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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • The organic segment in Hong Kong is led by Hipp GmbH & Co. with a value share of 12.7% in 2021, followed by Nestle’ SA with a share of 8.3% and Abbott Laboratories Inc with a share of 7.7%. 
  • With a forecast value CAGR of 9.0% for the period 2021-2026, Hong Kong ranks 7th in terms of expected growth. The market also ranks in the top 20 globally in terms of per capita spend (US$12.23 in 2021). 

 

  • Organic products in Hong Kong represent 0.15% of global demand and approximately 1.4% of the market in the Asia Pacific region, recording a per capita expenditure of US$12.23 in 2021. 
  • With demand for organic products expected to grow in emerging categories and an increasingly health-conscious population, the market for organic products is expected to grow with a value CAGR of 9.0% for the forecast period 2021-2026, reaching a value of US$137.0 million by 2025.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Hong Kong recorded a value growth of 1.6% in 2021 to reach US$92.3 million.
  • Growth in organic packaged food was led by organic dairy, with a robust value growth of 15.7% in 2021 on the back of strength in organic yoghurt. 
  • Sales of organic beverages stagnated in 2021, remaining at US$5.8 million.
Market Trends
  • Covid-19 has further strengthened the ongoing health and wellness sentiment among local consumers in Hong Kong. Consumers are paying greater attention to their nutritional intake and particularly avoiding the intake of refined or additional sugar. Therefore, the health and wellness segment has become an important area of focus for major players to develop new products. 
  • 2021 has witnessed the gradual emergence of health and wellness beverages in the online space. However, sales remain limited versus health and wellness packaged food within e-commerce. 
  • As consumers are continuously opting for convenient channels for purchasing, major players are launching their own online retail sites and increasing their portfolio of offerings. Swire Coca-Cola and Nestlé, in addition to e-commerce platforms such as HKTVMall, are increasing their variety of product offerings. A growing number of health and wellness brands are ramping up their focus and resources to tap into the e-commerce channel opportunity.
Competitive Landscape
  • Hipp GmbH & Co Vertrieb KG led organic packaged food in Hong Kong, with a value share of 13.5% in 2021, followed by Nestlé SA (8.8% market share) and Abbott Laboratories Inc (8.3% market share).
  • Happy Planet Foods Inc dominates the organic beverages market; the company captured 13.1% market share in 2021, which was more than double of its nearest competitor. Citrus World Inc remains second with a market share of 5.1% in 2021, and Ekaf SPA is third with a market share of 2.7%. 
  • Overall, the organic category is dominated by Hipp GmbH & Co Vertrieb KG with 12.7% of market share in 2021; the company has been ranked number one in the category for six of the past seven years. 
  • Pukka Organic Green Tea purchased by Unilever Group in 2017 enjoyed success in recent years, though the brand lost ground in 2021 as sales dropped by 4.3% after three successive years of double-digit growth.
Prospects And Growth Opportunity
  • Covid-19 has accelerated health and wellness trends, which are likely to continue as consumers make increasingly informed purchasing decisions based on ingredients. Consumers in Hong Kong will likely opt for better for you reduced-sugar beverages in traditionally high-sugar content categories, including carbonates, which is forecast to further boost the growth for the category over the coming years. 
  • Major players are expected to continue investing in zero and reduced sugar options across different categories to tap the opportunity presented by the health and wellness trends. Reduced sugar energy drinks are also expected to gain further momentum during the forecast period; the category already has a strong presence in Hong Kong. Manufacturers are likely to tap into better for you beverages to grab the opportunity presented by health and wellness trends in Hong Kong. They are expected to pay greater attention to the demand for zero and reduced sugar options.
  • Despite growth trends, a challenge lies ahead for better for you beverages; the category is likely to face greater scrutiny from consumers. As the category grows, local consumers become increasingly cautious about various health claims presented by different better for you beverages. Increasing sophistication and awareness would likely make consumers question the health and wellness claims linked to these products. Therefore, manufacturers will face challenges in justifying the claims and higher price points.
General Health And Wellness Trends
  • Heightened health concerns due to Covid-19 will continue to boost the overall demand for health and wellness products. The category is expected to record a stable performance over the forecast period in terms of retail volume. 
  • In the long-term, health and wellness categories such as naturally healthy bottled water are likely to retain strong growth momentum due to increasing health consciousness. Categories like fortified/functional energy drinks and fortified/functional sports drinks will benefit from increased out-of-home consumption occasions, including a greater focus on exercise. 
  • Though foodservice will continue to recover, consumers are expected to counter their increasing reliance on eating out due to busy lifestyles by balancing home consumption with perceived healthier food choices, further driving the demand for better for you packaged food, free from, and naturally healthy options such as high fibre food.
General Economics And Demographic Landscape

