SG F&B Industry Performance: Sluggish but with hope?

Let's get down to the facts and fast. In 2024, we saw the F&B industry experience a mutated growth, highest annual churn rate in nearly 20 years, COGS at a headwind and regionally Singapore did poorer as compared to his neighbours and ancestral cousins.

SG: High Hopes, Hard Lessons, and Hungry Diners

Coming off a pandemic fuelled sugar high, Singapore’s F&B scene in 2024 hit a bit of a reality check. After an explosive +22% growth in 2022 and a healthy +8% in 2023, growth basically flatlined in 2024. Official numbers show almost 0% growth, maybe even a tiny dip. In total, F&B services raked in around SGD 15.1 billion for the year, but the party mood definitely cooled. Let's dig deeper.

When “More” Became “Meh”

By December 2024, monthly indices showed only a +1% year-on-year increase, a big yawn compared to the double-digit surges before. Full-service restaurants barely squeaked out +0.2% growth, while fast food outlets grew around +1.4%. This is just proof that Singaporeans are still dining out but they’re leaning more toward quick, cheap, and cheerful bites rather than sit-down splurges.

Close One, Open Another

The industry saw its highest churn in nearly 20 years: over 3,000 F&B outlets closed in 2024, thanks mostly to soaring food prices, rent, and utility costs. Yet, 3,793 new places opened which is a net increase. Survival of the nimblest, really. New concepts (especially casual or niche offerings) kept popping up, but overall, the outlet count only grew about +0.5% CAGR from 2019 to 2024, reminding everyone that Singapore’s F&B market is crowded and cutthroat. Just look at how many cafes we have here in a one kilometre radius.

“I’ll Take Away, Thanks”

Food delivery and takeaway aren’t just habits now. They’re practically part of Singaporean DNA. By late 2024, about 24–25% of total F&B sales happened online. Diners came back for social meals, boosted by mostly tourism, but locals also became way more price-conscious, partly because the strong Singapore dollar made overseas spending more tempting. Why spend here on a cup of starbucks when I can spend it on lunch acorss the border. Plus, there’s a clear health kick happening with vegetarian menus, plant-based options, and eco-conscious branding exploded in popularity, and businesses jumping on the wellness train to stay relevant.

Inflation Ate the Menu

Running a restaurant got brutally expensive- I would know having been an entrepreneur for years in this industry. Singapore, which imports approximately 90% of its food, felt the full brunt of global inflation. In 2022, F&B operators already spent S$3.6 billion on goods and materials, and it only got pricier through 2023 and 2024. Staples like cooking oil and veggies? Up. Utility bills? Through the roof. Smaller restaurants got squeezed hard, unable to fully pass costs to consumers who were already clutching their wallets. Those that survived had to get scrappy slimmed-down menus, bulk buying, tech upgrades - anything to keep profits from disappearing like a plate of free satay.

Adapt or Be Forgotten

Ultimately, consumer habits steered the entire F&B ship in 2024. Fast food joints, hawker stalls, and delivery apps won big, catering to busy, budget-conscious, tech-loving Singaporeans. Fine dining spots? Some struggled with empty tables and lost local diners to cheaper overseas feasts. Health and wellness trends also meant sugar-free drinks, salad bowls, and sustainable packaging became not just “nice-to-haves” but must-haves. Businesses that could pivot to meet the demands for fast, affordable, healthy, and eco-friendly options stayed afloat. Those that didn’t? Well, they’re probably part of the 3,000+ that closed.

So how does it compare with our neighbours?

APAC: Full Plates, Fast Growth, and Fierce Competition

Across Asia, the food and beverage industry in 2024 was on a roll and not the kind you dip in soup. The region’s F&B sector shrugged off pandemic blues and charged ahead, especially in fast-growing markets. While Singapore was busy catching its breath, the rest of Asia was setting the table for a major feast.

Hungry for More

Asia’s F&B industry grew faster than many mature markets, with the Asia-Pacific foodservice sector valued at a whopping $1.6 trillion in 2023 which is still slightly below the 2018 peak of $1.7 trillion. In 2024, growth picked up again with Southeast Asia’s foodservice segment alone hitting US$192.4 billion. Emerging economies led the charge with Indonesia’s F&B growing by 4.5% in 2024, and India becoming second contender. China, freshly unshackled from COVID restrictions, posted a strong rebound too but still has some catching up to do. Overall, Asia’s F&B industry saw mid to high single-digit growth, while emerging markets often clocked double digits, indicating a clear contrast to Singapore’s near-zero performance.

