THE HONG KONG FOOD MARKET - With Focus on Healthy Products - Switzerland Global Enterprise
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
With Focus on Healthy Products THE HONG KONG FOOD MARKET OFFICIAL PROGRAM PARTNER
THE HONG KONG FOOD MARKET
This report provides a comprehensive reference for Swiss
companies wanting to expand and/or develop in the Hong
Kong food market. It contains market insights on the rapidly
changing food market, especially for Food & Beverage and
Healthy Foods.
Date: March 2015
Language: English
Number of pages: 35
Author: Fiducia Management Consultants
Other sectorial Reports: Are you interested in other Reports
for other sectors and countries? Please find more Reports
here: s-ge.com/reports
DISCLAIMER
The information in this report were gathered and researched from sources
believed to be reliable and are written in good faith. Switzerland Global
Enterprise and its network partners cannot be held liable for data, which might
not be complete, accurate or up-to-date; nor for data which are from internet
pages/sources on which Switzerland Global Enterprise or its network partners
do not have any influence. The information in this report do not have a legal or
juridical character, unless specifically noted.
Contents
4.3. DIETARY SUPPPLEMENTS ______________ 22
1. FOREWORD____________________________6
4.3.1. Market Development ___________________ 22
2. INTRODUCTION ________________________7 4.3.2. Main Players ________________________ 23
4.3.3. Distribution Channels __________________ 23
3. FOOD & BEVERAGE MARKET ____________8
4.3.4. Opportunities and Suggestions to Swiss Companies23
3.1. PACKAGED FOOD AND BEVERAGE _________ 8
4.4. SPORTS & FITNESS ___________________ 24
3.1.1. Market Development ____________________ 8
4.4.1. Market Development ___________________ 24
3.1.2. Main Players _________________________ 9
4.4.2. Main Players ________________________ 25
3.1.3. Distribution Channel ___________________ 10
4.4.3. Distribution Channels __________________ 25
3.2. Alcohol Beverage _______________________ 11
4.4.4. Opportunities and Suggestions to Swiss Companies26
3.2.1. Market Development ____________________ 11
3.2.2. Main Players ________________________ 12 5. AUTHORITIES, ORDINANCE, FAIRS AND
3.2.3. Distribution Channel ___________________ 12 ASSOCIATIONS _______________________ 27
3.2.4. Opportunities and Suggestion to Swiss Companies 12 5.1. FOOD AUTHORITIES __________________ 27
3.3. horeca (hOTEL, Restaurant, café) __________ 13 5.2. FOOD FAIRS ________________________ 27
3.3.1. Market Development ___________________ 13 5.3. Associations _________________________ 27
3.3.2. Main Players ________________________ 14
6. POLICY & REGULATION ________________ 28
3.3.3. Distribution Channel ___________________ 14
6.1. ORDINANCE ________________________ 28
3.3.4. Opportunities and Suggestions to Swiss Companies15
6.2. Labeling Requirements _________________ 28
4. HEALTHY FOOD MARKET _______________17 6.2.1. The Documents required to be marked on the Label
4.1. BABY & INFANT FOOD __________________17 of all Prepackaged Food _________________ 28
4.1.1. Main Players _________________________17 6.2.2. Requirements Specific to Nutritional Labeling __ 28
4.1.2. Distribution Channel ___________________ 18 6.3. Packaging and Container Regulations ________ 28
4.1.3. Opportunities and Suggestions to Swiss Companies19 6.4. Food Additives Regulations ______________ 28
4.2. Natually Healthy food __________________ 19 6.5. Other Regulations and Requirements ________ 29
4.2.1. Market Development ___________________ 19 6.5.1. Import Duties ________________________ 29
4.2.2. Main Players ________________________ 20 6.5.2. Certificate of Origin ____________________ 29
4.2.3. Distribution Channels __________________ 21 6.5.3. Products Containing Living Modified Organisms 29
4.2.4. Opportunities and Suggestions to Swiss Companies21 6.6. Other Specific Standards for healthy food _____ 29
6.6.1. Health and Organic Foods _______________ 29
6.6.2. Legislative Proposal on Infant Formula and Food
Products ___________________________ 29
6.6.3. Voluntary Code of Practice for Infant Formula, Baby
Food and Related Products _______________ 30
6.7. Import Procedures ____________________ 30
7. SWITZERLAND COMPANIES IN HONG KONG31
7.1. DKSH Group – Selling to Hong Kong ________ 31
7.1.1. About DKSH and DKSH Business Line Gourmet
Fine Foods __________________________ 31
7.1.2. Success story – Carma __________________ 31
7.2. Migros Group – sourcing from Hong Kong ____ 31
8. QUOTES FROM EXPERTS _______________32
9. APPENDIX ____________________________34
9.1. Reference ___________________________ 34
List of tables and figures Table 3.1.2. 1 Main players of impulse and indulgence products in Hong Kong ............................................................................... 9 Table 3.1.2. 2 Main players of beverage products in Hong Kong ......................................................................................................10 Table 3.1.3. 1 Food retail stores and number in Hong Kong .............................................................................................................10 Table 3.2.2. 1 Alcoholic beverage main players in Hong Kong.......................................................................................................... 12 Table 3.3.2. 1 HoReCa market development main players in Hong Kong ........................................................................................ 14 Table 3.3.3. 1 HoReCa market distribution channel in Hong Kong .................................................................................................. 14 Table 3.3.3. 2 Number of western restaurants in Hong Kong (by price range per person per meal).............................................. 15 Table 3.3.3. 3 Number of high-end hotels in Hong Kong .................................................................................................................. 15 Table 4.2.2. 1 Naturally healthy beverage main players in Hong Kong ........................................................................................... 20 Table 4.2.2. 2 Naturally healthy packaged food main players in Hong Kong.................................................................................. 20 Table 4.3.2. 1 Dietary supplements main players in Hong Kong ..................................................................................................... 23 Table 4.1.1. 1 Baby and infant food main players in Hong Kong ....................................................................................................... 17 Table 4.4.2. 1 Sports and fitness food main players in Hong Kong.................................................................................................. 25 Figure 3.1.1. 1 Impulse and indulgence product market development in Hong Kong 2009 – 2017 (in HKD b) .................. 8 Figure 3.1.1. 2 Carbonate beverage market development in Hong Kong 2009 – 2017 (in HKD b) ........................................ 9 Figure 3.1.3. 1 Packaged food and beverage channel development in Hong Kong 2011 - 2013 .......................................................10 Figure 3.2.1. 1 Alcoholic beverage market development in Hong Kong 2009 – 2017 (in HKD b) .................................................. 11 Figure 3.2.3. 1 Alcoholic beverage distribution channel in Hong Kong 2013 ................................................................................... 12 Figure 3.3.1. 