietary and lifestyle patterns, the growing demand for convenience, and the developing food manufacturing sector have also led to the growth of the bakery industry in Singapore. On the other hand, there is also an increasing demand for artisanal bakery products in Singapore due to the growing affluence among local consumers.

According to a Flanders Investment and Trade survey,53 frozen bakery products and ‘thaw & serve’ bakery products are important categories in the retail supermarkets and convenience stores. Products that are readily available in supermarkets include frozen pizzas, frozen breads, frozen pies, frozen cakes, frozen crepes and waffles, while convenience stores carry ‘thaw & serve’ products such as cakes, muffins and waffles. A large number of foreign brands of frozen bakery products are represented in Singapore.

Singapore imported baked goods worth over US$ 279 million in 2017 (EUR 246 million), with Malaysia being the largest supplier to the market. The US and Japan are also among the top suppliers to Singapore, while the largest suppliers from Europe include the UK, Germany and France. The country’s import represents 0.8% of the global import of bakery products including

53 https://www.flandersinvestmentandtrade.com/export/sites/trade/files/market_studies/BakeryProductsSingapore.pdf

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breads, pastries, biscuits, cakes and other bakers' wares, positioning Singapore as the 29th largest importer in the world.

Partner Value Imported in 2017 (US$ '000) Share in Singapore's Imports (%)

World 279,063 100 1 Malaysia 109,495 39.2 2 Japan 26,565 9.5 3 USA 21,722 7.8 4 UK 12,500 4.5 5 Thailand 12,460 4.5 6 Indonesia 12,251 4.4 7 China 11,426 4.1 8 Germany 7,923 2.8 9 India 7,904 2.8 10 France 6,726 2.4 Table 7: Import Value and Share of Top 10 Source Markets - Bakery Products, 2016 Source: UN Comtrade

It is interesting to note that Singapore is regarded as a stepping stone and a test bed to the South East Asian market, and many foreign artisanal bakeries opt to venture into Singapore prior to embarking into other neighbouring markets. Such bakeries include the US' Clinton Street Baking Company (CSB), as well as France's Maison Kayser and PAUL. CSB first opened its outlet in Singapore in September 2015 as its third overseas store after Tokyo and Dubai. Maison Kayser and PAUL entered the market in 2012, and now have 3 and 7 outlets respectively, while famed Japanese bakery Asanoya chose to open its first outlet outside Japan in Singapore in 2014, and has now expanded to three locations.

While Singapore is served by large number of small local artisanal bakeries, it has highly successful homegrown bakery chains as well, such as the award-winning BreadTalk, which first started in 2000. Today, BreadTalk has more than 950 outlets in 17 territories including Singapore, China, Hong Kong, Taiwan, Malaysia, Indonesia, Thailand, and Myanmar. Smaller local artisanal bakery chains with established presence include Baker & Cook (7 locations), Cedele (25

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locations), Paris Baguette (11 locations) and Artisan Boulangerie Co (9 locations).54 Most of these players have a bakery-cum-café format in malls.

Major industrial bakeries that have entrenched presence in Singapore are QAF Limited, whose brand Gardenia has leading share, and Auric Pacific Group with its Sunshine brand. These brands of packaged bread are available in all supermarkets, convenience stores and small grocery stores across Singapore. There is a clear movement to healthier eating in the packaged bread sub- sector, with healthier options readily available, such as wholemeal bread, sprouted wholemeal bread, softmeal bread, wholegrain bread, whole wheat bread, seed bread, muesli bread and multigrain bread, many of which are fortified and enriched with vitamins and additional fibre.

Increasingly, within the cakes, pastries and biscuits sub-sectors, products on supermarket shelves tout benefits such as fortification with omega 3, prebiotics, the use of healthier ingredients such as stevia, coconut sugar and agave, the absence of trans fats, which signal a significant trend towards healthier variants to meet the rising consumer demand for healthier bakery products.

For example, Khong Guan Biscuit Factory, which has a range of popular packaged crackers, cream and plain biscuits and wafers that are sold across Singapore, has stopped using trans-fat in its products, which has been replaced with fats that look solid but are a physical combination of liquid and solid fats that are not hydrogenated. It should be noted that, following the footsteps of countries such as the US, Canada and Thailand, Singapore is considering planning a ban on partially hydrogenated oils (PHO), which are a key source of artificial trans-fat – this will have an impact on the baked goods sector.

Within this context, artisanal organic bakery products are finding a foothold in Singapore through a number of organic foodservice establishments, that meet the demand for artisan European- style bakery products that are baked daily using quality flour, grains and organic ingredients. Singaporean-owned cafés, such as Bud of Joy, Yes Natural, Sunday Sourdough, The Organic Baker and Delcie's Desserts and Cakes, as well as foreign cafés and bakeries such as Haubis

54 https://honeykidsasia.com/best-bakeries-in-singapore-where-to-buy-fresh-bread-bagels-baguettes-and-ciabatta/

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Singapore, are catering to the growing demand and supplying primarily organic bakery products to customers and retailers.

Figure 22: Organic bakeries by Bud of Joy Source: Blog Working with Grace55

Apart from the foodservice channel, organic baked products are also reaching customers through retail outlets of supermarkets, premium organic grocery stores or online orders. Some organic baked goods brands that are available include Bavarian Bread, Bjorg and Everfresh Natural Foods.

The following table contains pricing information for some organic bakery products sold in Singapore.

Item (Bakery Products) Organic Conventional

Domestic Imported Domestic Imported

Brand NA How Organic Mixed Gardenia Finegrain Knead It Bakery White Cereal Bread Wholemeal Bread Pide Turkish Bread – Frozen Weight (grams) NA 500 420 430 Price (Euro) NA 9.12 1.64 43.15

Unit Value (Euro / 100g) NA 1.82 0.39 0.73 Price difference in % for domestic NA (46.68) vs imported (Euro/100g)

55 https://workingwithgrace.wordpress.com/2013/09/18/bud-of-joy-exceptional-organic-bakery-store-in-singapore/

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Item (Bakery Products) Organic Conventional

Domestic Imported Domestic Imported

Price difference in % for organic vs NA 149.04 conventional (Euro/100g) Brand NA Haubi's Organic Gardenia Half Baguette Bakerzin Baguette – Multigrain Baguette – Plain Frozen Frozen Weight (grams) NA 280 220 280 Price (Euro) NA 3.22 1.38 2.23

Unit Value (Euro / 100g) NA 1.15 0.63 0.80 Price difference in % for domestic NA (21.39) vs imported (Euro/100g) Price difference in % for organic vs NA 44.12 conventional (Euro/100g) Brand NA Everfresh Organic Gardenia California NA Malt And Raisin Loaf Raisin Loaf Weight (grams) NA 290 400 NA Price (Euro) NA 3.48 1.94 NA

Unit Value (Euro / 100g) NA 1.20 0.48 NA Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA NA conventional (Euro/100g) Brand NA Bjorg Organic NA Belle France Whole Wholewheat Toasted Wheat Toast Slices Bread Weight (grams) NA 250 NA 220 Price (Euro) NA 5.25 NA 4.07

Unit Value (Euro / 100g) NA 2.10 NA 1.85 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA 13.55 conventional (Euro/100g) Table 8: Price Comparison between Organic and Non-Organic Bakery Products Source: Orissa International from Online Store Checks

While supermarkets carry a relatively small range of brands of organic biscuits, cakes and breads, specialist organic stores and online stores carry a much wider range of products in these categories. E-grocer RedMart, for example, carries organic breads from Germany’s House of Westphalia and Genuine Bavarian, the U.K.’s Everfresh Natural Foods, and Austria’s Haubis Bread, as well as organic brands of biscuits such as France’s Bjorg and Germany’s Organix.

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European companies that have presence in the market include:

◼ Bjorg (France): BJORG is a brand of the French company Distriborg, the leading food group specialising in organic foods. Since 2000, Distriborg has been part of the Dutch group Wessanen, a company founded in 1765 and a European leader of natural foods. A range of its organic bakery products is available at Quartier, a specialist French grocery store in Singapore.

◼ La Finestra sul Cielo (Italy): La Finestra sul Cielo S.p.a. has been active in the organic food sector since 1978, selling its wide range of products in Italy and abroad and focusing in particular on food intolerance, macrobiotics and vegan food. A small selection of its bakery products is available in Singapore through online marketplaces.

Figure 23: La Finestra sul Cielo’s Organic Sweet Avena Cakes Source: RedMart

◼ Haubis (Austria): Austrian company Haubis, which has a staff of 650, specialises in breads and pastries that cater to a range of needs, such as organic, gluten-free, lactose-free, halal, etc. It offers its bakery products at various speciality retail stores in Singapore, such as Huber’s Butchery, SuperNature, Interlace Grocer, Interlace Grocer, Ridgewood Gourmet, among others.

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3.6 Organic Spreads

3.6.1 Market Overview

Increasing health awareness among Singaporeans has led to a more conscious consumption of jams, preserves and nuts- and seed-based spreads, such as peanut butter, which contain high levels of sugar and fat.

General trends that characterise the market include:

◼ American peanut butter brand, Skippy, dominates nut- and seed- based spreads. It has a wide range of peanut butters, which include creamy, chunky, reduced fat, super chunk, chocolate stripe, strawberry stripe and grape stripe. It is notable that Skippy now offers its customers a reduced sugar and sodium product variant. A more diversified range of premium nut butters are now found in the market, such as almond butter, cashew butter, and sesame butter, among others.

◼ Strawberry is the popular choice in the jams and preserves spreads category. Overall, traditional fruit flavours such as blueberry, apricot are well-received in the market. As companies try to differentiate themselves, interesting new flavours are to be found in the market, such as The Fruit Garden’s Strawberry & Banana Luxury Jam; Reflets de France Milk Jam from Normandy; and Elene's Table Chili Orange and Tangerine Jam from Greece.

◼ Chocolate spreads remain an indulgent favourite in Singapore. Nutella continues to enjoy a loyal following, despite the growing presence of alternative premiums brands, such as Hershey’s chocolate spread, Twix Chocolate Spread, and Cadbury Crunchie Chocolate Spread, among others.

◼ Kaya, which is a traditional Asian coconut jam produced from natural coconut milk, sugar and eggs, remains very popular in Singapore. A variation called Kayamila with modern and premium flavours such as sea-salt caramel, vanilla pandan, and calamansi were introduced into the marketplace by Fong Yit Kaya.

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◼ The top 3 companies in the non-organic spreads category are Hormel Foods Corp., Ferrero SpA and ConAgra Foods Inc. Hormel leads the spreads market in Singapore due to the strong performance of its Skippy peanut butter brand.

The demand for organic food spreads in Singapore remains low, with a limited range of product options available. Currently, organic food spreads can be found in supermarkets, such as FairPrice and Cold Storage, as well as in smaller specialised organic or gourmet shops. A wider range of organic spreads are available through online channels, such as such through the websites of RedMart and The Organic Grocer. The following table contains pricing information for selected organic spreads sold in Singapore.

Item (Spreads) Organic Conventional

Domestic Imported Domestic Imported

Brand NA Smaakt Organic SpreadTalk Creamy Skippy Creamy Peanut Peanut Butter Fine Peanut Butter Butter Weight (grams) NA 250 500 500 Price (Euro) NA 5.25 3.64 4.43

Unit Value (Euro / 100g) NA 2.10 0.73 0.89 Price difference in % for domestic NA (17.78) vs imported (Euro/100g) Price difference in % for organic vs NA 137.04 conventional (Euro/100g) Brand NA Lurpak Organic NA Kerrygold Softer Butter Spreadable Spreadable Weight (grams) NA 200 NA 250 Price (Euro) NA 7.15 NA 5.77

Unit Value (Euro / 100g) NA 3.58 NA 2.31 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA 54.83 conventional (Euro/100g) Brand NA Alce Nero Organic NA Mackays Scottish Strawberry Jam Strawberry Preserve Weight (grams) NA 270 NA 340 Price (Euro) NA 6.43 NA 2.49

Unit Value (Euro / 100g) NA 2.38 NA 0.73 Price difference in % for domestic NA NA vs imported (Euro/100g)

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Item (Spreads) Organic Conventional

Domestic Imported Domestic Imported

Price difference in % for organic vs NA 224.76 conventional (Euro/100g) Brand NA Tiptree Organic NA Duerr Raspberry Jam Raspberry Weight (grams) NA 340 NA 370 Price (Euro) NA 7.09 NA 3.68

Unit Value (Euro / 100g) NA 2.08 NA 0.99 Price difference in % for domestic NA NA vs imported (Euro/100g)

Price difference in % for organic vs NA 109.058 conventional (Euro/100g) Table 9: Price Comparison between Organic and Non-Organic Spread Products Source: Orissa International from Online Store Checks

Organic fruit and nut butter spreads that can be found in Singapore include Italy’s Alce Nero fruit jams, Tiptree fruit jams, Carrefour organic fruit jams and nut butters, and the Netherlands’ Smaakt peanut butter. The few organic chocolate spreads present in the market include Smaakt organic chocolate spread from the Netherlands and Canada’s Vitabio organic chocolate spread with hazelnut, which are offered through online retailers. Generally, sales of organic spreads remain limited, with no single company or brand dominating the sub-sector.

European companies that have presence in the market include:

◼ Whole Earth (UK/ The Netherlands): Whole Earth, the natural and organic food brand owned by Netherlands-based Wessanen, has a range of organic peanut butter and chocolate spreads. It is currently the U.K.’s best-selling peanut butter brand. Its products are found in FairPrice supermarkets and online via RedMart.

◼ Alce Nero (Italy): See profile in Section 3.1.4

◼ Smaakt (The Netherlands): Smaakt, which is headquartered in the Netherlands, has a versatile and broad catalogue of organic products. It has a range of organic fruit jams, made of raspberries, blueberries, strawberries and cherries, among others, which is distributed in Singapore via e-grocer RedMart.

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3.7 Organic Confectionery

3.7.1 Market Overview

The Singapore market for confectionery, which includes chocolate, sugar and gum, is very well- developed, with confectionery sales estimated to grow to approximately US$ 0.5 billion (EUR 0.4 billion) in 2019.56 Chocolate, which is the leading sub-sector in this category, is considered to be an affordable luxury by Singaporeans, who are willing to pay for premium and gourmet chocolates. The Ferrero Group is the largest player in this sector, with its ubiquitous Ferrero Rocher Chocolate, which is available across the country. Other key players include Mars, Mondelez and Nestle.

While an extensive range of products are available in the market, from inexpensive to premium, there is a growing demand for quality, artisanal chocolate in Singapore. The availability of premium chocolates and presence of chocolate boutiques from famed Swiss, Belgian and Japanese chocolatiers, such as Leonidas, Godiva, Royce and Neuhaus in Singapore attest to this growing trend.

Figure 24: Royce Store in Singapore Source: Royce

56 https://www.flandersinvestmentandtrade.com/export/sites/trade/files/market_studies/SINGAPORE%20CHOCOLATE%20CONFECTIONERY %20SECTOR%20REPORT%20%282016%29_0.pdf

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The Singapore government is putting a lot of effort into promoting healthy consumption and living, in an intensive campaign against diabetes. Based on this development it is expected that more Singaporeans will look for healthier options, such as reduced sugar or sugar-free, reduced fat, or even smaller pack sizes. Dark chocolate, for example, is already experiencing a stronger demand in Singapore, as it is considered to be a much healthier alternative to milk chocolate.

Figure 25: Diablo Sugar-free Chocolates Source: Diablo

The sugar confectionery sector is also expected to be impacted by the Singaporean government’s determination to eliminate empty calories from Singaporeans' diets. In November 2018, the Health Promotion Board (HPB) revealed that Singaporeans are consuming less sugar from drinks, but more from food, for example, confectionery and desserts, and that sugar intake has in fact increased from 59g a day in 2010 to 60g in 2018. This has prompted the government to consider a harder approach to the “soft-sell” that it was employing to address the diabetes epidemic in the country.

Singaporeans presently remain loyal to sugar confectionery such as Ricola, Fisherman’s Friends and Mentos, Skittles, Werther’s Original, and The Natural Confectionery Co Fruity Chews. However, in the long run, healthier confectionery options that have low or no sugar, or natural sugar replacements, and with health benefits are likely to be better received in the market. Key

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players in the sugar confectionary sector include Mars, Ricola, Perfetti Van Melle, and Lofthouse of Fleetwood.

The gum sector in Singapore is negligible, given that there has been a ban on the sale of chewing gum since 1992. The total ban of chewing gum was lifted partially in March 2004, presently therapeutic, dental or nicotine chewing gum can be bought from a doctor or registered pharmacist.

It is projected that the market for organic confectionery will grow faster than non-organic confectionery over the next few years. Singaporeans are expected to continue to indulge in confectionery, but become more mindful of the ingredients in the food they are choosing to satisfy cravings. Additionally, parents who are increasingly concerned about the safety and nutritive value of the food being consumed by their children, are starting to opt for organic sugared boiled sweets and organic chocolates over the non-organic variants.

Some of the popular foreign brands of organic sugar confectionery found in Singapore include Yummy Earth and Hillside Candy (with its GoOrganic brand), both from the US, while commonly available organic chocolate brands include Green & Black and Lindt’s organic range.

The following table contains pricing detail of some organic confectionery products sold in Singapore. Organic confectioneries and snacks are typically costlier than conventional food items. Marketing the products through promotional activities and advertising is deemed necessary to educate the market on organic confectioneries, but will add up to the final cost of these products.

Item (Confectionery) Organic Conventional

Domestic Imported Domestic Imported

Brand NA Naive Chocolates Organic Dark NA Lindt Lindor Dark Milk Chocolate Kilombero Valley Chocolate Bar

Weight (grams) NA 55 NA 100 Price (Euro) NA 8.55 NA 3.54

Unit Value (Euro / 100g) NA 15.55 NA 3.54 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA 338.69 conventional (Euro/100g)

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Item (Confectionery) Organic Conventional

Domestic Imported Domestic Imported

Brand NA Yummy Earth Organic Gummy NA Haribo Goldbears Bear Gummy Candy Weight (grams) NA 198 NA 160 Price (Euro) NA 7.81 NA 2.17

Unit Value (Euro / 100g) NA 3.94 NA 1.35 Price difference in % for domestic NA NA vs imported (Euro/100g)

Price difference in % for organic vs NA 191.40 conventional (Euro/100g) Brand NA Yummy Earth Organic Lollipops NA Squire Boone Village Teeny Flower Lollipop Weight (grams) NA 85 NA 12 Price (Euro) NA 6.61 NA 0.98

Unit Value (Euro / 100g) NA 4.25 NA 8.20 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA (48.24) conventional (Euro/100g) Table 10: Price Comparison between Organic and Non-Organic Confectionery Products Source: Orissa International from Online Store Checks

Supermarkets still serve as the main distribution channel for organic or healthy confectionery items. Many organic products such as sweets and chocolates are available online. Ryan’s Grocery (www.ryansgrocery.com), for example, carries an extensive range of organic confectionery, while Beans to Bars (http://www.beanstobars.sg/), an online retailer of artisanal chocolates, is a stockist for organic brands such as MonsiEUR Truffe, Mulate, The Smooth Chocolator, among others. European brands of organic chocolate dominate the market. There is also a proliferation of specialist confectionery stores in Singapore, such as the Cocoa Trees, Candylicious and Candy Empire, that only sell confectionery.

European companies that have presence in the market include:

◼ Chocolate Naïve (Lithuania): Naive is one of very few organic bean-to-bar producers from Eastern Europe. It is a small batch producer focusing on quality locally-sourced ingredients and direct trade for their fine beans. Known for unusual pairings such as its signature

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chocolate Porcini (made with Lithuania-grown porcini mushrooms) Naïve is emerging as a trend-setter in the world of artisan chocolate. In Singapore, it is distributed by premium chocolate e-retailer, Beans To Bar.

◼ Pierrot Gourmand (France): Pierrot Gourmand is the French confectioner which produces confectionery with quality ingredients, natural flavourings and colourings. Its organic gummies are readily available in supermarkets such as FairPrice.

Figure 26: Pierrot Gourmand Gummies Source: NTUC FairPrice

◼ Chocolat Stella (Switzerland): This is a Swiss chocolate brand, owned by Chocolat Stella Bernrain, an independent, family-owned company that produces products for the private label sector and the Bernrain and Stella brands. It also supplies industrial manufacturers and commercial customers with couverture chocolate and semi-finished products. The Stella brand of organic chocolate is sold in FairPrice Finest supermarkets in Singapore.

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3.8 Organic Sauces, Dressings and Condiments

3.8.1 Market Overview

The sauces, dressings and condiments sub-sector in Singapore is a long-standing, diverse market that is well-developed. A plethora of quality sauces, dressings and condiments are available in the market a plethora targeting Singaporeans who want the joy of cooking with minimal fuss. Singaporeans expect their sauces, dressings and condiments to be tasty, offer long shelf life, and also to be healthy, free of artificial additives and to contain less sugar, sodium and fat.

