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PROCESSED MEAT AND

SEAFOOD IN HONG KONG,
CHINA
Euromonitor International
November 2015

................................................................................................... 3 Sales of Processed Meat and Seafood by Category: % Volume Growth 2010-2015 ...................... 8 Forecast Sales of Processed Meat and Seafood by Category: % Volume Growth 2015-2020 ....................................................................................................................................................................................................... 8 © Euromonitor International Passport I .............................................. 1 Trends ....................... 2 Prospects ........................................................................................................................................................................... 4 Sales of Frozen Processed Seafood by Type: % Value Breakdown 2010-2015 ............................................................................................................................................. 5 NBO Company Shares of Processed Meat and Seafood: % Value 2011-2015 ... 1 Competitive Landscape ................................................................................................................................................................... 6 Forecast Sales of Processed Meat and Seafood by Category: Volume 2015-2020 .......................................................................................................................................................................................................................................................... 4 Sales of Processed Meat and Seafood by Category: % Value Growth 2010-2015 ...................................PROCESSED MEAT AND SEAFOOD IN HONG KONG.................................................................. 7 Forecast Sales of Processed Meat and Seafood by Category: Value 2015-2020 ......................................................... 8 Forecast Sales of Processed Meat and Seafood by Category: % Value Growth 2015-2020 ........................................................................................................................ 4 Sales of Frozen Processed Poultry by Type: % Value Breakdown 2010-2015 ............................................................................................... 2 Category Data ......................................... 3 Sales of Processed Meat and Seafood by Category: Value 2010-2015 ............................................................................................... 3 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Sales of Processed Meat and Seafood by Category: Volume 20102015 ....................... CHINA LIST OF CONTENTS AND TABLES Headlines ........................................................................................ 5 LBN Brand Shares of Processed Meat and Seafood: % Value 20122015 ....................................... 6 Distribution of Processed Meat and Seafood by Format: % Value 2010-2015 ...............................

consumers preferred shopping in supermarkets as their products are perceived to be fresher. Many consumers prefer processed meat and seafood as they can be stored for a longer period than fresh versions. However. such as independent small grocers. Thus. WHO announced that there was sufficient evidence linking processed meats like ham. This was largely due to the depreciation of the Chinese currency. In Hong Kong. which was faster than the review period CAGR. sausages and bacon to colorectal cancer. Thus.  Supermarkets remained the dominant distribution channel for processed meat and seafood. WHO’s ruling did not have a strong impact on the category’s performance. which saw prices of imported processed meat and seafood decline. CHINA PROCESSED MEAT AND SEAFOOD IN HONG KONG. most consumers have become aware that processed meat increases the risk of cancer.  Chilled processed red meat recorded the fastest retail current value sales growth of 6% in 2015. This announcement was picked up my most media outlets across the world and subsequently attracted much public attention. mainly because the announcement was made only in the last quarter of 2015. © Euromonitor International Passport 1 . with a 74% share of retail value sales in 2015.  The average current unit price of processed meat and seafood continued to trend upwards. Ham is used in many dishes such as macaroni and noodle soup which are consumed regularly by most consumers.  The majority of premium meat and seafood falls under chilled and frozen ranges. Thus. they do not see a strong need to reduce their consumption of processed meat as a result of WHO’s announcement. However. the demand for chilled processed red meat remained stable.6 billion in 2020 TRENDS  In 2015. the pace of growth slowed in 2015. This suits consumers’ hectic lifestyles which reduce the time for cooking. The rate at which products are replenished or restocked in supermarkets is much faster than in other important distribution channels. Moreover. Growth was boosted by the strong demand for ham.000 tonnes and HK$2.  Processed meat and seafood saw retail current value growth of 5% in 2015. Consumers also chose processed versions when purchasing meat or seafood due to lower prices than fresh versions. CHINA HEADLINES  In 2015 retail sales grow by 3% in volume terms and 5% in current value terms to reach 37. As a result.5 billion  The WHO’s carcinogen ruling on processed meat has little impact on the category  Chilled processed red meat records the fastest retail current value sales growth of 6% in 2015  The average current unit price continues to rise in 2015  AS Watsons Group leads in 2015 with a 12% retail value share  A 1% retail value CAGR at constant 2015 prices is expected over the forecast period to reach HK$2. retailers tend to market chilled and frozen options more aggressively as these products generate higher profit margins than shelf stable options. the majority of consumers who eat processed meat regularly have not witnessed any negative effect on their health.PROCESSED MEAT AND SEAFOOD IN HONG KONG.