1 HoReCa market development in Hong Kong 2009 – 2017 (in HKD b).................................................................... 13 Figure 4.1.1 Hong Kong baby food market development 2009 – 2017 (in HKD b) ......................................................................... 17 Figure 4.1.2. 1 Baby and infant food distribution channel in Hong Kong 2011-2013 ......................................................................18 Figure 4.2.1. 1 Hong Kong naturally healthy food market development 2009 – 2017 (in HKD b) ................................................. 19 Figure 4.2.3. 1 Naturally healthy beverage distribution channel in Hong Kong 2011-2013 ............................................................ 21 Figure 4.2.3. 2 Naturally healthy packaged food distribution channel in Hong Kong 2011-2013................................................... 21 Figure 4.3.1. 1 Dietary supplements market development in Hong Kong 2009 – 2017 (in HKD b) .............................................. 22 Figure 4.4.1. 1 Hong Kong sports & fitness food market development 2009 – 2017 (in HKD b)................................................... 25 Figure 4.4.3. 1 Sports bar, powder, and tablet distribution channel in Hong Kong in 2013 .......................................................... 25 Figure 4.4.3. 2 Sports and energy drinks distribution channel in Hong Kong in 2013 .................................................................. 26
1. Foreword Dear Reader, The Hong Kong (HK) market is often labelled as a test-market, a business incubator or a trade accelerator for further opportunities in Mainland China and other Asian countries. Indeed many companies decide to set foot in HK with a small operation first in order to fine-tune their Asian strategy and feel the pulse of their consumers, which offers them a time period of organic growth as well as a sound development. Others, usually bigger brands with a solid marketing budget, choose a more aggressive approach with a Flagship-store in prominent shopping districts offering them best exposure. But all agree: “If it sells in HK, it sells in China”. With over 50 million visitors a year, Hong Kong is a very popular tourist destination and perceived as a trend -setter for fashion, food products and FMCG. In addition, it has the reputation of being a wine trading and distribut ion hub in Asia as well as a gastronomy center. Basically, there is nothing you can’t find in HK! The explosion of Asia's middle class is stunning. The size of this group currently stands at 500 million and could mushroom to 1.75 billion by 2020. With this rapid growth the demand for high-quality products sky-rockets as awareness on food safety rises while consumption habits shift in the middle-class population. In brief, HK is an ideal platform for doing business in Asia, especially for mainland China. Furthermore, HK is a free port that does not levy any customs tariff and has limited excise duties, making it very easy to import goods. This “Food Report with focus on healthy products” offer an overview of possibilities, be it for established Swiss brands or new niche products. For a successful entry into the market you will need to partner with local distributors. The Swiss Business Hub (SBH) is familiar with the market and has a well-established network of connections. Are you looking East? Then let us discuss and evaluate the chances of your company’s success in the region. Best wishes and Prosperity for the Year of the Ram. Frank Eggmann Wolfgang Schanzenbach Head of Swiss Business Hub Hong Kong Regional Director APAC Consulate General of Switzerland Switzerland Global Enterprise 62/F, Central Plaza, 18 Harbour Road Stampfenbachstrasse 85 Wan Chai, Hong Kong 8006 Zurich frank.eggmann@eda.admin.ch wschanzenbach@s-ge.com Phone +852 3509 5000 ext. 114 www.eda.admin.ch/hongkong s-ge.com THE HONG KONG FOOD MARKET 6
2. Introduction
With a population of 7.1 million, a robust tourism industry of 54 million visitors in 2013, and a high income level ranked 25th in
the world in GDP per capital, Hong Kong is an attractive market for all kinds of food products.
Hong Kong is an import-dependent market, as 95 per cent of food and beverage products are imported. There is minimal
domestic agricultural production and a small food-processing industry. Hong Kong is a trading hub for re-exports into
mainland China, Macau and other neighboring markets in Asia. The city attracts over 40 million Mainland Chinese tourists per
year, making it a ‘shop window’ for the Greater China region.
Along with an increasing expected life-span (ranked No. 4 in the world in 2012 by WTO), and the growing demand for various
kinds of convenient food items, consumers are becoming more conscious about what they eat. As a result, there is a rising
trend towards healthy, functional, and organic foods, reflected in the introduction of more of these products into retail
channels.
Seeing opportunities in the Hong Kong food market, this report aims to provide a brief overview of the current situation and
future trends of the Hong Kong food market, exploring potential opportunities for Swiss enterprises and entrepreneurs.
This report covers the following seven sectors of Hong Kong food market:
Food & Beverage Market
Packaged food (impulse and indulgence products) and carbonate beverage
Alcoholic beverage
HoReCa
Healthy Food Market
Baby & infant food
Organic food
Dietary supplements
Sports & fitness
Each sector is structured according to the below four segments:
Market development
Main players
Distribution channel
Opportunities and suggestions for Swiss companies
With the above, Swiss companies can formulate a suitable entry and/or expansion strategy for, not only Hong Kong, but the
greater Asia-Pacific market.
THE HONG KONG
FOOD MARKET
7
3. Food & Beverage Market
3.1. PACKAGED FOOD AND BEVERAGE
3.1.1. Market Development
Figure 3.1.1. 1 Impulse and indulgence product market development in Hong Kong 2009 – 2017 (in HKD b)
10
9.3
0.4%
9 4%
8.1
11.6%
8 7.6 0.4%
4%
7.1 0.4%
4% 11.6% 11%
7 6.4 6.7 0.4%
4% 11.6% Snack Bars
0.4%
1%
5% 3.6% 11.6% 12%
15% Pastries
6 12% 12%
12%
13% Sweet and Savoury Snacks
5 13% 16%
13% 16% Ice Cream
16% 16%
4 15% 16% Biscuits
16%
16%
16% Cakes
3 16% 16%
Confectionery
2 42%
40% 40%
38% 38% 39%
1
-
2009 2010 2011 2012 2013 2017E
Sources: Euromonitor, Fiducia Analysis
Impulse and indulgence products are expected to register a positive constant value growth over the forecast period,
though at a slower rate than the review period. This is mainly due to consumers’ increasing health consciousness,
which is expected to lead to reducing their intakes of impulse and indulgence products.
Chocolate confectionery is projected to register the strongest constant value performance over the forecast period.
This will mainly be due to consumer willingness to trade up to premium chocolate confectionery to pamper
themselves or for gifting. Moreover, dark chocolate was promoted for its high antioxidant content at the end of the
review period and this is expected to attract consumers in the forecast period.
Unit prices of impulse and indulgence products are expected to increase over the forecast period, with consumers
trading up to premium variants. Health consciousness among consumers will also see them opting for smaller pack
sizes in order to limit their intake. On the other hand, intense competition will likely bring about more promotions in
impulse and indulgence products, which will offset the overall magnitude of unit price increases.
