Processed Meat and Seafood in Hong Kong China (1)

PROCESSED MEAT AND
SEAFOOD IN HONG KONG,

CHINA
Euromonitor International
November 2015
PROCESSED MEAT AND SEAFOOD IN HONG KONG, CHINA
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 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 ............................................................................................................. 3

Sales of Processed Meat and Seafood by Category: Value 2010-2015 ....... 3
Sales of Processed Meat and Seafood by Category: % Volume
Growth 2010-2015 ....................................................................................... 4
Sales of Processed Meat and Seafood by Category: % Value Growth
2010-2015 .................................................................................................... 4
Sales of Frozen Processed Seafood by Type: % Value Breakdown
2010-2015 .................................................................................................... 4
Sales of Frozen Processed Poultry by Type: % Value Breakdown
2010-2015 .................................................................................................... 5
NBO Company Shares of Processed Meat and Seafood: % Value
2011-2015 .................................................................................................... 5
LBN Brand Shares of Processed Meat and Seafood: % Value 20122015 ............................................................................................................. 6
Distribution of Processed Meat and Seafood by Format: % Value
2010-2015 .................................................................................................... 6
Forecast Sales of Processed Meat and Seafood by Category: Volume
2015-2020 .................................................................................................... 7
Forecast Sales of Processed Meat and Seafood by Category: Value
2015-2020 .................................................................................................... 8
Forecast Sales of Processed Meat and Seafood by Category: %
Volume Growth 2015-2020 .......................................................................... 8
Forecast Sales of Processed Meat and Seafood by Category: %
Value Growth 2015-2020 ............................................................................. 8
Passport
PROCESSED MEAT AND SEAFOOD IN