General trends that characterise the market include:

◼ Black pepper sauce is a highly popular sauce. Black pepper sauce is widely used for the preparation of Chinese and Western dishes; thus, the demand and popularity of this sauce is high.

◼ Hao Chi, which is produced by Knorr, is an all-in-one seasoning mix that can be used in stir- fries or to prepare marinade recipes, and remains as one of the popular condiments of choice.

◼ Singapore’s Woh Hup Food Industry Pte Ltd is a leading player in this category in 2018. It offers a diverse range of cooking sauces to suit various flavour profiles and cuisine types. It offers an expansive range of products, including items such as soy sauce, oyster sauce, cooking sauce, and bouillon.

◼ The popularity of cooking sauces has led to restaurants producing in-house food products for retail. For example, Chinese restaurant chain Crystal Jade made its foray into food retail in April by bottling three sauces - Hong Kong-style chilli oil, shrimp paste and premium XO sauce. The restaurant's chefs worked with a sauce manufacturing company.57

◼ Consumers have a strong preference for convenience when preparing pasta dishes, and prefer to use packaged pasta sauces instead of making their own from basic ingredients. There is a variety of pasta sauces available in the market, in cream- and tomato-based variants, thus meeting consumer demand for choices.

57 http://www.straitstimes.com/lifestyle/food/eat-it-then-buy-it-home

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Major supermarkets in Singapore carry an extensive range of non-organic sauces, dressings and condiments, such as cooking pastes, vinegars, soy sauces, and spices that cater to the Asian palate. However, the range of organic Asian style sauces is much smaller, consisting mainly of a few types of miso sauces, curry pastes, tofu or bean sauces, shoyu sauces, coriander and ginger dressings, barley malt syrups, and vinegars. Most of the organic Asian sauces, dressings and condiments are sourced from local companies, as well as from countries like Thailand, Malaysia, Taiwan and Australia. Singapore-headquartered Mekhala Living, in particular, offers a wide range of sauces, dressings and herbs.

Figure 27: Some of Mekhala Living’s Organic Asian Pastes Source: Mekhala Living

Supermarkets in Singapore carry a relatively small selection of western-style organic sauces, dressings and condiments, such as organic pasta sauces, mayonnaise, mustard and similar products. The organic brands that have an established presence in mainstream supermarkets in Singapore include Alce Nero, Saclà and Naturel, while the more upmarket supermarkets may carry a wider range of products and brands.

A larger number of organic western-style sauces, dressings and seasonings are available online and via specialist organic or gourmet stores. It is important to note that more consumers have

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traded up to slightly healthier product variants that contain reduced sugar and salt, which bodes well for the growth of this category in the long-run.

The following table contains pricing information for selected organic sauces, dressings and condiments sold in Singapore.

Item (Sauces, Dressings and Organic Conventional Condiments) Domestic Imported Domestic Imported Brand NA Smaakt Organic MAGGI Tomato Heinz Tomato Ketchup Ketchup Ketchup (Healthier Choice) Weight (grams) NA 320 475 300 Price (Euro) NA 4.27 1.28 0.89 Unit Value (Euro / 100g) NA 1.33 0.27 0.30

Price difference in % for domestic NA (8.77) vs imported (Euro/100g) Price difference in % for organic vs NA 351.39 conventional (Euro/100g) Brand NA Alce Nero Organic NA Delices Du Luberon Basil Tomato Sauce Tomato Sauce And Black Olives Weight (grams) NA 350 NA 280 Price (Euro) NA 3.61 NA 6.43 Unit Value (Euro / 100g) NA 1.03 NA 2.30

Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA (55.10) conventional (Euro/100g) Brand NA Great Northern NA Citadelle 100% Pure Organic Maple Syrup Maple Syrup Weight (grams) NA 236 NA 250 Price (Euro) NA 9.12 NA 9.12 Unit Value (Euro / 100g) NA 3.87 NA 3.65

Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA 5.93 conventional (Euro/100g) Brand NA Saclà Organic NA Barilla Marinara Tomato And Olive Pasta Sauce Pasta Sauce Weight (grams) NA 190 NA 680 Price (Euro) NA 4.50 NA 3.67 Unit Value (Euro / 100g) NA 2.37 NA 0.54

Price difference in % for domestic NA NA vs imported (Euro/100g)

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Item (Sauces, Dressings and Organic Conventional Condiments) Domestic Imported Domestic Imported

Price difference in % for organic vs NA 337.78 conventional (Euro/100g) Brand Mekhala Organic NA NA Kewpie Roasted (All-Natural) Sesame Dressing Roasted Sesame Garlic Dressing Weight (grams) 250 NA NA 210 Price (Euro) 5.51 NA NA 3.81 Unit Value (Euro / 100g) 2.20 NA NA 1.81

Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA NA conventional (Euro/100g) Brand Mekhala Living NA NA DeSIAM Thai Mild Organic (All- Lemongrass Natural) Dressing Lemongrass Turmeric Paste Weight (grams) 100 NA NA 285 Price (Euro) 3.87 NA NA 1.91 Unit Value (Euro / 100g) 3.87 NA NA 0.67

Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA NA conventional (Euro/100g) Table 11: Price Comparison between Organic and Non-Organic Sauces, Dressings & Condiments Source: Orissa International from Online Store Checks

The market for organic sauces, dressings and condiments is highly fragmented. Italian brands such as Alce Nero and Saclà dominate the market, particularly for pasta sauces and pesto.

European companies that have presence in the market include:

◼ La Macina Ligure (Italy): The company, La Macina Ligure, was founded by a family of traditional farmers that in the Ligurian region of Italy where Taggiasche Olives are grown. It offers a range of unique organic olive and tomato-based sauces via e-grocer RedMart.

◼ Saclà (Italy): Established in Asti, Italy, in 1939, Saclà offers a range of organic products such as pesto, pasta sauces, antipasti and pickled vegetables. In Singapore, its distribution partner is Sonnamera Pte Ltd, and it has secured listings of the brand in all major Cold

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Storage and FairPrice supermarkets in Singapore. Saclà is also available online at RedMart and in speciality stores.

◼ Arogaia (Greece): Arogaia is a small family business that produces a range of certified organic, rain-fed dried herbs such as oregano, thyme, rosemary and sage. Its products are available through various online platforms in Singapore.

Figure 28: Arogaia Herbs available in Singapore Source: Arogaia

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3.9 Organic Oils and Fats

3.9.1 Market Overview

The Singapore market for oils and fats, estimated to be valued under US$ 200 million58 (EUR 177 million), is a mature and stable market. A key factor that may impact the growth of the market is the fact that Singaporeans are becoming cautious about the use of oil, in a bid to reduce their consumption of fat. This has led to manufacturers adding ingredients such as omega-3, omega -6, plant-based DHA (Docosahexaenoic acid, a type of omega-3 fat) or vitamins, to entice the health-conscious. Manufacturers are also emphasising healthy attributes such as low in saturated fats or cholesterol-free, and applying the Health Promotion Board’s Healthier Choice and Trans-Free logos on their products, if eligible.

Of the oils available in the market, only olive oil seems to carry a positive perception among consumers. However, olive oil is relatively expensive, and is unsuitable for Asian-style cuisines. Consumers then typically turn to soya bean oil and sunflower oils, which are also perceived to be healthier than other vegetable oils. Coconut oil is also becoming highly popular, although there is some confusion about its health benefits, due to contradictory information in the market.

Consumers, although price-sensitive, tend to seek out healthier edible oils, and remain loyal repeat customers. Dominant non-organic brands in the market include Lam Soon’s Knife and Naturel brands, while well-established foreign brands include Italy’s Borges and Bertolli.

The Ministry of Health has launched an on-going campaign to get restaurants and food hawkers to switch to healthier oils. There is also a strong push to get food manufacturers and the foodservice sector (particularly the hawker centres and food courts which sell inexpensive local fare) to reformulate their products to reduce the amount of oil, sugar and salt in their recipes. The government’s ‘Eat, Drink, Shop Healthy’ and ‘War on Diabetes’ campaigns have also helped push consumers in the right direction. While the campaigns are largely informational, and do not specifically promote the use of organic products, they have helped to raise awareness among

58 https://store.marketline.com/report/ohmf0797--oils-fats-in-singapore/

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consumers that there is a need to differentiate between the various edible oils sold in the market, and that some are healthier than others. Singaporeans now look out for the Healthier Choice symbol, and are switching away from the use of vegetables oil, which contains palm oil as a main ingredient.

Figure 29: OKI Premium Corn Oil, with the Healthier Choice Symbol Source: NTUC FairPrice

Singapore imported a total of more than US$ 1.1 billion (EUR 1 billion) in edible oils and fats in 2017. Its imports represent 1.1% of total imports in the world, making Singapore the 22nd largest importer for this category globally. Malaysia was the largest exporter of edible oils and fats to Singapore, followed by Australia and the US. The largest European exporter is the Netherlands.

Partner Value Imported in 2017 (US$ '000) Share in Singapore's Imports (%)

World 623,470 100

1 Malaysia 340,926 31.4

2 Australia 230,906 21.3

3 USA 145,002 13.4

4 Indonesia 100, 769 9.3

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Partner Value Imported in 2017 (US$ '000) Share in Singapore's Imports (%)

5 New Zealand 79,899 7.4

6 Canada 59,441 5.5

7 Vietnam 19,617 1.8

8 Japan 17,198 1.6

9 China 16,928 1.6

10 Netherlands 9,547 0.9 Table 12: Import Value and Share of Top 10 Source Markets - Edible Oils & Fats, 2017 Source: UN Comtrade

The market for organic edible oil retail market has been growing steadily over the past few years, and reflects the fact that Singaporeans are switching to healthier organic edible oils. Trends in the market suggest that the market will continue to grow.

Popular organic oils and fats in Singapore include olive oil, coconut oil, sunflower oil and sesame oil. More discerning and health-conscious customers are also opting for less well-known variants such as organic avocado and grapeseed oils. It is interesting to note that Singaporeans do not use organic oils exclusively. Much of these organic oils are used mainly for salad dressing and light cooking or grilling of dishes. Chinese wok cooking, on the other hand, calls for oil that can withstand extremely high temperatures without burning or smoking, such as canola, corn, soybean or peanut oil, which are not typically available in organic versions.

Well-known brands of organic vegetable oil commonly found on the shelves in Singapore include Singapore’s Naturel, Malaysia’s Medella, Italy’s Goccia d’Oro, among others. Naturel leads the market for organic olive oil.

One of the factors driving the demand for organic oil and fats among families in Singapore is the assurance that organic oils are safe for consumption by children, which encourages parents to switch to using organic oils in preparing meals for the family.

The following table contains pricing information for selected organic oils and fats sold in Singapore.

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Item (Oils and Fats) Organic Conventional

Domestic Imported Domestic Imported

Brand NA Goccia Organic Cold Sunbeam Premium Naturel Sunflower Oil Pressed Sunflower Oil Sunflower Oil Weight (grams) NA 500 2,000 2,000 Price (Euro) NA 10.17 5.18 6.43

Unit Value (Euro / 100g) NA 2.03 0.26 0.32 Price difference in % for domestic NA (19.39) vs imported (Euro/100g)

Price difference in % for organic vs NA 532.65 conventional (Euro/100g) Brand NA Naturel Organic Extra NA Borges Extra Virgin Virgin Olive Oil Olive Oil Weight (grams) NA 500 NA 1,000 Price (Euro) NA 8.69 NA 11.75

Unit Value (Euro / 100g) NA 1.74 NA 1.17 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA 48.04 conventional (Euro/100g) Brand NA Dr Gram Organic Virgin NA PARACHUTE Virgin Coconut Oil Coconut Oil Weight (grams) NA 500 NA 200 Price (Euro) NA 14.76 NA 5.41

Unit Value (Euro / 100g) NA 2.95 NA 2.71 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA 9.09 conventional (Euro/100g) Brand NA Agrilife Organic Coconut NA Marca Leon Coconut Cooking Oil Oil Weight (grams) NA 750 NA 1,000 Price (Euro) NA 8.47 NA 4.92

Unit Value (Euro / 100g) NA 1.13 NA 0.49 Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic vs NA 129.33 conventional (Euro/100g) Table 13: Price Comparison between Organic and Non-Organic Oil and Fats Products Source: Orissa International from Online Store Checks

Various organic oils from around the world are available in Singapore, mostly in specialist organic stores. These include organic coconut oil, extra-virgin olive oil, sesame oil, flax seed oil and other

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oils sourced from various countries. In the organic olive oil category, Naturel, a local brand, is readily available, while other organic olive oil brands are predominantly Italian.

European companies that have presence in the market include:

◼ Alce Nero (Italy): see profile in Section 3.1.4

◼ La Tourangelle (France): La Tourangelle is an authentic and traditional producer of specialty oils, handcrafting a wide range of artisan nut oils both in California and France. Its range of organic oils are available through specialist organic stores and online channels in Singapore.

Figure 30: La Tourangelle’s Organic Virgin Coconut Oil Source: RedMart

◼ Bodegas Familiares Matarromera (Spain): The company, which produces organic wines and olive oils, is found deep in the heart of the Ribera del Duero region of Spain. Its award- winning oils are available in Singapore through online channels.

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3.10 Organic Ingredients

3.10.1 Market Overview

Singapore imports almost all of its organic ingredients and raw materials from foreign markets as the country has very limited local agricultural production. The city-state sources the majority of its organic ingredients from countries such as Malaysia, Thailand, Japan, Australia, Europe and the US.

The country’s food processing sector is small but efficient, with value-added food production making up a significant proportion. The local processing sector is dominated by major food manufacturers in beer, non-alcoholic beverages, fish processing and snack products. The sector comprises of about 750 companies – mainly small and medium enterprises, each employing less than 100 personnel. Many local food manufacturers are keen to invest in R&D in order to cater to wider customer bases, and are looking to develop food products that are healthier, using more natural ingredients, making them an interesting prospect for European organic ingredients companies.

Singapore also has a considerable number of food importers and distributors. They typically import food products and distribute them to supermarkets and . Some of the importers have exclusive distributorships for certain food products from certain countries. Many of the food importers are also major food retailers; and they include such well-known names such as NTUC Fair Price and the Dairy Farm group.

Supermarkets and hypermarkets dominate the retail channels for food ingredients, as they represent the most convenient and accessible retail channels for consumers, and are widespread in the country, and have the economies of scale to engage in price promotions over a wide range of products.

Singapore’s multi-cultural diversity is reflected in the variety of local cuisine it has to offer. Meals draw from Malay stir-fries to Chinese noodles to Indian curries, accompanied with coffee, hot gingery tea, or sweet and herbal infusions. Popular food ingredients include crabs and prawns, fish, chicken, eggs, and processed pork. While rice and noodles are still important staples for

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most Singaporeans, increasingly Western food ingredients such as bread, pasta, milk and cereals are gaining popularity too. Singaporeans are becoming increasingly receptive to new food ingredients as they become more exposed and influenced by various cultures.

Aside from the diversity of the local population, the high number of expatriates living in the country has also influenced the local food culture. Consumers in general have high acceptance levels, thus making it easier for foreign brands and products to enter the country. As a global city with many nationalities and with a large expatriate community, the Singaporean market has already developed a taste for European products. European companies will already find a knowledgeable public to address.

Singaporean consumers are scrutinising labels more closely, looking for products that do not contain genetically modified ingredients. Having an international seal that certifies that ingredients as organic is a good selling point in the country. Singaporeans exhibit preferences for fresh, natural ingredients, as these are perceived to be healthier and more nutritious. Local consumers normally purchase organic ingredients at specialty shops and supermarkets. Over the last years, increasing negative media coverage of processed and synthetic products has spurred many consumers to opt for food with more natural ingredients with which they are familiar.

A growing number of local consumers are looking to purchase healthy food ingredients with smaller pack sizes and individually wrapped products, which enable consumers to watch their diets and control their calorie intake. In addition, as household sizes have gradually declined over the years, consumers prefer to purchase smaller pack sizes.

Considering organic ingredients, growth in the sector is still limited as consumers are deterred by the high unit price. However, expatriates and millennials are more willing to pay premium prices for healthier choices. Among the products with the best prospects, herbal and traditional ingredients are increasingly demanded by Singaporean consumers. These ingredients are perceived to be naturally less processed, and with fewer side effects than non-herbal offerings. Consumers are also familiar with products made from herbal ingredients, as they are generally aware of the benefits of many herbs.

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In addition, organic grains are another area of growth in the local market. As awareness increases, opportunities for more premium health and wellness products are likely to open up as well, including products containing superfoods such as quinoa as a base ingredient, a trend that has already taken hold in other countries across the world. A wave of eateries offering grain bowls and poke have opened in the previous years, catering to a growing number of more health-conscious diners who shun greasier hawker fare for nutritious complex carbs such as brown rice and quinoa, with proteins such as beef, chicken, fish and vegetables.59 Trendy restaurants are now offering the option to choose from a list of ‘proteins’ including chicken, tofu, salmon and rib-eye steak; followed by a “carb”, such as brown rice, whole-wheat pasta or lettuce greens; then add “supplements” from edamame to avocado; toppings such as almonds; and a choice of dressing.

Exporters Imported Imported Imported Imported Imported value in 2014 value in 2015 value in 2016 value in 2017 value in 2018

World 399,963 326,606 268,987 278,440 295,743 Thailand 136,069 108,968 95,867 95,906 106,533 India 105,341 86,155 54,609 56,010 49,629 Viet Nam 61,236 48,874 37,822 40,104 45,029 Australia 38,488 30,867 31,827 32,754 36,863 United States of America 33,345 26,119 22,057 22,979 22,858 Malaysia 1,740 2,535 8,360 12,070 9,208 Japan 3,731 4,102 5,558 6,382 7,036 Canada 4,288 3,749 3,627 2,132 5,914 Cambodia 2,873 4,653 2,736 3,395 4,622 Table 14:Imports of Grains (Both Organic and Not) by Singapore (US$ thousands) Source: UN Comtrade

A survey by Cox and Kings placed Singapore among the top destinations preferred by vegetarians for holidays.60 Vegetarian options are also very popular among Singaporeans, especially among Buddhist and Hindu consumers, creating opportunities for organic vegetarian ingredients.

59 http://www.straitstimes.com/lifestyle/food/9-places-for-grain-and-poke-bowls-in-singapore 60 http://www.huffingtonpost.in/2017/05/16/dubai-uk-and-singapore-top-list-as-vegetarian-friendly-travel-d_a_22093243/

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There are plenty of vegetarian or vegan foods readily available at restaurants, cafes and even hawker centres.

The following EU organic ingredients companies’ products have made it to the shelves of Singaporean retailers.

◼ Raw Organic Food (the Netherlands): This company, based in the Netherlands, offers a range of organic dried fruits, seeds, powders, nuts, oils and cocoa. The products contain a high concentration of minerals, vitamins and antioxidants, and are 100% natural, biological and free of pesticides and artificial additives. A wide range of its products, such as organic mulberries, raisins, pumpkin seeds, almonds and cocoa powder, are sold on RedMart.

◼ Adam Village61 (Greece): Adam Village is a Greek company headquartered in Thessaloniki, which produces agricultural products from selected and certified organic farms in the Greek mainland and islands. It offers a range of rare variety of herbs with aromatic and therapeutic properties. Its products are available on the shelves of specialist stores in Singapore.

◼ Smaakt (The Netherlands): Smaakt, which is headquartered in the Netherlands, has a versatile and broad catalogue of organic products. It has a range of organic flours, made of almond, spelt, wheat, polenta, among others, which is distributed in Singapore via e-grocer RedMart.

61 http://adam-herbs.com/

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3.11 Organic Beer, Wine and Spirits

3.11.1 Market Overview

Organic Beer

Singapore is one of the most expensive cities for beer in the world. It ranked third behind the cities of Lausanne, Switzerland, and Hong Kong in the 2016 GoEuro Beer Price Index. According to the index, the country’s overall average price of beer is US$ 5.75 (EUR 5), where a 330ml bottle of beer retailed in the supermarket averages US$ 2.16 (EUR 1.9) while priced at US$ 9.33 (EUR 8.2) at bars. The recorded average annual consumption per capita was 7 gallons with an annual average spend per capita of US$ 446.87 (EUR 412.2).62

Growth in beer consumption in Singapore is attributed not only to local resident’s consumption but also to the increasing number of tourists, and expatriates in the country. Increasingly, Singaporeans are becoming more interested in premium beers. The demand for craft beers has started to grow as consumer sophistication increases. Apart from these factors, young female drinkers have pushed up the growth of wheat beer, while the demand for stout has declined, as it is perceived as an older man’s drink.

