There’s never been a better time to celebrate Hong Kong’s captivating and dynamic F&B sector. The city boasts a high concentration of consumers who are both digitally sophisticated and increasingly environmentally conscious. The needs of these thoughtful foodies is being met by a responsive and innovative food-business community and together they’re embracing opportunities for change and enjoying year-on-year growth.

Hong Kong’s F&B industry rose admirably to the challenges of Covid-19, generating HK$8 billion in revenue during the first three quarters of 2020. Much of this success has been driven by outlets embracing food-delivery services, which increased by 44%, thanks to the city’s diners being so tech-savvy.

INVESTHK’s Food Services: Accelerated Digital Growth and Development playbook

PANDEMIC HIGHLIGHTS THE NEED FOR SUSTAINABILITY

During this time, the entire value chain of food businesses evolved and as new online retail platforms and cloud kitchens emerged, the trend towards sustainability became more pronounced. Deliveroo reported that plant-based orders increased by 100% during 2020.

At the same time, rising demand for green food products and meat alternatives has allowed companies such as Impossible Foods – a US plant-based meat company – and Hong Kong’s Green Monday, the creator of OmniPork, to rapidly expand.

Research from PwC identified that consumers want to reduce the impact of their consumption and over 80 percent of the population consider climate change to be significant. This growing demand for sustainability is reflected in local consumption behaviour and companies such as Avant, Livin farms and Farm 66 have responded by offering alternative proteins and hydroponically-farmed produce and services.

Innovative grocery delivery platforms are also emerging with companies such as Eat the Kiwi, a rethinking food distribution with sustainable and high-quality produce at the fore. Moreover, companies such as Phenix, ORCA and ASIA are pioneering innovative food-waste solutions. And Food Made Good HK is playing its part to change mindsets and transform the local food system.

INVESTHK’s Food Services: Accelerated Digital Growth and Development playbook

INNOVATORS QUICK TO ENABLE REMOTE FOOD TRANSACTIONS

With over 15,000 restaurants, Hong Kong boasts the world’s highest density of food outlets. A large proportion of these are independent operators, many of whom are teaming up with digital transformation partners such as eCup. These technologies enabled small businesses to capture a healthy share of the 80% growth experienced by F&B ecommerce last year thanks to digital platforms and mobile commerce solutions that simplify ordering and digital payments, and enable attractive loyalty programmes.

NEW GREEN & HEALTHY MINDSET REVITALISING THE INDUSTRY

Meanwhile, consumers continue to embrace wellness, fitness, and greener healthy lifestyles. This is reflected in the growing number of flexitarians who are choosing to incorporate vegan meals into their weekly diet. “Sustainability exists in the public consciousness,” says David Yeung, Founder and CEO of Green Monday, as he ponders the dramatic growth in green eating and plant-based product sales within Hong Kong.

These trends have enabled trailblazers like Green Monday to successfully launch hybrid retail models, for example, food service restaurant Green Common, which saw sales of green-food alternatives skyrocket during 2020. Such positive demand has enabled Green Monday to raise US$70 million in financing for its plant-based Omnifoods product line – and use Hong Kong as a launch pad into other Asian markets.

INVESTHK’s Food Services: Accelerated Digital Growth and Development playbook

Once again, Hong Kong is proving its ability to respond to market conditions and adapt accordingly. As the city creates exciting new digital platforms and expands sustainable food options, both local residents and the planet can benefit. Read more in INVESTHK’s Food Services: Accelerated Digital Growth and Development playbook here.

 

This content was created prior to our rebranding to Future Green, as of 28/11/22, when we were known as Food Made Good HK.