Economy: 

  • Hong Kong real GDP growth rebounded to 6.4% in 2021 and is expected to register 3.0% in 2022. The economy is forecast to expand between 2.5-3.0% annually between 2022-2025.
  • Private final consumption witnessed an increase of 7.7% in 2021, with a growth of 4.8% expected in 2022. 
  • The consumer price index stood at 1.5% in 2021 and is expected to register 1.9% in 2022.

 

Population demographics: 

  • The population of Hong Kong reached 7.5 million in 2021, increasing from 6.7 million in 2000. The majority of population gains are from immigration, with over 80.0% of immigrants coming from Mainland China. 
  • The median age is steadily increasing and registered 45.3 years in 2021. With the current ageing trend continuing, the proportion of the population over the age of 65 is expected to represent 22.6% by 2025. This is somewhat concerning, as the rapid ageing is likely to result in increased government spending. 
  • Population below 14 will steadily decline to reach at 11.1% in 2025; it remained steady from 2020 to 2022 at 11.6%.

 

Income & expenditure: 

  • The savings ratio in Hong Kong is slightly lower than the regional average, while the disposable income per capita was US$40,086 in 2021 and a rise of 3.7% expected in 2022. A cumulative increase of 31.3% is likely for the period 2020-2030, with an average annual growth rate of 2.8%.
  • Consumer expenditure per capita reached US$33,306 in 2021, and a rise of 3.9% is predicted for 2022. For the period 2020-2030, consumer expenditure is expected to cumulatively increase by 33.8%, averaging an annual growth rate of 3.0%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption [1]

USD million

2,567.0

2,423.2

1,872.7

1,943.3

2,117.0

2,253.0

2,343.6

2,409.6

-8.9%

4.4%

Organic packaged food and beverages consumption

USD million

128.2

126.6

90.8

92.3

107.3

120.0

130.2

137.0

-10.4%

8.5%

Organic packaged food consumption

USD million

122.9

121.0

85.0

86.5

101.3

113.8

123.7

130.2

-11.0%

8.7%

Organic beverages consumption

USD million

5.3

5.6

5.8

5.8

6.0

6.2

6.5

6.7

3.1%

3.7%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

5.0

5.2

4.8

4.7

5.1

5.3

5.6

5.7

-

-

 

[1] Health and Wellness Definition: Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products. The above definition and more can be referenced from the definitions table at the end of the report.

Economic And Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

Total population

million

7.5

7.5

7.5

7.5

7.6

7.7

7.7

7.7

% Middle and upper class of total population

%

19.1

19.1

19.2

19.2

19.2

19.2

19.2

19.2

% Population aged 65+

%

17.0

17.6

18.3

19.1

19.9

20.8

21.7

22.6

% Population aged 0-14

%

11.6

11.7

11.6

11.6

11.6

11.3

11.2

11.1

% Population with higher education degrees

%

28.7

29.4

30.0

30.5

31.0

31.4

31.7

32.0

Average number of children per household

children

0.4

0.4

0.4

0.4

0.4

0.4

0.4

0.4

GDP per capita

USD per capita

48949.1

48743.2

46227.2

49133.1

50150.2

51185.8

52188.2

53237.9

Consumer expenditure per capita (US$)

USD per capita

34008.3

34386.6

31180.4

33306.1

34615.1

35730.7

36664.6

37460.6

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

4495.8

4452.0

4309.5

4797.1

4969.2

5008.0

5062.1

5140.1

 

Retailer And City Data

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

AS Watson Group

Top grocery retailers by sales (2021)

2

Dairy Farm International Holdings Ltd

Top grocery retailers by sales (2021)

3

Seven & I Holdings Co Ltd

Top grocery retailers by sales (2021)

4

Alimentation Couche-Tard Inc

Top grocery retailers by sales (2021)

5

CEC International Holdings Ltd

 