HONG KONG, CHINA
HEADLINES
In 2015 retail sales grow by 3% in volume terms and 5% in current value terms to reach
37,000 tonnes and HK$2.5 billion
The WHOs 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$2.6 billion in 2020
TRENDS
In 2015, WHO announced that there was sufficient evidence linking processed meats like
ham, sausages and bacon to colorectal cancer. This announcement was picked up my most
media outlets across the world and subsequently attracted much public attention. In Hong
Kong, most consumers have become aware that processed meat increases the risk of cancer.
However, WHOs ruling did not have a strong impact on the categorys performance, mainly
because the announcement was made only in the last quarter of 2015. Moreover, the majority
of consumers who eat processed meat regularly have not witnessed any negative effect on
their health. Thus, they do not see a strong need to reduce their consumption of processed
meat as a result of WHOs announcement.
Processed meat and seafood saw retail current value growth of 5% in 2015, which was faster
than the review period CAGR. Many consumers prefer processed meat and seafood as they
can be stored for a longer period than fresh versions. This suits consumers hectic lifestyles
which reduce the time for cooking. Consumers also chose processed versions when
purchasing meat or seafood due to lower prices than fresh versions.
Chilled processed red meat recorded the fastest retail current value sales growth of 6% in
2015. Growth was boosted by the strong demand for ham. Ham is used in many dishes such
as macaroni and noodle soup which are consumed regularly by most consumers. Thus, the
demand for chilled processed red meat remained stable.
The majority of premium meat and seafood falls under chilled and frozen ranges. As a result,
retailers tend to market chilled and frozen options more aggressively as these products
generate higher profit margins than shelf stable options.
The average current unit price of processed meat and seafood continued to trend upwards.
However, the pace of growth slowed in 2015. This was largely due to the depreciation of the
Chinese currency, which saw prices of imported processed meat and seafood decline.
Supermarkets remained the dominant distribution channel for processed meat and seafood,
with a 74% share of retail value sales in 2015. The rate at which products are replenished or
restocked in supermarkets is much faster than in other important distribution channels, such
as independent small grocers. Thus, consumers preferred shopping in supermarkets as their
products are perceived to be fresher.
Passport
COMPETITIVE LANDSCAPE
AS Watsons Group led processed meat and seafood in 2015 with a 12% retail value share,
followed closely by Dairy Farm International Holdings Ltd, with an 11% share. Both
companies leveraged on the strong performances of their private label brands, First Choice
and Best Buy, respectively. With the economy slowing down, many consumers are cautious
about spending. These private label brands were preferred by many consumers due to their
lower prices.
Shineway Food (HK) Co Ltd recorded the highest retail value sales growth in 2015. The shelf
space afforded to Shineways products in supermarkets expanded significantly, which drove
fast growth in retail value sales. The brand also gained popularity by offering prices that are
affordable for most consumers.
In-store advertising/promotion was the main marketing strategy of most companies.
Companies tend to try to influence consumer decision making through price promotions and
strategic product shelf displays.
The competitive landscape was highly fragmented in 2015. There was no clear winner
between international and domestic players. Domestic players traditionally hold an edge over
international players due to higher brand awareness among local consumers. However, over
the review period, the reputation of domestic brands was affected by the frequent occurrence
of food scandals in China. Consumers shied away from purchasing domestic brands as many
manufacturers used ingredients imported from Mainland China. For safety reasons, more
