Hong Kong food and beverage market remains a dynamic and competitive hub, driven by tourism recovery, demand for quality and wellness products, and evolving e-commerce channels. Despite strong retail infrastructure and international brand appeal, traditional shopping habits and a concentrated grocery sector shape market dynamics.
Hong Kong’s food and beverage (F&B) market remains among the most liberal and competitive globally, supported by a free‑trade policy with zero customs tariffs or quotas, and minimal licensing requirements, although health certificates from countries of origin are encouraged. Its world-class infrastructure, advanced logistics, and bilingual (Cantonese/English) environment consolidate its status as Asia’s premier import, re‑export, and test‑marketing hub.
In 2024, total processed food and beverage exports (including re‑exports) reached approximately HK$46.5 billion (roughly US$5.9 billion) with re‑exports making up over 84 percent of this figure.
Meanwhile, tourism continues to fuel F&B demand: with about 44 million visitors registered in 2024, tourism-driven food and beverage consumption is still rebounding toward the 56 million-peak before the pandemic.
In this article, we explore Hong Kong’s evolving F&B market in depth, examining its segmentation, consumption and trade patterns, competitive dynamics, regulatory environment, and tailored strategies for foreign exporters.
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Hong Kong’s F&B market overview
Hong Kong’s F&B sector continues to play a pivotal role in the city’s economy and trade structure, acting both as a consumer-driven market and a regional re-export hub.
In 2024, total imports of agricultural and related products into Hong Kong reached approximately US$24.1 billion, with consumer-oriented foods, which include both packaged and fresh products, making up the lion’s share at US$20.5 billion, marking a modest 2.1 percent year-on-year decline.
For overall imports of [specify product category, e.g. electronic goods / industrial products], the Chinese Mainland remains the dominant source, followed by Japan. The United States ranked as Hong Kong’s third-largest supplier in this segment, contributing around US$1.4 billion, or 6.7 percent of the total.
Among the most popular imported categories are seafood, fresh fruit, prepared foods, beef, non-alcoholic beverages, dairy, wine, poultry, pork, and baked goods.
Recent developments in 2025 paint a picture of cautious optimism. While the aftershocks of COVID-19 continue to influence consumer habits, foot traffic in physical retail spaces is steadily increasing. Tourist arrivals have seen a strong rebound, 21 million visitors were recorded in the first half of 2024, a 64 percent increase year-on-year, though the average length of stay and per-capita spending have yet to return to pre-pandemic levels.
Nevertheless, the influx of visitors is injecting fresh momentum into both food retail and foodservice segments, particularly in urban centers.
Hong Kong consumers, long known for their discerning tastes, remain highly attuned to quality and wellness trends. Survey data indicates that 64 percent of shoppers plan to spend more on fresh fruits and vegetables, while 49 percent intend to trade up on meat, and 47 percent are prioritizing organic foods. This shift reflects broader concerns over food safety, health, and sustainability. At the same time, the city’s e-commerce landscape (while growing) is still evolving within the F&B domain. Total online retail sales across all categories reached US$4.06 billion in 2024, down slightly from the previous year but still a substantial gain over pre-pandemic levels.
Yet e-commerce accounts for just 8.4 percent of Hong Kong’s total retail market—far below penetration rates in nearby Mainland China. This is largely due to Hong Kong’s compact geography, high store density, and consumer habits that favor daily or frequent in-person shopping.
Key market segments
Packaged foods form the core of the retail F&B offering.
This broad category includes snacks, canned and processed items, dairy products, bakery goods, ready meals, and frozen dim sum. These products are primarily distributed through supermarkets and convenience stores. Hong Kong consumers continue to show strong interest in healthier and organic options, as well as international specialties—such as Italian olive oil, French cheese, and Japanese sauces—particularly among middle-class urban buyers. The demand for convenience foods remains robust, driven by fast-paced lifestyles and small household sizes. Meanwhile, private-label and mid-range products often compete strongly in price, especially during economic slowdowns.