THE HONG KONG
FOOD MARKET
8Figure 3.1.1. 2 Carbonate beverage market development in Hong Kong 2009 – 2017 (in HKD b)
2.5
2 1.93 1.92 1.93 1.94 1.91
1.76
23% 24% 24% 24% 24%
1.5 25%
Non-Cola Carbonates
Cola Carbonates
1
77% 76% 76% 76% 76% 75%
0.5
0
2009 2010 2011 2012 2013 2017E
Sources: Euromonitor, Fiducia Analysis
Consumers were increasingly health-conscious, and opted for healthier beverages to maintain a healthier lifestyle. This was in
part due to the government’s sustained efforts to encourage healthy living.
3.1.2. Main Players
Table 3.1.2. 1 Main players of impulse and indulgence products in Hong Kong
COMPANY ORIGIN BRAND MAIN CATEGORIES
Nestlé Switzerland Drey’s Ice cream
Wrigley Co (HK) Ltd US Extra Chewing gum
Kraft Foods Hong Kong Ltd US Ritz Chocolate
Ferrero Asia Ltd Italy Ferrero Chocolate
Garden Co Ltd HK Garden Bread
Mars Hong Kong Ltd US M&M Chocolate
Sources: Euromonitor, Fiducia Analysis
The packaged food market in Hong Kong is highly fragmented, with increasingly intense competition. Chocolate flavored
products are very popular. Swiss chocolate has a good image for premium brands among Hong Kong consumers and has huge
growth potential to increase its market share. Other Switzerland products e.g. the candy brand Ricola has been well accepted in
Hong Kong market for more than 30 years. It is available on the shelves of most of the super markets and convenience stores.
Many Hong Kong people still remember the Ricola’s commercial advertisement in the 1980s which was acted by a famous
local action film star.
THE HONG KONG
FOOD MARKET
9Table 3.1.2. 2 Main players of beverage products in Hong Kong
COMPANY ORIGIN BRAND MAIN CATEGORIES
Swire Coca-Cola US Coca-Cola Carbonate drink
Pepsi Co. US Pepsi Carbonate drink
AS Watson Group HK Watson's Water
Suntory Holding Ltd Japan CC Lemon Soft drink
GlaxoSmithKline HK Ltd UK Ribena Juice
Sources: Euromonitor, Fiducia Analysis
The beverage market in Hong Kong is highly competitive with the traditional world leaders, Coca-Cola and Pepsi, dominating
the market. However it is noteworthy that traditionally pharmaceutical companies, such as GlaxoSmithKline HK Ltd, have
introduced juice products to meet local taste.
3.1.3. Distribution Channel
Figure 3.1.3. 1 Packaged food and beverage channel development in Hong Kong 2011 - 2013
Supermarkets Health and Beauty Convenience Store
Independent Small Grocers Mixed Retailers Food/ drink/ tobacco specialists
Other Grocery Retailers Non-Store Retailing Forecourt Retailers
0.3%
2013 57.5% 15.7% 8.2% 6.3% 4.5% 3.7%3.1%
0.9%
0.3%
2012 60.3% 12.2% 8.9% 6.2% 3.9% 4.0% 3.4%
0.9%
0.3%
2011 61.7% 9.8% 9.3% 6.4% 3.7% 4.2% 3.7%
0.9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Sources: Euromonitor, Fiducia Analysis
Table 3.1.3. 1 Food retail stores and number in Hong Kong
COMPANY A.S. WATSON GROUP DAIRY FARM GROUP
ParknShop 170+ Wellcome 240+ CitySuper 4
ParknShop Superstore 45 ThreeSixty 1 SOGO Supermarket Food Halls 2
Taste 12 Olivers the Delicatessen 1 Jusco 13
Great Food Hall 1 MarketPlace by Jasons 29 Yata 7
Fusion 28 7-Eleven 900+ Vanguard and VanGo 95 & 79
Dah Chong Hong (DCH) Food 80 & 55
SU-PA-DE-PA 1
Mart & DCH Food Mart Deluxe
International 21 Circle K 400+
Gourmet Food Hall 1
Sources: HKTDC, Fiducia Analysis
Current packaged food and beverage channels have similar distribution channels and are both dominated by grocery retailers
e.g. supermarkets and convenience stores, but with decreasing market share. Non-grocery retailer channels, such as health and
beauty, and mixed retailers (e.g. shopping mall), which have a better shopping environment, have become more popular
among Hong Kong consumers.
THE HONG KONG
FOOD MARKET
103.2. ALCOHOL BEVERAGE
3.2.1. Market Development
Consumer income growth has been stable, and with effective marketing campaigns, there has been greater consumer
willingness to try new alcoholic products. Hong Kong’s alcoholic beverage market grew by 7% and was estimated to be at HKD
15.4 billion in 2013. Beer is the most popular type, followed by wine and spirits.
Since the removal of all duty-related customs and administrative controls in February 2008, Hong Kong is fast becoming an
alcoholic beverage hub in Asia in general and a gateway to China in particular as Hong Kong is the only place in the world that
has entered into an agreement with the mainland Chinese Government, allowing wine imports to go into China under CEPA
and enhanced customs facilitation measures. There is a large and diverse array of distributors supplying the market with wide
portfolios from all over the world. Growth for the alcoholic beverage market is expected to be stable around 6% in the next five
years.
Figure 3.2.1. 1 Alcoholic beverage market development in Hong Kong 2009 – 2017 (in HKD b)
25.0
20.0 19.2
1%
15.4 21%
14.4 1%
15.0 13.6
12.9 1%
12.3 1% 22%
1% 22% 26%
1% 22%
21%
22%
10.0 23%
21% 22%
20% 21%
5.0 52%
57% 56% 55% 54%
57%
-
2009 2010 2011 2012 2013 2017E
Beer Wine Spirits Others
Sources: Euromonitor, Fiducia Analysis
THE HONG KONG
FOOD MARKET
113.2.2. Main Players
Table 3.2.2. 1 Alcoholic beverage main players in Hong Kong
COMPANY ORIGIN BRAND MAIN CATEGORIES
Hong Kong San Miguel Pale Pilsen, San Beer
San Miguel Brewery Hong Kong Ltd
Miguel Light, Valor
Jebsen & Co Ltd Hong Kong Blue Girl Beer
E&J Gallo Winery Hong Kong US Gallo Wine
Edrington Hong Kong Ltd England Wolf Blass Wine
Pernod Ricard Hong Kong Ltd France Chivas Regal 12 YO Spirits
Sources: Euromonitor, Fiducia Analysis
3.2.3. Distribution Channel
The volume through off-trade channels such as supermarkets, convenience stores and alcoholic beverages stores reached 94
million litres while the volume through on-trade sales such as bars, restaurants and club houses accounted for 89 million litres
in 2013. The market is more or less evenly served. This reflects the balanced lifestyle and consumption habits in Hong Kong:
People enjoy alcoholic beverages while socialising at home and outside.
