Despite Slower Formation Rates, F&B Sector Still Holds Appeal for Entrepreneurs
The food and beverage (F&B) industry in Singapore has seen a slowdown in business openings in 2024, with the formation rate for new F&B entities at its lowest in eight years. According to data from the Accounting and Corporate Regulatory Authority (Acra), the formation rate for the first nine months of 2024 was 11%, down from 14% in the same period the previous year.
Although the formation rate has declined, the absolute number of formations remains relatively high, with 2,937 new F&B businesses launched. This number is the second-highest in the past eight years. Despite the challenges of rising costs, experts believe the F&B sector continues to hold attraction for entrepreneurs, with opportunities for growth still present.
