Organic Packaged Food in Hong Kong, China

PROSPECTS

Further positive growth expected as concerns over food safety continue to spread

A recent spate of food safety scandals has led to increasing concern about the quality of the food available for mass consumption in Hong Kong. In particular, this has made consumers more open to the idea of organic packaged food.

Supermarkets and health food stores set to remain the key distribution channels

There are major differences in terms of income levels between those living on the island of Hong Kong and those who reside in Kowloon have led to variations in the availability of organic packaged food between the two main regions of Hong Kong. Most chained supermarkets throughout the territory offer a reasonable variety of organic products, although generally their organic ranges will not be as comprehensive as what one would expect to find in a Western country.

Lack of regulations likely to present challenges during the forecast period

Although the range of organic packaged food available in Hong Kong is expanding, there are not yet any regulations relating to the monitoring of quality and authenticity of these products. Imported organic products will invariably have been endorsed by a government department or public certification body in their country of origin.

COMPETITIVE LANDSCAPE

Wyeth’s Gold organic milk formula brand continues to dominate sales

With sales of organic packaged food heavily dominated by organic milk formula, it should come as no surprise that the leading brand in organic packaged food is also the leading brand in organic milk formula: Gold by Wyeth (HK) Ltd. Wyeth has been able to establish a very strong position in Hong Kong due to its reputation for high quality and product safety and this has enabled the company and its brands, including Gold, to take full advantage of the still brisk trade in milk formula to visitors from mainland China.

Hain Celestial maintains second position with its Maranatha organic spreads brand

Hain Celestial Group maintained second position in organic packaged food in 2017 through its Marantha range of organic nut and seed-based spreads. However, the brand’s value share continued to decline as sales growth lagged behind the category average.

Private label continues to perform well in organic packaged food

With private label accounting for three of the top six names in organic packaged food in 2018, it is clear that Hong Kong’s leading chained retailers are ahead of the curve in this category. AS Watson is the category’s strongest private label player and its Select private label remains the second leading name in organic packaged food.

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