Besides traditional channels, high-value, investment grade wines are usually sold through auctions. Thanks to the surge in
demand from Asian investors, Hong Kong wine auctions, mainly organized by Christie's, Sotheby's and Bonhams, usually
outperform those in London and New York. Hong Kong has kept its title as the largest wine auction centre in the world since
2010, with total auction sales amounting to USD 110 million in 2013. Furthermore, Hong Kong local consumers with
sophisticated drink knowledge are more likely to acquire alcoholic beverages with limited editions through constant
international travel and exposure. Private imports also play a part in Hong Kong.
Figure 3.2.3. 1 Alcoholic beverage distribution channel in Hong Kong 2013
On-trade Supermarkets Convenience Stores Small Grocers Alcoholic Drinks Stores Internet Retailing
2013 48% 31% 12% 5% 3.8% 0.2%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Sources: Euromonitor, Fiducia Analysis
3.2.4. Opportunities and Suggestion to Swiss Companies
The consumption of alcoholic beverages in traditional consumption markets, like Europe and the US, is in decline, while it is
gathering momentum in Hong Kong due to the growing demand in Asia and the deregulation of alcohol imports. Because of
this, we highly recommend Swiss companies to enter the market in Hong Kong.
Work with local Beer/ Wine Associations or Clubs in Hong Kong: Several retailers, distributors and
enthusiasts have formed alcoholic beverage associations in Hong Kong (e.g. Hong Kong International Wine
Association, Craft Beer Association of Hong Kong) as part trade and part consumer organizations where alcohol
enthusiasts can learn more about and/or promote their products. There are also local wine workshops and clubs, like
Crown Wine Cellars and DG Cafe & Wine Cellar providing professional wine courses that introduce products through
tasting notes to people embracing wine tourism. The Hong Kong International Wine & Spirit Fair held by HKTDC
(Hong Kong Trade Development Council) and VinExpo Asia-Pacific are two major fairs in the industry in Hong Kong,
a good way to enter the market through a distributor supported by local association or clubs.
THE HONG KONG
FOOD MARKET
12 Launch products to Paired with Asian Cuisine: While Hong Kong is also well recognized as the culinary centre
in the region, wine matching with cuisine becomes a trend in the form of food and wine appreciation sessions held by
restaurants and hotels. There is also a food matching competition adjudicated by Asian experts in the HKTDC Hong
Kong International Wine and Spirits Fair. It is wise to consider launching products in a bid to appeal to the local
palette in Hong Kong.
Swiss Winemakers, established in late 2013 and one of the pioneers of Swiss wine retailer in Hong Kong, is one of the
successful stories. Its large flagship store is located in Central, Hong Kong, as the main retail outlet and tasting venue.
Its library tasting room seats 16 people and provides a private and intimate experience with a selection of fine Swiss
wine, offering clients a selection of rare artisanal Swiss wines and gourmet food.
Besides Swiss Winemakers, many Switzerland entrepreneurs established wine dealer business in Hong Kong also.
However, one of the biggest challenges that they are currently facing is the high rental price in Hong Kong. Except for
the office, they also need to considerate the best solutions for minimizing the warehouse size by providing the
varieties of the wines, as local customers tend to try different types of wines.
3.3. HORECA (HOTEL, RESTAURANT, CAFÉ)
3.3.1. Market Development
Figure 3.3.1. 1 HoReCa market development in Hong Kong 2009 – 2017 (in HKD b)
100 95
93 94
1% 1%
89 1% 4%
90 86 4% 4%
1% 5% 5%
83 2% 4% 5%
2% 4% 5%
80 4% 4%
4% 23%
23% 23%
70 23%
23%
23% Leisure
60
Lodging
50 Travel
Retail
40
Stand-Alone
67% 67% 67%
30 67% 67%
67%
20
10
0
2009 2010 2011 2012 2013 2017E
Sources: Euromonitor, Fiducia Analysis
In 2012, the most popular format for cafés/bars, full-service restaurants, fast food and street stalls was stand-alone outlets. For
the average spend per transaction, it is higher in stand-alone locations and lodging compared with other types of location.
Consumers typically purchase an entire meal at lodging and stand-alone locations. The second-most popular location for
consumer foodservice outlets was retail. The high traffic experienced in these locations is a huge draw factor.
THE HONG KONG
FOOD MARKET
13According to the Hong Kong Tourism Board, total visitor arrivals in 2013 grew by 11.7% against 2012, to reach over 54 million. This contributed to the strong performance of consumer service at travel locations. According to real estate analysts, rent increase is expected to taper over the forecast period, after two years of exponential increases. High rents will still pose a major challenge for consumer foodservice operators, but it will be less challenging than the current situation of having rents doubled or tripled in a span of a year. Consumers’ palates have become more sophisticated, and there has been an increasing trend of them taking to artisanal and bespoke offerings. The rise of artisanal and bespoke offerings has been especially apparent in the coffee and cocktail scene. Numerous cafés have sprung up that serve only coffee. 3.3.2. Main Players Table 3.3.2. 1 HoReCa market development main players in Hong Kong COMPANY COMPANY ORIGIN BRAND Café de Coral Holdings Ltd HK Café de Coral Fairwood Holdings Ltd HK Fairwood Dairy Farm International Holdings Ltd HK Maxim’s Sources: Euromonitor, Fiducia Analysis Hong Kong consumers often eat out at all meal times. They tend to grab a takeaway for breakfast, and have lunch at a fast food restaurant as the service is quick. Consumers have the luxury of spending more time on dinner, and fast casual dining restaurants are a popular option. Therefore, the major players are all fast food franchised restaurants. It is needed to mention that snacking in Hong Kong is prevalent, especially during ‘tea-time’ and ‘late-night’ periods. Operators tend to run promotional discounts during such periods to increase sales. 3.3.3. Distribution Channel Table 3.3.3. 1 HoReCa market distribution channel in Hong Kong COMPANY INDEPENDENT CHAINED TOTAL 100% Home Delivery/Takeaway - 37 37 Cafés/Bars 1,243 525 1,768 Full-Service Restaurants 8,128 350 8,478 Fast Food 498 2,173 2,671 Self-Service Cafeterias - 3 3 Street Stalls/Kiosks 1,510 - 1,510 Pizza Consumer Foodservice - 137 137 Consumer Foodservice 11,379 3,088 14,467 Sources: Euromonitor, Fiducia Analysis THE HONG KONG FOOD MARKET 14
Table 3.3.3. 2 Number of western restaurants in Hong Kong (by price range per person per meal)
PRICE RANGE NUMBER
> HKD800 16
HKD400-800 75
HKD200-400 315
HKD100-200 1,029
Sources: Openrice, Fiducia Analysis
Table 3.3.3. 3 Number of high-end hotels in Hong Kong
CLASS NUMBER
Class A (price ~USD288/ night) 34
Class B (price ~USD137/ night) 77
Sources: HKTDC, Fiducia Analysis
Eating out is prevalent in Hong Kong and is not limited to special occasions. Working professionals work long hours and would
rather eat out due to the convenience, variety and competitive pricing of dining options.
