Required Report - public distribution Date: 9/1/2010 GAIN Report Number: HK0012
Hong Kong Food Service - Hotel Restaurant Institutional HRI Food Service Sector
Approved By: Erich Kuss Prepared By: Chris Li Report Highlights:
U.S. exports ofhigh value food products and seafood to Hong Kong are expected to reach a record level at over US$2 billion in 2010, making it our 4th largest market for these products after Canada, Mexico and Japan. The global financial crisis did not have a significant impact on Hong Kong’s food & beverage imports and spending on food. Economic growth in Hong Kong is expected to be around 5% in 2010, benefittingfrom the continued economic growth in Mainland China. In addition, it is expected that Hong Kong will remain as one of the top 5 markets for U.S. consumer ready food products in 2011, continuing to be a major buying center and transshipment point for China and Southeast Asia. However, rents and wages are on the rise in Hong Kong and inflation may limit Hong Kong’s future economic growth. Inaddition, Mainland China is expected to take austerity measures to cool down its economy in late 2010 and 2011 and these measures could also impact Hong Kong’s economic growth. Even with lower economic growth, post expects that U.S. products will continue to fair well due to competitive prices and consumer confidence in the quality and safety of U.S. products. In addition, the Hong Kong dollar link tothe U.S. dollar provides much needed foreign exchange stability among food importers.
Post: Hong Kong
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SECTION I. HONG KONG MARKET PROFILE HRI Food Service Sector 1. Restaurants • Despite the global financial crisis, Hong Kong restaurant industry’s purchases of over US$3.5 billion in foods and beverages generated sales of over US$10.2 billion in 2009. This represented anincrease of 0.6% and a drop of only 2.8% respectively over 2008. Table 1. Hong Kong: Restaurant Receipts and Purchases, in US$ Million 2008 Restaurant Receipts Restaurant Purchases 10,178 3,647 2009 10,239 3,546 2010 est. 10,750 3,700 Growth 2010 vs 2009 5.0% 4.3%
(Source: Quarterly Restaurant Receipts and Purchases, Hong Kong Census & Statistics Department)
Hong Kong economy experiencescontinued growth and it is expected that restaurant purchases and receipts will grow by 4.3% and 5.0%, reaching US$3.7 billion and US$10.75 billion respectively in 2010. As Asia’s most cosmopolitan city, Hong Kong boasts around 11,540 restaurants serving a wide range of world cuisines. These restaurants are comprised of 53% Chinese, 36% non-Chinese restaurants, and 11% fast food outlets. In addition,there are over 1,000 bars, pubs and other eating and drinking establishments. • Chinese restaurants: Chinese restaurants are popular among local citizens and tourists. There are a variety of Chinese restaurants in Hong Kong serving different regional cuisines: Canton, Shanghai, Beijing, Sichuan…etc. A typical lunch at a nice Chinese restaurant costs around HK$100-300 (US$12.82-38.46)per person and atypical dinner costs around HK$150-400 (US$19.23-51.28) per person. Non-Chinese restaurants: Many Hong Kong consumers enjoy western food, as do the nearly 30 million tourists (in 2009). 5-Star and other high-end western restaurants are as likely to be patronized by locals as tourists/visitors. Japanese food, fast food chains, coffee houses and casual dining establishments are also increasing theirpresence. A typical lunch at a western restaurant costs around HK$100-300 per person and a typical dinner costs around HK$200-500 (US$25.64-64.10) per person. Fast food outlets: Fast food outlets are popular among Hong Kong consumers. The most popular fast food chains in Hong Kong are McDonald’s, KFC and Pizza Hut. There are also some large local fast food chains such as Café De Coral, Maxim’s...