DBS Group Research said consumers' growing preference for at-home meals bodes well for the long-term growth outlook of Singapore's premium grocery market, The Edge Singapore reported Wednesday.

The premium grocery sector has pointed to a rebound post-pandemic, supported by data showing higher spending per person among private households, the report cited DBS analysts as saying.

On the other hand, the food and beverage retail segment has weakened following the pandemic, the report cited the analysts as saying.

Dampened private consumption in China, a boost in foreign funding for Southeast Asian economies, and margin improvements due to normalizing commodity prices define the sector's near-term prospects, the report cited the equity research firm as saying.

DBS selected DFI Retail Group Holdings (SGX:D01) and Thai Beverage (SGX:Y92) as its top picks in the sector, the report said.

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