Hong Kong: Fragile rebound inthe wine market
After several years of decline, the Hong Kong wine market stabilized in 2025. According to figures from local authorities, imports did indeed fall in volume, to 27.2 million liters (-6.8%), but increased in price by 0.95%, to HK$6.53 billion (€709 million). The first two months of 2026 confirmed this improvement, with 4.66 million liters (+2.28%) for a value of HK$1.28 billion (€139 million, +18.15%). However, the rebound remains fragile.
Did 2025 mark the beginning of a comeback for the Hong Kong wine market? Francisco Henriques, CEO of the importer-distributor China Wines & Spirits (CWS), which operates in both mainland China and Hong Kong, certainly thinks so: “It’s a very recent phenomenon, but yes, after three difficult years, we are finally seeing the market emerge.” Gregory DE ‘ EB, director of the storage company Crown Wine Cellars, also mentions “encouraging signs and a definite recovery in activity.” Bertrand Quévremont, director of Business France’s Hong Kong office and head of the agri-food division for all of China, cites several contributing factors: “revitalized local financial services as well as the return of tourists and trade visitors to major trade shows.” He also asserts, citing French customs figures, that French wines have fully benefited from the phenomenon: “ We did, admittedly, record a slight decline in volume, to 7.7 million liters (-4.6%), but a 7.6% increase in value, to €333.6 million, which is more than the whole of mainland China, whose imports of French wines did not exceed €280 million last year. This consolidates our leading position in Hong Kong with nearly 70% of PDM.
However, some question the sustainability of a trend that, moreover, hasn’t brought consumption back to its former levels: in 2018, Hong Kong imported over 51 million liters of wine worth nearly €1.2 billion! Hervé Leroux, owner of the V&S importer Sino Vantage Asia, believes that Hong Kong ” has never fully recovered from the aftereffects of the 2018-2019 anti-government protests, nor from Covid. Many expatriates have left, a community that provided the impetus for discovering new wines and expanding the market. Conversely, the Chinese, who have come in large numbers from the mainland, are, although affluent, not big wine consumers.” “Gregory DE ‘ EB, for his part, points to the current geopolitical situation, which is generating volatility in values and inflation: ‘ Lately, many collectors, a major component of high-end demand, have been less focused on enriching their collections than on selling them, resulting in a supply exceeding demand on the secondary market and a negative impact on prices. ‘
Francisco Henriques confirms: “The Hong Kong market has become more of a consumer market than a speculative one; its recovery is driven by wine ranges that are less premium than before.” He adds optimistically: “Provided they know how to adapt, the entire sector can benefit from this new positioning. ”Hervé Leroux remains cautious, at least regarding on trade channels: “Many bars have closed or are struggling, with a clientele that drinks less and spends less. In restaurants, the focus is no longer on exploration; they are refocusing on traditional wines.
Watson’s Wine, Hong Kong’s leading wine merchant chain with around twenty outlets and an online store, is nonetheless betting on a revival of consumption: last April, it opened a new shop in the Central district, connected to Bar 0001, a wine bar offering nearly 100 wines, sakes, and spirits by the glass.
Similarly, the retailer Pinnacle Apex announced plans to open a club later this year in the Tsim Sha Tsui district, equipped with Enomatic machines to ” invite a younger audience to discover wines from around the world… in a convivial atmosphere in line with the dynamism of Hong Kong’s social life .” We can only wish them success.
Spirits: Who benefits from the tax cuts?
Unlike wine, which is not subject to any tax in Hong Kong, spirits are subject to an excise duty, which will be reduced in 2024 under a two-tier system, with an unchanged rate of 100% up to an import price threshold of HK$200, falling to 10% above this threshold (see V&S News of 25/10/2024). A surge in demand ensued, resulting in a 23.6% increase in the value of spirits imports to Hong Kong,
reaching HK$4 billion (€436 million) between now and October 2025, according to the GTAIC consultancy. However, not all categories benefited equally. In terms of origin, the measure did not prevent cognac from plummeting by 6.6% in volume, to 2 million liters, and, more significantly, by 36.9% in value, to €11.2 million. ” The vast majority of spirits imported into Hong Kong are priced below HK$200 (approximately €22 at the current exchange rate – editor’s note) and are therefore not affected by the excise tax reduction,” notes Hervé Leroux. Only premium and ultra-premium products, such as those sold by auction houses or luxury boutiques, benefit from the 10% reduction. Francisco Henriques added: “Any tax reduction is good news, but at the same time we have had to absorb unfavorable exchange rate fluctuations and an increase in our logistics costs because our containers now have to go through Cape Town to arrive.
Written by
Francois Boucher