Beverages, both non-alcoholic and alcoholic, represent another high-volume and profitable segment. In the non-alcoholic space, bottled water, carbonated drinks, tea, coffee, juice, and dairy-based beverages are widely consumed. Multinational brands such as Coca‑Cola and PepsiCo enjoy wide distribution and brand recognition, while local producers (most notably Vitasoy) maintain a strong presence in the plant-based drink segment.
Alcoholic beverages, particularly imported wine, represent a smaller but lucrative portion of the F&B market. With no import duty on wine, Hong Kong is a regional wine trading hub, and consumers favor French, Italian, and Chilean vintages. Niche spirits and regional craft liquors are also gaining popularity. In contrast, distilled spirits over 30 percent ABV are subject to a 100 percent excise duty, which significantly impacts retail pricing
Distribution channels
On the distribution side, the modern retail grocery sector is highly concentrated. Two major conglomerates, namely, A.S. Watson Group (ParknShop) and Dairy Farm Group (Wellcome), control an estimated 75 to 85 percent of the supermarket segment.
Convenience chains such as 7‑Eleven and Circle K are also widespread and cater to on-the-go consumption. While traditional wet markets and small grocers still operate across neighborhoods, particularly among older consumers seeking fresh, daily groceries, their overall market share has steadily declined. At the same time, e-commerce continues to grow, albeit from a relatively small base. Platforms like HKTVmall and the online channels of major supermarket chains now offer home delivery for both packaged and fresh foods.
This segment received a boost during the pandemic but remains limited, comprising roughly eight percent of total F&B sales in 2024.
Competitive landscape
Hong Kong’s F&B market is open, import-driven, and highly competitive. The city has negligible domestic agricultural output and only a limited food manufacturing base, meaning that most F&B products are imported, and international companies dominate the landscape.
Major global conglomerates, including Nestlé, Unilever, Kraft Heinz, and Mondelez, have a strong foothold, distributing through local subsidiaries or established networks. Similarly, beverage giants such as Coca‑Cola, PepsiCo, and Diageo maintain a deep presence through bottling plants, distribution partnerships, or direct retail branding. In retail aisles and foodservice outlets alike, imported goods dominate, from chocolates and cereals to carbonated beverages and frozen meats.
Regional exporters play a critical role. When looking specifically at food and beverage imports, the Chinese Mainland, Japan, Thailand, and Australia are among the top suppliers of specialty and staple goods, including fresh produce, meat, seafood, sauces, and processed foods, while European players focus on wine, olive oil, dairy, and gourmet items.
For food exporters, Hong Kong remains a strategic destination for high-value products such as beef, nuts, fruits, and prepared foods. The city also functions as a re-export hub for onward distribution into The Chinese Mainland and Southeast Asia.
On the retail front, new entrants are gaining ground. Japanese discount retailer Don Don Donki, known locally as Donki, has rapidly expanded by targeting younger and price-sensitive consumers with a curated mix of Japanese groceries, snacks, and lifestyle products. Meanwhile, local discount chains like 759 Store and Best Mart 360 have gained popularity by offering affordable imported goods. However, the two supermarket giants, ParknShop and Wellcome, continue to control shelf space, pricing strategy, and promotional visibility across the city.
Advantages, disadvantages, and entry strategy
A hallmark of the city’s trade regime is its zero-tariff policy on food and beverage imports, with no value-added tax (VAT) or sales tax applied at the consumer level. Hong Kong is also party to several free trade agreements, including the Closer Economic Partnership Arrangement (CEPA) with The Chinese Mainland and the ASEAN-Hong Kong Free Trade Agreement (AHKFTA), facilitating smoother regional supply chain operations.
Logistics and infrastructure are world-class. Hong Kong’s deepwater port and international airport are consistently ranked among the best globally, while integration with the Greater Bay Area (GBA) allows efficient cross-border trucking of chilled and frozen goods under temperature-controlled logistics schemes. This makes the city a natural re-export hub for goods entering southern China or Southeast Asia.
However, exporters should weigh the challenges of doing business in Hong Kong’s mature and cost-sensitive retail market. High operating costs, especially for real estate and labor, combine with tight retail margins, making price competitiveness essential.