Open Kitchen, Open Wallet

Restaurants, cafés, and fast-food chains "mushroomed" all over Asia in 2024. Southeast Asia’s ASEAN markets made up 96% of the region’s F&B scene, with thousands of new outlets popping up. Indonesia and Vietnam saw fast-food and café booms, while Japan and South Korea played it stable like a perfectly brewed cup of matcha.

Compared to Singapore’s modest 0.5% outlet growth per year, emerging Asia felt like a non-stop opening party and the guest list isn’t slowing down anytime soon.

//Click, Munch, Repeat //

Asian diners in 2024 were wired and ready to eat. Digital dining was massive with food delivery platforms and cloud kitchens exploding in prominence. Southeast Asia’s online F&B sales are expected to hit US$38 billion by 2025, and 2024 was right on track.

Health consciousness is also going mainstream. Plant-based proteins are no longer about “fake meat”. Consumers now want cleaner labels, real health benefits, and less processed junk. Restaurants raced to add salad bowls, fresh juices, and guilt-free menus.

Inflation also sharpened wallets. In countries like the Philippines and Malaysia, 69% and 48% of consumers respectively ranked low prices as the top priority when choosing food. "Premium affordability" became the magic formula and diners wanted the good stuff without the terrifying prices.

Sustainability mattered too. Over 65% of Southeast Asian consumers preferred brands with clear eco-credentials, leading to a boom in recyclable packaging, ethical sourcing, and farm-to-table bragging rights.

Meanwhile, local flavors stayed strong, just dressed up for modern Instagram feeds. Just think of kimchi burgers, Thai milk tea croissants, and Japanese matcha frappes. Snacking culture boomed, low to no-alcohol drinks gained ground, and everyone wanted food that fit into their grab-and-go, always-busy urban lives.

Inflation, Again?

Costs turned spicy in 2024. Global commodity prices stayed high thanks to lingering supply chain chaos. Countries like Indonesia and the Philippines, which rely heavily on imports, felt it badly for mainly imported wheat, dairy, meat etc.

Some lucky agricultural economies stabilised costs with strong harvests, but generally, food inflation stayed above normal levels. Governments stepped in with subsidies and price controls in some places. Restaurants? Well, they hustled hard cutting portion sizes, raising prices, sourcing more locally, or just quietly shrinking the steak and hoping nobody noticed.

Consumers noticed. In some countries, diners traded down to cheaper eateries or cooked more at home, squeezing restaurants’ margins even tighter.

Be at the Table or on the table

In Asia’s F&B market, it was survival of the fittest and fastest. Delivery apps ruled, and even street vendors jumped onto GrabFood and Foodpanda to survive. Luxury hotels rolled out takeaway menus, and fine-dining chefs started Instagramming bento boxes. Health and wellness trends reshaped menus, while affordability kept a firm grip on middle-class wallets.

At the same time, emerging middle-class diners also fuelled growth in premium niches while gourmet burger joints, specialty tea shops, and artisanal coffee cafés thrived in big cities.

Bottom line? The winners of 2024 were the brands that listened - those who served up the perfect mix of fast, healthy, wallet-friendly, and culturally tuned-in experiences. Ignore consumer behavior at your peril because this competition has no patience for slow movers.

A Buffet of Opportunity

If 2024 was big, 2029 looks even tastier. Southeast Asia’s total F&B market (retail and foodservice) stood at US$667 billion in 2023 and is projected to balloon to US$900 billion by 2028, growing at around 6.99% CAGR. And the foodservice segment is set to almost double, from US$192.4 billion in 2024 to US$349.0 billion by 2029 (+12.65% CAGR).

Singapore’s Outlook 2025–2029

After recovering from its pandemic food coma, Singapore’s F&B industry is heading into a phase of slow but steady growth, which is the culinary equivalent of sipping a warm kopi and pacing yourself. No fireworks, but no crashes either.

