Singapore Franchising
The global franchise market is poised for significant growth, with projections indicating a total value of USD $1.6 trillion between 2022 and 2027, with a notable acceleration at an impressive compound annual growth rate (CAGR) of 9.58%. The Singapore franchise market is positioned for promising expansion, fueled by the city-state’s robust and resilient business environment.
Singapore’s diverse consumer base, high per capita income, low entry barriers for foreign brands, and the absence of specific statutory regulations for franchising provides an ideal launchpad for international franchisors. Singapore also serves as a gateway into other emerging markets in Southeast Asia and the city-state’s reputation as a global financial hub, attracting investors for future investments.
Despite the departure of some U.S. franchisors from Singapore, such as Chili’s, Clinton Street Bakery Company, Cold Stone Creamery, Fatburger, Spinelli Coffee and Tony Romas, the market witnessed an influx of new U.S. franchise brands like Cinnabon, Jamba Juice and Van Leeuwen Ice Cream.
In 2023, Singapore has emerged as the latest destination for global brands seeking expansion beyond their home countries. While the coffee market in Singapore is already saturated with formidable competitors like Starbucks, The Coffee Bean & Tea Leaf, and local coffee chains, new entrants such as South Korea’s Compose Coffee, China’s Luckin Coffee and Cotti Coffee, Indonesia’s Kenaga Coffee and Fore Coffee, Canada’s Tim Hortons, and Taiwanese Miracle Coffee and Louisa Coffee are establishing their presence. Despite the competition, Singapore’s coffee market is expected to register a 3.2 percent CAGR between 2022 and 2027.
Recent franchise concepts from international brands cover desserts, coffee chains, bubble tea, and food promoting a healthier lifestyle, including plant-based concepts and Korean cuisines.
U.S. franchisors interested in exploring franchise opportunities can connect with Ms. Mishell Arwan at the U.S. Commercial Service in Singapore.