Hey! Chips Focuses on Local Market Amid Singapore's Growing Snack Industry

The increasing demand for snack food has spurred the growth of the Singaporean market, which, according to Statista, is expected to reach USD 397.70 million in 2024. Over the next five years, the market is expected to grow at a compound annual growth rate (CAGR) of 5.74%, rising to USD 525.72 million in 2029. Companies are capitalizing on this expanding market by launching new products and adjusting their strategies to align with consumer preferences.

Figure 1. Snack Food Market Revenue in Singapore

One example is Hey! Chips, a Singapore-based brand that has shifted its focus from overseas expansion to building a presence in the local market. This strategic pivot has allowed the company to establish itself in the healthy snack category while boosting brand awareness. Hey! Chips has scaled back on its international ambitions, redirecting resources toward strengthening its foothold in Singapore. This approach has proven successful, with the brand’s fruit and vegetable chips now available in major supermarket chains such as FairPrice Finest, Cold Storage, and CS Fresh, as well as in specialty grocers like Little Farms.

Beyond retail, Hey! Chips has gained interest from companies like Singapore Airport Terminal Services (SATS), which approached the brand for collaboration, using its chips as ingredients and garnishes in menu dishes, including desserts. The brand has also made strides by supplying its products to company pantries, a growing market segment that accounts for 25% of its total revenue. In response to this demand, Hey! Chips introduced a range of “mini” snack packs for corporate clients. While these smaller packs are available for purchase in bundles on e-commerce platforms like Shopee, they are primarily produced to serve business-to-business (B2B) customers.

Figure 2. Hey! Chips Range of Mini Chip Products for Corporate Clients

Hey! Chips has actively participated in trade shows and pop-up events in 2024, further enhancing its local presence. However, as the brand gains recognition, it faces growing competition from other healthy snack brands. When Hey! Chips initially entered the market, supermarket buyers struggled to position the brand on shelves, as it fit into multiple categories like healthy snacks and free-from products. Now, competitors are appearing on the same shelves, including in pharmacies, where Hey! Chips products are also sold.

To navigate this competitive landscape, Hey! Chips has focused on increasing its visibility through marketing activations, particularly by hosting sampling events at supermarkets. While not aimed at generating immediate revenue boosts, these events are intended to secure better shelf placement and reinforce brand recognition over time.

Looking ahead, the company aims to introduce a new product line to expand Hey! Chips’ offerings. The company is exploring the possibility of creating seed- and bean-based protein chips, which would align with the brand’s ethos of avoiding chemical additives. However, developing these chips presents challenges, particularly in formulating natural flavorings without resorting to ultra-processed ingredients. For instance, if the brand were to make protein chips with broccoli flavor, their most popular variant, Hey! Chips would want to use their broccoli chips for flavoring. The challenge lies in binding the ingredients without using chemicals.

Hey! Chips began exploring this new product concept in 2024 and estimates that it will take another year before the product is ready for commercial release. While the company’s factory can produce protein chips, the flavoring process requires extensive research and development. Advancements such as those proposed by Hey! Chips are expected to sustain the growth of the snack food industry in Singapore for the remainder of the decade.