Singapore highlights value creation at FoodAsia2016

FROM productivity to value creation, the food and beverage industry in Singapore is taking steps to emphasize its capability in developing innovative products and solutions for today’s consumer. This shift taking place within the industry has been led by the Singapore Manufacturing Federation (SMF) and International Enterprise Singapore (IE Singapore). Manufacturers are now looking toward innovation, growth, and internationalisation.

Many of the latest products from local companies will be on display at the Singapore Pavilion at FoodAsia2016, from 12-15 April. FoodAsia, a specialised exhibition dedicated to food and drinks, is a part of Food&HotelAsia (FHA), Asia’s premier and most comprehensive biennial trade event for the food and hospitality industry.

Asia’ F&B industry tipped for robust growth

The F&B industry is thriving in the Asia Pacific region as the world economy shifts from the West to the East. According to Euromonitor International, the region’s F&B industry is expected to achieve a turnover of US$3.23 trillion in 2016, and its expansion is forecast to outpace Western Europe and North America ^[1] This prospect has attracted many foreign investors to expand into Asia, resulting in stiffer competition among local and regional F&B players. To compete, the Singapore F&B industry is looking toward creating long-term value and developing strategies that will set it apart from foreign competitors.

“Despite a fall in global trade in 2015, Asia’s total trade with the rest of the world in packaged foods attained 3^rd spot in 2015, behind Europe and the Americas^[2]. Asia Pacific is also projected to have the 2^nd-highest growth rate for packaged foods in the next 5 years^[3]. So even with a modest economic outlook for 2016, there are pockets of opportunities in the region. It is thus imperative for Singapore companies to look beyond our market, innovate and transform their business models, in order to sustain future growth. With a strong ecosystem of food companies in place, the Singapore food and beverage industry is at a prime spot to ride this growth trajectory,” says Mr Lee Yee Fung, Group Director for Lifestyle Business at International Enterprise (IE) Singapore.

Innovative products and solutions

New products and solutions that will be showcased at FoodAsia2016 range from ready-to-cook meals, chocolates, and fish otah.

The frozen retail pack “Hargow Crystal Skin”, which is the first-of-its-kind in the world,  is developed by Tee Yih Jia Food Manufacturing. The skin used to make Hargow, also known as prawn dumpling, is usually hand-made with inconsistent quality. This innovative new product will reduce food preparation time significantly and will greatly benefit restaurant owners and Dim Sum manufacturers.

Another innovative Singapore company, Tan Seng Kee Foods Pte Ltd, uses pasteurisation technology to manufacture fresh preservative-free noodles. These noodles have an enhanced shelf life of six months when stored at a chilled temperature. In addition, The Factory Chocolat, manufacturer of a wide, unique range of freeze-dried fruit chocolates, will be unveiling its Gourmet range at FoodAsia2016. It is one of the local companies that have successfully expanded and exported its products overseas, to Mainland China, Hong Kong, Indonesia,Taiwan, Thailand, and Vietnam.

“FoodAsia2016 is a good platform for us to introduce our new product as it presents a catchment with so many visitors coming from different parts of the world. It creates export potential for our product,” says Mr Ronald Ng, General Manager of The Factory Chocolat.

Working-in-Partnership (WIP) Programme

SMF has in place several initiatives that aim to help local F&B manufacturers create value and to internationalise. Amongst which is the Working-in-Partnership (WIP) Programme. It allows local food exporters to consolidate their efforts and directly ship their products to overseas supermarkets. This will help the food companies to reduce operational costs, while leveraging on the strength of collective branding.

“Innovative practices and technology as well as strategic alliances are important pillars for the Singapore F&B industry to create value, stay competitive in the global and local market, and contribute towards a diverse global food industry. The Singapore Pavilion at FoodAsia2016 allows exhibitors to build networks and distribution channels. SMF helps to make the internationalisation process easier for our exhibitors through the Hosted Buyers Programme, whereby buyers from all parts of the world are brought to meet the exhibitors directly. We are seeing some positive results of food companies’ efforts to expand overseas, especially as the ‘Made in Singapore’ brand becomes increasingly recognised for food safety and high quality, ” says Mr. Sunny Koh, SMF Deputy President and Chairman of SMF Food & Beverages Industry Group.

This year, FHA expects to attract more than 65,000 trade attendees from more than 90 countries and regions. In collaboration with IE Singapore, SMF will be inviting more than 130 buyers from over 60 companies across 18 countries and regions to meet the Singapore exhibitors through scheduled business matching sessions. 

“We are pleased that more local exhibitors are taking up booth space this year. It is a testament to their confidence that the convergence of buyers and exhibitors from across the globe at FoodAsia forms a budding marketplace for the Singapore food sector to develop partnerships and broaden their network with the relevant buyers,” comments Ms. Ting Siew Mui, Project Director of Lifestyle Events at Singapore Exhibition Services, organiser of FHA.

[1] Analysing the 2016 Asia Pacific Food And Beverage Industry

[2] According to International Trade Centre, total trade of packaged foods between each region and the rest of the world are as follows: Europe (USD416b), Americas (USD295b), Asia (USD197b), Middle East and Africa (USD88b), and Oceania (USD40b).

[3] According to Euromonitor, Asia Pacific’s market size for packaged food is expected to grow at a 4.8% 5-year CAGR till 2020. This is the highest growth rate projected after the Middle East and Africa (combined).

Related reports:

What’s driving growth in APAC’s food and hospitality industry?

FHA2016 boasts new attractions

Trainer to aspiring baristas: Learn something new every day