Franchising is prevalent in Hong Kong. International brands such as Bistro Délifrance expanded based on a franchise model as
it allows for rapid growth. Similarly, domestic brands such as Circle K convenience stores operate on a franchise model. The
majority of chained outlets are operated by franchisees. Chained outlets such as Subway, Café Coral, Pizza Hut and McDonald’s
operate on a franchise model.
Operators are expected to invest heavily in social media platforms in the future. Besides informing consumers of new product
offerings and promotional discounts, operators are likely to use such social media platforms to communicate and engage with
their consumers.
3.3.4. Opportunities and Suggestions to Swiss Companies
Retain reputation for quality and reliability: Hong Kong is known as one of the best dining cities in Asia
Pacific, as it offers a good mix of street food and fine dining. In 2008, it featured in the publication of a Michelin
Guide, which marked Hong Kong as a top-notch dining destination. The promising local economy and the surge in
tourist arrivals, especially for those from mainland China, have helped fuel value growth. Given mainland China’s
booming economy, Chinese tourists have had the luxury of indulging in the finer things in life, such as fine dining.
These provide opportunities for Swiss companies to enter the high-end market.
Leo’s Fine Food, founded by a Swiss butcher, started its operation in 1985 in Hong Kong and was a premier
manufacturer and food wholesaler with a high Swiss quality. The company provided competitive price alternatives for
customers, which included renowned hotels and restaurants, as well as supermarkets and delicatessen. In 2013, it was
sold and officially became a subsidiary of Dah Chong Hong Holdings Limited.
Swiss founded company Gastro Primo was established in Hong Kong in 1990 and had up to 170 employees. It
specialized in supplying food service companies, catering establishments, restaurants and retailers in Hong Kong and
Macau with high quality food and beverage products. It has been purchased in the meantime by a UK based company.
Hong Kong is also a feasible testing market and entry point to mainland China and Asia-Pacific market for premium
food. La Rose Noire, conceived in 1991 by Swiss founder Gérard Dubois, offers classical premium French and Swiss
sweet delicacies. In order to gain reputation, La Rose Noire patisserie was first opened in Pacific Place, one of the
most prestigious shopping mall in Hong Kong. It then expanded quickly in Hong Kong by~30 retail stores, R&D and
THE HONG KONG
FOOD MARKET
15training centre and production center. Furthermore, not only in Hong Kong, China and South East Asia, La Rose
Noire sets its footprints in 40 countries on 4 continents.
Integrated tourism elements to local consumers: Compared with westerners who like to eat at home for
dinner with their family, Hong Kong people are more willing to eat out for its fast pace and high pressure living
environment. Hong Kong people also like to travel around, where Switzerland is definitely one of the most popular
attractions.
THE HONG KONG
FOOD MARKET
164. Healthy Food Market
4.1. BABY & INFANT FOOD
Figure 4.1.1 Hong Kong baby food market development 2009 – 2017 (in HKD b)
35
30 29.0
25
20
15 14.5
10 10.1
7.0
5 4.0 5.2
0
2009 2010 2011 2012 2013 2017E
Sources: Euromonitor, Fiducia Analysis
Hong Kong’s baby food market is estimated to be at HKD 14.5 billion in 2013, a 44% increase from 2012. The influx of
mainland Chinese tourists buying standard milk formulas in bulk in an effort to ensure that their infants receive the best
nutrition is the main driver to post this strong retail value growth.
The crude birth rate in Hong Kong remained low, around 7.9 per 1,000 people in 2013. The birth rate in Hong Kong is unlikely
to increase substantially over the forecast period, as consumers are likely to focus more on their careers and choose to delay
having children. This in turn will restrict the overall growth potential of baby food over the period. On the other hand, the
hectic lifestyles of many working mothers in Hong Kong make them rely more on milk formula instead of breastfeeding, and
this trend will continue to lift the market growth. The market is expected to increase steady at a CAGR of 19% until 2017.
4.1.1. Main Players
Table 4.1.1. 1 Baby and infant food main players in Hong Kong
COMPANY COMPANY ORIGIN BRAND
Enfagrow, Enfakid, Enfamil,
Mead Johnson Nutrition (HK) Ltd US
Enfapro
Nestlé HK Ltd Switzerland Progress, Promise, S-26, Promil,
Nespray, Neslac, Grow, PediaSure
Abbott Laboratories HK Ltd US Gain, Similac, Isomil
Friesland Foods HK Ltd The Netherlands Friso
Snow Brand HK Ltd Japan Smart
Sources: Euromonitor, Fiducia Analysis
THE HONG KONG
FOOD MARKET
17International manufacturers lead the baby food industry in Hong Kong, as consumers trust international brands for their
product quality. Mead Johnson Nutrition is set to increase its retail value share in 2013 to continue as the leading baby food
provider.
Switzerland is one of the leaders in baby and infant food in Hong Kong, especially in milk powder. International giant Nestle
gained large market share, offering a strong brand portfolio, including Progress, Promise, S-26, Promil, Nespray and others,
covering the full spectrum of milk formula.
Other Swiss players like Primalac and Bimbosan also are well established in the Hong Kong market.
4.1.2. Distribution Channel
Health and beauty retailers gradually became the dominant distribution channel for baby and infant food in the Hong Kong
market, accounting for 46.9% in 2013. Famous health and beauty retailer brands like Mothercare usually own a shop at
Department Stores. Japanese Department Stores, such as AEON, SOGO, YATA, are very common and welcomed in Hong
Kong.
Supermarket is the second important channel, accounting for 40% in 2013. The channel has been losing share to health and
beauty retailers, indicating a rising need for premium and health-oriented baby food in the specialized retailers.
Other retailing channels like independent small grocers and mixed retailers including parental classes, Hong Kong Baby
Product Fair (one held by HKTDC- Hong Kong Suppliers and Hong Kong Manufacturers in January and another one held by
EUGENE baby in August), parent-child activities held by AHKNS (Association of Hong Kong Nursing Staff), claimed 12.8% of
share in 2013and are also on the rise.
Internet retailing saw a slight share decrease from 2011 to 2013 and accounted for less than 1% of baby food retail sales. It will
remain constrained by regulatory issues and persistent consumer concerns over the safety of baby food sold via the internet.
