The document discusses wine consumption trends in Asia and Hong Kong. It notes that worldwide wine consumption grew 3.26% between 2008-2015. Asian consumption is forecasted to grow the most between 2013-2017 at 22.84%, while European consumption is expected to fall slightly. Specifically in Greater China, China and Hong Kong consumed over 155 million cases of red wine in 2013, a 136% increase from 2008. Hong Kong serves as a wine hub due to its duty free status, stable economy, and role in trading wine between China and other markets.

1. Wine Hub
Hong Kong
Source: http://destinations.flysaa.com/photos/hongkong1.jpg

2. World wide wine consumption grows…
Between 2008 and 2015, world wine
consumption, increased by 3.26 % in
volume, reaching 2.667 billion 9L cases at
the end of the period.
Forecasts show that between 2013 and
2017, this growth should accelerate to
reach 4.97 % of growth.
Source: The VINEXPO/The Iwsr market study

3. Wine Market in Asia
In 2013, Asian consumers drank 289.71
million 9L cases (i.e. 3.476 billion bottles) of
still and sparkling wines.
Between 2013 and 2017, Asia’s consumption
forecasted to grow by 22.84% to reach 355.89
million 9L cases.
In comparison, European consumption is
expected to fall by 0.14%, while in the
Americas consumption should grow by 9.05%
in the same period.
Source: The VINEXPO/The Iwsr market study

4. Greater China
• In 2013, China and Hong Kong together consumed more than 155
million 9L cases (1.865 billion bottles) of red wine, up 136%
compared to 2008.
• China is now the largest red wine market worldwide, followed by
France in second place with nearly 150 million 9L cases and Italy with
141 million 9L cases.
• Chinese consumers have become increasingly attracted to red wine
since 2005. Between 2007 and 2013, the VINEXPO/IWSR study
reveals that red wine consumption was multiplied by 2.75 in China.
• At the same time, consumption dropped in France by 18% and Italy
by 5.8%.

5. 5
Forecast Forecast
HK White Wine Imports vs. Re-Exports
White Wine Import Quantity
Import (L) Re-Export (L) Retained (L)
2013 5,056,901 812,980 16% 4,243,921 84%
2014 4,940,585 874,652 18% 4,065,933 82%
2015 5,085,048 611,773 12% 4,473,275 88%
Forecast 2016 4,553,604 820,400 18% 3,733,204 82%
White Wine Import Value
Import (HK$) Re-Export (HK$) Retained (HK$)
2013 $336,320,000 $44,867,000 13% $291,453,000 87%
2014 $328,979,000 $56,972,000 17% $272,007,000 83%
2015 $380,412,000 $94,841,000 25% $285,571,000 75%
Forecast 2016 $370,906,000 $170,512,000 46% $200,394,000 54%

6. 6
Red Wine Import Quantity
Import (L) Re-Export (L) Retained (L)
2013 41,900,836 16,195,875 39% 25,704,961 61%
2014 44,689,314 19,214,293 43% 25,475,021 57%
2015 54,415,961 25,315,435 47% 29,100,526 53%
Forecast 2016 55,045,494 28,910,722 53% 26,134,772 47%
Red Wine Import Value
Import (HK$) Re-Export (HK$) Retained (HK$)
2013 $7,130,844,000 $1,442,265,000 20% $5,688,579,000 80%
2014 $7,563,997,000 $2,252,132,000 30% $5,311,865,000 70%
2015 $9,820,207,000 $4,572,854,000 47% $5,247,353,000 53%
Forecast 2016 $11,745,736,000 $5,945,984,000 51% $5,799,752,000 47%
Forecast Forecast
HK Red Wine Imports vs. Re-Exports

7. Parallel Trade Impact to ASC HK
7
• 15% of Retail Spending in HK estimated to be from PRC day trips
• 28.2M day trip visitors 2014 (47m visitors from PRC- 60% day trips)

8. Hong Kong’s Hub Status
• Duty free port for wine
• Stable Economic landscape and government processes
• Stable currency – less exposure to RMB currency
fluctuations
• Professional storage and logistics
Photo Source: http://www.isp-industrial.com/index.php/logistics_isp_en.html
• Mature market – trustworthy purchasing sources
• Professional bodies for quality assurance
– i.e. HKQAA
• Numerous trading companies – choices are plenty
• On trade / Off trade / Direct Sales / E-commerce

9. For those looking to enter the Hong Kong and China markets…
(1) Know your goals
– Supermarkets or casinos?
– Price point? Volumes?
(2) You must find the right partner or distributor
– Do they have the same goals as you?
– Can they offer what you need to reach your goals?
– Can they open doors for you which you could not?
(3) Fully understand the business climate and market trends.
– Plan ahead, watch the market
– Hong Kong is an expensive, competitive city