Figure 31: Smith Street Taps, Craft Beers for the Man in the Street Source: SethLui.com

62 https://www.goeuro.com/travel/beer-price-index-2016

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Beer is the most common alcoholic drink for consumers, with the younger generation in particular demonstrating a growing appreciation for premium lager. Key brands available in both the foodservice retail outlets and supermarkets are Anchor, Budweiser, Carlsberg, Chang, Coopers, Corona, Duvel, Erdinger, Foster’s, Grolsch, Heineken, Hoegaarden, Kilkenny, Leffe, San Miguel, Singha, Stella Artois, Tiger, Tsingtao and Victoria Bitter.

The craft beer scene is gaining momentum in Singapore brought by locals who have travelled abroad and received exposure to craft beers. Specialty/craft beer is mainly served in restaurants, bars and clubs supplied through beer importers. The widest range of specialty/craft beer available in Singapore is mainly imported from Belgium. The sales volume of beer in Singapore comes mainly from foodservice outlets and supermarkets. Traditional establishments such as coffee shops also serve local beers and mass-market brands at cheaper prices. Promotional and marketing activities of mass consumer brands are typically focused during festive seasons such as Oktoberfest, Christmas and Lunar New Year in Singapore.

A report by DBS63 revealed that beer continues to be a key driver of Singapore’s alcoholic beverage market. It found that Malaysia, Vietnam and Netherlands’ beers make up more than half of imported beer volumes in Singapore, with Tiger, Heineken and Carlsberg as the key brands in Singapore. These beer exporting countries have brewing facilities owned by global brewers such as Carlsberg Group and Heineken. Flavoured beer and new packaging have been recent product trends in Singapore.

In 2015, the Liquor Control (Supply and Consumption) Act that aims to regulate the supply and consumption of alcohol in public places and to avoid possible disturbances due to excessive drinking was passed and implemented.64 The law basically prohibits selling and drinking of alcoholic beverages in public places from 10.00pm to 7.00am.

Asia-Pacific Brewery, known for its iconic Tiger Beer, is the major manufacturer of beer in Singapore. In 2017, it launched two new permanent variants: Tiger Black, a take on a black lager;

63 https://www.dbs.com/aics/templatedata/article/industry/data/en/GR/072016/midstream_consumer_singapore.xml# 64 http://www.straitstimes.com/singapore/what-you-can-or-cannot-do-under-the-new-alcohol-law

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and Tiger White, a version of a German wheat beer. The company also introduced Tiger Silver, a low-calorie beer, and Tiger Radley, which is a range of 3 limited edition fruit-flavoured beers, one of which is non-alcoholic.

Figure 32: The new Tiger Black and Tiger White Source: The Honey Combers

The country also has some restaurants with their own microbreweries, and the rest of the players are importers and distributors. Some of the organic beers available in the market are Japan’s SunSun Organic Beer, Belgium’s Mongozo Premium Pilsner Gluten Free Organic Beer; and the U.K.’s Wychwood Hobgoblin Beer, Fuller’s Honey Dew Organic Golden Ale and Westons Wyld Wood Premium Organic Cider. These can be bought from RedMart, The Beer club, Thirsty Craft Beer Shop, and The Drinking Partners.

Organic Wine

According to GlobalData, the Singapore wine market is expected to record a compound annual growth rate (CAGR) of 5.1% over the period 2016–2021 to reach a market value of US$ 1.4 billion (EUR 1.2 billion) by 2021.65 Increasingly affluent Singaporeans have a growing affinity for premium wines imported from Australia, France and Chile.

65 https://www.globaldata.com/premiumization-opportunities-abound-singapore-wine-market-says-globaldata/

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An increasing number of wine companies are turning their attention to Singapore from Hong Kong, making the former a new wine hub. Berry Bros. & Rudd and Corney & Barrow from UK as well as Cru Hong Kong (formerly Slurp.Asia) have established headquarters in Singapore.66 67 68 CWT, a logistics company in Singapore built a wine storage vault in the country measuring 750,000 sq ft that can hold 10 million bottles of wines. The ISO- and HACP-certified storage facility is called Singapore Wine Vault and targets wine merchants from the other side of the globe who wish to store their liquid assets closer to its customer base in South East Asian region.69 70 71

The past few years have seen the arrival of natural and organic wines in Singapore especially with the establishment of restaurants that offer drink alternatives, such as Burnt Ends, Open Farm Community and Gattopardo Ristorante di Mare,72 in tandem with the growing interest in “clean- eating”. Wine aficionados in Singapore are increasingly inclined towards a small batch of natural and interesting wines which are enriched by real stories and crafted by top-end producers – they want to know the entire tradition, cultural trait, and flavour of each wine from winegrowing areas.

In November 2017, Dellarosa Wine, a company helmed by an Italian, launched a new online wine delivery service via www.dellarosawine.com, with a rare and exclusive range of fine organic, biodynamic and natural wines sourced mostly from Italy. The company aims to establish a direct supply from the winemakers to the wine drinkers. It decided to offer its services in Singapore in a bid to remove the cost of middlemen (such as agents, importers, distributors) that lead to inflation of wine prices.

The Straits Wine Company, a leading wine importer, retailer and distributor, with operations in Singapore, Malaysia and Philippines, also offers a range of sustainable organic wines at its eight highly-popular wine bars in Singapore, along with a wide range of wines from around the world

66 https://www.ft.com/content/6923d844-c6aa-11e3-ba0e-00144feabdc0 67 https://www.thedrinksbusiness.com/2014/08/slurp-asia-to-set-up-in-singapore/ 68 https://www.thedrinksbusiness.com/2015/05/slurp-asia-rebrands-as-cru-hong-kong/ 69 http://www.finews.asia/finance/20480-45exclusive-the-singapore-wine-vault-breaking-out-from-the-cellar 70 http://www.singaporewinevault.com/about-us/ 71 http://www.singaporewinevault.com/revealing-singapores-largest-dedicated-wine-storage-hub/ 72 http://robbreport.com.sg/2017/04/30/organic-biodynamic-natural-wines/

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including Australia, New Zealand, France, Spain, Italy, Argentina, Portugal, India, USA, South Africa, and many more.

Some of the popular distributors, wholesalers and retailers of organic wines in Singapore are Mahota Commune, RedMart, and The Organic Grocer. There are a growing number of online stores specialising in wine, making this the fastest growing retail channel for the sub-sector.

Organic Spirits

According to a market study undertaken by research company IWSR (International Wines and Spirits Record), whisky remains to be the favourite spirit of Singapore. Brandy, which ranks second, is expected to continue its downward trend due to decreasing numbers of Chinese tourists in the country. Gin and tequila are expected to provide strong boost to the segment, which will be driven by the super-premium gin category.73

Pernod Ricard is the leader in the spirits market in Singapore while cocktail culture supported by food pairing drives the demand in the industry. Gin is gaining popularity in Singapore, with the opening of the very first two gin distilleries, Tanglin Gin and The Brass Lion Distillery. More than half a dozen gin bars have also opened in Singapore over the past few years.74

According to the statistics from Singapore Customs under the gross quantities released, with whisky standing at 1.13 million litres in 2016. Brandy, on the other hand, declined from 939,000 litres in 2014 to 922,000 litres in 2016. Gin and Geneva posted strong increases from 180,000 litres in 2014 to 224,000 litres in 2016.75 76

In an interview by Business Insider with the Pernod Ricard CFO Gilles Bogaert, he mentioned the three trends that will make the industry shift:77

73 http://www.vinexpo-newsroom.com/singapore/ 74 https://www.robbreport.com.sg/singapore-gin-local-craft-spirits-by-brass-lion-distillery-tippling-club-paper-lantern-distilling-and-tanglin-gin/ 75 https://www.customs.gov.sg/~/media/cus/files/news%20and%20media/statistics/revenue_stats_fy09-fy13_cy13-cy.xlsx?la=en 76 https://www.customs.gov.sg/news-and-media/publications/statistics 77 http://www.businessinsider.sg/3-biggest-trends-in-the-liquor-industry-2016-2/#dR5SQt5zMEwIfrYq.97

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◼ Home-tainment or celebrating at home as more and more people want to celebrate good moments with family, relatives, and friends at home;

◼ Consumers are getting savvier and they look more to authenticity and quality rather than what’s the newly-released in the market; and

◼ E-Commerce or digital revolution.

Organic spirits are also available in Singapore with brands such as France’s Domaine Des Hautes Glaces Organic Whisky, the US’s Farmer's Organic Gin, and Scotland’s Organic Benromach Whisky.78

In 2017, the value of spirits imported into Singapore was approximately EUR 1.3 billion. The main countries from which Singapore imported spirits in 2017 and their respective market shares were as follows: France (50.4%), the United Kingdom (36.8%), China (3.9%), and the US (2.5%). The total volume of imports of spirits in 2018 amounted to 77, 009 tonnes.

The following table contains pricing information for some organic wines, beers and spirits sold in Singapore.

Item (Beer, Wines and Spirits) Organic Conventional

Domestic Imported Domestic Imported Brand NA Mongozo Premium Pilsner NA Sapporo Premium Draft Gluten Free Organic Beer Beer Weight (grams) NA 330 NA 330 Price (Euro) NA 6.23 NA 2.79 Unit Value (Euro / 100g) NA 1.89 NA 0.85

Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic NA 123.53 vs conventional (Euro/100g) Brand NA Mountain Goat Organic Steam Tiger Lager Asahi Super Dry (can) Ale Beer (can) Weight (grams) NA 330 640 330 Price (Euro) NA 4.73 3.65 2.50 Unit Value (Euro / 100g) NA 1.43 0.57 0.76

78 https://redmart.com/search/Organic/alcohol

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Item (Beer, Wines and Spirits) Organic Conventional

Domestic Imported Domestic Imported

Price difference in % for domestic NA (24.72) vs imported (Euro/100g) Price difference in % for organic NA 89.20 vs conventional (Euro/100g) Brand NA Weston's Organic Cider NA Albens Cider Weight (grams) NA 500 NA 350 Price (Euro) NA 5.18 NA 2.95 Unit Value (Euro / 100g) NA 1.04 NA 0.84

Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic NA 22.89 vs conventional (Euro/100g) Brand NA Hecht And Bannier Languedoc NA Rawson's Retreat Red 2014- Organic Red Wine Cabernet Sauvignon Weight (grams) NA 750 NA 750 Price (Euro) NA 22.26 NA 17.72 Unit Value (Euro / 100g) NA 2.97 NA 2.36

Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic NA 25.64 vs conventional (Euro/100g) Brand NA Benromach Organic Whisky NA Johnnie Walker Black Label Whisky Weight (grams) NA 700 NA 700 Price (Euro) NA 88.59 NA 45.87 Unit Value (Euro / 100g) NA 12.66 NA 6.55

Price difference in % for domestic NA NA vs imported (Euro/100g) Price difference in % for organic NA 93.13 vs conventional (Euro/100g) Table 15: Price Comparison between Organic and Non-Organic Beer, Wines and Spirits Products Source: Orissa International from Online Store Checks

Some European companies that are already engaged in marketing organic alcoholic beverages mentioned above include:

◼ Mongozo (the Netherlands): Mongozo Premium Pilsner and the Mongozo Buckwheat White are Fair trade lagers that are organic and gluten-free. Although Mongozo BV is a Dutch company, the beer is actually brewed in the traditional way in the Huyghe Brewery in Melle, Belgium. The organic beer is imported into Singapore by The Drinking Partners.

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◼ Famille Perrin (France): The Beaucastel estate has been managed by the Perrin family since 1909. Since 1964 the entire property has been run along strict organic lines. It is the largest organic wine producer in the Rhone Valley in France, with vineyards spanning 130 hectares. The wine is available via online retailers such as RedMart, as well as in wine retail shops in Singapore.

◼ Domaine Des Hautes Glaces Organic Whisky (France): Domaine des Hautes Glaces distils whisky entirely from organic barley. In Singapore, it is sold via online stores such as RedMart.

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3.12 Organic Juice

3.12.1 Market Overview

The market for organic juices in Singapore is growing, buoyed by the government’s efforts to promote healthy consumption and to get Singaporeans to switch from soft drinks to healthier alternatives.

Singapore’s statistics on diabetes show that the country has the second-highest proportion of diabetics among developed nations at 10.53%. Various campaigns have been launched by the government to educate Singaporeans to raise awareness on the prevention and care of diabetes. With the rise in health awareness, the market is seeing a switch in consumption patterns of juices, with more consumers opting for juices with fresh ingredients and without added sugar. The range of choices for organic beverages is increasing in major retail outlets, which has also helped to raise consumer-awareness of this product category.79

The target groups of consumers for organic juices are expatriates, middle- and high-income Singaporeans, and the new generation of Singaporeans who have studied or are studying abroad. These groups are more willing to pay premium prices for healthier choices.

Organic juices that are imported to Singapore from the European countries include Bjorg, Voelkel, Pharmos, Biotta and Val De France. The prices vary depending on the ingredients used. For instance, a 500 ml bottle of organic juice could cost from S$ 9.90 (EUR 6.50) and could go up to S$ 15.90 (EUR 10.40).

With regards to local competition, there are a growing number of trendy organic juice bars in Singapore. Some of them offer cold-pressed organic juices for cleanse programs, which can be purchased online from their official websites. Three-day cleanses, which come with around 18 bottles of juice, can cost from S$ 140 (EUR 91.40) to S$ 355 (EUR 231.70).

79 https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Foods_Singapore_Singapore_6-29-2018.pdf

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Figure 33: Freshly Squeezed Organic Juices by Antidote Source: Antidote

The key distribution channels of organic juices are major chain supermarket retailers and independent organic specialty stores. Many of these stores also offer online shopping and delivery services. Supermarkets that sell organic juices include FairPrice, RedMart, Sheng Siong and Cold Storage. Independent organic specialty stores include Mahota Commune, SuperNature, Ryan’s Grocery, The Organic Grocer, Brown Rice Paradise, and Four Seasons.

The following table contains some pricing information for selected organic juices sold in Singapore.

Item (Juice) Organic Conventional

Domestic Imported Domestic Imported Brand NA Voelkel Organic Apple NA Sunkist Apple Juice Juice Weight (grams) NA 1,000 NA 2,000 Price (Euro) NA 3.87 NA 3.08 Unit Value (Euro / 100g) NA 0.39 NA 0.15

Price difference in % for domestic vs NA NA imported (Euro/100g) Price difference in % for organic vs NA 151.06 conventional (Euro/100g) Brand NA Bjorg Organic NA Pokka Pomegranate Pomegranate Juice Juice Weight (grams) NA 500 NA 1,500 Price (Euro) NA 4.92 NA 2.46 Unit Value (Euro / 100g) NA 0.98 NA 0.16

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Item (Juice) Organic Conventional

Domestic Imported Domestic Imported

Price difference in % for domestic vs NA NA imported (Euro/100g) Price difference in % for organic vs NA 500.00 conventional (Euro/100g) Brand NA James White Organic NA Berri Tomato Juice Tomato Juice Weight (grams) NA 750 NA 1,000 Price (Euro) NA 5.84 NA 1.51 Unit Value (Euro / 100g) NA 0.78 NA 0.15

Price difference in % for domestic vs NA NA imported (Euro/100g) Price difference in % for organic vs NA 415.94 conventional (Euro/100g) Brand NA HiPP Organic Pure NA Pokka Carrot Juice Carrot Juice Weight (grams) NA 200 NA 1,500 Price (Euro) NA 2.36 NA 2.46 Unit Value (Euro / 100g) NA 1.18 NA 0.16

Price difference in % for domestic vs NA NA imported (Euro/100g) Price difference in % for organic vs NA 620.00 conventional (Euro/100g) Table 16: Price Comparison between Organic and Non-Organic Juice Products Source: Orissa International from Online Store Checks

Singapore imports organic juices from various countries, including Australia, the US, Sri Lanka, the EU, and Brazil.

Some European companies that are already in the market include:

◼ Voelkel (Germany): Voelkel is a well-established name in the organic fruit juice market. It offers a broad portfolio of more than 200 different types of fruit and vegetable juices as well as lemonade and syrup. Various supermarkets and online stores carry the product.

◼ Bjorg (France): Bjorg is a brand of the French company Distriborg, the leading food group specialising in organic foods. Since 2000, Distriborg has been part of the Dutch group Wessanen, a company founded in 1765 and a European leader of natural foods. Its organic juices are available at RedMart.

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◼ Delhaize (Belgium): The Delhaize Group is a Belgian international food retailer present in seven countries on three continents. At the end of 2015, Delhaize Group's sales network consisted of 3,512 stores. It offers a range of organic juices under a private label brand, which are exported to Singapore, and available in stores such as FairPrice.

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3.13 Organic Tea, Coffee and Cocoa

3.13.1 Market Overview

Tea is considered as a healthier option to coffee in Singapore. Singapore’s consumer market is driven by Millennials which has a growing interest in speciality teas, regardless of the health benefits of drinking it. Singapore has also adopted a global industry trend that incorporates or blends tea into other aspects of daily lifestyle such as cocktails, or even cuisine. Some eateries in the country are already cooking with tea, and cafes or restaurants have modified their menus to cater to tea lovers.

The coffee scene is also evolving, as can be seen by the growing array of specialty and hipster coffee shops in Singapore. The new generation of coffee drinkers are not fixated on big brands, and instead are interested in hand-crafted brews, the origin of the coffee, and artisan production methods. Coffee appreciation and education have transformed coffee aficionados into experts with sophisticated preferences. Many of them reject mass industrialised foods and brands, a trend that allows small artisanal coffee brands to thrive.

The organic coffee and tea sub-sectors in Singapore are generally small. While the organic tea market is larger, coffee is a faster growing sub-sector, given that the coffee culture is well- ingrained in Singapore. While consumption of organic coffee, tea and cocoa is still low, the trend of healthier beverage consumption is expected to drive the demand in Singapore. Growth is expected to be slow, as price-conscious Singaporeans may not be willing to pay higher prices for organic beverages.

Singapore’s Boncafé International, which was acquired by Massimo Zanetti Beverage Group from Italy in 2014, is leading the segment due to its strong brand equity in the organic coffee sub- sector, even though it also offers tea and chocolate drinks. Other common brands for organic coffee found in retail outlets in the country include Naturela from France, the UK’s Cafédirect, and Universal Caffé from Italy.

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Regular brands for organic tea include Clipper Organic from the UK, Tea Forte from the US and Absolute Organic from Australia; while the organic cocoa powder segment is populated by Quinua Real from Spain (which entered the market in May 2016), Big Tree Farms from the US, Green & Black from the United Kingdom, Kayumanggi Organics from the Philippines, Crastan from Italy, and RawGuru from the US. Many of these products can be found in major retailers and organic specialty stores across the island.

Manufacturers that have local presence in Singapore, including Boncafé International and Clipper Teas, continue to dominate the organic beverage market. Imported products, however, are finding a place in the Singapore market—with international manufacturers gaining significant presence in the market.

The market for cocoa-based beverages is dominated by Milo, which is hugely popular in Singapore, and the preferred hot chocolate beverage in most local households. Nestle, which owns the brand, has recently made some changes to the formula (which consists of malted barley, milk powder, cocoa and sugar) to make Milo healthier for children.

Organic tea, coffee and cocoa are considered premium products associated with the population segment with higher disposable income. Expatriates are the targeted market due to their exposure to organic brands of tea, coffee and cocoa. Being viewed as premium products, organic tea, coffee and cocoa are often only found in premium retail outlets frequented by expatriates and mid- to high-income population in Singapore. Therefore, the consumer base of these products remains small, and is threatened by the economic slowdown as consumers shift to other healthy beverage options.

Internet retailers is also one of the channels where organic coffee is purchased in Singapore. There is a presence of online retailers like iHerb, The Organic Grocer and RedMart that sells a variety of organic coffee and tea.

The following table contains some pricing information for selected organic tea, coffee and cocoa products sold in Singapore.

