Its annual growth rate would moderate from 6% to 5.5% by 2023.
Food spending by Hong Kong consumers is projected to grow by an average of 5.5% annually between 2019 and 2023, reaching $291.6b (US$37.5b) in 2023 from $237.1b (US$30.5b) in 2019, according to a report by Fitch Solutions.
In per capita terms, food spending in Hong Kong could reach $31,655 (US$4,074) in 2019 before rising to $37,945 (US$4,883) in 2023. Although this initially represents a robust growth rate, the trajectory has actually been moderating from the 6% annual average growth seen between 2014 and 2018.
“We attribute this slower growth to the fact that Hong Kong’s food sector is becoming saturated, with consumers already spending at a very high level by global standards,” the report said.
Other contributing factors include Hong Kong’s ageing population as seniors prefer to eat in smaller amounts of food. Food spending would be driven by growth in value spend, as the country benefits from an increasingly wealthy consumer base that can afford premium food products.
In addition, meat and poultry would account for 26.9% of the total food spending, up from 23.6% in 2003. Spending on fish and seafood are expected to contract as its role in overall spending decreasing to account for a projected 13% in 2023, from 18.9% in 2003.There is also an increasing preference for dairy and bread, rice and cereals.
“By 2023 we project dairy to account for 6.3% of total food spending by Hong Kong consumers, up from 5.3% in 2003. The amount allocated by consumers on staples such as bread, rice and cereals will also expand from 4.9% in 2003 to 5.8% in 2023,” the report stated.
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