Matsunaga Seika Targets Singapore as Southeast Asian Hub for Shiruko Sand Expansion

Japanese snack maker Matsunaga Seika plans to open its first directly operated store in Singapore by 2028, aiming to boost overseas revenue and modernize its retail footprint as Japan’s confectionery market slows.

Business news

Matsunaga Seika, the Aichi‑based producer of Shiruko Sand – a biscuit filled with sweet red‑bean paste and other flavors – announced a multi‑year expansion plan that includes a flagship store in Singapore, slated for opening around 2028. The company expects the new outlet to serve as a regional testbed for product launches, digital ordering, and a tighter supply chain.

Market context

Japan’s snack sector has been under pressure from a shrinking domestic consumer base and an aging population. According to the Ministry of Economy, Trade and Industry, total confectionery sales fell 3.2 % in 2025, while overseas revenue for Japanese food firms rose 7.5 % year‑on‑year. Singapore, with a 5.9 % annual GDP growth forecast for 2026 and a per‑capita snack spend of US$45, offers a comparatively high‑margin market.

Matsunaga’s 2024 financials showed ¥12.4 billion in net sales, with overseas contributions accounting for just 8 % of the total. The firm’s operating profit margin stood at 6.3 %, but analysts note that margin pressure is mounting due to rising raw‑material costs – notably wheat flour, which has risen 14 % since 2023.

What it means

Opening a directly operated store allows Matsunaga to capture full retail margin, bypassing the 15‑20 % cut taken by local distributors. The Singapore location will also pilot a cloud‑based inventory platform that links production in Aichi with regional warehouses, potentially reducing lead times from 45 days to under 30 days.

Strategically, the move signals a shift from a domestic‑centric growth model to a more diversified revenue mix. If the Singapore store meets its target of ¥1.2 billion in annual sales within three years, Matsunaga could raise its overseas share to 15 % by 2030. That would place the company ahead of rivals such as Glico and Meiji, which have struggled to gain traction outside Japan.

The expansion also dovetails with broader trends in the Asian snack market, where consumers are gravitating toward familiar, comfort‑type products with localized twists. Matsunaga plans to introduce a limited‑edition “Mango Matcha” Shiruko Sand for the Singapore launch, leveraging local flavor preferences while maintaining brand consistency.

Investors will be watching the rollout closely. The company’s share price has risen 4.2 % since the announcement, reflecting confidence that the Singapore foothold will offset domestic headwinds and improve earnings visibility.