Market Analysis Food and Beverage Industry Singapore

Question: Conduct a comprehensive Market Analysis for "FOOD AND BEVERAGE INDUSTRY" in SINGAPORE. There are few areas that need to be discussed in this report: 1. Market Size (current and future) 2. Market Trend 3. Market Growth Rate 4. Market Profitability 5. Industry Cost Structure 6. Distribution Channel 7. Key Success Factors Answer: Introduction The food and beverages industry is growing steadily in Singapore the growth rate for the different types of establishments are steady but not overwhelmingly fast. So, there is market opportunity for the new entrants but the market is already almost saturated and the relation of the different types of establishments like the restaurants, fast food chains, caterers and other utilities. Market analysis Market size The market size is substantial and growing steadily and it can be seen in the number of establishments that is growing at the rate of approximately 1% over the years. It can be proven by the supporting data from the key indicators of food and beverages industry in Singapore 2013 (Wirtz and Chung, 2015). So it can be said that the industry will continue to grow at a steady rate and the new entrants will have a small window opportunity to enter the market in future. Market growth rate The means of predicting market growth is the method of analysing historical data to predict the growth but is not accurate. The better method of doing the same is the prediction of the driving forces behind the changes like changing income levels or changing demographics. In this case in Singapore the growth rate is small but steady (Henderson, 2015). So, the future for any new business is totally dependent on the performance of the establishment and their market strategy. Market trends The market in the food and beverages industry is indicative of the trend of low number of new entrants and it is also indicative of the performance of the current establishments. Market profitability This is the indicator of the profitability of the market and the although the different establishments have different rates of profit based on the different factors like market strategy and sector the average profitability works to indicate the fact that how hard it is to make money in the sector so the market profitability is one of the main points that is to be analysed by the new entrants to see if the business in the sector will be adequately profitable or not (Khusaini, Ismail and Rashid, 2016). Industry cost structure Industry cost structure is the indicator of the cost of operating in the market in the sector and it can also be used to see where the management can cut costs by adapting new methods of operation and manage costs to generate competitive advantage over the competitors. So, it is important to determine where the value is added in the business and how that affects the performance to increase customer satisfaction and generate customer loyalty. The industry cost structure is one of the most important indicators to determine if the business can triumph over the others or not. Distribution channels In the industry the existing channels are operating efficiently and the room for new channels is very small. So, if there is a definite advantage over the old channel only then a new channel can make its place and the low equity products can afford the bargaining power of the businesses over the manufacturers in the industry. Key success factors The key success factors of the business are technological advanced processes, the better access to resources, unique materials and products; so the businesses need to have definite advantage over the others to become successful (Baker and Friel, 2015). Conclusion It is clear from the analysis that the market entry is not very easy but to find any advantage over the existing business in the sector is even harder, so an entrepreneur has to judge correctly the opportunities and threats to make a business successful. Referances Baker, P. and Friel, S., 2015. Transnational Food and Beverage Corporations, Food Systems Transformations and the Nutrition Transition in Asia. RegNet Research Paper, (2015/61). Henderson, J.C., 2015. Halal food, certification and halal tourism: Insights from Malaysia and Singapore. Tourism Management Perspectives. Khusaini, N.S., Ismail, A. and Rashid, A.A., 2016, February. Investigation of the prominent barriers to lean manufacturing implementation in Malaysian food and beverages industry using Rasch Model. In IOP Conference Series: Materials Science and Engineering (Vol. 114, No. 1, p. 012090). IOP Publishing. Wirtz, J. and Chung, L.M., 2015. Singapore: Macro Trends and their Implications for Consumer Marketing. In Proceedings of the 1997 World Marketing Congress (pp. 441-443). Springer International Publishing.