02 Mar 2020
Posted in Consumer
Hong Kong foodservice profit sector is forecast to be worth US$24bn by 2023, says GlobalData
Growing economy, increasing employment opportunities and high Gross Domestic Product (GDP) growth are some of the drivers behind the growing foodservice profit sector sales in Hong Kong, which is estimated to grow from HKD142.4bn (US$18.3bn) in 2018 to HKD172.5bn (US$23.7bn) by 2023, at a compound annual growth rate (CAGR) of 3.9%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Hong Kong – The Future of Foodservice to 2023’, reveals that the Full Service Restaurants (FSR) channel is Hong Kong’s largest foodservice profit sector channel, accounting for 64.8% of total sector revenues in 2018. Sales value in the channel grew at a CAGR of 3.6% between 2016 and 2018, and this growth is forecast to accelerate marginally through 2023.
Sneha Singh, Consumer Analyst at GlobalData, says: “Overall sales value in Hong Kong’s foodservice profit sector grew at a sizable rate, and will continue to do so during the forecast period. Value growth has been predominantly driven by rise in the number of transactions, owing to increased tourism and high spending power of consumers.”
All the channels in the profit sector registered positive growth during 2016-2018, and are forecast to continue growing at positive CAGRs between 2018 and 2023. The coffee and tea shop and leisure channels led the profit sector in terms of revenue growth from 2016-2018 with the leisure channel benefitting from the city’s booming tourism industry.
The majority of transactions will continue to be for traditional meals and dine-in transactions. However, a growing minority of occasions will consist of more varied and convenience-driven transactions, as more consumers demand a better provision of takeaway and delivery in the sector.
Singh concludes: “The Hong Kong foodservice market is highly globalized, with both western and Chinese influences. A wide variety of cuisine and outlet types are available, and many International operators choose the city as a launchpad for expansion into the region. By 2023, cross-channel competition is forecast to intensify, as trends towards ultra-convenience; all-day dining and premiumization blur channel boundaries.”