Browse Data and Analysis

Bite size local news, Post reports and activity summaries wrapped by ATO Hong Kong.

On October 16 the Hong Kong Government (HKG) announced a significant reduction in the duty on imported alcoholic beverages with an alcohol content above 30 percent by volume.

Hong Kong’s food retail sales remained stable at $12.2 billion in 2023, however retailers face growing challenges as more budget-minded residents travel to mainland China to save on food purchases, leading to a 4.7 percent decline in food retail sales in the first seven months of 2024.

In 2023, Hong Kong was the tenth export market for U.S. pet food. Pet owners in Hong Kong value U.S. pet food for its high safety and quality and have confidence in U.S. origin and branding.

The Hong Kong market has developed into a dynamic wine export destination since the abolishment of wine tariffs in 2008. The slow recovery of the global economy dampened the city’s global imports of wine in 2023.

In 2023 Bulgarian dairy farming stabilized with a growth in milk deliveries. This was due to improved milk yields despite continued decline in the dairy cow herd, and due to record high fluid milk imports.

Despite a small population of 7.3 million people, Hong Kong is the tenth-largest export market for U.S. consumer-ready agricultural products. Hong Kong has always been an attractive market for innovative U.S. food and beverage products as well as a gateway to the region.

In 2022, Hong Kong was the world’s tenth largest spirits importer, with global imports recovering 7 percent year-on-year and valued at $502 million. From 2020-2021, Hong Kong’s imports and domestic sales of spirits were seriously hampered under the COVID-19 pandemic, as most restaurants, pubs, and bars were closed due to stringent dining, social distancing, and travel restrictions.

Prior to the COVID-19 pandemic, Bulgaria was a growing market for food and beverages, with rising consumer confidence, declining unemployment, increasing incomes, and a stable number of foreign tourists driving expansion.

The Bulgarian dairy industry faced significant challenges in Marketing Year (MY) 2021 with the national dairy herd, cow milk production and collection, as well as processing contracting. A dry and hot summer, combined with increasing feed grain prices, inflation pressure (especially of energy supply), and a labor deficit led to a decline in the number of dairy farms and stocks. Consolidation and restructuring of the industry continued through the dominating role of larger, more efficient dairy operations.

Hong Kong is an open market offering good opportunities for U.S. beer exporters. Over the last two years, both beer imports and domestic sales have been stable despite the pandemic. In 2021, Hong Kong’s global beer imports held steady from the previous year at $115 million, making the city the fourteenth largest beer import market in the world. Domestic beer sales recovered 9 percent from 2020 at $732 million.

Over the last five years, Hong Kong’s global imports of hops expanded 42 percent, growing 10 percent to $7.2 million in 2021. The United States continues as the leading supplier enjoying 96 percent market share. Hong Kong re-exported 72 percent of its hop imports to other markets in the region, retaining 28 percent for local breweries.