Wine in Hong Kong, China

2021 DEVELOPMENTS

Major improvement for local wine consumption as pandemic situation improves

Wine recorded a significant improvement in total demand in late 2021 due to the relaxed social distancing measures in the city. The new relaxed policies resulted in many consumers hosting weddings and other major events in their lives that had been delayed due to the pandemic, thus leading to greater sales for sparkling wine such as champagne.

Traditional drinks specialists and e-commerce drive further off-trade growth

Local consumers contributed to a notable improvement in demand for wine in 2021, supported by distribution channels such as traditional drink specialists and e-commerce. Some consumers who continued to enjoy at-home entertainment and alcohol consumption were the key drivers of e-commerce sales, as increasing numbers of online platforms offer home delivery as part of pandemic adaption strategies.

Sake continues to grow in popularity

The combination of the 2021 opening of Don Don Donki, the Japanese food wholesaling department store, and a 20% increase in Japanese foodservice outlets, meant that sake recorded particularly dynamic growth in 2021 following notable declines the previous year. Don Don Donki’s arrival in Hong Kong now means that consumers have a much wider range of sake brands from which to choose, thus driving down the average unit price.

PROSPECTS AND OPPORTUNITIES

Wine to record slowing demand in 2022 but solid growth expected over forecast period as a whole

Hong Kong entered its fifth wave in the first quarter of 2022, and with it brought the strictest social distancing measures the city had ever seen. All on-trade establishments such as restaurants were not permitted to operate past 18.

Sustainable wine to be of growing importance to local consumers

As wine in Hong Kong continues to mature, increasing numbers of local consumers will become increasingly selective in their choice of alcoholic drink. While many local consumers continue to seek major brands that are expensive/at a premium, a growing number will start to adopt the rising sustainability trend as a way of differentiating themselves from other drinkers.

Further growth potential for sake as new brands continue to enter

While sake has always been popular in Hong Kong, local consumers are likely to enthusiastically receive the further entry of new brands. The competitive landscape of sake in the city has always been fragmented as consumers are more likely to try newer products and flavours rather than exhibit brand loyalty.