That said, perceived quality and safety plays a crucial role in consumer preference for baby food and overrides any advantages
of price and convenience offered by the internet. On the other hand, online communities are welcomed by expectant mothers
in Hong Kong to actively share experiences and exchange views and ideas about baby products and brands. Baby Kingdom
(http://www.baby-kingdom.com/) is a very popular one in Hong Kong.
Figure 4.1.2. 1 Baby and infant food distribution channel in Hong Kong 2011-2013
Health and Beauty Retailers Supermarkets Other retailing Internet Retailing
2013 46.9% 40.0% 12.8% 0.3%
2012 44.8% 44.0% 10.8% 0.4%
2011 44.5% 44.7% 10.3% 0.5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Sources: Euromonitor, Fiducia Analysis
THE HONG KONG
FOOD MARKET
184.1.3. Opportunities and Suggestions to Swiss Companies
Swiss baby and infant food products are perceived as high quality, safe and mostly luxury products, which in conformity with
the high standard baby and infant food market access threshold in Hong Kong.
Promotion of baby food products to comply with ethical code: Unlike most other food and beverage
products, the promotion of baby food is highly sensitive, especially in emerging regions. Considering this, we suggest
Swiss baby and infant food companies who want to enter Hong Kong to market their products as complementary to
breast milk to prominently highlight that breast milk remains the best way to protect a baby against disease. In doing
so, these companies could be regarded by local health authorities as a valid partner in promoting infant nutrition and
health, and this relationship could be used, in turn, to gain access to public health channels such as hospitals and
surgeries, which are very important to baby food sales in developing regions.
Innovations/marketing aligned with most dominant trends in baby food: In baby food there are a number
of key growth-driving trends, including health and wellness, rising demand for fortified/functional attributes and
organic products. In order to achieve successful new product launches and brand extensions, we suggest Swiss
companies to align their portfolio development with the dominant trends, and pay close attention to the latest ones
through online communities, parental classes or local fairs in the baby food market in Hong Kong.
Regulations / Labelling: As Food Safety Regulations are currently being up-dated, please check on
http://www.cfs.gov.hk/english/food_leg/food_leg.html or contact the Swiss Business Hub (SBH).
More details: Page 26
4.2. NATUALLY HEALTHY FOOD
4.2.1. Market Development
Figure 4.2.1. 1 Hong Kong naturally healthy food market development 2009 – 2017 (in HKD b)
8
7.1
7
6.5
6.1
6 5.7 32%
5.4
5.2 32%
5 32%
32%
33%
33%
4 Naturally
Healthy Food
3
68% Naturally
68% 68% Healthy
2 68%
67% 67% Beverage
1
-
2009 2010 2011 2012 2013 2017E
Sources: Euromonitor, Fiducia Analysis
THE HONG KONG
FOOD MARKET
19The rapidly ageing population in Hong Kong coupled with an increase in awareness of naturally healthy beverages and packaged food due to the government’s implementation of healthy living campaigns and due to the availability of information on the internet has driven the growth of the naturally healthy food/ beverage market. Consumers eat out frequently due to their busy schedules and their diets often do not contain enough fresh fruit and vegetables. Trend is to turn to naturally healthy beverages and packaged food to compensate for dietary deficiencies. 4.2.2. Main Players Table 4.2.2. 1 Naturally healthy beverage main players in Hong Kong COMPANY ORIGIN BRAND MAIN CATEGORIES Vitasoy International Holding HK Vita Soft drink Telford International Co., Ltd Taiwan Tao Ti Tea Swire Coca-Cola Hong Kong US Hi-C Juice Danone, Groupe France Evian Water Fiji Water LLC US Fiji Water AS Watson Group HK Mr. Juicy Juice Sources: Euromonitor, Fiducia Analysis Table 4.2.2. 2 Naturally healthy packaged food main players in Hong Kong COMPANY ORIGIN BRAND MAIN CATEGORIES Vitasoy International Holdings HK Vitasoy Soft drink Nestlé Hong Kong Ltd Swiss Pak Fook Soy product Kowloon Dairy Ltd HK Kowloon Dairy Dairy product Po Sang Yuen Bee Farm HK Po Sang Yuen Honey Garden Co Ltd HK Garden Bread Swire Coca-Cola Hong Kong US Hi-C Soft drink Sources: Euromonitor, Fiducia Analysis Hong Kong’s naturally healthy packaged food and beverage market is dominated by domestic brands due to the local consumers’ taste behavior. To capture a larger market, many western companies are trying to play to meet local Chinese tastes. Nestlé, for example, has developed soy product only for Hong Kong consumer. THE HONG KONG FOOD MARKET 20
4.2.3. Distribution Channels
Figure 4.2.3. 1 Naturally healthy beverage distribution channel in Hong Kong 2011-2013
Supermarkets Convenience Stores Other Grocery Retailers Independent Small Grocers
2013 71.0% 14.7% 11.0% 3.3%
2012 70.8% 14.5% 11.3% 3.4%
2011 70.5% 14.5% 11.5% 3.5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Sources: Euromonitor, Fiducia Analysis
Figure 4.2.3. 2 Naturally healthy packaged food distribution channel in Hong Kong 2011-2013
Supermarkets Convenience Stores Other Grocery Retailers
Independent Small Grocers Non-Grocery Retailers
2013 70.3% 13.6% 10.4% 3.6% 2.1%
2012 70.2% 13.7% 10.5% 3.6% 2.0%
2011 70.2% 13.8% 10.4% 3.6% 2.0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Sources: Euromonitor, Fiducia Analysis
Naturally healthy beverages and packaged foods are mainly sold with increasing shares in supermarkets, which means the
naturally healthy products are becoming more common and popular among Hong Kong’s general citizens.
4.2.4. Opportunities and Suggestions to Swiss Companies
The image of Switzerland’s ‘clean and green’ production environment helps the promotion of Swiss health product exports to
Hong Kong.
Diabetes friendly, sugar free and low calorie: Now more Hong Kong people take low-calorie foods and
beverages not only for dieting reasons but simply as part of a healthy lifestyle.
SweetLife Switzerland positioned itself the innovative producer of healthy sugar free mints and sweeteners with
leading brand Rio/ Rivo in many countries. It established a joint venture factory in Jiangmen in 1998 and has a Hong
Kong distributor named Synergy Distribution Ltd to distribute Rio Mints, Awfully Good to Go and Ella's Kitchen in
Asia. For Hong Kong consumers, Rio is very popular and available in all supermarkets and convenience stores.
Health oriented: Over the forecast period, the Hong Kong government is expected to maintain its implementation
of healthy living campaigns so as to reinforce consumer awareness of the importance of eating healthily. Coupled with
rising sophistication through increased exposure to the media, the health consciousness of the customers is thus
unlikely to falter in the forecast period but rather be even more pronounced as far as diet is concerned.
