Sparkling wine next ‘big thing’ in HK

The IWSR has predicted that sparkling wine is to be the “next big thing” in Hong Kong and the future remains positive even after the first year of decline since 2008.

Presented to the press by Vinexpo, the IWSR figures covered the 2009-2013 period and included predictions for 2014-2018.

In 2013 Hong Kong consumed 162,000 nine-litre cases of sparkling wine, a 72% increase over five years and a further 22.8% increase to 197,000 cases is expected by 2018.

After rapid growth since the lifting of duties in 2008, 2013 saw the first fall in Hong Kong’s wine consumption since that time as did the average per bottle price.

The drop was connected to the slowdown in mainland China and a more general 1% dip in global consumption that occurred in 2013.

Retained imports to Hong Kong (that is, excluding imports then legally re-exported to China or elsewhere) fell by 2% in 2013 and the decline continued into 2014 with a 2.8% drop in the first half of that year.

It was the decline in French imports – down 8.1% – which hit the figures most drastically. In 1997 France accounted for 62% of the Hong Kong market, while Australia, the US and Chile made up just 15.5% combined.

Yet in 2013 France’s market share was down 28% while the other three had grown to a combined share of 46.2%.

Bordeaux’s share of the market, in line with the wider movement of the fine wine trade, has declined as buyers seek alternatives although China and Hong Kong does still represent the biggest market in volume and value terms for Bordeaux.

Burgundy has risen strongly as Bordeaux has faltered, while Australia has secured its place as Hong Kong’s second favourite wine producer behind France and the US behind that.

Between 2009 and 2013, both countries secured import increases of 4.8% and 7.2% respectively, with expats singled out as a key driver of New World wines in the city, while Hong Kongers continue to prefer French first and foremost.

The decline also led to a drop in average bottle price, falling to below HK$130 a bottle from a HK$154 peak in 2011.

Nonetheless, the IWSR said that Hong Kong remains “buoyant”. The total value of the market remains steady at HK$5.2bn and China and Hong Kong together still represent the world’s fifth largest market by value and volume (and the eighth largest wine producer).

The survey concluded that as stocks clear the market will begin growing again – though at a “more moderate” rate than before.