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Item (Tea, Coffee and Organic Conventional Cocoa) Domestic Imported Domestic Imported

Brand NA Clipper Organic Infusion NA Twining’s Pure Peppermint Peppermint Tea Tea Weight (grams) NA 30 NA 40 Price (Euro) NA 2.36 NA 3.22

Unit Value (Euro / 100g) NA 7.87 NA 9.04 Price difference in % for NA NA domestic vs imported (Euro/100g) Price difference in % for NA (2.04) organic vs conventional (Euro/100g) Brand NA Cafedirect Fairtrade NA Cafedirect Fairtrade Organic Medium Fresh Medium Roast Fresh Ground Coffee Ground Coffee Weight (grams) NA 227 NA 227 Price (Euro) NA 6.79 NA 5.64

Unit Value (Euro / 100g) NA 2.99 NA 2.49 Price difference in % for NA NA domestic vs imported (Euro/100g) Price difference in % for NA 20.35 organic vs conventional (Euro/100g) Brand NA Naturela Petit Dej Organic Boncafé Morning RedMart Ground Coffee Coffee Gourmet Ground Coffee Weight (grams) NA 250 200 250 Price (Euro) NA 6.17 5.15 3.94

Unit Value (Euro / 100g) NA 2.47 2.58 1.57 Price difference in % for NA 63.54 domestic vs imported (Euro/100g) Price difference in % for NA 56.67 organic vs conventional (Euro/100g) Table 17: Price Comparison between Organic and Non-Organic Tea, Coffee and Cocoa Products Source: Orissa International from Online Store Checks

Much of the popular brands of organic coffee, tea and cocoa are imported from Europe and the US, with some small suppliers coming from Asia and Australasia. Some European companies with products readily available in the market include:

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◼ Clipper Teas (UK): Clipper is a fair-trade tea company based in Dorset, U.K. founded in 1984. In 1994, they were one of the first companies in the UK to receive the Fairtrade Mark. Over the years the company has introduced organic products such as tea, coffee, green and white tea. Clipper was purchased in 2012, by Royal Wessanen, for around GBP 50 million. Its products are sold in most supermarkets in Singapore

◼ Boncafé (Italy): Boncafé was founded in 1962 by WE Huber, a Swiss national and commodities trader when he opened a small business roasting pure gourmet coffees. Today the company has expanded its offering to organic coffee, and it has operations throughout Asia and the Middle East, with associate companies stretching from Malaysia, Hong Kong, Thailand, Cambodia and Dubai, to Guangzhou in China. The company was acquired by Italy's Massimo Zanetti Beverage Group in 2014. Boncafé has a well-established presence in Singapore.

Figure 34: Organic Coffee from Boncafé Source: Boncafé

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3.14 Organic Fruits and Vegetables

3.14.1 Market Overview

Singapore is heavily dependent on imports of fruits and vegetables to meet its needs. According to ITC Trade Map, the country imported US$ 1.2 billion (EUR 1 billion) of fruits and vegetables in 2018 to cater to domestic demand. Its top three suppliers of vegetables are Malaysia, China and Australia, whereas for fruits, the majority of the supplies come from Malaysia, China and the US.

Consumption of fruit and vegetables has greatly increased in recent years, in line with the drive towards healthier eating. Currently the country is able to produce only 13% of vegetables it consumes. It imports a wide range of fresh vegetables to meet the growing demand for healthier food among Singaporeans, such as asparagus, Brussels sprouts, beans, broccoli, cauliflowers, leguminous vegetables, lettuce, peas, spinach and other green leafy vegetables.

Singaporeans consume fresh tropical fruits such as banana, mangoes and durian, which are imported from neighbouring countries, mainly Malaysia and Thailand. Fresh temperate fruits that are imported into Singapore include apples, pears, oranges, stone fruits (avocados, apricots and peaches), cherries, strawberries, raspberries and blueberries.

Figure 35: The Food Singaporeans Eat Source: Agri-Food and Veterinary Authority of Singapore

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The Singapore Food Agency (SFA) aims to raise Singapore’s self-sufficiency levels to 30% by extending land for new farms and intensifying the use of integrated vertical and indoor systems, automation and robotics in farming.

Singapore began to import organic fruits and vegetables in the early 1990s,80 mainly from the US and Australia. According to the Singapore Fruits & Vegetables Importers and Exporters Association (Singapore FVA), there are currently about 44 wholesalers dealing with fruits and vegetables in Singapore, including the organic variety of these products.

Singapore has a number of wet markets located within housing estates, which sell fresh fruits, vegetables, meat and fish. Many wet markets now offer a range of organic vegetables, and premium imported vegetables. Busy Singaporeans can now order organic fruit and vegetable boxes online, as a few companies now offer weekly deliveries of a selection of fresh organic produce. Companies such as Zenxin Agriorganic Food, The Organic Grocer, Green Circle Eco Farm, BestOrganicFood, and SuperNature offer ‘subscription’ services for such deliveries.

Both supermarkets and hypermarkets are major buyers of organic fruit and vegetables, often preferring to directly import from foreign exporters and consolidators, to keep costs low. Modern grocery retail players in Singapore that offer organic fruits and vegetables include Cold Storage, NTUC FairPrice, and Giant. A large number of health food cafes, salad joints and upmarket restaurants in Singapore now offer organic fare, opening up another important market segment for fresh food exporters.

The following table contains some pricing information for selected organic fruits and vegetables sold in Singapore.

Item (Fruit and Vegetables) Organic Conventional

Domestic Imported Domestic Imported

Brand NA AirFlown Organic Orange NA Valencia Oranges Weight (grams) NA 1,000 NA 1,000 Price (Euro) NA 4.00 NA 2.62 Unit Value (Euro / 100g) NA 0.40 NA 0.26

80 http://unctad.org/meetings/en/SessionalDocuments/DITC_TED_OA1212LOAF_MarketSen.pdf

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Item (Fruit and Vegetables) Organic Conventional

Domestic Imported Domestic Imported

Price difference in % for domestic vs NA NA imported (Euro/100g) Price difference in % for organic vs NA 52.50 conventional (Euro/100g) Brand NA Organic 4 Life Organic NA Red Mart Australian Carrots Carrots Weight (grams) NA 500 NA 500 Price (Euro) NA 3.67 NA 0.59

Unit Value (Euro / 100g) NA 0.73 NA 0.12 Price difference in % for domestic vs NA NA imported (Euro/100g) Price difference in % for organic vs NA 522.22 conventional (Euro/100g) Brand NA Organic 4 Life Organic NA YUVVO Holland Potato Potato Weight (grams) NA 500 NA 800 Price (Euro) NA 4.23 NA 1.08

Unit Value (Euro / 100g) NA 0.85 NA 0.14 Price difference in % for domestic vs NA NA imported (Euro/100g) Price difference in % for organic vs NA 525.45 conventional (Euro/100g) Brand NA IMPERIO Organic Whole NA Givvo Whole Garlic Garlic Weight (grams) NA 100 NA 200 Price (Euro) NA 1.97 NA 0.92

Unit Value (Euro / 100g) NA 1.97 NA 0.46 Price difference in % for domestic vs NA NA imported (Euro/100g) Price difference in % for organic vs NA 328.57 conventional (Euro/100g) Brand NA Organic 4 Life Organic NA Givvo Red Onions Brown Onion Weight (grams) NA 500 NA 500 Price (Euro) NA 4.23 NA 2.56

Unit Value (Euro / 100g) NA 0.85 NA 0.51 Price difference in % for domestic vs NA NA imported (Euro/100g) Price difference in % for organic vs NA 65.38 conventional (Euro/100g) Table 18: Price Comparison between Organic and Non-Organic Fruit and Vegetables Products Source: Orissa International from Online Store Checks

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Singapore sources organic fruits and vegetables from Australia, New Zealand, the US, Indonesia and Malaysia. Fresh organic produce from Australia and the US dominates the market.

European companies and farms already supplying in Singapore include:

◼ Juliet (France): Juliet is an Association of organic apple producers in France - the Southeast, Southwest, Loire Valley and Rhone Valley. The apples are sold domestically, and also exported around the world. The Association currently consists of 120 producers that produce 4,000 tons of organic industry apples per year. In Singapore, it is sold in supermarkets such as FairPrice and in online specialist stores such as Momobud.sg

◼ Bauers Garten (Germany): Bauer's Garden is a family-run organic farm founded in 1992 in Winden, Germany. Its produce is distributed in Singapore by Simply Fresh (www.simplyfresh.sg). This is the first subscription service in Singapore to source its complete offering of certified organic produce from farms in Germany. Produce is delivered straight from farms to homes in Singapore in ‘SimplyFresh boxes’, which are available in nine varieties and are also fully customisable to suit different lifestyle needs of consumers in Singapore.

◼ Foglia Sublime (Italy): The Foglia Sublime brand is owned by Azienta Agricola Altamura in Italy, which specialises in large leaf vegetable production, such as organic Italian spinach, rocket, mixed salad leaves, among others. Foglia Sublime is its premium brand, and is available in Singapore at FairPrice supermarkets.

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3.15 Organic Meat / Meat Products

3.15.1 Market Overview

Singapore is a high-income nation, and one of the wealthiest markets in South East Asia that imports almost 90% of its food requirements. These factors create an excellent platform for imported food such as organic meat products to enter the market. The country also has a large expatriate community that is willing to pay premium prices for healthier food choices.

More supermarkets in the country now carry a range of fresh and frozen organic meat products. This development, together with the growing prominence of gourmet butchers in the country, has helped to strengthen the market for organic meat and meat products.

In line with this trend, retailers and food distributors are introducing organic meat and meat products through proper labelling and encouraging online discussion to educate the consumers and help them differentiate a txuleton from a tri-tip, Scottish Highland from Red Poll, shorthorn from longhorn, wet-aged from dry-aged. Organic meat products are typically advertised and discussed in Singapore-based food websites and blogs. These websites not only give information on what is organic meat but they also advise the public where to buy organic meat in the country and the benefits of consuming them. Meat products advertised by such food websites include premium steaks, organic beef patties, free-range chickens, gourmet sausages, veal, and lamb.

Figure 36: Onllne Retailer Sasha's Fine Foods’ Blog, giving Advice to Consumers

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Source: Sasha’s Fine FoodsUpmarket restaurants in the country are also promoting the use of organic products in their menus, to cater to the rising numbers of “ethical eaters” or those who put premium on animal welfare and the environment when consuming meat products. According to executive chef Joshua Brown of Michelin-starred steakhouse Cut in the Marina Bay Sands, in the past, diners shunned grass-fed meat because it was chewy and less rich in flavour than grain- fed meat. Now, even though the client profile remains the same, diners have become more adventurous.81

Organic meat products in the country can be found in supermarkets, specialist retailers, online grocery stores, and artisan meat shops.

Imported Minced Pork

Type Organic Conventional Brand Wicks Manor Farm Australian Minced Pork (retailed by RedMart) Weight (g) 500 500 Price (S$) 8.20 4.40 Unit Value (Euro / 100g) 1.64 0.88 Price difference in S$ (organic vs 86.57 conventional) Table 19: Price Comparison between Organic and Non-Organic Minced Pork Source: Orissa International from Online Store ChecksThe table above contains sample pricing information for some organic meats and meat products sold in Singapore. The price of organic minced pork is valued at S$ 12.50 (EUR 8.2) while the conventional Australian minced pork retailed by local supermarket RedMart costs S$ 7.75 (EUR 5.06) per 500 grams. Despite being classified as a high-income nation, Singaporeans remain very price-sensitive, and many would opt for the non-organic option at the lower price.82

Singaporean consumers are uncertain about the differences in the various labels used to differentiate organic and other healthy meat labels such as “Green” and “Free-range” as they do

81 https://www.straitstimes.com/lifestyle/food/high-steaks-the-quest-for-the-best-beef-in-singapore 82 http://unctad.org/meetings/en/SessionalDocuments/DITC_TED_OA1212LOAF_MarketSen.pdf

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not have exposure to farming methods,83 making it advisable for European companies to ensure that the right information is conveyed to consumers in their sales and marketing programmes.

In addition to organic, halal-certification of meat and meat products will help to increase acceptance. Singapore is an established halal hub due to the country’s tourism and business location; stringent food safety laws; and recognised halal standards. The country has developed halal-friendly policies for its minority Muslim population, as well as for visitors from its closest neighbours, Indonesia and Malaysia, both Muslim-majority countries. With its efficient infrastructure and a halal-certified logistics network, Singapore can act as a stepping stone for European companies looking to use Singapore as a base to export halal-certified organic meat and meat products to the region.

While organic meats coming from Australia, New Zealand, the US, and Malaysia are common in Singapore, the country also imports lamb, poultry, pork and duck products from European countries such as France, Ireland and the UK.

European organic meat products that have made it to the shelves of Singapore retailers include:

◼ Rhug Estate (United Kingdom): Rhug Estate is an organic farm and butchery in Corwen in North Wales. It sells organic pork, bacon and gammon, organic Aberdeen Angus beef, organic Welsh lamb, and organic poultry. Its distributor in Singapore is Culina.

◼ Silver Hill Farm (Ireland): The Silver Hill farm was started in 1962, and is located in Monaghan County, Ireland. It sells around 100,000 ducks a week to countries all over the world, with Singapore being the only country it supplies in South East Asia. Their ducks are fed only on natural feedstuffs such as wheat and soya. It ships 5,000 ducks to Singapore every week, and its products are used by 12 restaurant brands in the country.

83 http://unctad.org/meetings/en/SessionalDocuments/DITC_TED_OA1212LOAF_MarketSen.pdf

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3.16 Organic Seafood / Seafood Products

3.16.1 Market Overview

Singapore consumes approximately 120,000 tonnes of fish and seafood a year.84 On a per capita basis, this translates to around 22 kg per person, one of the highest in the world.85

Local farms produce about 10% of Singapore's fish supply, and the Singapore Food Agency (SFA) aims to raise this to 15%, with new aquaculture technologies increasing the productivity of fish farming systems by at least three times.86 For example, Apollo Aquaculture Group, a consortium of companies that offer a range of services and solutions for the farming of marine finfish has developed a three-storied vertical fish-farming system, and an automatic water filtration and recycling system for marine food fish and more than 200 species of ornamental fish.

In November 2018, three major seafood associations – Punggol Fish Merchants Association, Seafood Industries Association Singapore, and Singapore Fish Merchant’s General Association – announced a collaboration to create new opportunities by tapping digital technologies to transform and expand the international reach of their merchants, by way of establishing a new Seafood B2B e-Marketplace.87

The Seafood e-Marketplace will streamline seafood wholesale trading by providing end-to-end visibility, improving matching of supply and demand. The e-marketplace will enhance the competitiveness of seafood merchants by creating greater access to overseas markets. VCC (a platform provider who will develop and operate the system) will also bring on-board seafood suppliers and buyers from both local and overseas markets, and provide connectivity to trade facilitation services through the platform. This will enable online services such as ordering, tracking, logistics, cross border trade clearance, and trade financing

84 https://www.imda.gov.sg/-/media/imda/files/about/media-releases/2019/annex-b-factsheet-singapores-first-seafood-emarketplace.pdf?la=en 85 http://theindependent.sg/what-the-fish-is-going-on-with-the-fish/ 86 http://www.todayonline.com/singapore/two-spore-companies-try-new-high-tech-farming-processes 87 https://www.imda.gov.sg/-/media/imda/files/about/media-releases/2019/annex-b-factsheet-singapores-first-seafood-emarketplace.pdf?la=en

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Singapore imports of fish and seafood were worth approximately US$ 870 million (EUR 768 million) in 2018. Neighbouring countries Indonesia and Malaysia are leading source markets, while European countries such as Norway, France, UK, and Spain also rank among the top 10 exporters of seafood to Singapore. Even though a handful of countries account for the majority of imports of seafood, there is no single company that dominates the market. Because of the wide range of product types, formats and flavours available, no brand has a significant share in the market.

Exporters Imported Imported Imported Imported Imported value in 2014 value in 2015 value in 2016 value in 2017 value in 2018

World 761,805 744,939 790,530 812,680 870,676 Indonesia 128,864 107,079 101,511 100,016 108,486 Malaysia 100,453 98,079 104,377 101,082 102,146 Viet Nam 80,129 71,541 74,709 83,344 93,546 China 68,546 78,788 59,587 76,321 85,507 Norway 71,898 60,748 75,170 77,111 83,211 Japan 41,394 42,778 46,974 50,133 54,388 France 16,861 16,043 35,610 31,821 37,858 India 31,160 28,443 30,946 30,566 33,909 United Kingdom 15,261 18,824 21,268 25,709 27,074

Spain 8,171 11,891 13,179 14,742 25,993 Table 20:Import Value and Share of Top 10 Source Markets - Seafood, 2014-2018 Source: UN Comtrade

Increasingly, Singaporeans value organic seafood products and look for healthy and tasty meals. Building a trusted brand is a crucial requisite in Singapore. For instance, Thong Siek Food Industry, one of the brands Singaporean consumers are most familiar with, developed the popular Dodo brand for fish balls. The brand is now established as a household name in Singapore.

Singaporeans have an appreciation for the value of organic seafood and seafood products, which are seen as a low-mercury alternative to traditional seafood.88 As organic seafood is rich in proteins, it is popular among pregnant and breastfeeding mothers. The majority of Singaporeans

88 https://www.sassymamasg.com/where-to-buy-sustainable-seafood-in-singapore/

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think that farmed fish does not taste as good as wild-caught fish, but the latter cannot be certified as organic because it is sourced from an environment that is not controlled.

The sustainable seafood movement is gaining ground in Singapore. This refers to seafood either caught or farmed in ways that consider the long-term vitality of harvested species and the wellbeing of the oceans, as well as the livelihoods of fisheries-dependent communities. In October 2016, the World Wide Fund for Nature Singapore (WWF-Singapore) launched a guide that assesses the environmental sustainability of 41 popular seafood species. The guide highlights the urgency for Singaporeans to make better consumption choices as 3 out of 4 common fish species have been flagged as unsustainable.89

Consumers in Singapore can now look out for products that bear the Marine Stewardship Council or Aquaculture Stewardship Council labels, which indicate that the seafood was responsibly caught or farmed. More retailers and hotels have come on board the sustainability drive, with supermarket chain FairPrice doubling its range of sustainable seafood to more than 50 products, including prawns, scallops and pink salmon, over the past few years.

Figure 37: The Marine Stewardship Council or Aquaculture Stewardship Council Labels Source: Lipromar GmbH

The market for shelf-stable seafood and frozen processed products are growing strongly in the Singaporean market. The positive performance originates from the consistent demand of local consumers who opt for products that offer more convenience. Singaporeans are very used to shelf-stable seafood, and consumers are accustomed to including canned tuna or sardines, for example, in their daily meals. Popular seafood products include fish balls and fish cakes as well

89 http://www.wwf.sg/?279952/WWF-Singapore-launches-New-Seafood-Guide

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as finger food items such as fish sticks and crab sticks. Fish sticks and crabsticks make for convenient snacks, while fish balls and fish cakes are widely used in many Asian noodle dishes.

Singaporeans exchange premium seafood as gifts during special occasions. For instance, canned abalone is a popular present during Chinese New Year, and the product is a regular feature of the reunion dinners held on the eve of Chinese New Year. A recent trend in the Singaporean market is the emergence of vending machines that offer seafood-based products. In 2017 the No Signboard Seafood restaurant chain launched a vending machine cluster offering high-quality products. The machines dispense five halal-certified meals including fried Hokkien mee and rice, or spaghetti served with the restaurant's popular chilli crabs that have been de-shelled. 90

The following table contains some pricing information for selected organic seafood / seafood products sold in Singapore.

Item (Seafood / Seafood Products) Organic Conventional

Domestic Imported Domestic Imported

Brand NA Mr Seafood Organic Blue NA Seafood Shifu Mussel Meat - Mussel Meat – Frozen Frozen Weight (grams) NA 500 NA 1,000 Price (Euro) NA 4.92 NA 6.56

Unit Value (Euro / 100g) NA 0.98 NA 0.66 Price difference in % for domestic vs NA NA imported (Euro/100g) Price difference in % for organic vs NA 50.00 conventional (Euro/100g) Brand NA Labeyrie Organic Smoked NA Hai Sia Seafood Fresh Salmon Norwegian Salmon Fillets Weight (grams) NA 120 NA 240 Price (Euro) NA 9.81 NA 4.89

Unit Value (Euro / 100g) NA 8.18 NA 2.04 Price difference in % for domestic vs NA NA imported (Euro/100g) Price difference in % for organic vs NA 301.34 conventional (Euro/100g) Table 21: Price Comparison between Organic and Non-Organic Seafood and Seafood Products Source: Orissa International from Online Store Checks

90 http://www.straitstimes.com/lifestyle/food/no-signboard-seafood-launches-vending-machine-cluster-in-tampines

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Singapore imports seafood from its neighbours, namely Malaysia, Indonesia and Vietnam. Other significant sources of seafood are Norway and France. Imports of organic seafood remain negligible.

The following European companies’ organic seafood products have made it to the shelves of Singaporean retailers.

◼ Galway Bay (Ireland): Galway Bay Seafoods, which was founded in 1950, offers a range of fresh, top-quality salmon, mackerel and crab. Its organic smoked salmon is available in Singapore via Secretsfinefood.com.sg.

◼ Riofrio Caviar (Spain): Riofrio, which is based in Granada, Spain, produces organically farmed sturgeon caviar free from hormones and preservatives. The company has teamed up with local distributor Urban Fulfilment to distribute its product in Singapore.

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3.17 EU Entry Opportunities in the Organic Food and Beverage Sector

Even though the organic food and beverage sector in Singapore is largely a niche market, it offers interesting opportunities to European companies, especially in a number of growing sub-sectors such as baby food and confectionery. There are various opportunities for European companies to engage in the market.