Meanwhile, trade shows and government agencies play a crucial role in facilitating new market entry. Events such as the HKTDC Food Expo and ProWine Hong Kong offer exposure to distributors, while public agencies like the Hong Kong Trade Development Council (HKTDC) and InvestHK provide support for overseas entrants. Import regulations are generally straightforward: there are no quotas or licensing requirements for most food items, except for alcohol and specific animal-derived products.
That said, foreign companies must ensure that packaging, labeling, and marketing strategies are adapted to local language and consumer expectations—and that products are fully compliant with Hong Kong’s food safety standards. For example, ingredient labels must be in English (Chinese is optional), and both English and Traditional Chinese signage are required on shelf displays and promotional materials. Fortunately, no special rules apply to genetically modified (GMO) foods—Hong Kong does not mandate biotech labeling.
Regarding entry strategy, Hong Kong is widely regarded as a strategic entry point to the broader Asia-Pacific region, offering a transparent, free-market environment and streamlined regulatory procedures. For new exporters, partnering with established importers or distributors remains the most common route to market.
Many brands also begin with wholesale consolidators, who bundle products from multiple suppliers for supermarket chains—especially useful given the relatively small order volumes typical of Hong Kong retailers. Other options include working through a local agent or setting up a representative office, though this usually requires more capital and operational planning.
For foreign F&B businesses, Hong Kong offers unique opportunities due to:
- Affluent, trend‑sensitive consumers: High per-capita income means many shoppers pay premiums for health, organic, gourmet and niche products. Categories like plant-based alternatives, functional foods, and Western staples (cheese, wine, olive oil) have growing demand. The city’s “cosmopolitan cuisine” culture encourages trial of novel products, from French pastries to Korean snacks.
- Tourism and retail tourism: Hong Kong’s retail sector benefits from duty-free status and shopping tourism. Mainland and international visitors are keen on local duty-free wine and boutique packaged foods. As tourism rebounds (projected 49 million visitors in 2025, a 10 percent increase from the previous year), in-store sales (supermarkets, specialty shops) and restaurants spend rise. This in turn creates an export market for international producers (via re-exports and store sales).
- Trading hub to Asia: Many exporters use Hong Kong as a regional base. From Hong Kong, products can be tested and then extended to Mainland China, Macao, and Southeast Asia. Hong Kong’s bilingual environment and western legal system also make it a familiar point of entry for US/EU firms.
- Niche markets (halal, organic, and more): Although the local Muslim population is small, Hong Kong’s businesses service the broader Asian Halal market. Similarly, organic and natural products have room to grow: local certifying bodies (for instance, the Hong Kong Food Center Certification) align with international standards. Sustainability is increasingly important, and foreign producers with eco-friendly packaging or ethically sourced ingredients can differentiate themselves.
- Innovation and e‑commerce: With smartphone penetration and logistics prowess, Hong Kong is a testbed for food tech. Cross-border e-commerce, mobile food delivery, and digital marketing (KOLs on WeChat/Instagram) are widely used. Foreign investors can partner with tech-savvy local firms to tap online channels.
Nevertheless, investors should be aware of intense competition, shifting demographics (rising Mainland Chinese influence in consumer tastes), and the need to localize. Still, Hong Kong’s legal transparency, free trade regime, and high consumer spending make it a viable launchpad for packaged food and beverage brands targeting Asia.
Trends to watch in Hong Kong’s F&B industry
In late 2024, Hong Kong’s F&B industry regained momentum, though the pace of recovery remains measured. Visitor numbers climbed steadily—over 36 million tourists arrived by October 2024, according to the Hong Kong Tourism Board—surpassing the full-year figure for 2023 and injecting much-needed energy into the city’s hospitality and service sectors. Alongside this rebound in foot traffic, new F&B openings, major cultural events, and a broader shift in consumer values are converging to shape the next phase of growth.
In conversations across the sector, several recurring themes are emerging—pointing to a market that is becoming more values-driven, experimental, and community-oriented. Below are some of the key trends likely to define Hong Kong’s F&B landscape in 2025.
The new role of sustainability
Sustainability is no longer a trend—it is fast becoming a baseline expectation. Consumers are increasingly placing weight on how businesses source, serve, and manage their operations. This shift is reflected in more visible and practical applications across the F&B ecosystem, from local sourcing and zero-waste kitchens to packaging choices and resource-efficient fit-outs.
