The Hong Kong market presents many business opportunities for Malaysian F&B exporters. Although Hong Kong is a highly competitive market, there is an increased demand for Malaysian products. There is also a growing interest in the halal industry in Hong Kong, with more halal products being made available to attract Muslim visitors to the city.
As Hong Kong is a free-market economy, Malaysian businesses can enjoy lower taxes and duty-free tariffs for most F&B products. Hong Kong is also known for having clear and transparent laws, as well as strong efficiency in regards to the import and export of goods.
Besides that, Hong Kong is a gateway to Mainland China and the Greater Bay Area, and serves as an entry point for Malaysia businesses that wish to enter the China market. It is not advised for Malaysian businesses to enter the China market directly, as there are many barriers, such as laws, regulations, high tax rates and others.
Businesses established in Hong Kong can gain early market access to the Mainland China market through the free trade agreement between Hong Kong and China, also known as the Closer Economic Partnership Agreement (CEPA). The CEPA was formed primarily to bring new business opportunities to the Mainland and Hong Kong. Mainland China businesses would be able to reach out to the global market through Hong Kong, and in return, Hong Kong would have easier access to the Mainland China market. Hong Kong businesses that export to Mainland China would also enjoy reduced tariffs and taxes.
MATRADE has recommended that Malaysian businesses should first enter the Hong Kong market through e-commerce. Examples of popular Hong Kong e-commerce sites includes Taobao, HKTVmall, Carousell and others. As the largest online shopping mall in Hong Kong, HKTVmall is an ideal platform for Malaysian businesses to establish their online presence to the Hong Kong market. HKTVmall features over a hundred renowned brands and over 4,000 merchants, and covers supermarket products, skincare and makeup, electrical appliances, housewares and others.
Malaysian businesses can also attend Hong Kong F&B exhibitions such as HOFEX, Restaurant and Bar Hong Kong (RBHK) and HKDTC to increase exposure of their company and products. HOFEX is a highly recommended event for F&B businesses, as it is attended by many top buyers and companies in Hong Kong and around the world.
According to MATRADE, the main consumer behaviour displayed by Hong Kong consumers is their tendency to check food labels and product ingredients. Food labels have a large impact on their purchasing decisions, as consumers will not buy the product if the sugar and sodium content is too high. As many Malaysian products are very sweet and heavy in taste, Malaysian businesses must adapt their product taste for the Hong Kong and China market.
Despite that, Hong Kong consumers are open to trying new products, especially if it has an attractive appearance and is priced appropriately. Many consumers are also becoming more focused on wellness and sustainability, as Hong Kong is an aging population. Due to this, consumers have displayed a heightened interest in plant-based products.
Malaysian businesses who are interested in exporting to Hong Kong may reach out to MATRADE through the contact details listed below. MATRADE will facilitate the exporting process by assisting businesses in arranging business meetings, establishing business contacts and more.
For enquiries, please contact:
China & Northeast Asia Section (CNEA), MATRADE
T: +603-6207 7234 (Ms. Hon Jia Xin)
E: jia@matrade.gov.my
Guide to Import of Food in Hong Kong:
https://www.cfs.gov.hk/english/import/import_icfsg_02.html
Sources:
MATRADE webinar (Exploring Hong Kong Market for Health Products and Food & Beverages)
https://www.henleyglobal.com/residence-investment/hong-kong/cepa-hong-kong-china