Health and Wellness Series – Organic packaged food trends in Hong Kong

Market and consumer profile

Hong Kong's economy rebounded in 2023, with a 3.2% GDP growth, driven by private spending and inbound tourism, however, economic growth was below the Asia Pacific average. A slowdown was expected in 2024, amid such factors as slower tourism development, restricted monetary policy and the diminishing impact of the post-pandemic recovery. During 2023, inflation rose to 2.1% and was anticipated to increase to 2.2% during 2024, and will be managed by the Hong Kong Monetary Authority's (HKMA) domestic monetary policy to help control inflation^{Footnote 1}

In 2023, Hong Kong was leading among 22 Asia Pacific nations in terms of average gross income, which amounted to US$49,503. Over the year, Hong Kong recorded a 10.0% increase in per capita disposable income levels in real terms, a significant improvement from the 1.3% decline witnessed in 2022. The rise in consumer income levels was supported by rebounding economic growth, a decrease in the unemployment rate, and an increase in labour productivity. Relatedly, in May 2023, Hong Kong's government raised the statutory minimum wage from US$4.78 per hour to US$5.10 in order to address rising price pressures in already one of the costliest cities in the world.^{Footnote 2} Between 2023 to 2028, per capita disposable income in Hong Kong is projected to increase by 11.1% in real terms however, the growth rate of per capita disposable income levels is predicted to be slower than the Asia Pacific average.^{Footnote 3}

The population segment aged 40 to 44 years is forecast to have the highest income earners per capita in 2028, and dominate the top income band (those with an annual gross income over US$250,000), due primarily to accumulated experience, educational attainment, career advancement, higher job stability and investment income.^{Footnote 3} Further, among the major groups of consumer goods and services, goods and services, leisure and recreation, food and non-alcoholic beverages as well as hospitality services witnessed the largest price increase in Hong Kong in 2022.^{Footnote 2} As a result, only 32.0% of consumers planned to increase their spending during 2023, spending more on travel and holidays (41.0% versus 28.0% globally) and on health and wellness (40.0% versus 34.0% globally).^{Footnote 3}

Hong Kong is anticipated to maintain its position among the top 10 most attractive markets for high-value consumption, reflecting global recognition as a leading financial hub, attracting high-net-worth individuals. The wealthy and affluent population segment, however, is predicted to remain concentrated among a small segment of the population (483,000 adults by 2030), accounting for 7.3% of the total adult population and 73.3% of Hong Kong's total wealth in 2030.^{Footnote 4}

In 2023, Hong Kong's population reached 7.5 million and is expected to increase slightly to 7.7 million by 2040, driven primarily by substantial immigration flows. The number of foreign citizens is expected to account for 11.3% of the total population by 2040, as citizens from neighboring countries and mainland China migrate to Hong Kong to pursue better economic opportunities.^{Footnote 5} Hong Kong's population growth is among the slowest in Asia Pacific, due to one of the lowest fertility rates in the world (0.8 versus 2.9 children per female globally), as women postpone marriage and childbirth to focus on their education and careers.^{Footnote 6}

Females represented 54.4% of the population (4.1 million) and attained a median age of 47.5 years, while males represented 45.5% (3.4 million), and attained a median age of 47.2 years in 2023. By 2040, the female population is anticipated to reach 4.3 million (44.5%) with a median age of 59.5 years, while males are forecast to represent 3.4 million (44.5%) of the population, and a median age of 55.6 years. Further, rapid ageing is positioned to accelerate as already high life expectancy rates increase and birth rate declines.^{Footnote 7} In terms of rural and urban population, 100.0% of the population currently, and is forecast to reside in urban areas.

The average Hong Kong household size was 2.8 persons in 2023, lower than the 3.5 average in Asia Pacific. The majority of the population continue to live in relatively small apartments, due to lack of space, however demand for more spacious homes has been accelerated by rising incomes and an expanding wealthy consumer segment.^{Footnote 8} Of the 2.8 million households in 2023, couples with children were the predominant (33.0%) household type, while single person households represented (21.9%). By 2040, the number of households will reach 3.4 million, and the dynamics of household types will evolve as single person households are projected to represent 32.2%, while couples with children will represent 27.1% and couples without children will represent 15.0% of Hong Kong's household types.

