Singapore’s wine consumption is approximately 2.6 litres per capita. It has a strong premium wine segment (S$70+ per bottle) accounting for 23% of the market in 2023, and growth of 11.3% in the first half of 2024. Despite the promising data, the Government reported that sales of food and beverages fell by 2.8% in 3/25 compared to 3/24. This has had an adverse impact on the hospitality sector with 3,500 restaurant closures in 2024. The slowing economy, spiraling food cost, labour shortages and high rents are impacting profitability. Newcomers remain undeterred as 3,700 new outlets opened up.
Joel Lim, wine director at Sarika Connoisseur Group, which includes Michelin-starred Buona Terra says, “Business is unpredictable. We saw a drop in consumers in our fine dining concepts. Our casual Italian concept is doing very well though. However, wine consumption in general is declining in all outlets.”
Gerald Lu, founder of Praelum Wine Bistro and president of the Sommelier Association of Singapore, adds, “Average spend has gone down and people are defensive about their disposable incomes. Corporate spend too has come under heavy scrutiny, hence a sizeable shift in revenues.”
Exacerbating the F&B slowdown is Singaporeans’ penchant for travel. A strong currency has made overseas travel even more attractive. For the budget conscious, Johor Bahru across the border is a favourite destination for short breaks to shop and visit restaurants. In 2024, Singapore immigration (ICA) cleared about 230m travellers. The trend is set to continue in light of the 2026 projected opening of the Johor Bahru – Singapore Rapid Transit System (RTS) reducing the trip to five minutes.
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