For example, Swiss dairy group Emmi has launched a range of products targeted at consumers who require healthier
options. On 4 September 2013, Emmi partnered with Raisio to introduce the Benecol Yogurt Drinks, with the famous
lowering cholesterol function to Hong Kong consumers. Wing Kee Produce Ltd, a Hong Kong local distributor to
Emmi, operates as the sole agent of Benecol products to supply hundreds of supermarkets in Hong Kong, both
THE HONG KONG
FOOD MARKET
21premium (e.g. CitySuper, Fusion) and general ones (e.g. ParknShop, Wellcome), where Benecol products are
prominently displayed and well accepted by Hong Kong consumers.
4.3. DIETARY SUPPPLEMENTS
4.3.1. Market Development
Dietary supplements continued to benefit from the aging population and long-term health-consciousness trend in Hong Kong.
Consumers are increasingly sophisticated in their understanding of these products' benefits and the high household
penetration of broadband-enabled computers and smartphones in the country enable consumers to easily research product
benefits online. Meanwhile, the market growth is also driven by the strong demand of tourists from mainland, thanks to a
growing income level and health-consciousness.
In line with consumers' demand for a wide range of benefits, general health products dominate dietary supplements and
accounted for almost 55% value share in 2013. Dietary supplements of bone and joint are the largest specialised products
sectors, while having relative flat growth rate. Dietary supplement products for women have captured the highest growth rate
which is CAGR of 8% in the past five years, thanks to the increasing awareness of health and beauty among women.
Compared with other food sectors, dietary supplements have high quality standards and strict ethical requirements, which can
provide huge opportunities for Swiss companies.
Figure 4.3.1. 1 Dietary supplements market development in Hong Kong 2009 – 2017 (in HKD b)
4.5
4.0 4.0
3.6
3.5 3.4
3.1
3.0 2.8 Others
35%
35% Women
2.5 35%
2.2 36% 1%4% Heart
1% 2%
1% 4%
2.0 4% 2% 3% Joint
1% 4% 2% 3%
36% 3%
2%
1.5 3% Bone
4%1%
4%3% General Health
1.0 55% 55%
54% 55%
0.5 52%
0.0
2009 2010 2011 2012 2013 2017E
Sources: Euromonitor, Fiducia Analysis
THE HONG KONG
FOOD MARKET
224.3.2. Main Players
Table 4.3.2. 1 Dietary supplements main players in Hong Kong
COMPANY ORIGIN BRAND MAIN CATEGORIES
Bone, Eye Health, Heart Health,
USANA Health Sciences Inc US USANA
Immune System, Joint, Memory Health
Tegreen 97, Beauty, Memory Health
Nu Skin Enterprises Inc. US
Pharmanex
Doctor’s Choice, Beauty, Digestive, Joint, Memory
Vita Green Health Products HK
Vita-CM Health, Mood/ Relaxing,
Amway Corp US Nutrilite Beauty, Eye Health, Heart Health,
Digestive, Immune System, Joint,
General Nutrition Centers Inc US GNC
Mood/ Relaxing, Women’s Health
Ca-C 1000
Novartis AG Switzerland Bone
Sandoz
Sources: Euromonitor, Fiducia Analysis
4.3.3. Distribution Channels
Direct selling (for big brand): Will main remain crucial in driving sales growth.
Distributor: Since competition is fierce as the Hong Kong market is highly fragmented and saturated with products
from a wide array of supplier countries. The most effective way for small brands to enter the market is to work with
local distributors or agents, who normally contribute not only to the sales and marketing, but more importantly to
brand building activities and sustainable development of the brand in the market. Importers and retailers in Hong
Kong will often seek exclusivity to secure brand/product uniqueness and avoid price competition.
Retail:
Department stores – normally stock international, high-end and branded products
Beauty specialist retailers – for all price ranges – these stores are still selling parallel-imported brand
name products, but are progressively seeking new product lines to reduce their parallel imports. E.g. SaSa
(www.sasa.com), Bonjour (www.bonjourhk.com) and Colour Mix (www.colourmix-cosmetics.com)
Personal care chain stores (combined with pharmacies) – over 400 stores mainly for middle and
mass-market products; these chains typically demand high listing fees and 35-50 per cent retail margin. E.g.
Watsons (www.watsons.com.hk) and Mannings (www.mannings.com.hk)
Supermarket chains – low-end/mass products, tendency towards private label
E-commerce in Hong Kong is not as promising as China due to the mature local direct and retail sales channel. But
many large suppliers of health products have established their own online platforms in addition to operating brick-
and-mortar stores.
4.3.4. Opportunities and Suggestions to Swiss Companies
The image of Switzerland’s high quality and strict ethical standards, as well as professionalism in clinical research and
development, will add value to the promotion of Swiss health product in Hong Kong.
Work with local distributors: Competition is fierce as the Hong Kong market is highly fragmented and saturated
with products from a wide array of supplier countries. The most effective way to enter the market is to work with local
distributors or agents, who normally contribute not only to the sales and marketing, but most importantly to brand
THE HONG KONG
FOOD MARKET
23building activities and sustainable development of the brand in the market. Importers and retailers in Hong Kong will
often seek exclusivity to secure brand/product uniqueness and avoid price competition, given the relatively small
market size.
Brand building and PR: Hong Kong is a highly media influenced market.
Traditional television or print advertising are key marketing tools, as are online channels, since Hong
Kong is a highly media-influenced market. Beauty and health product reviews often occupy many pages in
various newspaper and magazines.
Celebrity endorsements are effective means to drive growth. International brands also engage bloggers to
promote their products, inviting them to new product launches and sending them product samples to try. These
bloggers review products online and encourage their followers to try out the latest offerings.
Digital marketing such as creating a Facebook page and using interactive online games has become an effective
way for brands to communicate with potential consumers. Other social media tools such as blogs and forums are
also popular ways to influence consumers’ purchasing decisions.
Academic marketing for health products is targeted at the potential demand of specific consumers through
informative and interactive activities which can arouse interest in further understanding product functions or
even buying them. An effective tool for stimulating market demand, academic marketing usually comes in the
form of exchange activities, such as academic forums for medical practitioners and clients, and health seminars
for local communities. Scientific publications often serve as giveaways to enhance promotional effects.
4.4. SPORTS & FITNESS
4.4.1. Market Development
Hong Kong’s sports & fitness food market (including sports bars, powder, tablets and drinks) is estimated to be at HKD 936
million in 2013, a 7% increase from 2012. Sales were boosted by health and wellness trends but hindered by high prices and
limited interest.
Hong Kong continues to encourage citizens to take part in more physical activities, as a growing number of consumers are
seeking to increase their participation in sports, lose weight and become healthier. The membership rate of gyms in Hong Kong
increased strongly and the Hong Kong Standard Chartered Marathon attracted 73,000 runners in 2014.