According to Euromonitor International's Voice of the Consumer, Hong Kong's consumers continue to appreciate innovation and look for new experiences. Respondents report that most (59.0%) like to try new products and services, increasing to 66.0% amongst Millennials, while 57.0% of Baby Boomers extensively research the products and services they consume. Younger cohorts (37.0% of Millennials versus 40.0% of Gen Z) demonstrate the highest level of online engagement as social media has become an increasingly preferred channel for the Hong Kong consumer.^{Footnote 9}

Further, as inflationary pressure continues to result in rising food prices, 21.0% of respondents reported they regularly seek private label and low-cost products when they shop, while some consumers (23.0%) noted they would rather buy fewer, but higher quality things. In addition, 81.0% of consumers cook or bake at home at least weekly, rather than dine out, however; a lack of cooking skills does impede some consumers from cooking at home, as 26.0% of Gen Z and 8.0% of Baby Boomers reported they do not cook very well^{Footnote 2}. Nevertheless, many are still tempted by the convenience of ordering in as 68.0% said they regularly order food for home delivery, while 75.0% are regularly ordering food for takeaway, or pick up ready-made food to eat at home.^{Footnote 10}

In terms of the Hong Kongese eating and dietary habits, 37.0% of respondents reported they look for healthy ingredients in food and beverages, while 34.0% of consumers closely read the nutrition labels on the products they consume, with interest in healthy ingredients and health related information^{Footnote 11} In addition, 56.0% trust labels that say "100.0% organic."^{Footnote 12}

The health and wellness industry in Hong Kong continues to gain greater significance overall, particularly in the wake of the pandemic, as consumers have become more cognizant of the negative impact of processed food and beverages on their health and wellbeing. Further, people are increasingly seeking healthier food and beverage options to prevent or manage chronic diseases such as obesity, diabetes, and heart disease (Euromonitor International; Health and Wellness in Hong Kong, China, page 7, August 2024). Relatedly, consumers are expected to continue paying greater attention to their diet as well as their daily nutritional intake in an attempt to maintain good health. Most consumers believe that organic ingredients are less processed, less likely to include genetically modified organisms (GMOs) and contain fewer chemicals and additives (Euromonitor International; Health and Wellness in Hong Kong, China, page 57, August 2024).

Organic products for sale in Hong Kong are not subject to specific legislation for organic certification with regard to standards or labeling and are subject to the same regulation as conventional foods. Voluntary organic certification however is available via a certification service offered by the Hong Kong Organic Resource Center, a third-party organic certification agent, established in 2002. Further, given the absence of specific legislation on organic standards, Hong Kong will allow or permit the use of organic logos on products certified by foreign authorities.^{Footnote 13}

According to the Hong Kong Organic Resource Center, the sales of locally certified organic products namely produce, meats and baby foods, grew 12.0% in 2021 compared to 2020. Relatedly, the daily production of locally grown organic vegetables was reported as stable (6 tonnes), accounting for 14.0% to 16.0% of local production (in 2021). Of note, locally grown vegetables, both conventional and organic, meet less than 2.0% of total consumption, requiring the importation of the majority of vegetables from China.^{Footnote 13}

Canada's organic export market

In 2023, product categories where Canada reports on certified organic products, Canada exported Can$684.0 million of organics to international markets, representing an increase of 12.2% annually from exports of Can$384.0 million in 2018. Year-to-date (January to June 2024), Canada has exported Can$442.9 million globally in organics.

Top organic products Canada exported to global markets included maple syrup, with values of Can$239.0 million (35.0% market share), soybeans with values of Can$67.5 million (9.9% market share) and coffee valued at US$66.1 million (9.7% market share) in 2023. Top global organic supplying provinces were Québec (46.8% market share), Saskatchewan (26.1% market share), Ontario (15.2% market share), British Columbia (4.7% market share) and Alberta (3.8% market share) in 2023.

The U.S was the largest market for Canadian organic exports with values of Can$361.3 million (52.8% market share) in 2023, representing significant growth (33.7%) annually from exports of Can$84.6 million in 2018, followed by Germany with values of Can$39.4 million (5.8% market share) and Japan with values of Can$33.4 million (4.9% market share) in 2023.

Hong Kong in comparison, was Canada's fortieth largest export market for organics with values of Can$1.0 million (0.2% market share) in 2023, representing a substantial increase in annual growth of 23.7% from Can$0.4 million reported in 2018. Of note, Canada's most recent organic exports to Hong Kong have experienced annual growth (900.0%) from Can$0.1 million in 2022 to Can$1.0 million in 2023.

