The Sweet Route: Unlocking China’s Food Market via Hong Kong

We all know that China is the world’s largest food consumer market due to its enormous population of more than 1.4 billion people and its rapid economic growth. However, this country has very specific characteristics that set it apart from other markets, and it is important to take them into account if we want to expand into that region of the world. 

Four Trends in Chinese Consumer Behavior 

1. Socioeconomic Rise: By 2030, China will have 400 million upper-middle- and high-income households — roughly as many as in Europe and the United States combined — and the number of millionaires in China could double over the next five years. China currently accounts for about 17% percent of global GDP and represents a larger share of consumption across various categories. 

2. Urban Concentration and Targeted Geographic Strategy: Urban consumers are concentrated in China’s largest cities, such as Shanghai and Beijing (whose populations range from 22 to 26 million); however, tier 3 and 4 cities represent an attractive opportunity for new market entrants due to their growing consumption rates. 

3. Changes in Consumer Behavior: An increasing number of consumers say they prefer domestic brands, but they are also responding to brands and products that offer good value for money and meet their needs, especially those products that reflect status and well-being. 

4. Digital Marketing and Active Localization: E-commerce is not just an option, it’s part of people’s daily lives thanks to the integration of mobile payments and shopping, as well as the convergence of social media. Anyone looking to enter the Chinese market must understand how this ecosystem works and how to leverage it in order to stand out from the competition. 

Demand for Products in China 

China’s imports of food and agricultural products reached approximately US$150 billion to US$207.4 billion in 2025, solidifying its position as one of the world’s leading importers, including beverages, liquors, and vinegar; food waste and scraps; animal feed; various edible preparations; preparations made from cereals, flour, starch, or milk; and preparations made from vegetables, fruits, nuts, or other parts of plants, among others. 

China imports vast quantities of food, beverages, and agricultural products from Latin America, notably soybeans, beef, and fresh fruit. Brazil, Argentina, Chile, and Peru are the main suppliers, driven by significant Chinese investments in ports and logistics in the region. Beef from Brazil, Argentina, and Uruguay accounts for approximately 35% of the region’s agricultural imports, along with growing shipments of poultry and pork. Chile is one of the leading suppliers of fresh cherries and blueberries; Ecuador supplies bananas and flowers; and Peru exports avocados and grapes. Brazilian coffee, sugar, seafood, and frozen fruit pulp make up an increasingly large share of consumer imports. 

Meanwhile, Mexico also has a significant export niche to China, including seafood, pecans, meat products, fruits, spirits, edible oils, prepared vegetables and fruits, and prepared animal products, among others. But there is still a long way to go in order to increase its foodstuff exports to China. 

The Challenges 

Latin American food and beverage exporters have enormous opportunities to find long-term buyers in China; however, there are certain challenges and concerns they must overcome. This is primarily because China is a complex market with standards and regulations that must be met, in addition to competition from countries that have greater market access due to health protocols for certain products or free trade agreements. 

Hong Kong as a Gateway 

Hong Kong imports more than 90% of its total food supply, including a vast array of fresh, refrigerated, and processed international products. In 2025, this Special Administrative Region, with a population of 7.5 million, imported more than US$9.28 billion worth of food products, making it the 22nd-largest food importer (out of a total of 226) in the world. Its main suppliers include China (US$3.72 billion), Japan (US$624 million), the United States (US$510 million), France (US$476 million), and Singapore (US$463 million). 

Although Hong Kong imports nearly everything it consumes, in 2025 it exported 2.38 billion food products, ranking it as the 57th-largest food exporter (out of a total of 226) in the world. How is this possible? Basically, because it functions as a key re-export hub. It receives products from all over the world and then distributes them to mainland China and Southeast Asia, thanks to its extensive network of ports and its tariff-free trade rules and lack of complex regulations. 

Strategies for Exporting to China 

China is NOT a single, unified market, but rather a collection of local markets. Spanning a geographic area 10 times the size of countries like Mexico, exporters seeking a foothold in this vast market can start with a tier 3 or 4 city, which means less competition and lower investment of time and money in promotion expenses. It is crucial to visit the market in person to build relationships based on trust; for the Chinese, this is an important factor when negotiating. 

Exporting to China is not without challenges. For small businesses, entering the Chinese market involves higher costs compared to simply selling domestically. These can include travel expenses, product adaptation costs, time, commitment, and the need to navigate language and cultural differences. 

Differences in legal systems and business practices are also significant. Certain imports are banned outright from the Chinese market, while imports themselves are heavily regulated. Many of these regulations, moreover, are often interpreted unfavorably for foreign businesses. 

Other important factors to consider include trademark registration, signing a contract, and obtaining registrations and certifications. 

On the other hand, choosing Hong Kong is a simpler and faster strategy for doing business in Asia due to its lower bureaucratic barriers, simple tax system, and independent legal framework — in contrast to the complex requirements in mainland China. 

Hong Kong's world-class infrastructure acts as a physical bridge for Mexican goods. Since 2013, Mexico has had direct cargo flights, facilitating the export of high-value perishables like berries, avocados, and meat from Mexico to Asian markets. Hong Kong is a global leader in "re-exports" — goods that are imported and then sent abroad without transformation. Approximately 5.3% of all trade between Mexico and Mainland China is routed through Hong Kong. 

By leveraging Hong Kong’s status as a top-tier city and a global financial hub, Mexican businesses can mitigate risks while tapping into the world’s most dynamic growth engine: the Chinese market. To support this endeavor, Invest Hong Kong, the government agency responsible for promoting foreign direct investment, provides complimentary advice and assistance to companies aspiring to expand into the Asian market. Mexican enterprises can access free resources and guidance from Invest Hong Kong to initiate or enhance their activities in this vibrant global city through its office in Mexico.