Few online grocers offer delivery options for chilled/frozen processed meat and seafood as the logistics of doing so is complicated. The shelf space afforded to Shineway’s products in supermarkets expanded significantly. This is largely due to the depreciating Chinese currency. the reputation of domestic brands was affected by the frequent occurrence of food scandals in China. These private label brands were preferred by many consumers due to their lower prices.  Supermarkets is likely to remain the dominant distribution channel over the forecast period. The brand also gained popularity by offering prices that are affordable for most consumers. Manufacturers are also expected to launch new flavours in an attempt to create excitement for a maturing category. Moreover. This is an improvement on the marginally negative review period CAGR at constant 2015 prices. The demand for processed meat and seafood is likely to remain unaffected by WHO’s ruling. PROSPECTS  Processed meat and seafood is projected to see a 1% retail value CAGR at constant 2015 prices over the forecast period. consumers will continue to prefer processed meat and seafood as they are easier to cook and prepare than fresh options.  The competitive landscape was highly fragmented in 2015.  Chilled processed red meat is predicted to see the fastest retail value CAGR of 2% at constant 2015 prices over the forecast period. with the rising demand for convenience. which drove fast growth in retail value sales.  Shineway Food (HK) Co Ltd recorded the highest retail value sales growth in 2015. First Choice and Best Buy.PROCESSED MEAT AND SEAFOOD IN HONG KONG. is a common ingredient in most local consumers’ diet. This type of food. it may see value shares stagnate within processed meat and seafood. CHINA COMPETITIVE LANDSCAPE  AS Watsons Group led processed meat and seafood in 2015 with a 12% retail value share. While internet retailing is gaining traction in Hong Kong. the average unit price of processed meat and seafood is set to decline over the forecast period. While online players are likely to find a solution over the forecast period. respectively. With the economy slowing down. Companies tend to try to influence consumer decision making through price promotions and strategic product shelf displays. thus steady demand is anticipated. most consumers will still © Euromonitor International Passport 2 . which is likely to reduce manufacturing costs for most players and exert downward pressure on retail prices of processed meat and seafood. For safety reasons. There was no clear winner between international and domestic players.  In-store advertising/promotion was the main marketing strategy of most companies. such as ham. However. with an 11% share. followed closely by Dairy Farm International Holdings Ltd. more consumers shifted to international brands as their products are manufactured in other countries. It would therefore be difficult for consumers to change this eating habit overnight. over the review period. Domestic players traditionally hold an edge over international players due to higher brand awareness among local consumers. Consumers shied away from purchasing domestic brands as many manufacturers used ingredients imported from Mainland China. many consumers are cautious about spending.  At constant 2015 prices. Processed meat is a key component of the local diet and most people have grown accustomed to consuming such products over many years. Both companies leveraged on the strong performances of their private label brands.