Canada exported Can$903,756 (86.2% market share) of soybeans to the Hong Kong market in 2023 (+1309691.3% from Can$69 in 2022), increasing 143.3% in annual growth from Can$10,599 supplied in 2018, while coffee with values of Can$83,558 (8.0% market share) and maple syrup valued at Can$47,988 (4.6% market share) declined by 4.4% and 16.1% respectively, during the same period. Of note, corn exports have increased 19.5% annually from Can$6,621 in 2019 to Can$13,485 in 2023. Year-to-date (January to June 2024), Canada has exported Can$1.8 million in organics to Hong Kong.

Top organic supplying provinces to Hong Kong were Ontario with Can$995,063 (94.9% market share), Québec with Can$22,059 (2.1% market share) and British Columbia with Can$21,415 (2.0% market share) in 2023.

Retail sales overview of organic packaged food in Hong Kong

Retail sales of packaged food in Hong Kong referencing organic and biological claims were valued at US$99.4 million in 2023. During the 2019-2023 period, retail sales of packaged food products with organic claim positionings declined at a compound annual growth rate (CAGR) of 10.6% from US$155.5 million in 2019 (−21.6% between 2019-2020 and 22.1% between 2020-2021). The organic (claim) packaged food (herein referenced organic packaged food) market has since recovered, recently increasing 7.1% from US$92.8 million in 2022 to US$99.4 million in 2023.

Top organic packaged food categories in the Hong Kong market, in terms of retail value sales in 2023, were baby food with values of US$28.4 million (28.6% market share), despite declining 15.5% in annual growth from US$55.7 million in 2019, followed by rice, pasta and noodles valued at US$25.7 million (25.9% market share), declining 12.8% from US$44.5 million in 2019, dairy with values of US$9.9 million (10.0% market share) and experiencing the greatest performance, increasing 16.9% in annual growth from US$5.3 million in 2019, and baked goods with US$7.2 million (7.2% market share) in 2023 (−25.3% from US$23.1 million in 2019). Of interest, notable categories to experience positive growth performances during the historic period include edible oils, increasing 10.2% annually from US$3.8 million in 2019 to US$5.6 million in 2023 and processed fruit and vegetables, increasing 11.8% annually from US$1.6 million to US$2.5 million during the same period. Organic confectionery in contrast, experienced the largest decline in annual growth (29.7%) as retail sales decreased from US$4.5 million in 2019 to US$1.1 million in 2023.

Growth in Hong Kong's organic packaged food market is expected to improve and increase 4.9% to attain projected retail value sales of US$120.4 million by 2028. Most packaged food categories are expected to recover from retail value sale declines experienced within the historic period (with the exception of the confectionery category which continues to decline at a lower growth rate), while the remaining categories continue to strengthen at moderate growth rates, in the forecast period.

Category segmentation

Organic dairy products and alternatives

Organic baby food was the largest category, in terms of retail value sales, in Hong Kong's organic packaged food market with values of US$28.4 million (28.6% market share in 2023). The category declined 15.5% during the 2019-2023 period, decreasing from US$55.7 million in 2019, however, the category has recently recovered from historic declining sales, increasing 55.2% annually from retail sales of US$18.3 million reported in 2022.

Milk formula was the largest segment of the category with retail value sales of US$23.8 million (83.8% market share) in 2023 (+65.3% from US$14.4 million in 2022), despite declining 16.0% in CAGR from retail sales of US$47.7 million in 2019, as the demand for milk formula remains concentrated amongst parents who can afford to opt for the most advanced milk formula for their children (Euromonitor International; HW Dairy Products and Alternatives in Hong Kong, China, August 2024). Of note, remaining segments of the baby food category (dried, prepared and other) experienced declines in retail value sales growth during the historic period however, each segment has recently recovered, and experienced significant annual growth between 2022 to 2023.

Organic dairy was the third largest category in Hong Kong's organic packaged food market with retail sales of US$9.9 million (10.0% market share) in 2023, representing a substantial increase in annual growth of 16.9% from US$5.3 million in 2019. The organic dairy category is comprised primarily of the drinking milk product segment, with retail sales of US$5.6 million (56.6% market share), increasing 24.9% from US$2.3 million in 2019, while the organic yoghurt and sour milk product (yoghurt) segment attained values of US$3.8 million (38.4% market share) in 2023 (+26.7% annually from US$3.0 million in 2022. Of note, of the drinking milk products segment, organic milk attained the largest retail sales with US$3.3 million in 2023 (+13.8% from US$2.9 million in 2022), and increasing substantially (38.4%) annually from US$0.9 million in 2019, followed by plant-based milk with retail sales of US$2.0 million in 2023, increasing 13.6% annually from US$1.2 million in 2019, as more consumers are adopting healthier lifestyles by reducing their consumption of dairy and other animal-based products. For example, oat milk has gained considerable popularity in recent years, and continues to dominate both retail and foodservice channels in Hong Kong. Consequently, this strong demand has presented significant opportunities for new and existing players to expand their presence in the market by providing more diverse product applications and attributes. Further, a recent development in 2023, was the offering of oat milk as the standard option in many coffee shops with customers having to pay extra to have cow's milk in their drinks, while Starbucks have been offering more oat milk-based drinks without charging the consumer extra or additional charges (Euromonior International; Health and Wellness in Hong Kong, China, page 34, August 2024).

