Potential for more UK fruit exports to Singapore

Since leaving the EU, the UK has been focused on establishing its own trade policies and agreements independently, with the goal of enhancing its global trading position. These initiatives are part of a broader strategy to bolster the UK’s economic resilience and global influence.

Southeast Asia is a region that has gained significant interest due to its substantial economic growth over the past few decades. The Association of Southeast Asian Nations (ASEAN) is projected to become one of the world’s largest economic blocs in the near future. As a result, Singapore, a founding member of ASEAN, is among the countries attracting increasing interest from UK fresh produce businesses.

The development of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has also increased interest in the region. This is a free-trade agreement between 12 countries in Asia and the Pacific. The UK joined the CPTPP in 2024, becoming the first non-founding country to do so.

Why Singapore?

Despite having a population of just under six million, Singapore boasts a very high per-capita income and serves as a re-export hub for the Southeast Asian region. Countries such as Indonesia, Malaysia, Cambodia, Vietnam, Myanmar and Hong Kong are all common targets for re-export trade from Singapore.

The country has a well-established and highly consolidated grocery retail market, with modern retail accounting for approximately 80 per cent of the sector. This market is dominated by three major players: NTUC FairPrice, DFI, and Sheng Siong. However, smaller companies like Red Mart, Lazada, Don Don Donki, and Hao Mart are expected to see faster growth through 2027.

Singapore is also a popular tourist destination, attracting just over 19 million visitors annually – more than triple its local population, with Chinese tourists (Singapore’s largest source of visitors) playing a major role in this.

Interest in Singapore is further boosted by the fact that it maintains one of the most liberal trading regimes in the world. Additionally, its own limited land area means that around 90 per cent of its food supply needs to be imported. The UK and Singapore also share a common language and have strong historical ties. Both economies have similar business and legal practices and share similar technical standards.

Potential exports

Some products of interest for UK fresh fruit producers/exporters include apples, strawberries and cherries. In the apple sector, around 38,700 tonnes are imported annually. This market is dominated by China, which accounts for almost 40 per cent of total imports over the last 10 years. Other significant sources of apple imports are South Africa (21 per cent), New Zealand (17 per cent), France (nine per cent), and the US (eight per cent). Over the past decade, UK exports of apples to Singapore have been low and inconsistent, with the highest levels reaching around 65t a year.

For strawberries, imports are much more modest, at just under 4,000t per annum. The supply is dominated by the US, South Korea and Australia, which together account for 85 per cent of total supply. Although UK exports of strawberries have been growing rapidly, the volumes remain small, increasing from no exports before 2015 to around 60t currently.

In the case of cherries, imports are also modest but have slightly increased from 1,800t in 2014 to just under 2,500t.

The US, Australia and Turkey account for almost 90 per cent of total cherry imports over the last 10 years. Indeed, at the moment, UK exports of cherries are hardly on the radar at all.

Britain’s opportunity

British food and drink products have steadily gained popularity in Singapore over the past decade. This trend has accelerated since the advent of Brexit, creating a ripe market for UK exports. In fact, the UK exported almost £15 billion of goods to Singapore last year, and the country has recently entered the top 15 export markets for Britain.

As previously stated, Singapore presents clear opportunities for UK suppliers, but it also poses significant challenges. The current low levels of UK exports – along with strong competition from well-established fruit producers and increasing interest from EU countries – make this a demanding market to penetrate. UK businesses will need to work hard to develop this market. Nevertheless, the presence of companies such as Driscoll’s UK (formerly Berry Gardens) and Worldwide Fruit in Singapore shows success is achievable.

Growth in overall imports is likely to increase, given the expected rise in consumer incomes, as the Singaporean economy continues to recover from the Covid pandemic and tourism rebounds. However, to succeed in this market, a long-term strategy is needed. It is vital for companies to have a clear understanding of the target market. This helps in identifying opportunities and potential challenges.

Edwin Reyes is a senior consultant at Promar International, the value chain consulting arm of Genus plc. He has recently been involved in fresh produce assignments in Southeast Asia, the UK/EU, the Gulf, Africa, Latin America, and China.