3 279.Shelf Stable Meat .010.3 1.7 404.3 1.235.3 18.0 3.0 638.0 8.6 228.Shelf Stable Seafood .8 457.5 18.160. trade sources © Euromonitor International 3 .2 248.Chilled Processed Seafood .9 17.9 7.208.1 737.547.117.0 387.Shelf Stable Meat Substitutes Processed Meat and Seafood Source: 2010 2011 2012 2013 2014 2015 15.8 2.Frozen Meat Substitutes .9 16.5 1.7 19.6 1.6 33.1 8.2 6. trade interviews.Frozen Processed Meat Processed Seafood .3 8. company research.0 578.Frozen Meat Substitutes .7 258.4 537.Chilled Meat Substitutes .Frozen Processed Seafood Meat Substitutes .2 35.4 8.5 6.5 477.3 1.2 9. trade sources Table 2 Sales of Processed Meat and Seafood by Category: Value 2010-2015 HKD million Processed Meat .1 35.5 520.4 2.4 2.Shelf Stable Meat .4 4.6 2.6 102.0 5.1 1.0 1. trade associations.190.5 10.1 6.7 9.2 614.0 1.PROCESSED MEAT AND SEAFOOD IN HONG KONG.7 1.097.042.6 437.4 244.1 10.1 253.7 645.4 Euromonitor International from official statistics.9 106.Frozen Processed Seafood Meat Substitutes . company research.9 17.5 1. store checks.1 Euromonitor International from official statistics. trade press.7 - - - - - - - - - - - - 32.9 19.Chilled Processed Seafood .2 238.151.8 111.0 6. CATEGORY DATA Table 1 Sales of Processed Meat and Seafood by Category: Volume 2010-2015 '000 tonnes Processed Meat .089.8 3.Frozen Processed Meat Processed Seafood .339.4 1.8 115.4 422.6 709.285.0 1.Chilled Processed Meat .9 3.5 5.2 681. trade press. trade associations.3 268.2 242.4 6.8 269.1 119. trade interviews.9 17.9 37.Shelf Stable Seafood .2 283.7 3.7 - - - - - - - - - - - - 2.Shelf Stable Meat Substitutes Processed Meat and Seafood Source: 2010 2011 2012 2013 2014 2015 980. store checks.4 627.0 6.1 4.8 4.6 1.324. CHINA Passport frequent supermarkets so they can assess the “freshness” of these products before purchases.232.6 4.7 2.4 34.2 8.1 17.Chilled Processed Meat .1 217.7 555.1 3.6 10.4 124.8 15.5 656.9 16.6 2.Chilled Meat Substitutes .150.5 1.437.4 1.0 10.4 1.9 2.

2 2. trade associations. company research.5 7.6 3.Frozen Meat Substitutes .0 9. store checks.3 30.Chilled Processed Meat .0 30.5 21.0 8.0 9.Frozen Processed Seafood Meat Substitutes .Chilled Processed Seafood . trade interviews.8 17.5 31.9 3.4 2.3 13.3 2.Shelf Stable Seafood .1 2.Chilled Meat Substitutes .0 13.5 2.9 2.5 32.3 3.8 16.Chilled Meat Substitutes . CHINA Table 3 Passport Sales of Processed Meat and Seafood by Category: % Volume Growth 20102015 % volume growth Processed Meat .7 5.6 13.Shelf Stable Meat .5 31.5 32. trade press.Shelf Stable Meat Substitutes Processed Meat and Seafood Source: 2014/15 2010-15 CAGR 2010/15 Total 3.3 4.2 4 .8 7. trade interviews.0 9.5 4.0 7.Frozen Processed Seafood Meat Substitutes .0 4.Shelf Stable Meat .9 7.0 7.0 2.0 31.9 7. trade sources Table 5 Sales of Frozen Processed Seafood by Type: % Value Breakdown 2010-2015 % retail value rsp Crabsticks Fish Fingers Fish Processed Fillets Processed Shrimp/Prawns Smoked Salmon © Euromonitor International 2010 2011 2012 2013 2014 2015 31.0 4.6 2.0 3.1 30.PROCESSED MEAT AND SEAFOOD IN HONG KONG.9 5.5 7.1 30.4 3.8 7.4 4.5 32.2 3.Frozen Processed Meat Processed Seafood .7 Euromonitor International from official statistics.1 13.0 19.5 7.1 2.Frozen Processed Meat Processed Seafood . trade press.7 3.4 Euromonitor International from official statistics.5 32.1 4.4 24.8 11.0 7. trade associations.8 4.5 4.0 23.2 21.5 23.Chilled Processed Seafood .3 4.Shelf Stable Seafood . trade sources Table 4 Sales of Processed Meat and Seafood by Category: % Value Growth 20102015 % current value growth Processed Meat .2 9.Shelf Stable Meat Substitutes Processed Meat and Seafood Source: 2014/15 2010-15 CAGR 2010/15 Total 4.0 9. company research.8 18.5 32.4 3.7 3.Frozen Meat Substitutes .5 2. store checks.6 11.3 15.5 7.0 9.2 4.2 4.Chilled Processed Meat .0 9.8 5.0 1.

