Singapore Sugar Market - Forecasts from 2022 to 2027

The Singapore sugar market was valued at US$171.84 million in 2020 and is expected to grow at a CAGR of 3.24% over the forecast period to reach a market size of US$214.86 million in 2027.

Sugar is obtained from either extracting the sugar beet or sugar cane plant, after that it can be made into different forms. Many industries these days are increasingly using sugar for different purposes such as bakery, confectionery, canned food, frozen foods, pharmaceuticals, and so on. Also, many people consume a lot of sweet dishes and desserts so the demand for sugar is more which will augment the market growth Additionally, increasing investment and product innovation by major players coupled with new product launches may further bolster the growth of the market.

Online channels to grow substantially

Singapore is seen as a launch pad into Southeast Asia and a showcase market for the region. According to Macrotrends, the per capita income was $64,010 in 2021, which makes Singapore one of the most affluent countries in Asia. According to the ITA (International Trade Association) in 2021, the Singapore e-commerce market was valued at US5.9 billion and was projected to rise to USD 10 billion by 2026. Further, according to the ITA, the city-state has more than 3 million e-commerce users, with the highest basket size registered at $67.40. This high e-commerce penetration in the region is thus expected to boost the online channels of distribution.

Further, according to DataReportal, there were about 5.45 million internet users in Singapore in January 2022, showing an increase of 0.8% between 2021 and 2022. Further, according to the data, internet penetration in the country stood at 92% in January 2022, with the number of mobile connections at a staggering 147% of the total population. Thus, this growing internet population in the country is further projected to drive the online channel of distribution in the projection period.

Restraints

People in the country have been experiencing a shift in their eating habits and growing diet consciousness, thus decreasing their sugar intake. This factor is expected to constrain the growth of the market. According to the Bloomberg Global Health Index in 2021, Singapore was found to be ranked the 8th most healthiest country across the entire globe.

Further, government initiatives to keep up with the health standards of the nation are expected to act as restraints towards the growth of the market. The Ministry of Health, of the country in August 2022 introduced the Nutri-Grade, which is to be implemented by the end of 2023. The system will be used to grade pre-packaged drinks from December 30, 2022, and will be extended to include freshly-made drinks, under the plans announced by the ministry. Under these measures for pre-packaged drinks, the grading system will range from A to D, with D being the unhealthiest. Those highest in sugar and saturated fats will get either a C or D rank and will be required to display the Nutri-Grade label on the packaging. It will be color-coded - A (dark green), B (light green), C (orange), and D (red). Drinks that are ranked D will be prohibited from advertising. This measure is thus expected to restrain the growth of the sugar market in the country as the initiative drives the brands to focus on low-sugar products in order to avoid an advertisement ban.

COVID-19

The outbreak of the COVID-19 pandemic affected the market negatively. The pandemic resulted in the implementation of nationwide lockdowns and social distancing measures in the country, which affected the production, as well as the distribution of the crops to obtain sugar. Further, the lockdowns also mandated the shutdown of offline retail stores in the country, which are still a major source of distribution, thus making the market dip even further.

Market Segmentation:

By Form

• Granulated
• Powdered
• Syrup

By Source

• Cane Sugar
• Beet Sugar

By Use

• Food and Beverage
• Pharmaceuticals

By Distribution Channel

• Online
• Offline