Reliance on imports

Singapore has minimal natural agriculture resources, and more than 90% of the food consumed domestically is imported from abroad, representing an interesting opportunity for European companies wishing to test their offering. Singapore is one of Asia’s largest importers of food products; in 2018, the country imported S$ 11.3 billion (EUR 7.4 billion) of food and live animals, and S$ 3.85 billion (EUR 2.5 billion) of beverages. The government also organises overseas sourcing trips to other countries in order to assist industry players to build networks and connections.

European food is popular

Singaporeans like to experiment with new food products, and local consumers have already developed a taste for European foods, such as bread, pasta, milk and cereals, which are becoming increasingly popular. Moreover, there is a significant expat community counting many European nationals that are regularly purchasing Western food products.

Rising health consciousness

The market for organic packaged food is expected to grow over the next few years. This growth is largely explained by a rising health consciousness among Singaporeans, who are switching to organic alternatives. For instance, organic baby food and organic confectionery are growing fast as Singaporean parents are becoming more concerned about the safety and nutritional value of food consumed by their children. As the Singaporean population ages, consumption patterns are changing in tandem, as many are aware that eating well may reduce the risk of heart disease,

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stroke, type 2 diabetes, bone loss, some kinds of cancer, and anaemia. This will help to boost growth in the organic daily staples, such as rice, breakfast cereals and edible oils.

Access to South East Asia

Singapore is a regional hub for food processing, and the country serves as a gateway for companies in the food and beverages sector, both local and foreign, to access growing markets in the region. To tap into the opportunities in the region, international players have established their regional headquarters in Singapore, and local companies have built an excellent network of factories, distributors and clients in the ASEAN market. Many distributors have experience working with international companies and a wealth of knowledge of import/export laws and logistical issues.

Certification

Singapore allows entry of organic foods certified by internationally recognised certifying bodies, eliminating the need for European companies to obtain additional certification in the country. Consumers in Singapore are very familiar with the Health Promotion Board’s Healthier Choice endorsement. Seven in ten Singaporeans were found to be aware of the Healthier Choice Symbol (HCS) and 69% have used this symbol to assist them in making healthier food choices. European companies that want their products to stand out from the rest may wish to apply to the Health Promotion Board for a license by submitting an application together with the nutrient analysis report of their product. The nutrient analysis report must be obtained from an independent laboratory using approved methods, for example those accepted by the Association of Official Analytical Chemists. For a list of approved laboratories, please visit: www.hpb.gov.sg/docs/default-source/default-document-library/guide-to-accredited-food-lab- sg.pdf?sfvrsn=0

Online Marketplaces

RedMart has become a popular and well-established online marketplace with a large customer base. They offer Singaporeans hundreds of thousands of products across all food and beverage

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categories. Singaporeans have tuned in to the fact that deep discounts are available through online marketplaces, which do not incur overheads such as rental. Singapore is hailing a new era of digital grocery retailing as savvy Singaporean shoppers switch to online channels.

Research company IGD forecasts that the online grocery sector will expand to 4% by 2020, driven by its relatively affluent population, big expat community and high penetration of internet and smartphone usage.91

Specialist Premium Online Retailers

Increasingly, organic companies are finding new avenues to enter the Singapore market. While grocery retailers such as FairPrice, Cold Storage, Giant and Sheng Siong are market leaders, Singapore now has an increasing number of specialist retailers that operate online, and offer premium products and experiences for their clients. These online stores offer a very clear proposition to the consumer targeting premium ranges, and offer viable options for European companies targeting the premium market.

Specialist Premium Online Retailers

As consumers become more discerning, they are also actively seeking out access and rare experiences. Singapore offers opportunities for European companies with a premium focus, such as wine, cheese and coffee. Singapore is following in the footsteps of developed states, where preference is shifting towards spending on “shareworthy” experiences. Driven by the millennial age group, which is expected account for 27% of Singapore’s total consumer base.92

Marketing Message

European companies can leverage on the fact that Singaporean consumers are very attuned to food safety issues. Singaporean consumers, as well as food industry professionals - manufacturers, distributors, retailers – have changed their practices in response to food controversies and

91 https://www.igd.com/about-us/media/press-releases/press-release/t/igd-singapore-online-grocery-to-more-than-triple-by-2020/i/16197 92 https://sbr.com.sg/retail/in-focus/singapore-retailers-push-premiumisation

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scandals. European manufacturers of organic produce would do well to emphasise the safer and healthier attributes of their products when undertaking marketing in Singapore.

According to Nielsen’s Global Corporate Sustainability Report,93 66% of consumers will choose to spend more money on a product from a sustainable brand. In Singapore, consumer awareness of sustainable behaviour continues to gain momentum.

According to Nielsen, Singaporeans consider health, brand trust and wellness as well as fresh, natural, and/or organic products as their top three sustainability factors during product purchase.

Consumers are uncertain about the difference between Naturally Healthy foods and organic foods. As part of their marketing, European companies need to successfully entrench the benefits of organic options in the consumers’ minds to enable them to see a clear distinction between the two, and to appreciate the benefits of organic food and beverage products.

Trade shows

Singapore is not just a growing market for organic food and beverages; it is also a dynamic location for showcasing innovative products and technologies to the regions, and the country is a well-known platform for trade shows. Among the most important trade shows in the sector is Food & Hotel Asia (FHA). FHA (Food & Beverage) 2020 will be held in Singapore from 31 March to 3 April 2020. It is a leading international food and hospitality trade event. The previous edition, FHA 2018, which had 2,000 exhibitors from 70 countries/regions, welcomed close to 48,000 attendees from over 100 countries/regions.

93 https://www.nielsen.com/us/en/press-room/2015/consumer-goods-brands-that-demonstrate-commitment-to-sustainability-outperform.html

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4. Regulations

4.1 Key Government Agencies

There are a number of relevant authorities regulating the food and beverage sector in Singapore.

The Singapore Food Agency (www.sfa.gov.sg), a new statutory board, was formed on 1 April 2019.

Figure 38: Singapore Food Agency’s Organisation Chart Source: Singapore Food Agency

All food-related functions that previously fell under Agri-Food & Veterinary Authority (AVA), the Health Sciences Authority (HSA), and National Environment Agency (NEA) were consolidated under the SFA. The SFA is an agency under the Ministry of the Environment and Water Resources (MEWR), and has the following functions:

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◼ To enhance regulatory oversight over all food-related matters from farm to fork and further strengthen Singapore’s food safety regime.

◼ To strengthen the management of food-borne disease outbreaks, through tighter coordination of responses to food-related issues, including product tracing and recall, and engagement with various stakeholders and the public.

◼ To deepen Singapore’s capabilities in food safety, a National Centre for Food Science (NCFS) will be established under SFA to consolidate the food laboratory capabilities of the three agencies under one roof. The NCFS will bring together key competencies in food diagnostics, and research and development in food safety.

Singapore Customs (www.customs.gov.sg) is a department under the Ministry of Finance.94 It is the lead agency for trade facilitation and revenue enforcement in Singapore. Singapore Customs has eleven checkpoint stations including three at the Changi Airport Terminals 1, 2 and 3. Other than the airport, the officers are also present at the ferry terminals and railway stations and other entry points of the island.

94 www.customs.gov.sg

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4.2 Key Regulations

4.2.1 Singapore Regulation on Food Products

There are a number of regulations in existence concerning food and beverages in Singapore. The Sale of Food Act regulates the matters concerning sales of various types of foods in Singapore, including fresh, packed and pre-packed, as well as imported foods. The detailed inscription of the Act can be obtained online through the Singapore Statutes website (https://sso.agc.gov.sg/Act/SFA1973).

As of 1 April 2019, The Singapore Food Agency (SFA) has become the new regulating body for food and beverages in Singapore, consolidating all food-related functions that previously fell under Agri-Food & Veterinary Authority (AVA), such as ensuring ensures the safety of all food, from production to retail.

As the regulating body, the SFA is responsible for enforcing the Sale Food Act (Chapter 283). It is an Act for securing freshness and purity of food and fixing standards for foods; for preventing the sale or other disposition, or use of articles dangerous or injurious to health; and to provide for the regulation of food establishments. The Subsidiary Legislation of the Sale of Food Act (Chapter 283) include:

◼ Food Regulations

◼ Sale of Food (Appeal to Minister — Prescribed Period) Regulations 2018

◼ Sale of Food (Composition of Offences) Regulations

◼ Sale of Food (Exemption for Non-Retail Food Business) Order 2018

◼ Sale of Food (Fees) Regulations

◼ Sale of Food (Non‑Retail Food Business) Regulations

◼ Sale of Food (Prohibition of Chewing Gum) Regulations 2003

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Of the seven parts of subsidiary legislation,, the one pertaining to Food Regulations is the most important for exporters as it provide the details of Singapore guidelines governing all imported foods. All food, drinks and edible agricultural products, including food ingredients, whether locally manufactured or imported to Singapore are required to comply with the prevailing requirements laid down in the Food Regulations.

Its provisions include the following:

◼ General requirements for labelling

◼ Exemptions from general requirements for labelling

◼ Containers to be labelled

◼ Hampers to be labelled

◼ Nutrition information panel

◼ False or Misleading statements, etc.

◼ Date-marking (Removal, etc., of date-marking prohibited)

◼ Claims as to presence of vitamins and minerals

◼ Misleading statements in advertisements

◼ Food and appliances offered as prizes

◼ Imported food to be registered

◼ Food Additives

◼ Incidental Constituents in Food

◼ Mineral Hydrocarbons

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◼ Containers for Food

◼ Irradiated Food

Part IV of the Singapore Food Regulations provides Standards and Particular Labelling Requirements for the following product categories:

◼ Flour, Bakery and Cereal Products ◼ Alcoholic Drinks

◼ Aerating Ingredients ◼ Salts

◼ Meat and Meat Products ◼ Spices and Condiments

◼ Fish and Fish Products ◼ Flavourings, Essences or Extracts

◼ Edible Fats and Oils ◼ Flavour Enhancers

◼ Milk and Milk Products ◼ Special Purpose Foods (Products that are consumed by persons with a special ◼ Ice Cream, Frozen Confections and diet. The category includes products Related Products such as low-calorie food, infant foods (e.g. infant formula), and infant milk ◼ Sauces, Vinegar and Relishes formula or milk preparation and diabetic ◼ Sugar and Sugar Products foods.)

◼ Tea, Coffee and Cocoa ◼ Miscellaneous Foods (Products such as agar-agar, custard powder, edible ◼ Fruit Juices and Fruit Cordials gelatine, fish and prawn crackers)

Jams ◼ ◼ Rice

◼ Non-Alcoholic Drinks

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It is advisable for companies to consult the relevant sections of the Food Regulations for information on their own specific food product or products. As the regulating agency, SFA regularly reviews and updates the Food Regulations, and it is strongly recommended that interested parties contact SFA for further clarification. An electronic copy of the Food Regulations and Amendments is available on SFA’s website: https://www.sfa.gov.sg/legislation

4.2.2 General Labelling Requirements

Even if SFA is the new regulating body for food and beverages in Singapore, the agency still refers to the AVA’s website, which is now defunct, for most guidelines on food regulations. It should be highlighted that now SFA formally consolidates all food-related functions that previously fell under AVA. According to the latter, all imported or locally manufactured pre-packed food for sale in Singapore must be labelled with basic information such as name of food, ingredients, net content and source. This also applies to pre-packed foods that are intended for human consumption and offered as a prize, reward or sample for the purpose of advertising.

The following basic information is required to be declared in English on the labels of pre-packed food. Items 1 to 4 should be in printed letters not less than 1.5 mm in height.

1. Name or description of food

This refers to a common name or a description which is sufficient to indicate the true nature of the food product.

Some examples of names or descriptions include: "Bread", "Minced or chopped meat", "Olive oil", "Concentrated Fruit Juice"

Ensure that the terms used for the common names or descriptions comply with the statutory requirements by referring to “Part IV – Standards and Particular Labelling Requirements for Food” of the Food Regulations

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2. Statement of ingredients

This refers to a complete list of ingredients and additives used in the food product, listed in descending order of their weight in the product (i.e. the ingredient that weighs the most must be listed first and the ingredient which weighs the least must be listed last).

See section "Ingredient Listing" below for more information on the steps to declare the statement of ingredients.

3. Declaration of foods and ingredients known to cause hypersensitivity

All foods and ingredients known to cause hypersensitivity must be declared on the food label when present as an ingredient or additive, or as a component of a compound ingredient.

See section on "Ingredient Listing" below for the list of foods and ingredients known to cause hypersensitivity and the steps to declare them.

4. Declaration of net content in package

This refers to the net quantity of the food present in the package, which is derived using the Average Quantity System (AQS) or the Minimum Quantity System (MQS).

Net quantity must be expressed in terms of:

◼ Volumetric measure for liquid foods (e.g. millilitres, litres)

◼ Net weight for solid foods (e.g. grams, kilograms)

◼ Either weight or volumetric measure for semi-solid or viscous foods (e.g. tomato paste, yoghurt, etc.)

*Liquid medium is defined as water, aqueous solutions of sugar and salt, fruit and vegetable juices in canned fruits and vegetables only, or vinegar, either singly or in combination.

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In the case of weight measure, suitable words such as “net” should be used to describe the manner of measure.

As of 15 April 2011, pre-packed food products are required to be labelled with the “net” quantity of the food in the wrapper or container, instead of the “minimum” quantity. However, industry members may continue using MQS without being penalised.

5. Name and address of the local manufacturer or importer

For food products of local origin, labels must include the name and address of the local manufacturer, packer or vendor.

For imported food products, the label must indicate the name and address of the local importer, distributor or agent. Telegraphic, facsimile and post office address alone are not acceptable.

6. Country of origin of food

Labels on imported food products must indicate the name of the country of origin of the food. The name of a city, town or province alone is not acceptable.

Locally manufactured products are encouraged to provide this information on the label on a voluntary basis.

7. Exemptions

Labelling requirements do not apply under these conditions:

◼ Food weighed, counted or measured in the presence of the purchaser.

◼ Food that is loosely packed at the retailer’s premises.

◼ Intoxicating liquors are not required to carry a statement of ingredients on their labels.

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Checklist for General Labelling Requirements

Requirements Font Height Language

1. Name or description of food Information should be in Information printed letters not less than should be printed 1.5 mm in height. in English 2. Statement of ingredients

3. Declaration of foods and ingredients known to cause hypersensitivity

4. Declaration of net content in package

5. Name and address of the local manufacturer or importer

6. Name of country of origin For imported foods only

You may also include:

Recipes or suggestions or pictorial The words "Recipe" or "Serving The words "Recipe" or "Serving illustrations on how to serve pre- Suggestion" should be in printed Suggestion" should be printed packed foods. letters not less than 1.5 mm in in English height Information should be closely accompanied by the words "Recipe" or "Serving Suggestion"

Table 22: Checklist for General Labelling Requirements

4.2.3 Additional Labelling Requirements

While all pre-packed food products have to meet the statutory general labelling requirements (see section above), some pre-packed food products have to meet additional requirements.

Below is an overview of the additional labelling requirements:

1. Date marking of expiry date

Currently, only products with limited shelf life need to be date-marked. These products are:

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◼ Perishable/short shelf-life products such as tofu, pasteurised milk and some other milk products.

◼ Products whose quality may deteriorate over time such as vitaminised drinks and cooking oil.

◼ Products such as raisins and breakfast cereals that are susceptible to contamination, such as insect infestation, after prolonged storage

◼ Infant food

The requirement for these products to be date-marked is specified under Regulation 10 of the Food Regulations, which lists these products under the Second Schedule of the Regulations.

The date-marking must be permanently marked or embossed on the package, and printed in letters not less than 3 mm in height.

2. Advisory statements for food containing certain sweetening agents

Advisory statements to restrict the consumption of some food categories have to be included in the labels if the product contains certain sweetening agents (e.g. acesulfame-K, saccharin, etc.) added at the maximum permissible levels.

3. Labelling of Special Purpose Foods

Special purpose foods are foods formulated to cater for the special dietary needs of specific groups of consumers. These include sugar-free foods, low-calorie foods, diabetic foods, etc.

These foods must be labelled clearly to indicate their special suitability, and must meet the statutory nutrition labelling requirements.

See section "Nutrition, Health & Other Claims" below for guidelines on using nutrition and health claims and the list of acceptable nutrition and health claims.

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4. Nutrition labelling

Nutrition labelling in the form of a nutrition information panel is required when nutrition claims or permitted health claims are made for pre-packed foods.

The information declared in the panel must include the energy, protein, fat and carbohydrate contents of the food. The nutrients indicated in the nutrition claim must also be declared.

For more information on the permitted nutrition and health claims, see section "Nutrition, Health & Other Claims" below.

For an acceptable format of the nutrition information panel, see the Twelfth Schedule of the Food Regulations.

5. Specific labelling for certain food categories

Certain food categories (e.g. irradiated food, wholegrain, milk, fruit wine, pre-packaged edible fats and oils, etc.) are required to meet specific labelling requirements.

6. Advisory statements for certain ingredients

Products containing certain ingredients (e.g. royal jelly, aspartame, etc.) need to be labelled with the relevant advisory statements or any other statements to the same effect (e.g. “Warning: This product may not be suitable for asthma and allergy sufferers”).

4.2.4 Nutrition, Health & Other Claims

Importers and manufacturers of pre-packed food have to meet the statutory food labelling requirements. These include proper nutrition labelling for certain food products such as special purpose foods, foods that make health claims, etc.

The sections below will provide an overview of the guidelines on using nutrition claims or health claims, and information on application procedures for using new health claims.

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For exact requirements and information on using nutrition and health claims (e.g. definitions, technical criteria such as weight or percentage of nutrients, etc.), importers and manufacturers can refer to the Sale of Food Act.

In Singapore, there is no set definition of organics. Thus, there is no separate set of import conditions for organic food products specified in the available laws and regulations in the country. However, SFA only allows entry of organic foods certified by recognised international certified bodies.

In general, there are 3 types of claims food products can carry, namely Nutrition claims; Health claims; and Other claims.

All pre-packed food products bearing nutrition claims or health claims must come with a nutrition information panel, as well as meet the related requirements stated in:

◼ the Sale of Food Act

◼ Health Promotion Board’s (HPB) nutritional labelling guidelines (download HPB’s A Handbook on Nutrition Labelling)95

Nutrition Claims

Nutrition claims suggest or imply that food products have nutritive properties such as: Energy; Salt (sodium or potassium); Protein and amino acids; Carbohydrates, starch or sugars; Fats, fatty acids and cholesterol; Fibre; Vitamins or minerals; Any other nutrients.

Examples of nutrition claims include "Low in calories", "Sugar free", “Reduced sodium” and “High in Vitamin C”.

95 https://www.hpb.gov.sg/docs/default-source/default-document-library/handbook-on-nutrition-labelling.pdf?sfvrsn=0

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Health Claims

Health claims are descriptions that state, suggest or imply that a relationship exists between foods (or their constituents) and health.

There are 3 types of health claims:

◼ Nutrient function claims

◼ Other function claims

◼ Nutrient specific diet-related health claims

1. Nutrient Function Claims

Nutrient function claims describe the physiological role of the nutrient in growth, development and normal functions of the body.

In principle, a nutrient function claim is allowed if the following criteria are met:

◼ The claim is about an essential nutrient that has established recommended intakes, and/or is of nutritional importance.

◼ There is sufficient and generally accepted scientific evidence to prove the suggested function or role of the nutrient.

◼ The claim is worded clearly and enables the public to understand the nutrient’s significance to overall daily diet.

◼ The nutrient mentioned is present in an amount that meets the requirements of the Sale of Food Act, and HPB’s nutrient claim guidelines.96

◼ The product carrying the claim is labelled according to the requirements for use of nutrition claims published in the Food Regulations.

96 https://www.hpb.gov.sg/docs/default-source/default-document-library/handbook-on-nutrition-labelling.pdf?sfvrsn=0

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◼ The claim does not state or imply that the nutrient is for prevention or treatment of a disease.

◼ Claims should be presented in the form “(Nutrient X) (description of the physiological role of Nutrient X in growth, development and normal functions of the body).”

2. Other Function Claims

Other function claims describe the specific beneficial effects foods (or their constituents) have on normal functions or biological activities of the body, in terms of:

◼ a positive contribution to health; or

◼ the improvement of a function; or

◼ modifying or preserving health

Other function claims must be stated in their exact approved form, and must not be presented as product-specific (i.e. the claim cannot imply or suggest that the beneficial effects are specific to the product).

Truncated or reworded versions which deviate from or change the intended meaning of the original approved claim will not be accepted.

3. Nutrient-specific Diet-related Health Claims

Nutrient-specific diet-related health claims are claims which relate foods (or their constituents) in the context of the total diet, to the reduced risk of developing a disease or health-related condition.

