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Good Demand for Food Factories

Good Demand for Food Factories

In terms of industrial spaces, there are general industrial factories and also food factories in Singapore. However, not all factories can be used to manufacture food products.

Food factories or food zones are areas where businesses or companies can manufacture food within their premises.

Food Delivery Services Getting Popular

As food delivery services such as GrabFood, Foodpanda, Deliveroo and e-commerce are getting more and more popular, demand for food factory units for sale and for rent are likely to stay strong. There have also been some reports of Gojek which may also looking to enter the food delivery market.

Foodpanda and Deliveroo have also opened their central kitchen in Singapore while some also offer pick up options for customers.

F & B Operators Streamlining Retail Spaces

Many food & beverage operators are also looking to streamline their retail spaces by buying or renting more food factory spaces due to the cost of renting retail spaces in Singapore while the government also encourages more innovation and better productivity within the food industry.

Due to the strong demand, some factory owners are even considering to convert their existing factories which are located close to food factory areas into approved food factories.

Food Factory Locations

Food factories may be found at Admiralty, Mandai, Woodlands, Senoko, Pandan Loop, Fishery Port, Tuas, Tampines, Bedok, Tai Seng, Ubi, Defu and also other locations.

In terms of occupancy and rental rates, areas closer to the central seem to have better occupancy rates and rental rates as compared to areas further from the central region. This may likely be due to the added convenience. Being closer to central region can mean that transportation and travelling time may be reduced which may also help companies with productivity and better overall business performance.

Various Types of Food Factories

There are also various types of food factories such as flatted and ramp up factories. In terms of convenience, ramp up factories may offer more convenience when it comes to loading and unloading of goods or products while companies which do not have that much goods or products coming in and going out may consider flatted factory units.

As for ramp up factory units, the types of vehicles that are allowed to access the ramp will depend on the turning radius and the design of the building. Vans and 10 feet lorries are usually able to ramp up and have direct access to the unit for ramp up developments.

Depending on the nature of your business, you should choose one that is suitable based on your business operations. For example, a catering company with high frequency of deliveries will likely prefer a ground floor or a ramp up unit.