Following its departure from the EU, the UK has concentrated on devising its own trade policies and agreements to strengthen its global trading position.
These initiatives form part of a broader strategy to bolster the nation’s economic resilience and enhance its international influence.
Southeast Asia: A Region of Rapid Growth
Southeast Asia has emerged as a focal point due to its impressive economic expansion over recent decades. The Association of Southeast Asian Nations (ASEAN) is on course to become one of the world’s largest economic blocs, and as a founding member, Singapore is increasingly attracting the attention of UK fresh produce companies.
Singapore’s Unique Market Attributes
Singapore, with a population just under six million, boasts one of the highest per-capita incomes and functions as a re-export hub for the region. Its trade channels typically target nations including Indonesia, Malaysia, Cambodia, Vietnam, Myanmar, and Hong Kong.
The nation’s grocery retail market is both sophisticated and highly consolidated. Modern retail represents about 80 per cent of the sector and is dominated by NTUC FairPrice, DFI, and Sheng Siong. Meanwhile, emerging players such as Red Mart, Lazada, Don Don Donki, and Hao Mart are anticipated to grow at a faster pace through to 2027.
Additionally, Singapore attracts over 19 million visitors annually—more than three times its resident population—with Chinese tourists (Singapore’s largest source of visitors) playing a major role. Its reputation for a liberal trading regime and the fact that approximately 90 per cent of its food is imported further enhance its attractiveness. Strong historical and cultural links with the UK, including a common language and similar business, legal practices, and technical standards, also underpin the potential for trade growth.
Market Dynamics for UK Fresh Produce
UK fresh fruit producers and exporters are eyeing opportunities in key products such as apples, strawberries, and cherries.
Apples: Annual imports total around 38,700 tonnes. China leads with almost 40 per cent of imports over the past decade, followed by South Africa (21 per cent), New Zealand (17 per cent), France (nine per cent), and the US (eight per cent). Meanwhile, UK apple exports to Singapore have remained low and inconsistent, peaking at around 65 tonnes per year.
Strawberries: Imports are just under 4,000 tonnes per annum. The market is dominated by the US, South Korea, and Australia—together supplying 85 per cent of the total. Although UK exports have grown from zero before 2015 to around 60 tonnes currently, the overall volumes are still modest.
Cherries: Imports have risen slightly from 1,800 tonnes in 2014 to just under 2,500 tonnes, with the US, Australia, and Turkey accounting for nearly 90 per cent of imports over the last 10 years. UK exports of cherries, however, remain almost negligible.
Opportunities and Challenges Ahead
The popularity of British food and drink products in Singapore has grown steadily over the past decade—a trend that has accelerated since Brexit. Last year, the UK exported nearly £15 billion worth of goods to Singapore, which now ranks among Britain’s top 15 export markets.
Despite the evident opportunities, UK suppliers face significant challenges. Low current export levels, intense competition from established fruit producers, and rising interest from EU countries mean that penetrating the Singaporean market requires considerable effort. Nevertheless, the success of companies such as Driscoll’s UK (formerly Berry Gardens) and Worldwide Fruit in Singapore indicates that market success is attainable.
As the Singaporean economy recovers from the Covid pandemic and tourism picks up, consumer incomes are expected to rise, driving overall import growth. However, a long-term strategy with a deep understanding of the market will be essential for UK businesses to navigate both the opportunities and challenges ahead.
Comments