Market Growth: Small Bites, Steady Appetite

According to GlobalData reports, Singapore’s F&B market is expected to grow at a mellow +4% CAGR through 2029. Annual foodservice revenue should climb from SGD 15.1 billion in 2024 to about SGD 18.4 billion (roughly US$13.9 billion) by 2029. Tourism will help boost restaurant spending, especially in 2025/26 as Chinese and regional travelers flood back. Add in a slowly recovering economy and higher resident incomes, and there’s enough fuel to keep the dining scene simmering but just don’t expect a roaring boil.

Out with the Old, In with the Small

Outlet growth? Think more slow trickle than flood. Expect a modest +0.5–0.6% CAGR increase in the number of outlets by 2029. High rents and manpower costs mean big flashy restaurants are out, while smaller concepts like cloud kitchens, automated kiosks, and takeaway-only setups may soon return ( even though cloud kitchens didn't prove effective in Singapore markets). The outlets that survive will be more tech-savvy, nimble, and laser-focused on squeezing the most dollars per square foot.

More Salad, More Apps, Less Cash

Singaporeans in 2029 will be even more digital, picky, and health-conscious than they are today. Cashless payments and app-based ordering will be basically universal. Expect more menus offering farm-to-table produce (aligned with Singapore’s goal to locally produce 30% of food by 2030), more plant-based or even meat-imitation dishes, and AI apps that remember your favourite bubble tea toppings better than your own friends. Premium dining experiences like chef’s tables and tasting menus will thrive among the higher-income crowd, while everyone else will still hunt for good deals.

Robots in the Kitchen

By 2029, robots won’t just be washing dishes. They’ll be flipping burgers, taking orders, and maybe even delivering your chicken rice. Automation will be the name of the game, from robotic kitchen arms to AI-designed menus. Data analytics will guide everything from dynamic pricing to promotions, and if regulators allow, drone and autonomous vehicle deliveries might just become reality by the end of the decade. Tech won’t be a luxury anymore; it’ll be survival.

The Fine Print

Singapore’s economy is expected to chug along at ~2–3% annual GDP growth, with inflation stabilising at sensible yet skeptical levels. Labor and rent costs will stay annoyingly high though.The government might chip in with tech grants or hawker support programs, but also expect more public health nudges and more sugar taxes, more healthy eating campaigns ( we have already started with sugar but I'm sure its just the beginning). On the manpower side, tightening foreign worker quotas could push F&B players even faster into automation and smarter staffing models.

Outlook Summary: 2029, Served Hot (and Efficient)

Bottom line: Singapore’s F&B industry will grow modestly (~4% CAGR), but the real story will be how it evolves. By 2029, dining out will be more convenient, digital, health-conscious, and sustainability-driven. High costs and fierce competition will force businesses to innovate or get eaten alive. Quick-service spots, premium cafés, and tech-powered eateries will flourish, while traditional mid-range restaurants will need serious reinvention to stay relevant.

Singapore’s title as a global culinary hub looks safe but staying at the top will take a lot more than just good laksa.

Conclusion

Singapore’s F&B scene isn’t fading. It’s simply growing up, getting a little smarter (and a lot more digital) after a wild few years. The sugar rush of post-pandemic spending is well and truly over, replaced by a slower, steadier pace where survival isn’t about who’s the fanciest, but who’s the fastest, fittest, and most flexible. Across Asia, the story is different - Markets are booming, outlets are popping up like bubble tea shops on every corner, and consumers are hungry for both innovation and affordability. Singapore, meanwhile, is playing a quieter but cleverer game by trading mass expansion for niche growth, robot chefs, and tech-fuelled experiences.

The next few years will be less about chasing trends and more about mastering the basics which is great food, sharp pricing, sustainable practices, and unforgettable experiences. Brands that can balance quality with value, convenience with creativity, and tech with a human touch will not just survive but thrive.

The buffet is still open. But to stay at the table, Singapore’s F&B players will have to bring more than just a good menu. They’ll need resilience, reinvention, and maybe a robot or two.

Do check out the continuation of this article on the topic of Asia's F&B Industry's 5 year projection by Segment.

Note: These are just opinions from my personal research narrated in the form that my mind speaks to myself everyday ( don't worry, I am not insane.. yet). They are backed by statistics that I have attained as part of my consultation work and experience in the F&B industry. No hard feelings or offence to anyone hor!