Market Brief for Asia Fruit Logistica. Hong Kong & Macau, Makret Dynamic Markets for U.S. Exports
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1 Market Brief for Asia Fruit Logistica Hong Kong & Macau, Makret Dynamic Markets for U.S. Exports September 5,
2 USDA Foreign Agricultural Service (FAS) - ATO Hong Kong - FAS offices are staffed by Foreign Service agricultural attachés and local agricultural policy and promotional experts A global network of 93 offices covering 171 countries ATO Hong Kong Facilitate partnership Explore opportunities Raise profile for US foods 2
3 Hong Kong Overview 3
4 Hong Kong Overview - Trade Friendly Environment - One country, two systems Westernized business practices Business language: English Transparent and stable import regime 4
5 Hong Kong Overview - High Efficiency - Leading ocean terminal World s busiest air cargo facility * Developed distribution networks Duty free for most food and beverages * Ranking of total air cargo traffic in 2016 by Airports Council International 5
6 Hong Kong Overview - Connectivity to Asia - Destination for world s travelers Visa free entry Easy access for decision makers Global sourcing hub 6
7 Hong Kong Overview - Key Export Destination - High import demand Long term trade success between Hong Kong and the US Strong re-export opportunities Key re-export destinations: China, Vietnam, Taiwan, Macau Source of data: Consumer Oriented Agricultural Products, by value in 2016 U.S. Census Bureau Trade Data and Hong Kong Census and Statistics Department by Global Trade Atlas 7
8 Hong Kong Overview - Global Competition - *Consumer Oriented Agricultural Products + Fish and Seafood *Group 32 and Group 9, Gross imports to HK, Global Trade Atlas using data from Hong Kong Census and Statistics Department 8
9 Hong Kong Consumer Trends 9
10 Consumer Trends - Dynamic Food Culture - International cuisines Busy and affluent consumers High cost of living Dining out common 10
11 Consumer Trends - Information Savvy - * 96% smartphone users; 4.4 m facebookers Growing F&B internet retailing Production Story Health awareness rising *Social Media Usage in Hong Kong Statistics and Trends, May 16, 2015, Other information is taken from Euromonitor International 11
12 Hong Kong Food and Beverage Trade 12
13 Popular Product Groups Imports to Hong Kong Product Category 2016 Gross Imports (US$ Million) 2016 Retained Imports * (US$ Million) Fish & Seafood Products 3,404 2,742 Fresh Fruit 2,609 1,063 Beef 1,806 1,584 Tree Nuts (US # 1 export market) 1, Wine 1, Poultry Meat 1, Pork 1, Processed Fruits and Vegetables Fruit & Vegetable Juices (* Retained Imports = Gross Imports Re-exports) Source of Data: Hong Kong Census and Statistics Department (Global Trade Atlas) 13
14 U.S. Fresh Fruits Exports - Hong Kong: the 5 th Largest Export Market - Country Export Values in Thousands of Dollars World Total 4,935,065 5,068,321 4,944,042 4,564,697 4,564,497 % of Total 1 Canada 1,790,480 1,834,253 1,785,798 1,648,542 1,634,040 36% 2 Mexico 557, , , , ,120 11% 3 Korea, South 369, , , , ,121 9% 4 Japan 448, , , , ,465 8% 5 Hong Kong 296, , , , ,779 6% 6 Taiwan 209, , , , ,944 5% 7 China 111, , , , ,632 4% 8 Australia(*) 113, , , , ,324 2% 9 Indonesia 112,000 70,719 93,442 64,205 81,461 2% 10 India 110,595 81,364 78, ,424 71,746 2% Note: 1. Data Source: U.S. Census Bureau Trade Data 2. (*) denotes a country that is a summarization of its component countries. 3. Product Group : BICO-HS10 14