These claims are also known as “reduction of disease risk claims” under the Handbook on Nutrition Labelling.97

Local food manufacturers and importers must submit applications to SFA or HPB to use the following approved nutrient specific diet-related health claims:

97 https://www.hpb.gov.sg/docs/default-source/default-document-library/handbook-on-nutrition-labelling.pdf?sfvrsn=0

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Approved Nutrient-specific Diet-related Health Claims*

A healthy diet with adequate calcium and vitamin D, with regular exercise, helps to achieve strong bones and may reduce the risk of osteoporosis. (State name of food here) is a good source of / high in / enriched in / fortified with calcium.

A healthy diet low in sodium may reduce the risk of high blood pressure, a risk factor for stroke and heart disease. (State name of food here) is sodium free / very low in / low in / reduced in sodium.

A healthy diet low in saturated fat and trans-fat, may reduce the risk of heart disease. (State name of food here) is free of / low in saturated fats, trans fats.

A healthy diet rich in wholegrains**, fruits and vegetables that contain dietary fibre, may reduce the risk of heart disease. (State name of food here) is low / free of fat and high in dietary fibre.

A healthy diet rich in fibre-containing foods such as whole grains**, fruits and vegetables may reduce the risk of some types of cancers. (State name of food here) is free of / low in fat and high in dietary fibre.

* The criteria for use of these health claims (e.g. maximum amount of sodium, fat allowed in product, etc.) can be found under the revised Regulation 9 and the Fourteenth Schedule of the Food Regulations. The approved health claims and criteria are based on HPB’s existing nutrient claims guidelines, with reference taken from currently available guidelines established by major developed countries. ** Refer to regulation 40A98 for the definition and labelling requirements for "wholegrain" products.

Application for Nutrient-Specific Diet-Related Health Claims

STEP DESCRIPTION

Step 1: Ensure your food product meets the relevant criteria for the intended health claim.

Refer to the revised Regulation 9 and the Fourteenth Schedule of the Food Regulations99 for more information.

Step 2: Apply for HPB’s approval for your food product to carry the Healthier Choice Symbol (HCS).

Food products must first pass a pre-market evaluation and be approved by HPB to carry the Healthier Choice Symbol before their applications for use of health claims can be considered.

See HPB’s page on the Healthier Choice Symbol Programme100 for more information.

Step 3: For applications of HCS symbol, please contact Health Promotion Board at email: [email protected]

98 Available in the Singapore Statutes Online under Food Regulation at https://sso.agc.gov.sg/SL/SFA1973-RG1#Sc14- 99 https://www.hpb.gov.sg/food-beverage/healthier-choice-symbol 100 https://www.hpb.gov.sg/food-beverage/healthier-choice-symbol

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Other Claims

Other claims are those not related to nutrition of health claims, and include “organic” and “gluten- free”. The current Singapore Food Regulations do not specify the requirements for the use of claims suggesting that a food product is organically produced or is free of gluten (claims are represented using words like “organic” and “gluten-free” respectively). To ensure consumers’ protection and a level playing field for the industry, SFA currently adopts the guidelines and standard established by the international food standards body Codex Alimentarius Commission* for the use of such claims.

The guidelines and standard can be downloaded from the links below:

Guidelines for the Production, Processing, Labelling and Marketing of Organically Produced Foods (CAC/GL 32-1999)101

Standard for Foods for Special Dietary Use for Persons Intolerant to Gluten (CODEX STAN 118- 1981)102

*The Codex Alimentarius Commission is the international food standards body established by the Food and Agricultural Organisation of the United Nations and the World Health Organisation.

4.2.5 Application for Use of New Health Claims

Besides using the permitted health claims, local food manufacturers and importers can apply for the use of new health claims (i.e. new nutrient function claims and new other function claims).

101 http://www.codexalimentarius.org/download/standards/360/cxg_032e.pdf 102 http://www.fao.org/input/download/standards/291/CXS_118e_2015.pdf

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Application for New Health Claims

STEP DESCRIPTION

Step 1: Ensure that your product does not contain any non-permitted food ingredients. If your product contains non-permitted food ingredients, you must seek approval from SFA to use them. Refer to the Food Regulations103 for information on permitted food ingredients and additives.

Submit your application to: Food Regulatory Management Division Singapore Food Agency JEM, 52, Jurong Gateway Road, #14-01 Singapore 608550

Step 2: Engage a suitable testing laboratory to verify the nutrient content of your products and to ensure the accuracy of the nutrition information declared in your product labels.*

See the list of Singapore Accreditation Council-Singapore Laboratory Accreditation Scheme (SAC- SINGLAS) accredited laboratories.104

Step 3: Download and complete the Health Claim Application Form.105 Ensure that you have attached all required supporting documents (e.g. approval letter or document from national food authorities, verification of proprietary or confidential data, etc.)

Step 4: Submit the completed application form and all supporting documents to:

Food Regulatory Management Division Singapore Food Agency JEM, 52, Jurong Gateway Road, #14-01 Singapore 608550

* The methods of analysis used should be those published in the most recent versions of the Official Methods of Analysis of AOAC International.106 Other collaboratively studied methods such as those published by the International Organisation for Standardisation (ISO)107 and the Nordic Committee on Food Analysis (NMKL)108 are also acceptable. In-house or journal methods with adequate method validation data may be considered if they are validated for the food matrix being analysed.

SFA conducts laboratory testing to verify the accuracy of nutrition information declared in food labels on a regular basis, using the methods of analysis published in the most recent versions of

103 https://sso.agc.gov.sg/SL/SFA1973-RG1#Sc14- 104 http://www.sac-accreditation.gov.sg/cab/acab/Pages/ACTL-Overview.aspx?f=All&a=LAA001 105 https://www.sfa.gov.sg/search?q=Health%20Claim%20Application%20Form 106 http://www.eoma.aoac.org/ 107 http://www.iso.org/iso/home.html 108 http://www.nmkl.org/index.php?lang=en

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the Official Methods of Analysis of AOAC International. New methods may be adopted as and when improvements in methodology are available.

How New Health Claims Are Evaluated

Applications for the use of new health claims are evaluated according to the framework and principles previously established by AVA’s Advisory Committee on Evaluation of Health Claims. The framework and principles are based on Codex Alimentarius’ recommendations on the scientific basis for health claims.

About the Advisory Committee

The advisory committee was formed in August 2009, and is tasked to:

◼ establish the framework and principles for evaluation of health claims in Singapore, based on Codex's recommendations on the scientific basis for health claims;

◼ evaluate and make recommendations on applications for use of other function claims as defined by Codex; and

◼ advise and update relevant scientific developments and legislation relating to evaluation of health claims.

The committee comprises reputable scientific experts with relevant professional training and experience from the following government bodies, tertiary institutions and industry associations:

◼ Agri-Food and Veterinary Authority (now replaced by the Singapore Food Agency)

◼ Health Promotion Board

◼ Health Sciences Authority

◼ SPRING Singapore

◼ National University of Singapore

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◼ Singapore Polytechnic

◼ Republic Polytechnic

◼ Consumers Association of Singapore

▪ Singapore Manufacturers’ Federation

▪ Singapore Food Manufacturers’ Association

▪ Health Supplements Industry Association of Singapore

4.2.6 Singapore – EU Organic Equivalence Agreement

Singapore is not one of the third countries with organic equivalence agreements signed with the EU as listed in the Annex III to Regulation (EC) No 1235/2008.109 Organic equivalence agreements or arrangements refer to equivalent organic production rules and control systems among producing countries. Since organic production in Singapore is barely visible, it is hence not a concerned party to such agreements.

109 Organic Farming – Relations with Non EU Countries, accessed on June 20, 2017. Available at https://ec.europa.eu/agriculture/organic/eu- policy/eu-rules-on-trade/non-eu-trading-partners_en

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4.3 Food Certification and Product Registration

4.3.1 Manufacturing Facilities Registration

Companies engaging in setting up food processing facilities, cold stores or slaughterhouses must apply for a licence from SFA. On the other hand, companies engaging in setting up food storage warehouses must be registered with SFA. Companies applying for a new licence for the three activities (i.e. food processing facilities, cold store, slaughterhouse) will have to pay an application fee of S$ 157.50 (EUR 100) inclusive of 7% GST, while registration of food storage warehouses is free of charge. Below is the application process for setting up the food processing facilities, cold store and slaughterhouse based on SFA’s website.

◼ Before applying for a licence to operate a food processing establishment, cold stores and slaughterhouse, you are required to register with Accounting and Corporate Regulatory Authority (ACRA)110 under the Business Registration Act (Cap. 32); or in the case of a company, incorporated or registered under the Companies Act (Cap. 50).

◼ A licence from SFA is required before you can carry out any food processing or storage for wholesale distribution.

◼ A food processing establishment licence is required if you are carrying out any processing activities to the food products. A food processing establishment which is carrying out processing of meat and/or seafood products falls under “Meat and/or Fish processing establishment”. Other manufacturing activities including central kitchen and repacking of food products falls under “Other Processed Food”. If you are storing meat and seafood products without any processing activities, a cold store licence is required.

◼ All food processing establishments, cold stores and slaughterhouses have to comply with the Wholesome Meat and Fish Act111, Sale of Food Act112 and the licensing conditions.

110 http://www.acra.gov.sg/ 111 https://www.sfa.gov.sg/search?q=Wholesome%20Meat%20and%20Fish%20Act 112 https://sso.agc.gov.sg/SL/SFA1973-RG1#Sc14-

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Conditions of licensing:

Conditions of licensing for food establishments113

Conditions of licensing for meat, fish and egg processing establishments and cold stores114

Conditions of licensing for poultry slaughterhouses115

Conditions of licensing for pig slaughterhouses116

List of cockle processing establishments 117

Step 1: Check suitability of premise's location

◼ Food processing premises, cold stores and slaughterhouses should be located within a food zone area. You may refer to the list of food zones here.118 If the site or building is found unsuitable, you will have to source for another location.

Step 2: Apply to SFA for a licence

◼ Apply to SFA for a licence via online at the LicenceOne website119.

◼ SFA will contact you upon receiving the application. SFA will assess the proposed plans and provide professional advice. The premises must be designed in a way that allows one directional flow to prevent cross-contamination between raw and finished products in compliance with SFA's food safety requirements.

◼ Any shortcomings and appropriate decision will be conveyed verbally during the site inspection. The submitted proposal will be evaluated and an approval notification will be sent to you for commencement of renovation works once the documents are in order.

113 https://www.sfa.gov.sg/search?q=Conditions%20of%20licensing%20for%20food%20establishments 114 https://www.sfa.gov.sg/search?q=Conditions%20of%20licensing%20for%20meat%20fish%20and%20egg%20processing%20 establishments%20and%20cold%20stores 115 https://www.sfa.gov.sg/search?q=Conditions%20of%20licensing%20for%20poultry%20slaughterhouses 116 https://www.sfa.gov.sg/search?q=Conditions%20of%20licensing%20for%20pig%20slaughterhouses 117 https://www.sfa.gov.sg/search?q=List%20of%20cockle%20processing%20establishments 118 https://www.sfa.gov.sg/search?q=list%20of%20food%20zones 119 https://licence1.business.gov.sg/AVA/authentication/showLogin.action

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Step 3: Final Inspection

◼ You will be required to contact SFA upon completion of renovation. A final inspection will be carried out at the premises before issuance of licence. Any non-conformances at this stage will affect the licence approval.

◼ The following additional documents are to be submitted during the final inspection:

Type of Programme Description

Maintenance programme Programme to include maintenance procedures. Draw up schedules for maintaining all equipment, fitting, building and work areas.

Cleaning and sanitation It should include these areas and items: programme • equipment to be cleaned • frequency of cleaning • method of cleaning • staff responsible for each specific task • monitoring arrangements

Waste management Draw up a waste management plan. Waste material should be handled in a manner that avoids contamination to food. To prevent accumulation, waste should be removed from food handling areas frequently and at least once daily. Waste storage facilities, receptacles and equipment should also be cleaned and disinfected regularly.

Pest control programme It has to be both an effective and continuous programme for control of pests. Control measures involving treatment with chemical, physical or biological agents should only be undertaken by or under the direct supervision of a qualified personnel.

Transportation of finished To include details of the mode of transport for the finished products – the internal products construction and the temperature setting of the compartment of the vehicle. All finished products should be transported in covered vehicles under appropriate conditions to prevent deterioration or contamination to the products.

Personal particulars and Officer must be trained and qualified in food hygiene. Responsibilities include academic experience of the overseeing plant sanitation, good hygiene practices and other matters concerning appointed hygiene officer food safety. You can refer to the Form for Particulars of Hygiene Officer120 to submit the particulars of the appointed hygiene officer.

120 https://www.sfa.gov.sg/search?q=Form%20for%20Particulars%20of%20Hygiene%20Officer

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Type of Programme Description

Particulars of food handlers Food production employees (refers to personnel engaged in supervising the preparation of any food in a food establishment). You can refer to the Form for Food Handlers121 to submit the particulars of the food handlers.

Leased (tenancy) A copy of the leased (tenancy) agreement of the premises (if applicable) is agreement required

Step 4: Licence Approval

◼ The application for the new licence will be approved via the LicenceOne system and you will be able to print the licence online upon payment of the licence fee. The details of the approved activities will be printed on the licence.

◼ If you intend to carry out additional trades in the future, you have to write to SFA for approval. Please refer to Responsibilities of Food Establishment Operators122 for more information.

For food storage warehouses, below is the process for registration based on AVA’s website.

◼ A “food storage warehouse” is defined as any building, facility, structure or premise where food is stored for the sale or distribution to other processors, wholesalers or any other business selling or distributing to the ultimate consumer. Warehouse includes coldroom for storage of fruits, vegetables, and dairy products, but it does not include cold store used for storage of meat & fish products. For meat and fish storage, a cold store licence from SFA is required.

◼ A “warehouse operator” will be defined as a person engaged in the business of operating or controlling a food storage warehouse.

121 https://www.sfa.gov.sg/search?q=Form%20for%20Food%20Handlers 122 https://www.sfa.gov.sg/search?q=Responsibilities%20of%20Food%20Establishment%20Operators

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◼ Before applying for a food storage warehouse, you are required to be registered with the Accounting and Corporate Regulatory Authority (or ACRA) under the Business Registration Act (Cap. 32); or in the case of a company, incorporated or registered under the Companies Act (Cap. 50).

Companies that Need to Register

The scenarios described below helps illustrate whether an existing food storage warehouse is required to be registered with SFA:

No. Scenario Yes No

1. Warehouses that are situated at SFA-licensed food processing establishment ✔

2. All existing SFA-licensed cold stores storing only frozen meat and seafood that are already ✔ licensed under the Wholesome Meat and Fish Act

3. All other cold stores storing other processed food products and do not hold an SFA food ✔ processing establishment licence

4. Warehouses that are currently under the purview of other government agencies such National ✔ Environment Agency

5. Importers/traders whom engage third party/service warehouses who had already registered ✔ their warehouses with SFA

6. All other food storage warehouses (none of above) including third party/service warehouses ✔

Warehouse Categories

The registration of the food storage warehouse will start with effect from 1 November 2011. A warehouse is categorised into four categories based on the risk of food products.

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Category Example of Products in this category

I Cheese, butter, ice cream and infant/baby food (High Risk Products)

II Juices, pastries, desserts, fruits and vegetables and soups. (Chilled & Frozen Food)

III Spices, dried goods, chocolates, chocolate confectionery, sauces, cereals, jams, (Food requiring cool spreads, coffee beans, tea leaves, shelled eggs, egg products and alcoholic storage environment) beverages (e.g. beer, wine etc.)

IV Instant noodles, snacks, nuts, canned food products, rice, edible fats and oils, food (Food usually stored at ingredients and bakery products. ambient temperature)

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Application Process

◼ An applicant should submit a duly completed application form for the registration to operate a food storage warehouse on-line via the LicenceOne website123 together with the supporting documents such as layout plan, pest control contract and tenancy/purchase agreement/letter of declaration

◼ The complete warehouse application with all relevant supporting documents will be evaluated and processed within 14 working days. The Warehouse Registration Number will be issued and applicant will be notified via email upon successful registration. A copy of the warehouse approval letter can then be retrieved and self-printed by the applicant via the LicenceOne system.

4.3.2 Organic Labelling

Food and beverage products sold in Singapore are bound for labelling requirement under the Food Regulation. There are several types of claims under which special purpose foods are classified. Each type of claims requires different set of labelling as explained in the earlier section 4.2.1.

For organic labelling, the requirement falls under “Other Claims” (see Nutrition, Health or Other Claims in Section 4.2.4). To reiterate, organic labelling in Singapore does not require specific conditions for the use of organic claim, but the products must be certified organic by the standard and guidelines outlined by the Codex Alimentarius Commission.

According to SFA, there is no set definition of organics. Thus, there is no separate set of import conditions for organic food products specified in the Food Laws. SFA allows entry of organic foods certified by international certified bodies. Among the international certified bodies recognised by Singapore are Australian Certified Organic (http://aco.net.au/), NASAA Certified Organic (www.nasaacertified.com.au) and Organic Food Development & Certification Centre of China (http://www.ofdc.org.cn/en/).124

123 https://licence1.business.gov.sg/AVA 124 IFOAM Accredited Certification Bodies, accessed on June 19, 2017. Available at http://www.ifoam.bio/en/ifoam-accredited-certification-bodies

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Figure 39: Organic Certification Recognised by SFA Sources: Australian Certified Organic; National Association For Sustainable Agriculture Australia; Organic Food Development Centre of the Ministry of Environmental Protection, China

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4.4 Import Regulations

General Import Procedures

As an open market, products and services can enter and exit Singapore relatively freely. All goods imported into Singapore are regulated under the Customs Act, the Goods and Services Tax (GST) Act, and the Regulation of Imports and Exports Act. Imported goods are subject to GST and/or duty payment. A Customs permit is required to account for the import and tax payment of the goods. The current GST rate is 7%. GST is calculated based on customs value of the goods, plus all duties. Before the actual importation, the importer is required to obtain a Customs permit, to account for the import and the tax payment of the goods.

Importing Trade Samples

The Singapore Customs defines trade samples125 as the goods imported solely:

◼ For the purpose of being shown or demonstrated in Singapore to enable manufacturers in Singapore to produce these goods to fulfil orders from abroad or to solicit orders for goods to be supplied from abroad, or

◼ By a manufacturer for the purposes of copying, testing or experimenting before producing these goods in Singapore.

Trade samples should not be sold, consumed, put to normal use, or used for hire or reward in Singapore. Importers of trade samples that are supplied without cost or free of charge must pay GST and/or duty. The relevant import permit (if required) and supporting documents (for example, commercial invoice, packing list, bill of lading/air waybill) for the trade samples must be produced to the checkpoint officers for verification at the time of cargo clearance. Importers must also check if their trade samples fall under controlled or non-controlled items before importation.

125 For more info on this topic, please visit http://www.customs.gov.sg/businesses/importing-goods/import-procedures/importing-trade-samples

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4.5 Import Processes

4.5.1 Before Import

The following diagram from SFA’s website126 simplifies the procedures in importing food products into Singapore. Companies are advised to visit the website for further details on the procedures involved in bringing food products onto the island.

Figure 40: Processes to Follow Before Importing Food Products into Singapore Source: Saingapore Food Agency

126 What You Need to Know before Importing, SFA available at https://www.sfa.gov.sg/food-import-export/commercial-food-imports

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4.5.2 Customs

All imports are regulated under the Customs Act, the Goods and Services Tax (GST) Act and the Regulation of Imports and Exports Act. Imported goods are subject to GST, levied at 7% of the cost, insurance and freight (CIF) value. Dutiable goods which incur both GST and duty are intoxicating liquors, tobacco products, motor vehicles and petroleum products. Other than these, most products entering Singapore are exempted from payable duties. Companies may visit the link below for further details on steps involved in the customs process for importing goods into Singapore: https://www.customs.gov.sg/businesses/importing-goods/quick-guide-for-importers#7s8d6f87

Figure 41: General Flowchart for Importing Goods into Singapore Source: Agri-Food and Veterinary Authority of Singapore

4.5.3 After Import

In Singapore, food and beverage products are controlled by SFA. If there are any issues involving product safety, SFA will have the authority to retract the goods from the market and take any legislative actions on the parties involved, such as no longer allowing the companies to import into Singapore.

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Some types of food imports will be required for inspection when entering the island. Companies may confirm whether their products are bound for inspection by checking their Cargo Clearance Permit (CCP) for conditional approval message. Enforcement can be taken on importers who did not comply with the conditional approval message.