Beyond consumer-facing decisions, sustainability is influencing how investors and operators allocate capital. There is a growing preference for long-term, ESG-aligned strategies over short-term spectacle. Energy-efficient systems, transparent supply chains, and circular design principles are moving from optional to essential. In this sense, Hong Kong’s F&B sector is aligning more closely with global trends, while tailoring them to local constraints—such as high rents and limited storage capacity.
Wellness on the menu: Low and no-ABV beverages
The rise of low- and no-alcohol drinks is one of the most notable shifts in consumer behavior over the past year. What began as a niche movement has now entered the mainstream, driven by a growing wellness culture and changing lifestyle preferences. Whether it is sophisticated mocktails, non-alcoholic craft beers, or low-ABV cocktails, these offerings are increasingly in demand—particularly among younger consumers and health-conscious urbanites.
This shift opens the door for product innovation and partnership opportunities. Beverage brands looking to enter the Hong Kong market may find success by aligning with venues that prioritize experience over intoxication—cafés, day bars, and lifestyle-oriented restaurants that seek to diversify their beverage menus without compromising on flavor or aesthetics.
Casual concepts, community roots
Fine dining still holds its place in Hong Kong, but the energy in 2024 is clearly gravitating toward more casual, community-focused concepts. New openings increasingly emphasize approachability, storytelling, and versatility. Consumers are seeking out spaces that feel welcoming and authentic—venues that double as neighborhood hubs, cultural meeting points, or creative platforms.
This movement is as much about design as it is about menu. Smaller footprints, flexible layouts, and hybrid formats (such as bar-bistros, bakery-bars, and chef-led street food) are gaining traction. Operators are investing more in atmosphere and ethos than in formality, building brands that feel personal and adaptive to shifting tastes.
Global exchange and culinary crossovers
One of the most promising signs of recovery is the return of global collaborations and cross-market exchanges. Culinary events—ranging from international pop-ups to chef collaborations—are re-establishing Hong Kong’s role as a regional tastemaker. These crossovers serve multiple functions: expanding brand visibility, sharing techniques, and deepening consumer engagement across borders.
As international travel resumes more fully, the city’s connectivity is once again becoming a major asset. For global F&B brands, importers, and investors, Hong Kong offers not only a mature and competitive market, but also a launchpad for reaching wider Asia-Pacific audiences.
Key takeaways
Hong Kong relies on imports for around 95 percent of its food supply, making it a critical destination for global exporters. Despite modest declines in import volumes in 2023, demand remains resilient across key categories like meat, seafood, dairy, and packaged goods. Retail food sales are stabilizing, with supermarkets accounting for about 60 percent of the segment, while traditional wet markets and convenience stores continue to serve local, price-sensitive consumers. Although e-commerce is growing, currently representing around 8 percent of total retail, it remains a secondary channel due to Hong Kong’s dense urban layout and ingrained in-store shopping culture.
Market access is relatively straightforward thanks to Hong Kong’s free trade environment, clear labeling rules, and established infrastructure. Foreign brands typically enter by partnering with major supermarket chains like ParknShop and Wellcome, which dominate modern retail distribution. Engaging local distributors or consolidators is a common strategy, particularly for new entrants navigating tight margins and intense competition. While U.S. and European brands benefit from strong reputations for quality, they must compete with increasingly competitive regional suppliers from Japan, Thailand, and Vietnam, many of whom offer greater price flexibility.
Looking ahead, opportunities lie in aligning with evolving consumer preferences—particularly in health, sustainability, and convenience. Premium categories such as organic snacks, functional beverages, and plant-based products are gaining traction, and Hong Kong’s role as a re-export and logistics hub positions it as a strategic platform for scaling into the Greater Bay Area and beyond.
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Dezan Shira & Associates assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Haikou, Zhongshan, Shenzhen, and Hong Kong. We also have offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, and Dubai (UAE) and partner firms assisting foreign investors in The Philippines, Malaysia, Thailand, Bangladesh, and Australia. For assistance in China, please contact the firm at china@dezshira.com or visit our website at www.dezshira.com.