Note : Cities by population data for Hong Kong is unavailable

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Hong Kong

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2021

Hong Kong

1

Organic Apples Fresh

2,113,750

2021

Hong Kong

2

Organic Berries Fresh

1,973,916

2021

Hong Kong

3

Organic Vinegar and Substitutes

1,777,751

2021

Hong Kong

4

Organic Grapes Fresh

1,572,500

2021

Hong Kong

5

Organic Lemons Fr/Dr

1,313,493

2021

Hong Kong

Total

Total Organics*

10,253,520

2020

Hong Kong

1

Organic Grapes Fresh

4,587,628

2020

Hong Kong

2

Organic Berries Fresh

2,356,155

2020

Hong Kong

3

Organic Oranges Fr/Dr

1,096,024

2020

Hong Kong

4

Organic Cauliflower Fr/Ch

777,162

2020

Hong Kong

5

Organic Celery Fr/Ch

669,587

2020

Hong Kong

Total

Total Organics*

11,468,440

2019

Hong Kong

1

Organic Berries Fresh

3,223,023

2019

Hong Kong

2

Organic Grapes Fresh

1,972,926

2019

Hong Kong

3

Organic Apples Fresh

1,614,287

2019

Hong Kong

4

Organic Cherries Fresh

489,240

2019

Hong Kong

5

Organic Strawberries Fresh

464,085

2019

Hong Kong

Total

Total Organics*

9,269,514

2018

Hong Kong

1

Organic Apples Fresh

2,849,870

2018

Hong Kong

2

Organic Berries Fresh

2,154,048

2018

Hong Kong

3

Organic Lettuce Not Head Fr/Ch

404,505

2018

Hong Kong

4

Organic Celery Fr/Ch

379,560

2018

Hong Kong

5

Organic Fruit Prep

332,447

2018

Hong Kong

Total

Total Organics*

7,720,836

 

Note : Total organics is the sum of all exports in a particular year

Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2018 – 2021 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2018-2021 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

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.

Hong Kong’s Agriculture, Fisheries and Conservation Department has information about organic farming

Agency(s) Contact Information:

Centre for Food Safety (Risk Communication Section)
8/F, Fa Yuen Street Municipal Services Building, 123A Fa Yuen Street, 
Mong Kok, Kowloon
Phone: 2381 6096
Email: rc@fehd.gov.hk
Web

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

Hong Kong does not have any regulation specifically regulating organic standard or
labeling.  They are subject to the same food regulation as any other conventional foods.  There
is no regulation that prohibits the use of any organic logos in Hong Kong.  However, Hong
Kong’s food law has a provision for “False labeling and advertisement of food or drugs,” which
supposedly can protect consumers against any false labeling of organic products.  In addition,
the Hong Kong Customs and Excise Department has legislative backup to combat against
misleading and false trade descriptions.

Imported Products

Hong Kong does not have a law regulating organic food products. US organic products can be sold in Hong Kong with 
the USDA organic logo.

Certification and Accreditation

Certification:

Voluntary organic certification is available, and Hong Kong allows the use of organic logos on products certified by foreign authorities. 

Certifiers in Hong Kong:
Hong Kong Organic Resource Centre 
Hong Kong Organic Certification Centre

Additional Information

USDA’s GAIN Report Good Market Prospects for Organic Products in Hong Kong (2022)
USDA’s GAIN Report 2021 US Agriculture Trade to Hong Kong Data Highlights (2022)
USDA’s GAIN Report Pet Owners Sniff Around for Premium Foods (2022)
USDA’s GAIN Report Best Prospects Analysis for U.S. Agricultural Exports to Hong Kong (2019)
USDA’s GAIN Report Highly Competitive Retail Sector Remains Stable (2019)
USDA’s GAIN Report Hong Kong Retail Foods (2021) 
USDA’s GAIN Report New Marketing Guidelines for Infant and Toddler Foods (2017)
USDA’s GAIN Report Food Service - Hotel Restaurant Institutional (2021)
USDA’s GAIN Report Hong Kong Exporter Guide (2022)
USDA’s GAIN Report Hong Kong Macau Exporter Guide (2021)
USDA’s GAIN Report Hong Kong Organic Products Market (2015)
USDA’s FAIRS Report Hong Kong Food and Agricultural Import Regulations and Standards Certificate Report (2021)
USDA’s FAIRS Report Food and Agricultural Import Regulations and Standards Country Report (2021)
USDA’s GAIN Report Hong Kong Retail Food Competitive Shelf Space in Hong Kong Calling for High Quality Foods (2017)

Centre for Food Safety offers a guide for importing food into Hong Kong.