In the organic baby food market competitive landscape, Hipp GmbH & Co Vertrieb KG (Brand name: Hipp) led sales with retail ales of US$10.6 million (37.3% market share), followed by Nestlé SA (Brand names: illuma and Gerber) with retail sales of US$5.0 million (17.6% market share) and Royal FrieslandCampina NV (Brand name: Friso) with US$4.0 million (14.1% market share) in 2023.

In the organic dairy market competitive landscape, Yeo Valley Farms (Production) Ltd (Brand name: Yeo Valley) led sales with US$3.2 million (32.3% market share), followed by Lark International Holdings Ltd (Brand name: Trappist) with retail sales of US$2.1 million (21.2% market share) and Marusanai Co Ltd (Brand names: Marusan) with US$0.6 million (6.1% market share) in 2023. Private label companies in comparison, show a measured presence within the overall organic dairy packaged food market with retail sales of US$0.1 million (1.0% market share) in 2023.

The majority of Hong Kong's dairy products and alternatives market was distributed through retail offline (grocery retailer) channels representing a 74.8% market share, consisting mainly of supermarkets (59.9% market share) and convenience stores (8.2% market share), followed by retail offline- non-grocery retailers (health and beauty specialists), representing a 15.4% market share), while remaining sales were distributed through retail online (e-commerce) channels with values of US$34.9 million (3.7% market share) in 2023 and representing the only positive increase in annual growth (13.8%) from US$20.8 million in 2019. Of interest, the health and beauty specialist channel experienced the largest decline in annual growth (27.7%) as dairy products and alternative products distributed through this channel have decreased from US$528.8 million in 2019.

In the forecast period, the organic baby food market is expected to recover, and increase in moderate growth (7.6%) annually, as retail sales are anticipated to reach US$38.1 million by 2027. Relatedly, all segments of the baby food category, in contrast to the historic period, are expected to experience increased positive retail sales growth during the forecast period. Milk formula will continue to remain the largest segment in terms of retail value sales with US$31.9 million in 2027, while prepared baby food is projected to lead retail sales growth, increasing 8.3% annually to reach US$3.3 million by 2027, while other baby food will experience the largest interim increase (16.7%) annually from US$0.6 million to US$0.7 million between 2023 to 2024.

Organic dairy is also expected to continue to strengthen as retail sales increase 6.6% annually from US$9.9 million in 2023 to US$12.8 million by 2027. Similar to the historic period, drinking milk products will remain the largest segment of the dairy category with retail sales anticipated to reach US$7.9 million by 2027, with organic milk again leading sales with retail values of US$4.6 million, as more consumers (price-points permitting) are expected to switch from standard to organic milk, followed by plant-based milk with retail sales of US$2.9 million by 2027. Of interest, Euromonitor International also notes that organic milk may experience increasing competition from organic plant-based milk as more consumers remove dairy from their diet for health or ethical concerns (Euromonitor International; HW Dairy Products and Alternatives in Hong Kong, China, August 2024). Of note also, the organic butter and spreads segment is anticipated to attain the largest period growth, 18.9%, as retail sales increase from US$0.1 million in 2023 to US$0.2 million in 2027.

Organic staple foods

Organic rice, pasta and noodles was the second largest category in Hong Kong's organic packaged food market with retail sales of US$25.7 million (25.9% market share in 2023), despite declining 12.8% annually from retail sales of US$44.5 million held in 2019. Rice was the largest segment of the category with retail value sales of US$24.4 million (94.9% market share) in 2023 (−14.4% from US$28.5 million in 2022), declining 12.9% in CAGR from retail sales of US$42.4 million in 2019, as the increasing prices of raw ingredients (cooking oil, rice, meat and vegetables) in particular, have made the cost of cooking at home more expensive for consumers in comparison to buying affordable meals from foodservice venues such as This This Rice. In addition, consumers concerned with the health implications of high glycaemic index (GI), are reducing their consumption of white rice in particular (Euromonitor International; Health and Wellness in Hong Kong, China, page 56, August 2024). Of note, the pasta and noodle segment, representing the smallest segments of the category in terms of retail sales, also experienced declines in growth performance, 11.6% and 9.6% respectively, during the historic period.

