Wellness and grocery sectors outpace apparel in spending shift

State-funded SG60 and CDC vouchers are also reshaping the sector.

Consumers are expected to continue their shift from spending on clothes to health products, but remain strongly value-conscious.

“We believe this shift in Singapore’s consumption from apparel towards health and beauty is likely to continue, supported by the broader wellness trend, whilst supermarkets should keep benefiting from the annualised uplift from SG60 vouchers,” DBS Group Research said in its latest report.

The company said there was a higher allocation of spend on Cosmetics, Toiletries and Medical Goods (Health and Beauty), reaching 7.0% in the first ten months of 2025 (10M 2025) from 6.8% last year. In the same period, consumers also increased spending on Computer and Telecom Equipment to 7.3% from 7.0%.

Both categories delivered solid sales growth in 10M 2025, at 5.1% and 6.1%, respectively. This was driven by volume growth of 6.3% and 8.5%, suggesting purchases are skewing toward value, rather than price-led inflation.

The 57th round of the Singapore Index of Inflation Expectations (SInDEx) survey showed that the one-year-ahead inflation expectations of consumers decreased to 3.3% in September 2025 from 3.5% in June 2025.

“The results indicate that whilst inflation expectations have eased, uncertainty remains high as opinions diverge on the inflation outlook for the next year,” the poll said.

Meanwhile, supermarket sales volume increased 3.2% in 10M 2025, which may be pointing to a higher frequency of dining at home, DBS said.

“This likely reflects the outsized CDC [Community Development Council] voucher support, with half of the allocation usable only at supermarkets. Supermarkets also remain the largest retail category by value, at 20.6% of the basket in 10M 205, up from 20.2% in 10M 2024,” it said.

RHB also said in its report that “the continuation of CDC and the new SG60 vouchers will enable Singaporeans to purchase food at hawker centres, coffee shops, food courts, and supermarkets. The enhancement to climate vouchers will enable greater purchases of climate-efficient products.”

Some of the players that benefited from the growth are the Singapore-centric supermarkets.

“Sheng Siong benefitted on multiple fronts in 2025 – robust macro, population growth, construction boom and government support measures (SG60 & CDC vouchers) that continue to fuel resilient consumption,” Maybank said.