8 4.9 30.9 2.7 2.2 1.7 2.2 1. company research.9 3. store checks.6 6.7 2.7 2. CHINA Others Total Source: 13.2 16.0 14.8 30.4 1.4 1.0 100. trade interviews.0 10.2 17.3 - 1. trade sources Table 7 NBO Company Shares of Processed Meat and Seafood: % Value 2011-2015 % retail value rsp Company AS Watson Group Dairy Farm International Holdings Ltd China National Cereals.8 13.0 Passport 13.2 1.0 10.9 2.9 10.4 1.2 6.0 100.8 12.2 8.8 6.9 3.0 10.1 2.0 23.8 12.6 4.0 100.0 22.4 1. trade sources Table 6 Sales of Frozen Processed Poultry by Type: % Value Breakdown 2010-2015 % retail value rsp Nuggets Sausages Seasoned Chicken Breast Fillet/Patties Seasoned Chicken Wings Others Total Source: 2010 2011 2012 2013 2014 2015 16.PROCESSED MEAT AND SEAFOOD IN HONG KONG.0 13.4 1.8 5. store checks.9 30.7 4. Oils & Foodstuffs Imp & Exp Corp (COFCO) Lucullus Food & Wines Del Monte Asia Pte Ltd Four Seas Fish Balls Co Ltd Stockton Further Processing Ltd Guangdong Foodstuffs Import & Export (Group) Corp Simplot Australia Pty Ltd Hong Kong Ham Holdings Ltd General Mills Hong Kong Ltd Danish Crown Amba Nomad Foods Ltd Wilson Foods Intertrade (HK) Ltd Shineway Food (HK) Co Ltd Kibun Hong Kong Co Ltd Hormel Foods Corp Iglo Group Cheong Kee Special Food Products Co Ltd Birds Eye Iglo Group © Euromonitor International 2011 2012 2013 2014 2015 11.3 - 1.9 10.0 Euromonitor International from official statistics.7 6.5 16.0 12.2 17.9 12.0 100.1 10.3 - 1.9 3.0 30.1 16.9 5.3 - 1.0 100.1 2.7 6.5 1.2 6.1 8. trade press.0 17.9 5.1 100.8 5.9 3.0 10.0 13. trade interviews.0 17.0 22.7 100.3 1.5 17.0 Euromonitor International from official statistics.4 1.0 5.0 22.1 2. trade associations.9 5.0 22.4 2.1 8.0 22.0 30.8 13.0 17.9 2.0 8.4 1.9 3.0 12.7 2.2 100.9 5.0 10.8 30.1 2. trade associations.2 1.0 17.3 1.6 4.1 6.2 1.9 2.5 13.8 5.1 100.9 5.7 12.0 100.0 8.0 13.1 6.5 100.0 10. company research.7 2.2 6. trade press.9 1.5 17.2 10.7 100.0 - - - - - - 5 .6 6.6 4.8 12.8 5.