Organic baked goods were the fourth largest category in Hong Kong's organic packaged food market with retail sales of US$7.2 million (7.2% market share in 2023). The category declined 25.3% during the 2019-2023 period, decreasing in retail sales from US$23.1 million in 2019. Bread was the largest segment of the category with retail value sales of US$4.1 million (56.9% market share) in 2023 (−29.3% from US$5.8 million in 2022), declining 8.3% in CAGR from retail sales of US$5.8 million in 2019. Cakes in comparison, originally were the largest segment of the baked goods category, however the segment's retail sales have decreased significantly from US$17.2 million in 2019, declining 35.4% in annual growth, positioning them as the second largest segment of the category, with US$3.0 million reported in 2023.

Of note, the remaining organic staple food categories, breakfast cereals, processed fruit and vegetables and the processed meat, seafood and alternatives to meat categories, have each experienced positive growth performances during the historic period. Breakfast cereals have increased 6.9% annually from US$3.9 million in 2019 to US$5.1 million in 2023, while organic processed fruit and vegetables experienced increases of 11.8% annually from US$1.6 million in 2019 to US$2.5 million in 2023 (+31.6% from US$1.9 million in 2022), and within the organic processed meat, seafood and alternatives to meat category, the largest retail value segment, tofu and derivatives, grew 7.3% annually from US$4.3 million in 2019 to US$5.7 million in 2023 (+21.3% from US$4.7 million in 2022).

In the organic rice, pasta and noodles market competitive landscape, Kui Fat Yuen Ltd (Brand name: Golden Phoenix) led sales with retail ales of US$3.0 million (11.7% market share), followed by DKSH Holdings (M) Bhd (Brand name: Eva) with retail sales of US$2.2 million (8.6% market share) and Ying Chuan Food Co Ltd (Brand name: Yin Chuan) with US$2.0 million (7.8% market share) in 2023. Private label companies in comparison, represented a measured presence with retail sales of US$0.4 million (1.6% market share) in 2023, declining 13.1% in annual growth from retail sales of US$0.7 million held in 2019.

In the organic baked goods market competitive landscape, Schnitzer GmbH & Co KG (Brand name: Schnitzer) led sales with US$2.4 million (33.3% market share), followed by Mestemacher GmbH (Brand name: Mestemacher) with retail sales of US$1.8 million (25.0% market share) and Green's General Foods Pty Ltd (Brand name: Green's) with US$0.8 million (11.1% market share) in 2023.

Hong Kong's staple food market was distributed primarily through retail offline (grocery retailer) channels representing a 91.7% market share, consisting mainly of supermarkets (50.3% market share) and food/drink/tobacco specialists with a 26.9% market share, and retail online (e-commerce) channels with values of US$97.3 million (4.7% market share) in 2023, experiencing the best performance, increasing 20.5% annually from US$46.1 million in 2019 to US$97.3 million in 2023. Of interest, the small local grocers channel also experienced growth in retail value sales as staple foods distributed through this channel increased 6.4% annually from US$188.2 million in 2019 to US$241.4 million in 2023.

Organic is expected to remain one of the most relevant health and wellness claims in staple food over the forecast period, as the consumer's heightened interest in environmental and sustainable products contribute to more responsible and less invasive consumption choices (Euromonitor International; Health and Wellness in Hong Kong, China, page 57, August 2024).

In the forecast period, the organic rice, pasta and noodles market is expected to recover, and increase in moderate growth (3.7%) annually, as retail sales are anticipated to reach US$29.7 million by 2027. Rice will remain the predominant segment leading retail sales with US$29.0 million by 2027, increasing 4.4% from US$24.4 million in 2023 (+7.0% to US$26.1 million in 2024), while noodles will remain stable. The pasta segment in contrast, is projected to decline by 17.9% annually to attain retail sales of US$0.5 million by 2027, from US$1.1 million reported in 2023.

Organic baked goods are expected to continue to decline (albeit at a lower rate in comparison to the historic period rate) as retail sales decrease 15.9% from US$7.2 million in 2023 to US$3.6 million by 2027. Similar to the historic period, bread will remain the largest segment of the category with retail sales anticipated to reach US$3.4 million by 2027, declining at a lower growth rate of 4.6% from US$4.1 million in 2023, while cakes are anticipated to further decline by 43.8% from retail sales of US$3.0 million to US$0.3 million between 2023 to 2027.

