Consumers around the world are changing the way they spend their money given the difficult and uncertain economic conditions. In Singapore, one way people are adjusting is by eating at home more frequently, according to new research from Nielsen. The result: the average Singapore home is spending more on fresh food, groceries and household items than in recent years, creating opportunities for retailers and manufacturers who know how to effectively leverage this new behavior.
The average household has increased overall spending in these categories by 14 percent, with fresh food spend registering an average of 15 percent growth, with the biggest increased among high-income households. Seventy percent of Singaporeans survey said they changed the way they spend their money with a view toward increasing savings. Almost 75 percent of shoppers said that they now "buy only the essentials" and were making fewer purchases of chocolates, carbonated soft drinks and salty snacks. Basics such as rice, bread, cheese, butter/margarine and infant milk were some of the fastest growing categories.
"Modern day Singaporeans lead hectic lifestyles and are generally tight for time, and convenience is the key driver when deciding where to shop. Supermarkets and hypermarkets meet their needs as shoppers are now able to get all of their fresh food, grocery and household needs under the same roof," said Ooi Pin Pin, associate director, retailer services for Nielsen Singapore. As a result, these outlets have seen their sales of fresh foods post solid growth, while traditional wet markets have continued to decline.
Read the full press release on how Singaporeans are changing how they shop for food here.