15 Fresh Fruits - Hong Kong Imports in Fresh Fruits Imports Chile 29% Cherries, Grapes, Plums Cranberries, Blueberries Kiwi Fruits Rest of World 8% New Zealand 2% Japan 3% Philippines 3% Peru 3% China 5% South Africa 6% Australia 7% United States 15% Thailand 19% Durians (81%) Oranges, Grapes, Cherries, Apples, Strawberries 15 Source of Data: Group 23, Hong Kong Census and Statistics Department; by value in 2016, Global Trade Atlas
16 Fresh Vegetables - Hong Kong Imports in Fresh Vegetables Imports Cabbages, Lettuces, Mushrooms China 77% United States 5% Australia 4% Japan Thailand Celery, Cabbages, Lettuces, Potatoes, Asparagus Rest of World 16 Source of Data: Group 22, Hong Kong Census and Statistics Department; by value in 2016, Global Trade Atlas
17 Fruits and Vegetables - Hong Kong Market Situation - Fruits in wet markets perceived to be fresh Fruit desserts popular Fruits and nuts gifts important Promotions critical Great Food Hall hamper sales hall.com/eshop/mafh ampers.do 17
18 Fruits and Vegetables - Hong Kong Market Trends- Some consumers pay extra for trends Increased demand for convenient healthy options Hotels and bakeries choose high-end More organic items and brands 18
19 Fruits and Vegetables - Market Structure - Online Shops Suppliers Importers Wholesalers Retailers Consumers Hotels & Restaurants, Bakeries Supermarkets 19
20 Market Sector Structure Food Service 20
21 Food Service - Growing Restaurant Sector - Hotels high end dining for locals Celebrity chefs Buffets Unique experience Restaurants foodie culture Growth of fast casual dining outlets with moderate prices Growth of café and bars wines and spirits Need to keep up with high rental and manpower costs Source of Data: Euromonitor International 21
22 Food Service - Growing Restaurant Receipts - Restaurant Receipts Source: Census and Statistics Exchange Rate US$1 = HK$7.8 Department, Hong Kong 22 SAR
23 Market Sector Structure Retail 23
24 Retail - Competitive Retail Environment - Two major retailers dominate supermarket revenue Wide distribution from basic to specialty High operating costs Buyers selection criterion Trend and innovation Reliability Proven track records Clarity in product information (labeling, shipping, pricing etc.) Speedy responses 24
25 Retail - Growing Retail Sales - Retail Sales of Food and Beverages Exchange Rate US$1 = HK$7.8 Source: Census and Statistics Department, Hong Kong SAR 25
26 Macau Hong Kong s Neighbor 26
27 Macau - Macau Special Administrative Region - Growth as an Entertainment Destination Family friendly entertainment platforms Expansion of restaurant and foodservice facilities Growing opportunities for high quality food and beverage products 27
28 Watch our Video! Hong Kong and Macau: Dynamic Markets for U.S. Exports Other ATO Hong Kong Resources: -Importers contacts -Trade Shows in Hong Kong -ATO Hong Kong reports 28
29 Trade Shows Date Sep 5-7, 2017 Sep 5-7, 2017 Sep 6-8, 2017 Nov 9-11, 2017 Nov 30 Dec 2, 2017 Nov 30 Dec 2, 2017 Feb 1-3, 2018 Feb 1-3, 2018 May 9-11, 2018 May 29-31, 2018 Aug 16-18, 2018 (dates TBC) Aug, 2018 Name of Show Seafood Expo Asia Restaurant and Bar Asia Fruit Logistica* (fruits, vegetables and nuts) Hong Kong International Wine and Spirits Fair Agri Pro Asia Hong Kong International Bakery Expo LOHAS Expo Vegetarian Food Asia Gourmet Asia Vinexpo Hong Kong Hong Kong Food Expo Natural and Organic Products Asia 29
30 Contact Us Major sources of data in this presentation: Euromonitor International Hong Kong Census and Statistics Department Global Trade Atlas U.S. Census Bureau, U.S Department of Commerce 30
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