Remaining organic staple food categories, breakfast cereals, processed fruit and vegetables and the processed meat, seafood and alternatives to meat categories, are anticipated to continue to experience positive growth. Of note, the processed meat, seafood and alternatives to meat category is forecast to increase at the larger growth rate of 10.5% annually to reach US$8.8 million by 2027, as processed seafood in particular, is expected to increase 18.9% annually from retail sales of US$0.1 million in 2023 to US$0.2 million by 2027.

Organic snacks

The organic sweet biscuits, snack bars and fruit snack category declined 3.3% in annual growth from retail sales of US$1.6 million in 2019 to US$1.4 million in 2023 (+27.3% from US$1.1 million in 2022). Fruit snacks and sweet biscuits were the largest segments of the category with retail value sales of US$0.8 million and US$0.5 million respectively, in 2023 with both segments experiencing moderate and recent increases in annual growth of 14.3% and 66.7% respectively, between 2022 to 2023.

Organic confectionery experienced the largest decline in annual growth as the category's retail sales decreased 29.7% annually from US$4.5 million in 2019 to US$1.1 million in 2023. Chocolate confectionery was the largest segment of the category with retail value sales of US$1.0 million (90.9% market share) in 2023, despite declining 30.6% in CAGR from retail sales of US$4.3million in 2019. The segment has recently recovered, increasing 25.0% annually from $US$0.8 million in 2022. Sugar confectionery in comparison, has declined 15.9% annually from retail sales of US$0.2 million in 2019 and has remained stagnant, attaining retail value sales of US$0.1 million annually, from 2020 to 2023.

Organic savoury snacks were the only snack category to experience growth within the historic period, increasing 1.6% annually from US$3.0 million in 2019 to US$3.2 million in 2023 (+14.3% from US$2.8 million in 2022). Of interest, organic savoury snacks experienced the largest increase in annual growth (33.3%), as retail sales grew from US$3.0 million to US$4.0 million between 2019 to 2020. Savoury biscuits represented the largest segment with retail sales of US$2.4 million (42.9% market share) in 2023, increasing 14.3% from US$2.1 million reported in 2022, while salty snacks achieved the best interim performance, increasing 25.0% from US$0.4 million in 2022 to US$0.5 million in 2023.

In the organic snack market competitive landscape, Taylor Bros Farms Korea, Inc (Brand name: Taylor) led sales with US$0.6 million (10.7% market share), followed by Hero Group GmbH (Brand name:Organix with retail sales of US$0.3 million (5.4% market share) and Mondelez International Inc (Brand name: Green & Black's) with US$0.2 million (3.6% market share) in 2023, while private labels represented US$0.1 million (1.8% market share) in 2023.

Hong Kong's snack food market was distributed primarily through retail offline (grocery retailer) channels representing an 86.6% market share, consisting mainly of supermarkets (45.7% market share) and convenience stores with a 25.5% market share, and retail offline (non-grocery retailer) channels comprised of general merchandise stores (4.4% market share) and health and beauty specialists with a 3.5% market share. The remaining distribution of snacks foods were through retail online (e-commerce) channels with values of US$57.1 million (4.7% market share) in 2023, increasing 12.9% in annual growth from US$35.2 million in 2019. Of interest, other non-grocery retailers also increased significantly (145.5%) annually from retail sales of US$0.3 million in 2019 to US$10.9 million in 2023.

In the forecast period, the organic sweet biscuits, snack bars and fruit snack market are expected to recover from declining retail sales experienced during the historic period and increase 14.4% in annual growth to reach US$2.4 million by 2027. Sweet biscuits are expected to achieve the best performance, increasing 21.8% annually from US$0.5 million in 2023 to US$1.1 million by 2027, while fruit snacks are anticipated to increase (12.5% from US$0.8 million to US$0.9 million between 2023 to 2024), and 10.7% in annual growth from US$0.8 million in 2023 to attain retail sales of US$1.2 million by 2027.

Organic confectionery is expected to continue to decline (albeit at a lower rate in comparison to the historic period rate) as retail sales decrease 4.9% from US$1.1 million in 2023 to US$0.9 million by 2027. Similar to the historic period, chocolate confectionery will remain the largest segment of the category, despite declining retail sales of 5.4% annually (from US$1.0 million in 2023 to US$0.8 million by 2027), while sugar confectionery is anticipated to further decline in the forecast period.

