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Bite size local news, Post reports and activity summaries wrapped by ATO Hong Kong. In this issue: Improved Sentiment Among Hong Kong Small and Medium-Sized Enterprises; Hong Kong Tourism Sector Expects Travel To Rebound 70 Percent

In 2022, Hong Kong was the world’s tenth largest spirits importer, with global imports recovering 7 percent year-on-year and valued at $502 million. From 2020-2021, Hong Kong’s imports and domestic sales of spirits were seriously hampered under the COVID-19 pandemic, as most restaurants, pubs, and bars were closed due to stringent dining, social distancing, and travel restrictions.

Bite size local news, Post reports and activity summaries wrapped by ATO Hong Kong. In this issue: Hong Kong Consumers Celebrate the Holidays with Alaskan Seafood; Hong Kong Economy Contracts in 2022 But Gradual Recovery Expected

The Hong Kong Environmental Protection Department is in the process of mapping out legislative initiatives coupled with public education to enhance waste management. U.S. food exports to the city could be impacted by the government’s adoption of various producer responsibility schemes (PRSs) relating to plastic and glass beverage containers by which manufacturers/importers are expected to pay a levy.

In the first quarter of 2022, U.S. agricultural exports fell to the lowest level in four years. While expanding U.S. direct exports to China, and lingering shipping issues continue to drive the overall decline in U.S. agricultural exports to Hong Kong, government restrictions in response to the city’s fifth wave of the pandemic exacerbated the drop in U.S. agricultural sales.

The Hong Kong wine market has stayed resilient since the start of the COVID-19 pandemic. The local foodservice business has suffered the most as the operation of restaurants and bars were often curbed to contain the virus. However, wine retail sales injected energy to a sluggish market and enabled the continuation of wine consumption in Hong Kong.

In 2021, the total value of U.S. agricultural and food exports to Hong Kong dropped 12 percent compared to 2020, continuing its decline from the 2017 peak and reaching its lowest level since 2008. The overall drop in exports was driven primarily by lower sales of consumer-ready products which offset recoveries in other product categories.

In 2021, Hong Kong was the thirteenth largest market for U.S. pet food exports and a hub for pet food trade to the region. Hong Kong pet owners welcome U.S. pet food for its safety and quality. Despite lower exports in 2021, the United States is still the lead supplier, holding a 29 percent share of the Hong Kong pet food market.

The Hong Kong market is signaling good prospects for organic products.