The distribution network in Hong Kong SAR, China

Evolution of the Sector: Hong Kong is a major trading hub where buyers make purchasing decisions for a vast range of consumer-oriented products that are destined for Hong Kong and transshipped to Macau, Mainland China and other markets in Asia. Total supermarkets' retail sales reached around HKD 53.6 billion in 2021, and when including supermarket sections of department stores, they reached HKD 60.7 billion (Census and Statistics Department). Supermarkets sales were down 8.4% in 2021, from a high base in 2020, which was driven by higher-than-usual supermarket shopping because of the milder pandemic situation (PwC).

To meet their food needs, traditional street (wet) markets are popular for daily shopping for fresh grocery products in Hong Kong. Some, but not all, stalls in wet markets have freezers and chilling equipment to maintain food quality. Street markets competition with modern grocery retail outlets has intensified in recent years: supermarket sales erosion of traditional street markets market share is expected to continue as consumers seek convenience and high-quality options in larger stores. Convenience stores, such as 7-Eleven and Circle K are very popular in Hong Kong with more than 1,300 outlets that offer drinks and snacks and some hot food options. There are nearly 800 supermarkets, 1,300 convenience stores and nearly 100 traditional markets in Hong Kong (USDA).

Innovative products that offer sustainable production and nutritional value at a reasonable cost with convenient preparation are in demand. Busy schedules and dual income families are driving the search for ready-to-cook and frozen options for home preparation and premium, healthy options in food service outlets. Consumers are increasingly interested in food's provenance and production background both at retail and restaurant levels and consider these aspects when making purchasing decisions.
Market share: Hong Kong's supermarkets' landscape is dominated by two chains, Wellcome (over 280 outlets) and ParknShop (over 260 outlets), who have a combined market share of around 70% (USDA, 2020 - latest data available). Both chains expanded their premium and upscale outlets recently as consumers continue to seek high-quality, imported gourmet products.
Other supermarkets include DCH Food Mart (more than 50 outlet), U-Select (71 outlet), CitySuper (4 stores), CR Vanguard (17 outlet), AEON (9 department stores with supermarkets and 2 separate supermarkets), YATA (3 department stores with supermarkets and 9 separate supermarkets), SOGO and APITA.
Major convenience stores are 7-Eleven (more than 960 outlets) and Circle K (around 340 outlets).

E-commerce is fastly growing in the food retail sector, with platforms such as HKTV Mall providing a modern and alternative shopping experience consumers.
Retail Sector Organisations: Hong Kong Retail Management Association (HKRMA)

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