2 1. Oils & Foodstuffs Imp & Exp Corp (COFCO) Del Monte Asia Pte Ltd Four Seas Fish Balls Co Ltd Stockton Further Processing Ltd Guangdong Foodstuffs Import & Export (Group) Corp AS Watson Group Simplot Australia Pty Ltd Hong Kong Ham Holdings Ltd China National Cereals.4 2.4 8.4 2.5 7.5 99.3 100.5 99.4 1.2 1.7 8.0 100.5 6.5 6 .5 4.9 4.0 6. trade interviews.4 2.5 7.6 3.7 3.9 5.2 1.4 2.9 3.0 100.9 100.1 2.4 1.4 2.5 99.4 1.0 100.2 6.2 1.7 2. trade interviews.1 2.5 2.0 5.1 2. trade associations.5 99.4 2.7 8.9 100.2 6.9 5.3 - 1.5 8. company research.0 2012 2013 2014 2015 8.9 1.1 6.7 2.2 6. trade sources Table 8 LBN Brand Shares of Processed Meat and Seafood: % Value 2012-2015 % retail value rsp Brand Company Dragon Island No Frills Lucullus Food & Wines Dairy Farm International Holdings Ltd AS Watson Group China National Cereals.5 99.3 - 1.4 2.8 4.0 13.0 Euromonitor International from official statistics.1 6. company research.4 8.PROCESSED MEAT AND SEAFOOD IN HONG KONG.0 12. trade press.9 3.4 1.8 5.9 5.5 4.9 100.3 - 1.7 2.7 3.2 6.5 4.9 1.7 2.9 3. trade sources Table 9 Distribution of Processed Meat and Seafood by Format: % Value 2010-2015 % retail value rsp Store-Based Retailing © Euromonitor International 2010 2011 2012 2013 2014 2015 99.8 4.8 4.0 12. Oils & Foodstuffs Imp & Exp Corp (COFCO) General Mills Hong Kong Ltd Danish Crown Amba Dairy Farm International Holdings Ltd Nomad Foods Ltd Wilson Foods Intertrade (HK) Ltd Shineway Food (HK) Co Ltd Kibun Hong Kong Co Ltd Hormel Foods Corp Iglo Group Birds Eye Iglo Group Cheong Kee Special Food Products Co Ltd Best Buy Maling Del Monte Four Seas Valley Chef Pearl River Select John West Maid Great Wall Wanchai Ferry Tulip First Choice Birds Eye Armour Shineway Kibun Hormel Birds Eye Birds Eye Cheong Kee Others Total Source: 13.8 5.1 6.9 100.9 2.0 12.9 5.9 3.6 3.9 5.0 Euromonitor International from official statistics. store checks.5 7.0 - 13.9 1. CHINA Others Total Source: Passport 13. store checks.2 6.6 7. trade press.9 4.8 8. trade associations.2 6.1 6.5 1.0 13.0 100.3 1.0 12.6 8.

8 21.1 38.5 0.PROCESSED MEAT AND SEAFOOD IN HONG KONG.Mixed Retailers Non-Store Retailing .2 78.1 18.6 21.Supermarkets -.Chilled Processed Meat .Chilled Processed Seafood .3 7.0 2.8 11.8 76. company research. trade press.5 100.6 9.5 3.7 75.3 21.9 12.Independent Small Grocers --. trade interviews.4 12.0 1.8 - - - - - - - - - - - - 1.5 100.Hypermarkets --.5 8.5 9.Other Foods NonGrocery Specialists .0 Euromonitor International from official statistics.Shelf Stable Meat Substitutes Processed Meat and Seafood Source: 2015 2016 2017 2018 2019 2020 17.Internet Retailing .4 5.3 3.8 8.5 19.5 0.Homeshopping .0 5.Frozen Processed Seafood Meat Substitutes .2 98. trade sources Table 10 Forecast Sales of Processed Meat and Seafood by Category: Volume 20152020 '000 tonnes Processed Meat .5 78.Other Grocery Retailers .Traditional Grocery Retailers --. company research.4 8. trade press.6 2.Frozen Processed Meat Processed Seafood .5 0.3 9.1 3.5 0.0 75. trade associations. store checks.7 4.Vending .0 77.0 1.0 76.7 9.2 20.0 78.5 100.5 74.2 23.5 22.5 0.5 100.5 98.Grocery Retailers -.5 0.7 6.0 20.4 3.4 8.2 9.7 9.Forecourt Retailers --.5 5.9 3.Modern Grocery Retailers --.2 19.3 6.Chilled Meat Substitutes .5 0.0 8.9 2.5 0.1 39.0 2.2 7.1 20.2 19.0 98.6 2.6 3.0 18.Food/drink/tobacco specialists --.0 7.0 1.0 22.5 0.0 9.Shelf Stable Meat .8 1.5 0.5 0.7 5. trade interviews.Discounters --.0 74.6 8.8 7.5 100.6 10.3 20.3 12.Direct Selling Total Source: Passport 98.3 5.2 41.Frozen Meat Substitutes .5 98.Shelf Stable Seafood .5 5.1 10.1 Euromonitor International from trade associations.Health and Beauty Specialist Retailers -.0 78.3 9. trade sources © Euromonitor International 7 .5 100.4 - - - - - - - - - - - - 37.3 2.9 9.2 11.0 18.9 5.3 98.9 19.0 77.5 0.6 9.0 1.8 9.Convenience Stores --.0 1. CHINA .2 42.Non-Grocery Specialists -.7 4.2 40.5 2.3 2.

