Wine - Hong Kong

The Wine market in Hong Kong has experienced significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances. Customer preferences in the Hong Kong wine market have shifted towards higher quality and premium wines. Consumers are becoming more knowledgeable about wine and are willing to spend more on high-end products. This trend is fueled by an increasing number of wine enthusiasts and connoisseurs who are seeking unique and rare wines. Additionally, there is a growing interest in organic and sustainable wines, as consumers prioritize health and environmental consciousness in their purchasing decisions. Trends in the market indicate a rising demand for wine from both local consumers and tourists. Hong Kong has positioned itself as a major wine trading hub in Asia, attracting wine lovers from around the world. The city hosts several international wine fairs and exhibitions, providing a platform for wine producers and distributors to showcase their products. Furthermore, the growing popularity of wine tastings, wine bars, and wine clubs has contributed to the increasing consumption of wine in Hong Kong. Local special circumstances have also played a role in the development of the wine market in Hong Kong. The city's status as a free port with low taxes and import duties on wine has made it an attractive destination for wine trading. This has led to an influx of wine merchants and distributors, offering a wide range of wines from different regions. Additionally, Hong Kong's proximity to major wine-producing countries, such as France and Australia, has facilitated the importation of a diverse selection of wines. Underlying macroeconomic factors have further contributed to the growth of the wine market in Hong Kong. The city's strong economy and high disposable income levels have created a favorable environment for luxury goods, including wine. Moreover, the increasing number of affluent individuals and expatriates in Hong Kong has created a demand for premium wines, as they seek to indulge in the finer things in life. In conclusion, the Wine market in Hong Kong has experienced significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for high-quality and premium wines, the rise of wine-related events and establishments, the city's favorable tax policies, and the strong economy have all contributed to the development of the wine market in Hong Kong.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.