consumers shifted to international brands as their products are manufactured in other
countries.
PROSPECTS
Processed meat and seafood is projected to see a 1% retail value CAGR at constant 2015
prices over the forecast period. 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 WHOs ruling. Processed meat is a key component of the local diet
and most people have grown accustomed to consuming such products over many years. It
would therefore be difficult for consumers to change this eating habit overnight. Moreover,
with the rising demand for convenience, consumers will continue to prefer processed meat
and seafood as they are easier to cook and prepare than fresh options.
Chilled processed red meat is predicted to see the fastest retail value CAGR of 2% at
constant 2015 prices over the forecast period. This type of food, such as ham, is a common
ingredient in most local consumers diet, thus steady demand is anticipated. Manufacturers
are also expected to launch new flavours in an attempt to create excitement for a maturing
category.
At constant 2015 prices, the average unit price of processed meat and seafood is set to
decline over the forecast period. This is largely due to the depreciating Chinese currency,
which is likely to reduce manufacturing costs for most players and exert downward pressure
on retail prices of processed meat and seafood.
Supermarkets is likely to remain the dominant distribution channel over the forecast period.
While internet retailing is gaining traction in Hong Kong, it may see value shares stagnate
within processed meat and seafood. Few online grocers offer delivery options for
chilled/frozen processed meat and seafood as the logistics of doing so is complicated. While
online players are likely to find a solution over the forecast period, most consumers will still
Passport
Passport
frequent supermarkets so they can assess the freshness of these products before
purchases.
CATEGORY DATA
Table 1
Sales of Processed Meat and Seafood by Category: Volume 2010-2015
'000 tonnes
Processed Meat
- Shelf Stable Meat
- Chilled Processed Meat
- Frozen Processed Meat
Processed Seafood
- Shelf Stable Seafood
- Chilled Processed
Seafood
- Frozen Processed
Seafood
Meat Substitutes
- Chilled Meat
Substitutes
- Frozen Meat Substitutes
- Shelf Stable Meat
Substitutes
Processed Meat and
Seafood
Source:
2010
2011
2012
2013
2014
2015
15.4
4.6
2.9
7.9
17.2
9.4
1.8
15.8
4.7
3.0
8.1
17.7
9.7
1.9
16.1
4.8
3.1
8.3
18.1
10.0
1.9
16.6
4.9
3.2
8.5
18.5
10.3
1.9
17.0
5.0
3.3
8.7
19.0
10.6
1.9
17.5
5.1
3.4
8.9
19.6
10.9
2.0
6.0
6.1
6.2
6.4
6.5
6.7
32.6
33.4
34.2
35.1
35.9
37.1
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2
Sales of Processed Meat and Seafood by Category: Value 2010-2015
HKD million
Processed Meat
- Shelf Stable Meat
Processed Seafood
- Chilled Processed
Seafood
- Frozen Processed
Seafood
Meat Substitutes
- Chilled Meat
Substitutes
- Shelf Stable Meat
Substitutes
Processed Meat and
Seafood
Source:
2010
2011
2012
2013
2014
2015
980.2
242.1
217.5
520.5
1,117.4
627.6
102.0
1,010.4
244.6
228.4
537.4
1,150.0
638.9
106.6
1,042.2
248.2
238.7
555.3
1,190.5
656.8
111.1
1,089.7
258.1
253.0
578.5
1,235.2
681.8
115.5
1,151.8
269.3
268.2
614.3
1,285.6
709.1
119.0
1,208.3
279.2
283.7
645.4
1,339.1
737.4
124.0
387.7
404.4
422.6
437.8
457.5
477.7
2,097.6
2,160.4
2,232.7
2,324.8
2,437.4
2,547.4
Table 3
Passport
Sales of Processed Meat and Seafood by Category: % Volume Growth 20102015
% volume growth
Processed Meat
- Shelf Stable Meat
Processed Seafood
- Chilled Processed Seafood
- Frozen Processed Seafood
Meat Substitutes
- Chilled Meat Substitutes
- Shelf Stable Meat Substitutes
Processed Meat and Seafood
Source:
2014/15
2010-15 CAGR
2010/15 Total
3.0
2.8
4.1
2.7
3.2
3.5
2.4
3.0
3.1
2.6
2.3
3.4
2.5
2.6
3.0
1.9
2.2
2.6
13.6
11.8
18.0
13.1
13.8
16.2
9.8
11.3
13.7
Table 4
Sales of Processed Meat and Seafood by Category: % Value Growth 20102015
% current value growth
Processed Meat
- Shelf Stable Meat
Processed Seafood
Meat Substitutes
Source:
2014/15
2010-15 CAGR
2010/15 Total
4.9
3.7
5.8
5.1
4.2
4.0
4.2
4.4
4.5
4.3
2.9
5.5
4.4
3.7
3.3
4.0
4.3
4.0
23.3
15.3