1 302.Frozen Processed Meat Processed Seafood .4 1. trade interviews.6 1.0 3.9 487.2 127.6 Euromonitor International from trade associations.5 2.592.7 645.Frozen Meat Substitutes .2 730.3 15. trade press.Shelf Stable Meat .Shelf Stable Meat .225.8 296.357.8 2. CHINA Table 11 Passport Forecast Sales of Processed Meat and Seafood by Category: Value 20152020 HKD million Processed Meat .3 2.Chilled Processed Meat .5 3.9 2.Chilled Processed Seafood .0 11.1 1.8 2.Frozen Meat Substitutes .0 2.Chilled Processed Seafood .5 2.Chilled Meat Substitutes .1 737.5 277.6 12.7 2.5 1.1 290.4 124.Shelf Stable Meat Substitutes Processed Meat and Seafood Source: 2015 2016 2017 2018 2019 2020 1.Frozen Processed Meat Processed Seafood .3 2.273. company research.0 312.Shelf Stable Seafood .622.2 308.241.Chilled Processed Meat .0 1.339.7 14.2 2.5 1.4 278.0 2.Frozen Processed Seafood Meat Substitutes .PROCESSED MEAT AND SEAFOOD IN HONG KONG.4 1.8 14.4 2.Shelf Stable Seafood .8 674.3 279. trade press.9 666.9 11.1 726.Shelf Stable Meat Substitutes Processed Meat and Seafood Source: Table 13 2015/16 2015-20 CAGR 2015/20 Total 2. company research.Chilled Meat Substitutes .7 482.7 3.0 129. trade interviews.4 2.3 735.359.5 656.609.8 2.7 2.7 125.350.6 477.6 684.4 134.4 1.Frozen Processed Seafood Meat Substitutes .9 13.1 132.9 2.5 3.7 495.0 1.4 1.3 Euromonitor International from trade associations.632.6 278.2 276.345.1 - - - - - - - - - - - - 2.2 733.1 736.1 498.208.7 279.2 3.0 1.354. trade sources Table 12 Forecast Sales of Processed Meat and Seafood by Category: % Volume Growth 2015-2020 % volume growth Processed Meat .0 680.265.255.2 11.6 2.570.4 18. trade source Forecast Sales of Processed Meat and Seafood by Category: % Value Growth 2015-2020 % constant value growth 2015/2016 © Euromonitor International 2015-20 CAGR 2015/20 TOTAL 8 .8 491.2 283.547.

1 1.7 Euromonitor International from trade associations.5 -1.4 0.Chilled Meat Substitutes .Shelf Stable Meat .4 1.3 3.Shelf Stable Meat Substitutes Processed Meat and Seafood Source: Passport 1.Frozen Processed Seafood Meat Substitutes .7 0.Chilled Processed Meat .1 0. trade interviews.9 1.6 4.Shelf Stable Seafood .1 1. trade press.0 1.1 -0.1 10.PROCESSED MEAT AND SEAFOOD IN HONG KONG.2 2.5 8.3 -0.8 0.3 1.3 9 .2 1.Frozen Meat Substitutes .4 -0.2 0. company research. CHINA Processed Meat . trade source © Euromonitor International 5.Frozen Processed Meat Processed Seafood .Chilled Processed Seafood .7 0.4 -1.2 6.0 2.