Processed Fruit and Vegetables in Singapore

PROSPECTS

Upcoming ban on partially hydrogenated oils to affect frozen processed potatoes

Frozen processed potatoes contain trans fats, owing to the partially hydrogenated oils used in the production process. In June 2019, the Singapore Government announced a complete ban on partially hydrogenated oils as an ingredient in food by 2021, spurring reformulation efforts amongst frozen processed potato players.

Foodservice continues to drive volume growth for frozen processed potatoes

The widespread availability of foodservice outlets coupled with the rise in food delivery options are giving consumers less incentive to reheat frozen processed potatoes at home. Purchase occasions for frozen processed potatoes in retail range from catering for gatherings, as a snack or side with main meals, all of which have convenient substitutes in foodservice or food delivery.

Shelf stable fruit continues to be affected by the war on sugar

The government’s ongoing war on sugar has led consumers to watch their sugar intake more closely. Shelf stable fruit relies on a sugary solution as a preservative, making consumers wary of the high sugar content.

COMPETITIVE LANDSCAPE

Shelf stable fruits and vegetables is expected to decline from 2018 to 2019

Major brands in the category such as Hosen and Mili are showing very stagnant or declining growth rates. This is also not helped by the limited marketing activities done by distributors and retailers to boost sales.

Frozen processed vegetables continue to find favour in foodservice

With restrictions placed on hiring foreign workers, tight profit margins and high rental costs, foodservice outlet owners are looking to speed up their kitchen processes with limited manpower. Frozen processed vegetables cater well to this need, reducing preparation time and manpower needed.

Frozen processed potato players to widen variety

Conventional French fries are very mature and consumers are leaning towards newer varieties such as sweet potato fries, wedges, curly fries and hashbrowns. Over the forecast period, innovation efforts are expected to centre around using healthier seasonings, frying oils as well as more exotic potato types.

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