30.4
24.0
19.8
17.5
21.5
23.2
21.4
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
2010
2011
2012
2013
2014
2015
31.0
9.5
31.0
8.5
7.0
31.0
7.5
32.0
9.0
7.5
31.0
7.5
32.0
9.5
7.0
30.9
7.5
32.0
9.5
7.1
30.9
7.5
32.0
9.5
7.1
30.8
7.5
32.0
9.8
7.2
Others
Total
Source:
13.0
100.0
Passport
13.0
100.0
13.0
100.0
13.0
100.0
13.0
100.0
12.7
100.0
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
16.8
30.0
17.2
16.9
30.0
17.5
17.0
30.0
17.5
17.0
30.0
17.5
16.9
30.2
17.1
16.8
30.2
17.0
22.0
14.0
100.0
22.5
13.1
100.0
22.8
12.7
100.0
23.0
12.5
100.0
22.8
13.1
100.0
22.8
13.2
100.0
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,
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
2011
2012
2013
2014
2015
11.9
10.7
12.0
10.8
12.0
10.8
12.0
10.9
12.0
10.9
10.2
10.0
10.1
10.0
10.0
8.6
6.2
6.2
8.6
6.2
6.1
8.7
6.2
6.1
8.7
6.1
6.0
8.8
6.1
6.0
5.8
5.9
5.9
5.9
5.9
5.8
5.8
5.9
5.8
5.8
4.9
3.6
4.9
3.6
4.9
3.6
4.9
3.7
4.9
3.7
2.7
2.7
2.7
2.7
2.7
2.4
1.9
2.4
1.9
2.4
1.9
2.4
1.9
2.4
2.3
1.9
1.3
1.2
1.1
2.3
-
1.4
1.2
1.1
2.3
-
1.4
1.2
1.1
2.3
-
1.4
1.2
1.1
2.3
-
1.5
1.2
1.0
-
Others
Total
Source:
Passport
13.3
100.0
12.9
100.0
13.0
100.0
12.9
100.0
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
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
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:
13.0
100.0
2012
2013
2014
2015
8.6
8.4
8.7
8.4
8.7
8.5
8.8
8.5
7.2
6.5
7.2
6.6
7.2
6.5
7.2
6.5
6.2
6.1
6.2
6.1
6.1
6.0
6.1
6.0
5.9
5.9
5.9
5.9
5.8
5.9
5.8
5.8
4.8
4.9
3.6
3.5
4.8
4.9
3.6
3.5
4.9
4.9
3.7
3.5
4.9
4.9
3.7
3.5
2.7
2.7
2.7
2.7
2.4
2.4
2.4
2.4
2.4
2.4
2.4
2.4
1.9
1.9
1.9
2.3
1.9
1.4
1.2
1.1
2.3
-
1.4
1.2
1.1
2.3
-
1.4
1.2
1.1
2.3
-
1.5
1.2
1.0
-
13.0
100.0
12.9
100.0
13.0
100.0
12.9
100.0
Table 9
Distribution of Processed Meat and Seafood by Format: % Value 2010-2015
% retail value rsp
Store-Based Retailing
2010
2011
2012
2013
2014
2015
99.5
99.5
99.5
99.5
99.5
99.5
- Grocery Retailers
-- Modern Grocery
Retailers
--- Convenience Stores
--- Discounters
--- Forecourt Retailers
--- Hypermarkets
--- Supermarkets
-- Traditional Grocery
Retailers
--- Food/drink/tobacco
specialists
--- Independent Small
Grocers
--- Other Grocery
Retailers
- Non-Grocery Specialists
-- Health and Beauty
Specialist Retailers
-- Other Foods NonGrocery Specialists
- Mixed Retailers
Non-Store Retailing
- Vending
- Homeshopping
- Internet Retailing
- Direct Selling
Total
Source:
Passport
98.0
78.5
98.0
78.0
98.0
77.2
98.0
76.3
98.0
75.5
98.0
74.2
78.5
19.5
78.0
20.0
77.2
20.8
76.3
21.7
75.5
22.5
74.2
23.8
1.5
2.0
2.9
3.7
4.5
5.7
9.0
8.8
8.6
8.5
8.4
8.3
9.0
9.2
9.3
9.5
9.6
9.8
1.5
0.5
0.5
100.0
1.5
0.5
0.5
100.0
1.5
0.5
0.5
100.0
1.5
0.5
0.5
100.0
1.5
0.5
0.5
100.0
1.5
0.5
0.5
100.0
Table 10
Forecast Sales of Processed Meat and Seafood by Category: Volume 20152020
'000 tonnes
Processed Meat
- Shelf Stable Meat
Processed Seafood
- Chilled Processed
Seafood
- Frozen Processed
Seafood
Meat Substitutes
- Chilled Meat
Substitutes
- Shelf Stable Meat
Substitutes
Processed Meat and
Seafood
Source:
2015
2016
2017
2018
2019
2020
17.5
5.1
3.4
8.9
19.6
10.9
2.0
18.0
5.3
3.6
9.1
20.2
11.3
2.0
18.4
5.4
3.7
9.3
20.8
11.6
2.1
18.9
5.5
3.8
9.6
21.3
12.0
2.2
19.3
5.6
3.9
9.8
21.9
12.3
2.2
19.7
5.7
4.1
10.0
22.4
12.6
2.3
6.7
6.8
7.0
7.2
7.3
7.4
37.1
38.1
39.2
40.2
41.2
42.1
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 11
Passport
Forecast Sales of Processed Meat and Seafood by Category: Value 20152020
HKD million
Processed Meat
- Shelf Stable Meat
Processed Seafood
- Chilled Processed
Seafood
- Frozen Processed
Seafood
Meat Substitutes
- Chilled Meat
Substitutes
- Shelf Stable Meat
Substitutes
Processed Meat and
Seafood
Source:
2015
2016
2017
2018
2019
2020
1,208.3
279.2
283.7
645.4
1,339.1
737.4
124.0
1,225.7
279.1
290.5
656.1
1,345.1
736.7
125.5
1,241.6
278.8
296.9
666.0
1,350.3
735.2
127.4
1,255.4
278.1
302.8
674.4
1,354.2
733.0
129.5
1,265.5
277.2
308.0
680.4
1,357.2
730.1
132.0
1,273.2
276.0
312.6
684.6
1,359.1
726.4
134.6
477.7
482.9
487.8
491.7
495.1
498.1
2,547.4
2,570.8
2,592.0
2,609.6
2,622.7
2,632.3
trade sources
Table 12
Forecast Sales of Processed Meat and Seafood by Category: % Volume