Organic savoury snacks will continue to experience positive growth as retail sales are projected to increase 2.3% annually to attain US$3.5 million by 2027. Savoury biscuits are anticipated to experience the best performance, increasing 3.9% from retail sales of US$2.4 million in 2023 to US$2.8 million by 2027.

Organic cooking ingredients and meals

The organic edible (olive) oil category increased significantly (10.2%) in annual growth from retail sales of US$3.8 million in 2019 to US$5.6 million in 2023 (+5.7% from retail sales of US$5.3 million in 2022).

The organic meals and soup category also experienced positive growth, increasing 8.8% from retail sales of US$0.5 million in 2019 to US$0.7 million in 2023 (+16.7% from US$0.6 million in 2022). Ready meals were the predominant segment of the category with retail value sales of US$0.6 million in 2023 (85.7% market share), notably increasing 10.7% in annual growth from US$0.4 million held in 2019. Of note, the organic sauces, dips and condiment category declined 4.7% annually from US$2.3 million in 2019 to US$1.9 million in 2023.

Organic sweet spreads increased 3.0% in annual growth from retail sales of US$0.8 million in 2019 to US$0.9 million in 2023. Honey was the largest segment of the category with retail value sales of US$0.7 million (77.8% market share) in 2023, increasing 3.9% in CAGR from retail sales of US$0.6 million in 2019. The remaining sweet spread segments, chocolate spreads, jams and preserves and nut and seed based spread segments remained dormant within the historic period, experiencing limited retail value sale growth.

In the organic cooking ingredient and meal market competitive landscape, Deoleo SA (Brand names: Bertolli and Carapelli) was the largest company with retail sales of US$4.1 million (45.1% market share), followed by Bright Food (Group) Co Ltd (Brand name: Filippo Berio) with retail sales of US$0.9 million (9.9% market share) and Kraft Heinz Co (Brand names: Heinz) with US$0.4 million (4.4% market share) in 2023.

The majority of Hong Kong's cooking ingredients and meals market is distributed through retail offline (grocery retailers) representing an 89.8% market share, comprised mainly of supermarkets (60.8% market share), small local grocers (15.6% market share) and convenience stores (11.3% market share), followed by retail online (e-commerce), representing a 6.3% market share, while remaining sales are distributed through retail offline (non-grocery retailers) channels such as general merchandise stores, representing a 2.8% market share) in 2023.

E-commerce, as a distribution channel for cooking ingredients and meals, has experienced the greatest performance in the historic period, increasing 36.2% annually from US$11.9 million in 2019 to US$40.9 million in 2023.

In the forecast period, the organic edible (olive) oil market is expected to remain positive, increasing 6.1% annually, to attain retail sales of US$7.1 million by 2027.

The organic meals and soup category will also continue to experience positive growth, as retail sales are anticipated to increase 9.3% annually from US$0.7 million in 2023 to US$1.0 million by 2027. Similar to the historic period, ready meals will remain the predominant segment in terms of retail sales, projecting annual growth of 13.6%, from retail sales of US$0.6 million in 2023 to US$1.0 million by 2027. Of note, the organic sauces, dip and condiment segment is expected to recover in the forecast period and increase 4.9% in annual growth to reach retail sales of US$2.3 million by 2027 (from retail sales of US$1.9 million reported in 2023).

The organic sweet spread segment is expected to continue to experience growth, increasing 11.7% annually as retail sales reach US$1.4 million by 2027. Similar to the historic period, honey will remain the largest segment of the category with retail sales of US$1.3 million by 2027, representing a substantial increase in annual growth of 16.7% from retail sales of US$0.7 million reported in 2023. The remaining sweet spread segments, chocolate spreads, jams and preserves and nut and seed based spread segments are forecast to experience declining and limited retail value sale growth.

New product launch analysis

According to Mintel's Global New Products Database (GNPD), there were 368 new organic packaged food products launched in the Hong Kong market between January 2019 and December 2023 (and 35 new organic packaged food products launched year-to-date, January-August 2024). The number of yearly product launches has decreased in growth by 4.6% annually from 70 products in 2019 to 58 products in 2023 (−14.7% from 68 products launched in 2022). Of interest, new product launches of organic packaged food experienced the largest increase in growth rate (48.6%) from 70 new products released in 2019 to 104 new products released in 2021.

