Singapore: bite-size market shows a taste for snacks - includes related information on Singapore food rules

AgExporter, Oct, 1994

Nearly all members of the trade agree that the star performer is potato chips. The most popular flavors include onion and garlic, barbecue, original and chicken. Other products were also identified as selling well, including prawn and local vegetable crackers, nuts and cheese balls and curls. Corn and tortilla chips are popular primarily among the expatriate community.

The fastest growing market appears to be that for "healthy" snacks, such as those claiming to be low in salt, sugar or cholesterol and those with "natural" ingredients. The government's healthy lifestyle campaign and Western influences have helped create a greater health-consciousness among consumers. One recent success story has been the introduction of fruit chips from a U.S. supplier.

The target market for suppliers is teens and young adults in the age range of 13-35 years. These consumers appear most willing to try new products and are most likely to include snack foods in their diets. Snacking is particularly popular while watching television or attending the cinema. Seasonally, the Chinese New Year is a peak sales period for snack foods, although the more traditional items are favored.

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Hot and Spicy, But Not Too Sweet

The most important factors affecting purchasing decisions are packaging, display and taste or flavor. Package design appears to be more important to consumers than type of packaging, and shoppers often base initial selections on attractive packaging and product displays. Innovative selling ideas also appeal to retailers.

Preferred package sizes tend to range from 80 to 150 grams (roughly 3-5.5 ounces). Larger packages are purchased during the holiday season, but in most cases a 1-pound package is regarded as too large for local consumers, who may feel that consuming this quantity of a snack food is unhealthy.

Taste plays the key role in repeat purchases. Like other Southeast Asian consumers, Singaporeans are accustomed to hot and spicy flavors. They also claim to prefer snack items that are "crunchy and not too salty or sweet." Some U.S. exporters have found that their products are too salty for this market. At the same time, soft cookies have not been well accepted, while corn-nuts were reportedly "too hard" to suit local tastes.

Other factors important in purchasing decisions are advertising and promotion, freshness and availability. The snack category is large, with the continual introduction of new products, while shelf space is limited, especially in convenience stores. Frequent stocking by importers and retailers is very important.

In general, price is not considered to be a major factor in consumer purchasing decisions. However, prices must be competitive, and one buyer reported that value-for-money is a consideration for many supermarket shoppers, who tend to be mothers and young adults. Price is less a factor for convenience store shoppers, who are largely young people attracted to new and exciting products. According to trade sources, consumers are often willing to pay more for imported products.