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"Time and the world do not stand still. Change is the law of life. And those who look only to the past or the present are certain to miss the future."
U.S. President John F. Kennedy

Hong Kong:  Highest Wine Consumption Per Capita in Asia

Consumers in Hong Kong and China regard wine as an element of enriched life style.  In spite a challenging economy, Hong Kong wine consumption and pricing have increased significantly in recent years.

It is clear that Hong Kong is the most sophisticated wine market in Asia.  Studies have shown that Hong Kong wine consumption per capita reached 4.0 liters per annum, which constitutes the highest level in Asia.  The trend is anticipated to continue to increase in the next several years.

Per capita wine consumption of Hong Kong is nearly double consumption in Japan and Singapore.  During the past 5 years, it has been projected that Hong Kong wine consumption increased by 33 percent towards 3 million cases, equivalent to over 35 million bottles.  Forecasts have revealed that Hong Kong per capita wine consumption will achieve 4.2 liters in 2012.

Several local as well as Napa and Sonoma wineries have benefited from the Hong Kong wine market and continue to invest wine distribution and sales and marketing in Hong Kong and China.  For example, Hong Kong distributors such as Telford International have achieved sizeable annual sales growth and substantial profit.  Growth of the Hong Kong and China wine market is buoyant.

China Escalating Wine Consumption

Wine has grown rapidly in popularity in China.  Studies have shown that Chinese wine consumption reached 96.33 million 9-litre cases, equivalent to 1.156 billion bottles, in 2009, constituting an increase of 104% relative to 2005.  It is projected that between 2010 and 2014, Chinese wine consumption will increase by approximately 20%, reaching over 125 million 9-litre cases in 2014.  Based upon that projection, China will constitute the 6th largest wine consuming country worldwide.

Surveys have revealed that Chinese domestic wine production and importation of wines have increased dramatically in recent decades as domestic consumption has increased.  The annual growth rate has been estimated at more than 20%. With the development of the Chinese wine market, Chinese consumers have been cultivating their knowledge about wine, with particular interest in Napa Valley and Sonoma.  

In China and Hong Kong, increasing interest in fine wines reflects the increasingly sophisticated culture and taste as well as high disposable income levels.  Wine connoisseurs are a distinctive group of consumers.  In that respect, it is extremely important for wine brands to understand and cater to the changing characteristics and tastes of Chinese wine customers.

FROM OUR BUSINESS LIBRARY

Asia's Wealth and Growth Engine
Chinese Investments in Napa Valley Wineries
China and Hong Kong Wine Business
China Business News
International Investment Opportunities
International Joint Ventures
Trademark Licensing and Royalties
China, Japan & U.S. Foreign Investment Issues
Joint Ventures & Strategic Alliances
Licenses and Royalties
Purchasing a Business – Alternative Strategies
Selling a Business – Alternative Strategies