The predominant categories of new organic packaged food products released were dairy (56 products), followed by snacks (46 products), sauces & seasonings (45 products), processed fish, meat & egg products (41 products), and side dishes (37 products). The most popular product claim was organic (368 products), followed by low/no/reduced allergens with (138 products) and gluten free with (124 products) released during the prescribed period.

The companies with the highest number of new product launches were City Super (11 products), followed by Health Basis (11 products), Raglan Coconut Yoghurt (10 products), Alce Nero (10 products) and Earthbound Farm (9 products). Primary flavours identified in new organic food products were unflavoured/plain with (187 products), followed by smoke, (7 products) and soy sauce/soya sauce/shoyu with (6 products) while main ingredients included water (67 products), sea salt (65 products) and salt with (56 products).

Primary launch types included new products (186 products), followed by new variety/range extension with (111 products) and new packaging with (62 products), while top store types releasing new products included supermarkets (252 products), department stores (58 products) and internet/mail order with (20 products). In terms of packaging types, flexible (88 products) was the top package type (23.9% market share), followed by flexible stand-up pouches (62 products) and carton (176 products) between 2019 to 2023. Italy was the leading location of manufacture for new product launches with (39 products), followed by the U. S with (32 products) and Australia with (22 products) launched during the prescribed time. Of note, Canada was the fifth largest location of manufacture for new organic food product launches providing a total of 13 products to the Hong Kong market between 2019 to 2023.

Examples of new products

Opportunities for Canada

Health and wellness are expected to strengthen in the Hong market as more consumers embrace healthier lifestyles post pandemic. Organic (and organic packaged food) are considered growing markets in Hong Kong as most consumers increasingly believe that organic ingredients are less processed, less likely to include genetically modified organisms (GMOs) and contain fewer chemicals and additives. The consumption of organic products is continually increasing, and within some sectors, has exceeded domestic production, particularly within conventional and organic vegetables, which require additional supplementation support from imported products.

In 2023, Canada exported Can$1.0 million (0.2% market share) of organics to Hong Kong, representing a substantial increase in annual growth of 23.7% from Can$0.4 million reported in 2018. Top organic products supplied included soybeans (86.2% market share), coffee (8.0% market share) and maple (4.6% market share).

Top organic packaged food categories in the Hong Kong market, in terms of retail value sales in 2023, were baby food with values of US$28.4 million (28.6% market share), rice, pasta and noodles valued at US$25.7 million (25.9% market share), dairy with values of US$9.9 million (10.0% market share) and baked goods with US$7.2 million (7.2% market share) in 2023. Prospective organic categories projected to yield positive growth performance include prepared baby food, processed seafood and tofu and derivatives, sweet biscuits and olive oil.

Additionally, Mintel's (GNPD), indicates that there were 368 new organic packaged food products launched in the Hong Kong market between January 2019 and December 2023 primarily within the dairy, snacks, sauces and seasonings, processed fish, meat and egg products and side dish categories indicating increasing interest and demand for organic products, especially for those products with limited domestic production availability.

Given the expected and continued growth of the organic packaged food market in Hong Kong, Canadian suppliers have the opportunity to enter and expand their exports, including value-added products, to the Hong Kong market. Canada's brand and reputation for high quality and safe products remain significant and appealing amongst Hong Kongs' consumers, demonstrating the potential opportunities for organic producers and food manufacturers to maintain, and increase their supply of packaged products to the Hong Kongese market. That said, it is important for Canadian exporters to work closely with their importing partners and Trade Commissioners to understand and ensure that Hong Kong's import requirements for their specific products are met.

For more information

The Canadian Trade Commissioner Service:

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

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Resources

• Euromonitor International, 2024
  • Health and Wellness in Hong Kong, China, August 2024.
  • Country Report; Consumer Lifestyles in Hong Kong, China, June 13, 2024
  • Country Report; Economy, Finance and Trade: Hong Kong, May 21, 2024
  • Country Report; Health and Wellness Dairy Products and Alternatives in Hong Kong, China, August 2024
  • Country Report; Hong Kong, China: Consumer Profile, August 24, 2023
  • Country Report; Income and Expenditure: Hong Kong, China, July 01, 2024
• Global Trade Tracker, 2024
• Mintel Global New Products Database, 2024
• United Staes Department of Agriculture (USDA); Good Market Prospects for Organic Products in Hong Kong, Yuen, Caroline. May 2022

Health and Wellness Series – Organic packaged food trends in Hong Kong
Global Analysis Report

Prepared by: Laurie Bernardi, International Market Research Analyst

© His Majesty the King in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2025).

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