Growth 2015-2020
% volume growth
Processed Meat
- Shelf Stable Meat
Processed Seafood
Meat Substitutes
Source:
Table 13
2015/16
2015-20 CAGR
2015/20 Total
2.8
2.5
3.9
2.5
3.0
3.3
2.5
2.8
2.9
2.5
2.2
3.4
2.2
2.7
3.0
2.7
2.3
2.6
12.9
11.4
18.0
11.8
14.3
15.7
14.2
11.9
13.6
trade source
Forecast Sales of Processed Meat and Seafood by Category: % Value

Growth 2015-2020
% constant value growth

2015/2016
2015-20 CAGR
2015/20 TOTAL
Processed Meat
- Shelf Stable Meat
Processed Seafood
Meat Substitutes
Source:
Passport
1.4
0.0
2.4
1.7
0.4
-0.1
1.2
1.1
0.9
1.1
-0.2
2.0
1.2
0.3
-0.3
1.7
0.8
0.7
trade source
5.4
-1.1
10.2
6.1
1.5
-1.5
8.6
4.3
3.3

Viel mehr als nur Dokumente.

Processed Meat and Seafood in Hong Kong China (1)

Hochgeladen von

Dokumentinformationen

Beschreibung:

Beschreibung:

Copyright:

Verfügbare Formate

Processed Meat and Seafood in Hong Kong China (1)

Hochgeladen von

Beschreibung:

Copyright:

Verfügbare Formate

Verwandte Titel

PROCESSED MEAT AND

SEAFOOD IN HONG KONG,

PROCESSED MEAT AND SEAFOOD IN HONG KONG, CHINA

LIST OF CONTENTS AND TABLES

Sales of Processed Meat and Seafood by Category: Volume 20102015 ............................................................................................................. 3

PROCESSED MEAT AND SEAFOOD IN HONG KONG, CHINA

PROCESSED MEAT AND SEAFOOD IN

PROCESSED MEAT AND SEAFOOD IN HONG KONG, CHINA

PROCESSED MEAT AND SEAFOOD IN HONG KONG, CHINA

Sales of Processed Meat and Seafood by Category: Volume 2010-2015

Sales of Processed Meat and Seafood by Category: Value 2010-2015

PROCESSED MEAT AND SEAFOOD IN HONG KONG, CHINA

Sales of Processed Meat and Seafood by Category: % Volume Growth 20102015

Sales of Processed Meat and Seafood by Category: % Value Growth 20102015

% current value growth

Sales of Frozen Processed Seafood by Type: % Value Breakdown 2010-2015

% retail value rsp

PROCESSED MEAT AND SEAFOOD IN HONG KONG, CHINA

Sales of Frozen Processed Poultry by Type: % Value Breakdown 2010-2015

% retail value rsp

NBO Company Shares of Processed Meat and Seafood: % Value 2011-2015

% retail value rsp

PROCESSED MEAT AND SEAFOOD IN HONG KONG, CHINA

LBN Brand Shares of Processed Meat and Seafood: % Value 2012-2015

% retail value rsp

Lucullus Food & Wines

Distribution of Processed Meat and Seafood by Format: % Value 2010-2015

% retail value rsp

PROCESSED MEAT AND SEAFOOD IN HONG KONG, CHINA

Forecast Sales of Processed Meat and Seafood by Category: Volume 20152020

PROCESSED MEAT AND SEAFOOD IN HONG KONG, CHINA

Forecast Sales of Processed Meat and Seafood by Category: Value 20152020

Forecast Sales of Processed Meat and Seafood by Category: % Volume

Forecast Sales of Processed Meat and Seafood by Category: % Value

% constant value growth

PROCESSED MEAT AND SEAFOOD IN HONG KONG, CHINA

Verwandte Interessen

Dokumente ähnlich wie Processed Meat and Seafood in Hong Kong China (1)

Mehr von Muhammad Zaki

Beliebt in Meat