Foods entering Singapore are bound for inspection by SFA. All food consignments are subject to inspection, with some of the products’ samples will be sent to laboratories for analysis. There are cases where consignments will be placed on “hold and test” condition, in which the consignments are not allowed to be sold and distributed until the laboratory results have been released and the sample complies with the food law in Singapore. Companies can make an online booking through the SFA Inspection & Laboratory e-Services (https://ifast.sfa.gov.sg/eserviceweb/) for the inspection of the following items to get the results of ad hoc inspections from SFA:

◼ meat and meat products,

◼ processed eggs,

◼ seafood,

◼ fresh fruits and vegetables,

◼ processed food and food appliances, and

◼ fresh eggs

The following must be presented to the AVA inspector during the inspection process:

◼ Cargo Clearance Permit

◼ Relevant documents such as invoices and health certificates

◼ The consignment of food to be inspected (for frozen raw meat, one carton is to be surface thawed before the inspection)

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Companies are encouraged to visit the website for further details on the inspection requirements at https://www.sfa.gov.sg/food-import-export/commercial-food-imports

Singapore is an open market with no restrictions on imports. Companies may visit the link below for the list of controlled and prohibited products for import into Singapore: https://www.customs.gov.sg/businesses/importing-goods/controlled-and-prohibited-goods-for- import

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5. Annex

5.1 List of Useful Contacts

Singapore Food Agency (SFA) 52 Jurong Gateway Road, #14-01, Singapore 608550 Tel: +65-6805 2871 Fax: +65-6334 1831 Website: www.sfa.gov.sg

Singapore Food Manufacturers Association (SFMA) 9 Jurong Town Hall Road, #04-13, TA Hub, Singapore 609431 Tel: +65-6221 2438 Fax: +65-6223 7235 Email: [email protected] Website: www.sfma.org.sg

Singapore Foods and Vegetables Importers and Exporters Association Block 1 Pasir Panjang Wholesale Centre, #02-07, Singapore 110001 Tel: +65-6775 3676 Fax: +65-6773 1336 Email: [email protected] Website: www.singaporefva.com

Ministry of Health Singapore (MOH) College of Medicine Building, 16 College Road, Singapore 169854 Tel: +65-6325 9220 Fax: +65-6224 1677 Email: [email protected] Website: www.moh.gov.sg

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Health Promotion Board Singapore Health Promotion Board, 3 Second Hospital Avenue, Singapore 168937 Tel: +65-6435 3500 Fax: +65-6438 3848 Email: [email protected] Website: www.hpb.gov.sg

Singapore Nutrition and Dietetics Association (SNDA) c/o Nutrition & Dietetics Department, Khoo Teck Puat Hospital, 90 Yishun Central, Singapore 768828 Tel: +65-6256 6011 Fax: +65-6252 7282 Email: [email protected] Website: www.snda.org.sg

Restaurant Association of Singapore 2985 Jalan Bukit Merah, Singapore 159457 Tel: +65-6479 7723 Fax: +65-6479 8108 Email: [email protected] Website: www.ras.org.sg

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5.2 Starting a Business in Singapore

Why Singapore?

Singapore’s high ranking as the world’s easiest place to do business makes it an attractive investment destination. Its high standard of living, high quality education, advanced infrastructure and technology and low crime rates makes it a popular global city to work and live in.

Singapore welcomes individuals and corporations that are interested in doing business in Singapore. Many global corporations choose to establish their headquarters in Singapore because of its political stability, attractive corporate tax rates, as well as the strength of its legal and financial system. Due to its strategic geographical location, there is an unwavering preference for Singapore as a location for business expansion efforts.

Registering your business

It is easy to register a business, including foreign branch offices, online at Bizfile127 by the Accounting and Corporate Regulatory Authority128.

Generally, European companies have the following options for business formation:

◼ Singapore Subsidiary – a locally incorporated company with the foreign parent company as a shareholder. Singapore allows 100% foreign shareholding. The company is entitled to local government incentives and privileges of tax treaties, which satisfies the qualifying conditions. The Singapore subsidiary has a distinct legal identity from the parent foreign company, and is treated as a local tax-resident in Singapore. This means that the parent company’s liabilities are limited and its assets always remain protected.

◼ Branch Office – a locally registered entity that acts as an extension of the foreign parent. Therefore, its liabilities are extended to the parent company. The revenue generated locally

127 http://www.bizfile.gov.sg/ 128 https://www.acra.gov.sg/Home/

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will be subjected to tax. It will be taxed at the prevailing local tax rate although it is a non- resident for tax purposes.

◼ Representative Office – This type of entity exists for the purpose of market research, administrative or liaison purposes only. It cannot engage in revenue generating activities. This entity is a transitory arrangement only because the registration is valid for one year, and renewable for up to three years maximum; thereafter, it must graduate to a subsidiary or branch office to continue its operations in Singapore.

Business Registration Procedure

All businesses must be registered with the Accounting & Corporate Regulatory Authority (ACRA). This includes any individual, firm or corporation that carries out business for a foreign company. The first step is to seek the ACRA’s approval of the name of the corporation which can be done online.

Once the name is approved, the registration papers and information can be e-filed with ACRA for the registration of the foreign company. The following documents must be submitted as well for registration:

◼ A certified copy of the corporation’s certificate of incorporation in its place of incorporation or origin, or a document of similar effect;

◼ A certified copy of the corporation’s certificate of change of name or a document of similar effect (if applicable);

◼ A certified copy of its charter, statutes or memorandum and articles of association or other instrument constituting or defining its structure;

◼ A list of its directors stating their names, residential addresses, nationalities, passport numbers, occupations and dates of appointment as directors;

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◼ A memorandum of appointment of agents together with an affidavit. There must be at least two agents who must be Singaporean citizens, permanent residents or holders of valid Employment Passes; and

◼ Notice of the location of the corporation’s registered office in Singapore to which all communications and notices may be addressed.

A Singapore address for the business will be needed during the business registration. Businesses that do not require a physical premise can provide virtual addresses, which are offered by many professional service providers. As for businesses that require a physical premise, the individual or company can choose to operate from a home office, retail outlets or flatted factories depending on the nature of the business. Premises must be operated in accordance with the approved business use by the relevant authorities. The body monitoring the requirements of the Companies Act (CA) is ACRA.

Government Agencies

The Singapore government provides support and assistance in all kinds of aspects to help businesses grow in Singapore. European companies looking to set up, operate and establish a business in Singapore will find it easier with assistance from the following government agencies:

◼ Economic Development Board (EDB) – provides comprehensive investor support and ensures a first-rate pro-business environment in Singapore. EDB initiated the Global Investor Programme to help international corporations set up and operate businesses in Singapore. Contact Singapore, an alliance of the EDB assists in this programme by linking entrepreneurs and investors with local business networks as well as facilitating a range of immigration processes for their entry and stay in Singapore. Further information regarding the business opportunities of the programme as well as the application process and requirements is on the EDB’s page or Contact Singapore’s webpage.

◼ Standards, Productivity and Innovation Board (SPRING) – An agency under the Ministry of Trade and Industry that serves as the enterprise development agency for growing innovative

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companies. SPRING aids enterprises in financing, capabilities and management development, technology and innovation, and access to markets for small and medium enterprises to become more established and competitive. SPRING is also the national standards and accreditation body.

◼ ACRA oversees the registration and regulation of business entities and public accountants, and also provides information on new business structures, compliance requirements and corporate governance practices.

◼ SMEPortal.sg – An EnterpriseOne portal that makes an ideal one-stop site for enterprises looking to start, sustain and grow their businesses. It features links to government information and services as well as industry help and how-to guides.

◼ Ministry of Manpower – The manpower ministry provides the formulation and implementation of labour policies related to the workforce in Singapore. The ministry oversees matters related to immigration and issuance of Employment Pass (EP) or working visas to foreign talent and work permit transactions. Its website also contains information pertaining to labour, wages and employment in Singapore.

Business Locations

Businesses have a variety of options to find a commercial premise that best meets their needs. These include the heart of Singapore’s latest financial and business district in the Marina Bay Financial Centre to suburban offices in Jurong Lake District, Tampines and Paya Lebar.

In the industrial space market, there are developers like Ascendas, Mapletree and Soilbuild that offer many contemporary space options, from stack-up factories with dedicated loading and unloading bays, to spaces for wet laboratories and research activities. Government bodies like HDB and JTC Corporation also provide industrial land and space options for industrialists engaging in high value-added industrial activities in Singapore. An example of an innovative and environmentally-friendly industrial space concept is JTC’s multi-tenanted Surface Engineering

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Hub which aims to minimise water and carbon footprint for companies engaging in electroplating and other similar processes.

JTC also develops specialised industrial parks in Singapore like the Seletar Aerospace Park, Tuas Biomedical Park and Jurong Island to support the growth and development of key manufacturing sectors. Such specialised industrial parks provide industrialists with the necessary supporting infrastructure and allow industrialists to leverage the potential synergies by being clustered together. These specialised industrial parks in Singapore have proven to be attractive to companies and remain a cornerstone to Singapore’s industrial development.

Finding a Distributor in Singapore

One good way to establish a local presence is by working with agents and distributors in Singapore. Qualified agents and distributors can be found for most kinds of products. A number of Singapore-based agents cover the ASEAN region as well as Singapore.

Singapore-based trade associations, chambers of commerce, and foreign commercial offices within EU Member State embassies are all good places to start the search for a distributor in Singapore. International business consultants with experience in helping foreign companies can also provide invaluable contributions by facilitating introductions to qualified distributors. It is always best to meet a prospective distributor in person, and to check references.

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5.3 Useful Statistics

Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 49,657 20,834 17,745 21,429 17,178 Netherlands 10,106 9,190 8,508 8,414 7,863 Switzerland 2,664 2,777 3,670 6,775 2,390 Ireland 22,636 1,989 767 1,529 1,829 Australia 246 489 862 1,421 1237 Malaysia 3,724 3,765 781 694 838 United States of 300 229 513 411 690 America Portugal 0 61 699 497 622 New Zealand 452 303 233 370 538 Germany 342 271 222 296 453 Spain 769 1070 757 549 174 Table 23:Imports of Food preparations for infant use, put up for retail sale, of flour, groats, meal, starch and similar products Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 368,023 295,994 224,680 201,112 232,755 Viet Nam 48,672 46,809 66,785 58,142 72,704 Thailand 60,852 50,569 40,632 40,826 43,478 Philippines 17,793 16,817 26,211 19,500 25,023 Malaysia 11,118 11,542 11,407 19,679 18,525 Taipei, Chinese 7,490 9,631 8,643 9,747 13,278 India 1,872 4,071 4,718 5,189 10,549 Indonesia 10,702 10,696 7,956 9,583 10,238 Cambodia 4,919 5,518 4,861 6,618 7,909 Myanmar 144 9 1,473 953 6,994 China 179,227 110,805 36,161 16,903 5,364 Table 24:Exports of Food preparations for infant use, put up for retail sale, of flour, groats, meal, starch and similar products Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 399,963 326,606 268,987 278,440 295,743 Thailand 136,069 108,968 95,867 95,906 106,533 India 105,341 86,155 54,609 56,010 49,629 Viet Nam 61,236 48,874 37,822 40,104 45,029 Australia 38,488 30,867 31,827 32,754 36,863 United States of 33,345 26,119 22,057 22,979 22,858 America Malaysia 1,740 2,535 8,360 12,070 9,208 Japan 3,731 4,102 5,558 6,382 7,036 Canada 4,288 3,749 3,627 2,132 5,914 Cambodia 2,873 4,653 2,736 3,395 4,622 Myanmar 4,328 2,869 1,514 2,048 2,774 Table 25:Imports of Cereals Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 84,980 63,652 38,014 39,231 25,132 Malaysia 726 2,016 2,022 8,267 11,211 Indonesia 80,403 57,506 18,722 24,555 9,348 Benin 198 1,655 2,976 3,323 1,811 Myanmar 49 30 7 114 458 Togo 831 97 - 849 364 Brunei Darussalam 301 260 271 322 345 Nigeria - - 27 - 338 Viet Nam 50 161 161 294 179 Thailand 141 90 607 96 159 United Arab Emirates - - 62 65 107 Table 26:Exports of Cereals Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 1,419,014 1,023,420 874,380 1,003,775 1,103,930 New Zealand 391,310 278,123 208,936 271,065 267,729 Malaysia 198,932 145,986 133,143 144,165 148,917 Australia 250,732 164,979 146,990 154,323 139,882 Indonesia 91,380 85,075 86,120 70,767 103,577 Thailand 47,612 51,209 53,437 54,874 64,669 France 72,056 47,783 38,337 53,604 60,457 United States of 78,411 46,956 29,361 35,605 48,302 America Netherlands 55,206 44,962 37,166 36,215 45,669 Germany 53,717 28,844 24,569 29,826 39,382 Denmark 21,063 15,888 14,293 23,314 28,990 Table 27:Imports of Dairy produce; birds' eggs; natural honey; edible products of animal origin, n.e.s Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 426,100 324,855 266,970 308,195 276,265 Japan 174,535 121,372 86,644 102,247 104,385 Thailand 53,816 57,076 62,180 63,812 78,955 Malaysia 26,616 25,817 22,116 21,425 18,753 Indonesia 12,415 11,643 9,915 6,971 11,125 Philippines 15,374 9,177 10,469 8,594 8,959 Hong Kong, China 8,964 9,605 6,126 8,076 5,860 Syrian Arab Republic 4,075 3,324 4,359 4,916 5,435 Saudi Arabia 21,189 5,073 4,778 5,089 4,779 Qatar 6,339 2,779 3,486 4,150 3,783 Myanmar 9,465 4,484 6,651 12,685 3,202 Table 28:Exports of Dairy produce; birds' eggs; natural honey; edible products of animal origin, n.e.s Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 282,735 282,714 277,568 279,063 304,835 Malaysia 117,171 111,925 110,678 109,495 125,942 Japan 17,458 17,023 20,051 26,565 27,678 United States of 24,714 26,183 23,372 21,722 17,372 America United Kingdom 12,675 14,802 13,816 12,500 15,211 Indonesia 13,414 12,848 12,236 12,251 13,579 Thailand 10,810 11,998 11,755 12,460 13,392 China 15,013 13,585 12,153 11,426 11,797 Germany 6,494 6,881 8,111 7,923 8,882 India 5,368 5,730 6,999 7,904 8,741 France 5,979 5,687 6,220 6,726 6,815 Table 29:Imports of Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 104,146 99,992 86,332 72,854 80,664 Malaysia 13,260 12,237 11,394 10,184 11,457 Japan 10,224 8,852 7,401 7,443 6,514 Hong Kong, China 4,147 3,707 3,943 3,674 5,496 China 4,908 5,549 4,786 4,191 4,845 Philippines 4,747 5,462 4,681 4,395 4,610 Taipei, Chinese 2,821 2,002 2,025 2,224 3,695 Viet Nam 2,669 2,816 3,276 3,275 3,672 Australia 3,540 3,182 3,066 2,827 3,480 United Arab Emirates 5,253 4,972 3,828 3,501 3,336 Brunei Darussalam 3,104 3,590 3,011 2,982 3,281 Table 30:Exports of Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 131,966 102,812 90,564 105,303 136,191 New Zealand 45,691 35,526 29,037 41,303 47,961 Netherlands 25,473 23,198 19,450 13,426 22,713 France 13,889 12,495 11,274 17,273 20,433 Australia 31,726 19,328 16,243 14,417 13,849 India 3,068 3,451 3,654 4,901 5,773 Denmark 2,910 1,779 1,937 3,181 5,516 Belgium 2,148 1,880 2,143 3,474 5,398 Malaysia 1,937 1,423 1,803 1,877 3,077 Germany 2,650 1,499 1,599 1,597 2,443 United Kingdom 355 618 1,703 1,748 2,291 Table 31:Imports of Butter, incl. dehydrated butter and ghee, and other fats and oils derived from milk; dairy Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 44,722 25,557 19,069 12,918 14,194 Japan 24,636 20,137 14,599 9,676 9,924 Australia 489 196 12 4 1,018 Thailand 2,221 432 622 473 835 Myanmar 1,594 679 859 437 659 Malaysia 619 816 274 515 412 Brunei Darussalam 546 206 191 190 257 Cambodia 640 388 77 98 252 Taipei, Chinese 389 16 13 15 234 Indonesia 503 346 269 130 155 Philippines 224 289 896 201 130 Table 32:Exports of Butter, incl. dehydrated butter and ghee, and other fats and oils derived from milk; dairy Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 360,644 297,879 285,413 288,589 273,603 Thailand 77,097 67,327 59,457 58,094 59,025 Australia 73,032 54,490 57,937 59,470 46,967 Malaysia 62,959 44,227 51,379 41,829 33,483 China 28,767 26,798 28,820 28,095 31,604 United States of 42,960 38,397 26,553 30,863 29,120 America Belgium 7,649 5,216 5,629 5,456 7,114 Japan 5,127 4,442 6,317 6,563 6,395 France 6,457 3,976 3,748 4,378 6,092 Taipei, Chinese 3,159 3,104 3,263 3,188 4,350 Germany 4,156 3,315 5,069 6,979 4,336 Table 33:Imports of Sugars and sugar confectionery Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 92,579 83,748 75,740 71,937 89,212 Philippines 1,442 1,907 1,820 4,864 18,072 Malaysia 11,714 12,142 11,469 9,522 12,174 United Arab Emirates 10,853 12,198 12,193 12,793 11,942 Australia 5,370 6,232 5,209 5,996 7,027 China 4,177 4,044 3,913 3,510 5,428 Indonesia 30,800 20,736 11,842 8,213 4,636 Korea, Republic of 1,142 1,378 3,061 3,467 3,785 United States of 3,419 3,429 4,800 2,980 3,731 America Hong Kong, China 1,131 2,396 759 1,445 2,929 Thailand 2,671 2,753 2,470 1,765 2,489 Table 34:Exports of Sugars and sugar confectionery Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 129,446 127,081 134,307 137,433 152,711 Malaysia 41,573 43,749 49,224 49,730 53,529 Japan 16,685 16,072 19,137 18,161 19,258 China 13,602 14,086 14,453 14,942 17,475 Thailand 10,195 9,510 9,197 10,370 12,079 United States of 15,383 14,735 13,746 12,354 11,407 America Korea, Republic of 2,063 2,884 3,614 3,479 6,762 Philippines 1,933 1,565 1,758 2,551 4,674 Taipei, Chinese 3,286 3,353 3,590 3,824 4,211 Australia 4,843 4,410 4,432 4,269 4,051 Italy 2,966 2,767 3,132 3,253 3,200 Table 35:Imports of Sauce and preparations therefor; mixed condiments and mixed seasonings; mustard flour and similar products Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 125,386 131,359 145,476 135,666 132,119 Malaysia 21,982 22,986 23,642 20,474 17,568 Australia 13,519 13,019 12,505 13,288 14,795 Thailand 10,596 11,758 10,788 12,363 13,425 China 8,130 12,022 13,757 14,319 13,404 Indonesia 11,229 11,747 15,827 15,017 12,938 Japan 7,316 6,946 10,551 9,394 8,029 Philippines 6,657 7,892 7,114 6,579 6,724 Viet Nam 2,965 3,100 5,999 4,984 5,296 Korea, Republic of 3,339 3,088 3,463 4,561 4,588 Hong Kong, China 4,927 4,890 5,712 4,662 3,882 Table 36:Exports of Sauce and preparations therefor; mixed condiments and mixed seasonings; mustard flour and similar products Source: Trade Map Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 13,214 12,391 13,443 16,128 16,090 Spain 5,836 5,056 5,539 7,230 7,392 Italy 5,485 5,259 5,829 6,788 6,827 Canada 489 440 550 612 539 Greece 145 259 532 401 362 Australia 124 266 226 141 238 Turkey 608 593 315 289 194 United States of 91 132 72 201 158 America United Kingdom 89 100 69 63 107 France 116 77 98 84 84 Japan 22 32 41 30 28 Table 37:Imports of Olive oil and its fractions obtained from the fruit of the olive tree Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 1,564 1,671 2,509 2,129 2,329 Malaysia 319 297 300 505 569 United States of - 87 536 409 466 America Thailand 28 201 129 142 317 Sri Lanka 173 196 318 416 296 Hong Kong, China 86 107 101 104 124 Maldives 117 131 76 63 121 Brunei Darussalam 36 27 28 105 95 Bangladesh 68 95 92 34 60 Cambodia 48 64 96 60 45 Timor-Leste 14 13 15 22 45 Table 38:Exports of Olive oil and its fractions obtained from the fruit of the olive tree Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 155,934 117,519 110,858 102,593 106,004 China 45,899 45,151 43,024 40,779 38,708 Indonesia 58,953 32,174 34,046 29,610 37,741 Malaysia 12,681 10,941 10,908 10,503 9,677 Hong Kong, China 8,705 7,116 6,672 4,552 4,635 Taipei, Chinese 1,146 2,612 2,014 1,878 2,443 Canada 7,939 5,617 2,967 3,355 2,413 Korea, Republic of 1,473 964 1,434 2,112 2,110 Papua New Guinea 3,522 2,618 2,147 1,032 1,802 United States of 3,547 2,650 2,772 3,148 1,374 America Thailand 3,983 1,881 975 1,641 1,149 Table 39:Imports of Plants and parts of plants, incl. seeds and fruits Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 69,798 53,606 57,173 63,499 54,561 United Arab Emirates 22,244 13,657 19,195 21,686 14,954 Malaysia 13,781 10,047 9,764 9,678 8,730 Saudi Arabia 5,511 9,227 7,403 7,639 7,876 Qatar 2,414 2,614 3,241 4,209 4,068 Macao, China 685 2,223 1,163 3,357 3,960 Hong Kong, China 4,450 6,791 4,555 6,489 3,473 Kuwait 786 895 2,556 2,449 2,300 Taipei, Chinese 9,684 2,884 1,843 2,469 2,191 Japan 2,567 2,122 1,917 2,061 1,719 Timor-Leste 14 13 15 22 45 Table 40:Exports of Plants and parts of plants, incl. seeds and fruits Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 178,602 178,563 147,669 150,177 139,360 Malaysia 47,472 36,879 31,296 27,631 22,746 Viet Nam 25,063 48,742 30,913 23,564 17,871 Netherlands 24,498 20,041 16,343 18,801 12,365 India 15,463 14,322 13,096 12,200 11,728 Mexico 2,609 2,847 3,930 8,063 11,312 Belgium 10,389 9,142 7,706 7,657 10,356 Germany 12,006 8,106 7,275 8,909 9,837 Thailand 7,827 6,479 7,326 7,993 7,908 Japan 4,384 3,641 3,977 4,415 4,811 Korea, Republic of 5,069 7,053 4,868 5,268 4,353 Table 41:Imports of Beer made from malt Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 207,049 189,817 166,338 162,688 139,515 Malaysia 86,479 62,885 76,060 67,762 49,982 Indonesia 25,812 19,848 20,864 27,950 23,400 China 2,241 3,394 3,949 13,292 16,923 Cambodia 23,241 34,546 17,442 14,819 7,853 Viet Nam 10,659 16,491 7,336 7,305 7,195 Australia 8,563 4,645 2,393 2,637 5,369 Thailand 7,039 8,003 4,998 6,459 4,126 Hong Kong, China 509 555 662 2,626 3,597 Korea, Republic of 174 492 1,377 2,926 3,026 United Arab Emirates 649 1,773 1,753 1,604 2,981 Table 42:Exports of Beer made from malt Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 628,818 525,653 489,636 582,338 658,976 France 452,853 379,379 339,507 429,584 475,369 Australia 59,107 49,179 50,852 57,363 71,362 Italy 25,442 20,448 20,993 20,069 25,757 United States of 22,481 17,619 14,946 19,027 23,761 America New Zealand 17,739 14,818 14,498 13,942 15,754 Chile 8,106 6,402 5,960 8,041 10,830 United Kingdom 16,886 16,708 18,590 10,259 10,088 Spain 5,724 4,367 4,988 5,920 7,621 Argentina 2,968 3,400 3,882 4,067 4,135 Germany 3,801 3,602 3,050 2,633 2,343 Table 43:Imports of Wine of fresh grapes, incl. fortified wines; grapes must, partly fermented Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 454,321 434,093 454,800 475,622 503,283 Japan 174,147 182,427 202,438 214,619 231,279 Australia 76,114 74,521 65,220 78,248 74,420 Hong Kong, China 44,870 48,232 60,928 62,928 62,452 Malaysia 28,846 21,282 20,072 18,414 26,094 Thailand 16,402 14,628 15,831 15,476 20,986 China 27,529 11,919 12,522 15,002 17,337 Indonesia 26,494 20,307 19,548 18,126 15,968 New Zealand 11,120 11,300 10,778 12,302 12,144 Viet Nam 10,885 12,169 6,477 8,580 9,852 Taipei, Chinese 10,960 10,543 12,450 8,696 9,200 Table 44:Exports of Wine of fresh grapes, incl. fortified wines; grapes must, partly fermented Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 79,326 73,096 73,662 70,437 76,860 Indonesia 28,381 25,547 23,910 27,087 32,112 Malaysia 10,335 8,825 9,249 8,519 9,252 United States of 14,255 13,603 12,419 9,830 8,022 America Thailand 3,918 3,356 3,397 3,202 3,963 Brazil 2,725 1,899 1,827 2,448 3,831 Korea, Republic of 2,255 2,182 2,327 2,472 2,075 China 2,240 2,377 2,191 1,861 1,890 Taipei, Chinese 1,192 1,407 1,292 1,023 1,458 Cyprus 1,224 1,331 1,964 2,249 1,456 Japan 1,095 1,116 1,234 1,077 1,420 Table 45:Imports of Fruit juices, incl. grape must, and vegetable juices, unfermented, not containing added spirit Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 48,748 43,240 40,559 40,731 42,663 United States of 18,917 17,271 12,562 15,753 21,894 America Malaysia 7,185 6,336 6,101 4,840 4,863 United Kingdom 5,608 465 2,404 2,709 2,709 China 1,423 2,712 1,872 1,957 2,640 Hong Kong, China 3,563 2,581 1,757 1,964 1,927 Netherlands 622 1,531 1,370 1,259 969 Australia 2,198 2,128 2,291 1,289 907 Indonesia 1,630 2,015 2,408 1,358 812 Philippines 1,266 1,208 1,036 943 737 Canada 925 998 1,660 2,036 653 Table 46:Exports of Fruit juices, incl. grape must, and vegetable juices, unfermented, not containing added spirit Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 462,879 429,757 320,269 322,072 290,687 Madagascar 15,897 26,166 63,854 84,897 54,617 Indonesia 132,653 140,842 64,348 53,882 52,359 Malaysia 41,834 39,242 36,072 29,785 29,247 India 17,516 24,917 19,957 15,560 17,685 United States of 19,107 14,711 14,324 15,461 16,414 America China 20,307 14,753 13,658 14,334 16,153 Japan 11,278 10,760 14,817 14,398 12,790 Guatemala 9,130 7,963 5,885 12,293 12,046 Viet Nam 109,617 90,582 13,111 8,021 10,774 Brazil 21,176 7,214 7,466 7,714 8,858 Table 47:Imports of Coffee, tea, maté and spices Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 462,879 429,757 320,269 322,072 290,687 Madagascar 15,897 26,166 63,854 84,897 54,617 Indonesia 132,653 140,842 64,348 53,882 52,359 Malaysia 41,834 39,242 36,072 29,785 29,247 India 17,516 24,917 19,957 15,560 17,685 United States of 19,107 14,711 14,324 15,461 16,414 America China 20,307 14,753 13,658 14,334 16,153 Japan 11,278 10,760 14,817 14,398 12,790 Guatemala 9,130 7,963 5,885 12,293 12,046 Viet Nam 109,617 90,582 13,111 8,021 10,774 Brazil 21,176 7,214 7,466 7,714 8,858 Table 48:Exports of Coffee, tea, maté and spices Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 522,547 528,197 545,664 538,772 549,211 Malaysia 173,536 164,387 165,971 171,031 178,566 China 143,654 153,342 160,175 146,106 146,660 Australia 36,237 39,187 43,713 47,631 48,713 Thailand 28,990 29,251 28,234 28,773 30,414 India 21,832 22,528 27,776 26,127 26,962 United States of 22,494 21,770 20,218 21,029 20,755 America Indonesia 19,886 19,914 18,552 19,362 19,150 Viet Nam 18,617 19,463 21,104 20,173 18,142 Netherlands 10,900 11,301 13,179 16,184 14,527 Japan 8,728 8,077 9,513 10,161 14,036 Table 49: Imports of Edible vegetables and certain roots and tubers Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 28,052 33,765 33,439 23,568 20,337 Malaysia 15,728 15,461 13,131 9,940 9,787 Indonesia 5,477 9,003 11,960 8,719 5,856 Brunei Darussalam 2,334 2,256 1,922 1,612 1,542 Brazil 0 540 726 257 336 Hong Kong, China 240 362 265 307 324 Israel 13 1 48 50 219 Pakistan 49 20 125 17 219 Cambodia 355 286 245 235 205 Sri Lanka 187 168 186 160 189 Viet Nam 129 575 328 115 159 Table 50:Exports of Edible vegetables and certain roots and tubers Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 723,752 687,643 672,310 669,318 681,172 United States of 133,144 119,261 113,560 102,910 100,909 America Malaysia 68,420 68,608 73,859 82,340 84,950 China 79,652 80,199 79,102 66,653 70,376 Australia 57,847 63,667 66,106 60,633 66,218 Indonesia 80,692 65,483 48,328 55,173 50,529 South Africa 53,284 53,424 43,753 48,724 44,722 Thailand 34,334 34,941 32,406 32,734 34,895 New Zealand 35,996 32,995 32,856 30,179 34,570 Philippines 29,378 27,602 24,389 21,626 23,342 India 16,397 13,047 15,424 20,388 19,867 Table 51:Imports of Edible fruit and nuts; peel of citrus fruit or melons Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 195,440 172,144 140,879 136,577 117,030 Malaysia 43,911 39,348 33,385 33,734 31,757 Indonesia 26,234 34,949 25,839 14,092 10,161 Brunei Darussalam 10,002 9,504 9,125 9,300 9,424 Sri Lanka 15,460 12,038 2,899 4,511 5,686 Iran, Islamic Republic 178 563 471 28 5,480 of Brazil 5,233 4,403 5,628 7,475 5,354 Germany 6,654 7,174 5,758 7,707 4,933 Viet Nam 11,948 4,414 5,098 4,812 3,383 India 4,411 5,675 8,039 4,715 3,080 United Arab Emirates 714 413 1,191 1,784 2,797 Table 52:Exports of Edible fruit and nuts; peel of citrus fruit or melons Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 898,467 837,054 810,183 853,500 860,830 Brazil 365,164 338,834 343,649 350,034 356,936 Australia 202,229 197,943 191,147 204,396 206,707 United States of 119,208 82,214 62,175 67,571 68,061 America Netherlands 45,086 48,137 45,360 48,279 53,794 New Zealand 36,887 36,138 27,704 34,825 29,129 Spain 18,211 23,526 25,859 34,030 25,666 Argentina 17,040 13,534 15,641 11,203 17,552 Japan 8,448 10,292 12,427 14,553 17,086 Denmark 14,271 13,349 9,732 10,671 12,671 China 11,205 8,660 10,625 14,193 12,488 Table 53:Imports of Meat and edible meat offal Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 114,178 98,543 108,511 93,761 78,844 Malaysia 30,100 23,891 26,056 54,372 40,933 Indonesia 24,879 51,867 72,126 25,385 24,034 Timor-Leste 6,032 3,193 3,607 5,175 5,122 Maldives 2,259 1,826 1,343 2,458 2,111 Brunei Darussalam 1,251 1,534 1,253 1,542 1,922 Sri Lanka 286 369 631 626 1,105 Brazil 385 217 42 715 935 Cambodia 727 718 181 510 671 Myanmar 1,139 743 435 505 608 Australia 118 298 50 84 204 Table 54:Exports of Meat and edible meat offal Source: UN Comtrade Unit: US Dollar Thousand