However, sales of sports & fitness food continued to be limited and remained a tiny niche in overall consumer health. A lack of
time is a barrier for many consumers leading a more active lifestyle, and still many consumers are not getting enough exercise.
Furthermore, consumers remain confused about these products’ benefits and are reticent to try it as they are more attentive to
their general health than physical fitness. High prices for these products also constrained the buying interest. Growth for the
sports & fitness food market is expected to remain at 5% in next five years.
THE HONG KONG
FOOD MARKET
24Figure 4.4.1. 1 Hong Kong sports & fitness food market development 2009 – 2017 (in HKD b)
1.4
1.2 1.1
1.0 0.9 26%
0.8 0.9
0.7 0.8 26%
0.8 26%
26%
27% 27%
0.6
0.4 74%
74% 74%
73% 73% 74%
0.2
0.0
2009 2010 2011 2012 2013 2017E
Sports and energy drinks Sports bar, powder, tablet
Sources: Euromonitor, Fiducia Analysis
4.4.2. Main Players
Table 4.4.2. 1 Sports and fitness food main players in Hong Kong
` ORIGIN BRAND MAIN CATEGORIES
Optimum Nutrition Inc US Optimum Nutrition Sports bar, powder, tablet
MuscleTech Research & US MuscleTech Sports bar, powder, tablet
Development Inc
Otsuka Pharmaceutical Japan Pocari Sweat Sports and energy drinks
GlaxoSmithKline HK England Lucozade Sports and energy drinks
Red Bull Co Ltd Austria Red Bull Sports and energy drinks
Sources: Euromonitor, Fiducia Analysis
4.4.3. Distribution Channels
Sports bar, powder, and tablet: Sports bars, powder, and tablets suffered from a limited distribution presence
with 98% of value sales occurring via healthcare specialist retailers such as the GNC chain and gym shops.
Chemists/pharmacies channel account for less than 2% but saw a value growth in 2013, as more of these outlets began
to offer sports and fitness food, primarily protein powder.
Figure 4.4.3. 1 Sports bar, powder, and tablet distribution channel in Hong Kong in 2013
Healthcare Specialist Retailers Chemists/Pharmacies
2013 98% 2%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Sources: Euromonitor, Fiducia Analysis
THE HONG KONG
FOOD MARKET
25 Sports and Energy drinks: Supermarkets and convenience stores are the main distribution channels for sports
and energy drinks. On-trade volume of sports and energy drinks remain a certain portion of the total as consumers
tend to consume sports and energy drinks during their workout sessions and major sporting events.
Figure 4.4.3. 2 Sports and energy drinks distribution channel in Hong Kong in 2013
Supermarkets Convenience Stores On-trade Independent Small Grocers Vending Machine
2013 58% 33% 5% 3% 1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Sources: Euromonitor, Fiducia Analysis
4.4.4. Opportunities and Suggestions to Swiss Companies
Opportunity to expand the distribution channel: The overall distribution of sports bars, powder, and tablets is
largely limited to sports nutrition specialist outlets in Hong Kong. A push for wider distribution would thus improve
sales prospects. We suggest that companies, who want to enter the market, considering the packaging in RTD (ready-
to-drink) format which can be placed on soft drink shelves to compete with other sports and energy drinks, thus, it
helps to increase brand exposure and potentially appealing to consumers who consider powder to be a too “serious”
form of consumption.
Aligning product marketing with major sports events in Hong Kong: Many consumers are intrigued by
sports and fitness foods but are deterred from trying it due to lacking of knowledge or brand awareness. Stronger
marketing campaigns and advertisement to keep consumers engaged and to build brand exposure. We recommend
aligning product marketing with major sports event in Hong Kong as they enjoy rising participation year by year. The
large-scaled running series includes the Standard Chartered Hong Kong Marathon, Oxfam Trailwalk, UNICEF Charity
Run, McDonald’s Kidathon, MTR Hong Kong Race Walking and Hong Chi Climbathon.
Careful on price positioning: Many frequent consumers of sports and fitness food are reluctant to buy these
products in Hong Kong due to excessively high prices, with these players thus turning to foreign internet retailing
sites. A friendly mid-ranged price could thus drive volume sales and result in stronger profits overall.
THE HONG KONG
FOOD MARKET
265. Authorities, Ordinance, Fairs and Associations
5.1. FOOD AUTHORITIES
Hong Kong’s Center for Food Safety, which operates under the Hong Kong Food and Environmental Hygiene Department
(FEHD) is responsible for implementing territory-wide food safety control policies and enforcing food related legislation.
Census and Statistics Department – www.censtatd.gov.hk/home/index.jsp
Hong Kong Customs – www.customs.gov.hk
Hong Kong Department of Health – www.drugoffice.gov.hk
Hong Kong SAR Government – www.gov.hk
Bilingual Laws Information Service – www.legislation.gov.hk
Hong Kong Trade & Development Council InvestHK - www.hktdc.com
Customs & Excise Department Food & Environmental Hygiene Department -
www.customs.gov.hk/en/trade_facilitation/prohibited_articles/imports/food/
5.2. FOOD FAIRS
Trade fairs for the health food industry
LOHAS Expo – a healthy and sustainable business platform across Asia - www.lohasexpohk.com
Natural & Organic Products Asia – Asia’s foremost business event for the natural and organic industry -
www.naturalproducts.com.hk
Vitafoods Asia – the leading natural food event for Asia - www.vitafoodsasia.com
Trade fairs for the food & beverage industry
HKTDC Food Expo - www.hktdc.com/fair/hkfoodexpo-en/HKTDC-Food-Expo.html
HOFEX - http://hofex.com/about/#top
Hong Kong International Bakery Expo - www.chinaexhibition.com/Official_Site/11-5288-
HKIBE_2014_-_Hong_Kong_International_Bakery_Expo_2014.html
HKTDC Hong Kong International Wine & Spirits Fair - www.hktdc.com/fair/hkwinefair-
en/HKTDC-Hong-Kong-International-Wine-and-Spirits-Fair.html
5.3. ASSOCIATIONS
Food related:
Association of Restaurant Managers - www.arm.com.hk
Hillwood Road Merchants Association
Hong Kong Baker Industry General Union
Hong Kong Catering Industrial Association
Hong Kong Federation of Restaurants & Related Trades
Hong Kong Food Science and Technology Association
Hong Kong Hotels Association
Hong Kong Q-Mark Council, Federation of Hong Kong Industries
Hong Kong Retail Management Association
Institution of Dining Art
International Food Safety Association
The Association for Hong Kong Catering Services Management
The Hong Kong Food Council
Health related:
Hong Kong Health Food Association – www.hkhfa.org
Hong Kong Medical Association – www.hkma.org
Federation of Medical Societies of Hong Kong – www.fmshk.com.hk
THE HONG KONG
FOOD MARKET
27You can also read
