Market Information
Asia Pacific

The Hong Kong Health Food Market

November 2000

Prepared for The Consulate General of Canada in Hong Kong

Executive Summary

In recent years, Hong Kong people are increasingly concerned about their health, and using health food products had became a trend. This Consulate General of Canada sponsored study is to examine the characteristics of the health food market and to find out the general and perceived image of the Canadian health food in Hong Kong. There are great variety of health food products from different countries like U.S.A., Canada, and Japan, etc.

This study focused on three categories of health food products - Nutraceuticals, Herbal-based products and Vitamins. Although there is no official classification of health food products in Hong Kong, consumers can easily classify products into the above three categories. Among them, vitamins are the most popular as it has been in the market for a long time. Nutraceuticals are gaining popularity in recent years, and has vast market potential. Herbal-based health food is a late addition to the market but is growing fast. Many had earned faith from their consumers by proving effective in their treatment. Thus, we anticipate more new products to be introduced, especially those from developed countries.

The results of the project are based on a consumer survey of 200 people and in-depth interviews with 5 health food distributors. From our research, one sixth of the Hong Kong population uses health food products. Over half of respondents (53%) have been consuming health food for more than a year evidencing high usage rate of health food products. The study also found that almost half of the users do not follow the product instructions due negligence and forget to take the product on time. Brand loyalty is difficult to establish in Hong Kong. When consumers consider the product as ineffective, they switch to an alternative easily. Furthermore, consumers are often under peer influence in brand selection.

Hong Kong distribution channels can be divided into two types: direct and indirect. Currently, direct marketing is the most popular. Half of the consumers purchase from direct marketers. Foreign health food companies also start their business in Hong Kong to capitalize this market opportunity. Results of the in-depth interviews showed that consumers found it easy and convenient to buy health food in Hong Kong. This reflects the abundant supplies of health food products in the marketplace.

One of the main reasons for consuming health food products is to fulfill nutritional requirements. Peer influence and curiosity are other major motivations. Most health food consumers are very quality conscious when purchasing these products. They are more concerned about quality and side effects of using the product than price. Therefore, Canadian companies should produce quality health food products and price at the current market level.

In addition to product quality, promotions and good relationship with distributors are helpful. Despite of quality issues, SQ2 Shark Cap was one of the most promoted and successful Canadian health food products in Hong Kong. The intimate relationship between the manufacturer, local distributor and retailers all contributed to the success of SQ2. According to our study, newspaper, magazine and television are most effective in reaching potential customers. The survey also found that informative ads and using celebrity in promotions are very effective marketing tactics.

Currently, the greater availability of branded products from USA in the Hong Kong market makes it more noticeable than the Canadians'. Distributors commented that Canadian health food products are under-promoted in Hong Kong. They also think that the U.S. health food companies are more competitive than the Canadians'. Although most respondents to our survey know SQ2 Shark Cap, but can hardly think of other brands of Canadian health food products.

We also found that Hong Kong consumers rate U.S. health food products as highest in price, product effectiveness, and least in side effects. Most respondents consider Japanese health foods are better and safer. The lower popularity of Canadian health food is due to narrower distribution channels, insufficient promotion, and inadequate after sales services.

We concluded that Canadian health food products have low consumer awareness in Hong Kong. Potential buyers are unaware of Canadian health food products because of insufficient product promotion. Canadian companies should consider using the national image in promoting their products in Hong Kong.

For full report or more information, please contact

Mr. Houston Wong
Commercial Officer - Agriculture & Agri-food
Consulate General of Canada in Hong Kong
Tel: (852) 2847-7434
Fax: (852) 2847-7441
Email: canadatrade.hkong@dfait-maeci.gc.ca
13/F., Tower 1, Exchange Square, Central, Hong Kong.