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Exporters Imported value Imported value Imported value Imported value Imported value in 2014 in 2015 in 2016 in 2017 in 2018 World 761,805 744,939 790,530 812,680 870,676 Indonesia 128,864 107,079 101,511 100,016 108,486 Malaysia 100,453 98,079 104,377 101,082 102,146 Viet Nam 80,129 71,541 74,709 83,344 93,546 China 68,546 78,788 59,587 76,321 85,507 Norway 71,898 60,748 75,170 77,111 83,211 Japan 41,394 42,778 46,974 50,133 54,388 France 16,861 16,043 35,610 31,821 37,858 India 31,160 28,443 30,946 30,566 33,909 United Kingdom 15,261 18,824 21,268 25,709 27,074 Spain 8,171 11,891 13,179 14,742 25,993 Table 55:Imports of Fish and crustaceans, molluscs and other aquatic invertebrates Source: UN Comtrade Unit: US Dollar Thousand

Importers Exported value Exported value Exported value Exported value Exported value in 2014 in 2015 in 2016 in 2017 in 2018 World 231,826 265,156 264,629 265,143 282,371 Viet Nam 25,616 47,297 48,555 60,556 62,624 Hong Kong, China 32,403 40,550 42,146 43,947 53,698 Malaysia 47,370 37,596 38,363 35,418 33,897 United States of 19,399 18,859 19,744 20,117 20,141 America Indonesia 15,373 13,711 20,684 17,296 18,097 Thailand 5,449 11,426 12,456 13,422 12,032 China 6,654 6,904 8,566 7,852 11,757 Philippines 4,794 9,290 9,787 6,934 9,374 Japan 9,782 13,699 9,024 7,669 9,077 United Kingdom 9,515 9,116 8,807 7,777 8,202 Table 56:Exports of Fish and crustaceans, molluscs and other aquatic invertebrates Source: UN Comtrade Unit: US Dollar Thousand

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5.4 Bibliography

9 places for grain and poke bowls in Singapore, 2017, The Straits Times

Adam Village, 2017, http://adam-herbs.com/

Agri-Food & Veterinary Authority of Singapore, 2017, http://www.ava.gov.sg

Alce Nero, 2017, http://alcenero.asia/

Average Household Budget in Singapore, ValueChampion

Beer Price Index 2016, 2017, GoEuro Travel GmbH

Best bakeries in Singapore, 2018, Honeykids Asia

Bud of Joy: An Exceptional Organic Bakery & Store in Singapore, 2013, Working with Grace

Changi Airport Hits All Time High Of 656m Passengers, 2019, The Straits Times

Cold Storage, 2019, https://coldstorage.com.sg

Consumer-Goods' Brands That Demonstrate Commitment To Sustainability Outperform Those That Don’t, 2015, The Nielsen Company

Countries and Regions: 2017, Singapore

Dairy Products Industry Trends in Singapore, 2019, Craft Driven Market Research

Data.gov.sg, 2018 & 2019

Dining Out, Eat & Drink in Singapore, 2017, Singapore Tourism Board

Dubai, UK and Singapore Top List as Vegetarian-Friendly Travel Destinations For Indians: Survey, 2017, The Huffington Post India

Eat it, then buy it: Restaurants now sell their signature sauces and foodstuff, 2016, The Straits Times

Europe ruling creates new hurdle for EU-Singapore FTA, 2017, Global Trade Review

European Parliament Approves EU-Singapore Free Trade Agreement and EU-Singapore Investment Protection Agreement, 2019, Ministry of Trade & Industry Singapore

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Exclusive: The Singapore Wine Vault - Breaking Out From the Cellar, 2015, Finews.Asia

Food and Beverage to Singapore: Trends and Opportunities, 2017, Australian Trade and Investment Commission (AUSTRADE)

Food and Beverages Singapore, 2016, Innovation Norway

Food Industry Asia, 2017, http://foodindustry.asia

Food Manufacturing Industry Transformation Map to Develop Singapore into Asia’s Leading Food and Nutrition Hub, 2016, SPRING Singapore

Food Regulations, 2017, Singapore Statutes Online

Food Services Transformation Conference, 2018, Nanyang Polytechnic

Infant formula market dries up as mothers return to breastfeeding: report, 2019, Singapore Business Review

Gan Teck Kar Investments Pte Ltd, 2017, http://www.gtk.com.sg

Gourmet Food Store, LLC, 2017, https://www.gourmetfoodstore.com

Health Promotion Board of Singapore, 2018, Healthier Choice Symbol

High steaks: The quest for the best beef in Singapore, 2017, The Straits Times

High-tech farmers cropping up, 2016, The Straits Times

How Singapore's food industry is shaking things up, 2018, The Business Times

IFOAM Accredited Certification Bodies, 2017, IFOAM

International Enterprise Singapore, https://www.iesingapore.gov.sg/

International Monetary Fund, 2018, http://www.imf.org

Lam Soon Group, 2017, http://www.lamsoongroup.com

Launch and workshop of Singapore Standard SS 632 : 2017 Organic Primary Produce, 2018, Singapore Manufacturers Federation

Midstream Consumer (Singapore), 2016, DBS Bank Ltd

Organic Food & Beverage – Singapore Market Study - Page 187 of 192

Ministry of Health Initiatives for 2016: The Fight against Diabetes, 2016, Ministry of Health of Singapore

MOH to ban partially hydrogenated oils: 7 things to know about trans fat, 2019, The Straits Times

Neighbourhood supermarkets are going big with organic products to meet growing demand, 2016, The Straits Times

No Signboard Seafood launches vending machine cluster in Tampines, 2017, The Straits Times

NTUC FairPrice Online, 2017, www.fairprice.com.sg

Organic Farming – Relations with Non EU Countries, 2017, European Commission

Organic Foods – Singapore, 2017, USDA Foreign Agricultural Service

Parliament: Health Minister Gan Kim Yong declares 'war on diabetes'; new task force set up, 2016, The Straits Times

Premiumization opportunities abound in Singapore wine market, 2018, GlobalData

RedMart Ltd, 2019, https://redmart.lazada.sg/

Sassy Mama’s Top 5 Organic Farms in Singapore, 2014, Sassy Mama Singapore

Secrets Fine Food, 2017, http://www.secretsfinefood.com.sg

Setting up a new wine business in Singapore. Is it viable? - A new business owner’s perspective, 2014, New Border Wines & Liquors

Sheng Siong Group – At The Heartland Of The Matter, 2018, SGinvestors.io

Simplyfresh, 2017, https://www.simplyfresh.sg

Singapore economy grew by 3.3% in 2018; enters 2019 with renewed vigour and purpose: PM Lee Hsien Loong, 2019, The Straits Times

Singapore Chocolate Confectionery Sector Report, 2016, Flanders Investment & Trade Singapore Container Port Volumes Up 8.7% In 2018, 2019, Seatrade Maritime News

Singapore Customs, 2018, https://www.customs.gov.sg/

Singapore Department of Statistics (SingStat)

Organic Food & Beverage – Singapore Market Study - Page 188 of 192

Singapore Free Trade Agreements, 2018, Enterprise Singapore

Singapore Inks New TPP Trade Pack with 10 Countries, 2018, Channel News Asia

Singapore Organic Foods, 2017, USDA Foreign Agricultural Service

Singapore retail sales rise 7.6% in January, 2019, The Business Times

Singapore retailers push for premiumisation, 2018, Singapore Business Review

Singapore Tourism Board, tourism statistics

Singapore uncorks Asia wine hub potential, 2014, Financial Times

Singapore wine market resists, 2016, Vinexpro / IWSR

Singapore Wine Vault, 2017, http://www.singaporewinevault.com

Singapore, 2017, The World Bank

Singapore’s First B2B Seafood E-Marketplace, 2018, CVC / Info-communications Media Development Authority of Singapore

Singapore’s Food Farms: A Story of ‘Then and Now’, 2015, Agri-Food & Veterinary Authority of Singapore

Slurp.Asia Rebrands as Cru Hong Kong, 2015, The Drinks Business (Union Press Ltd)

Slurp.Asia to set up in Singapore, 2014, The Drinks Business (Union Press Ltd)

Specialty Beer in Singapore, 2014, Flanders Investment & Trade

The Bakery Products Sector in Singapore, 2018, Flanders Investment & Trade Market Survey

The Food and Beverage Market Entry Handbook: Singapore, 2016, European Commission

The Food We Eat, 2019, AVA

The liquor industry is experiencing 3 seismic changes, 2016, Business Insider Singapore

The Organic Frog, Voilah! Singapore 2016

The World of Organic Agriculture: Statistics and Emerging Trends 2017, FiBL

Organic Food & Beverage – Singapore Market Study - Page 189 of 192

To Market, To Market, 2016, Today Online, Mediacorp Press Ltd

Two S’pore companies try new high-tech farming processes, 2017, Today Online (Mediacorp Press Ltd)

U.S. Organic Trade Data: 2011 – 2016, 2017, Organic Trade Association

What motivates singaporeans to shop at store?, 2016, The Nielson Company

What you can or cannot do under the new alcohol law, 2015, The Straits Times

Where to Buy Sustainable Seafood in Singapore, 2015, Sassy Mama Singapore

Where to Find Organic, Biodynamic and Natural Wines in Singapore, 2017, Robb Report Singapore

Why is Organic Food Getting More Popular in Singapore, 2017, Best Organic Food

Why Singapore’s Grocery Retailers Are A Buy, 2017, Fundsupermart.com

World’s Muslim population more widespread than you might think, 2017, Pew Research Center

Love Child Organics baby food products recalled due to packaging defect, 2018, Ministry of Communications and Information

Craft beer in Singapore: Bars, pubs and microbreweries that serve unique flavours and fresh pints on tap, 2018, Robb Report Singapore

Singapore stakes claim on first organic standard for produce grown by urban and indoor farming, 2019, Food navigator-asia.com

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