Vermouth and other flavoured wine market in Hong Kong

Earlier Report Observations

The market for vermouth and flavoured wine in Hong Kong contracted significantly in volume between 2018 and 2023. This decline began in 2019, influenced by evolving consumer tastes towards premium and aromatic products, which often involve smaller consumption volumes. The trend was sharply accelerated in 2020 by COVID-19 pandemic disruptions to international supply chains and logistics, reducing the market size further.

A post-pandemic recovery in 2021, fueled by growing interest in cocktail culture, temporarily reversed the decline. However, the market volume resumed its downward path in 2022 and 2023. This continued contraction aligned with a sustained consumer shift towards premiumization and the emergence of new private members' clubs, which promoted the consumption of higher-quality flavoured wines in smaller quantities.

Throughout this period, Hong Kong consolidated its position as Asia's wine hub. The entry of new importers and distributors expanded product variety, catering to the demand for niche and boutique offerings, although these structural developments occurred alongside the overall reduction in market volume.

Production vermouth and other flavoured wine in Hong Kong

In kind, 2017-2020, K l

From 2017 to 2020, Hong Kong maintained the 22nd position globally in terms of vermouth and other flavoured wine production volume.

Top producers of vermouth and other flavoured wine, 2017-2020

World map of production of vermouth and other flavoured wine, 2017-2020

Hong Kong's production of vermouth and other flavoured wine declined for the third consecutive year. In 2020, production reached 894 thousand litres, down 6.5% compared to the previous year. Over the 2017-2020 period, production decreased by 23.7%, with a compound annual growth rate of -8.6%.

Annual dynamics of production in Hong Kong in kind, 2017-2020, K l

Exports vermouth and other flavoured wine from Hong Kong

Exports in kind, l

The data shows irregular changes, indicating a volatile market environment. Export volumes hit their lowest point in 2017 and peaked in 2018, with a top-to-bottom ratio of 1.8 times. In 2020, foreign supplies of vermouth and other flavoured wine from Hong Kong stood at 1 442 litres, showing a significant reduction of 15.4% compared to 2019. The maximum value was recorded in 2018 at 1 893 litres, with the largest increase of 75.4% occurring that same year.

Annual dynamics of product's exports from Hong Kong in kind, 2017-2020, l

From 2017 to 2020, exports in kind of vermouth and other flavoured wine from Hong Kong were primarily oriented towards Macao and the Philippines. Their combined share reached 83.9% of total flows, with other destinations playing a secondary role.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Hong Kong in kind, 2017-2020

Exports in value, K $ US

Vermouth and other flavoured wine exports from Hong Kong declined for the second consecutive year. In 2020, exports came to 8.3 thousand US dollars, marking a decline of 20.8% year-over-year. Over the 2017-2020 period, exports decreased by 42.8%, with a compound annual growth rate of -17.0%. The maximum value was recorded in 2018 at 23.8 thousand US dollars. The largest decline occurred in 2019 at 56.2%, while the largest increase was in 2018 at 64.8%.

Annual dynamics of product's exports from Hong Kong in value, 2017-2020, K $ US

From 2017 to 2020, Macao and the Philippines dominated exports in value terms, accounting together for 88.7% of total flows. Other destinations had smaller individual contributions.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Hong Kong in value, 2017-2020

Imports vermouth and other flavoured wine to Hong Kong

Imports in kind, l

There were noticeable fluctuations in market performance during this period. Import levels varied significantly, with a low in 2020 and a high in 2017, showing a 6.5-fold difference between these years. In 2020, Hong Kong's volume of vermouth and other flavoured wine imports reached 4 125 litres, which is 54.5% lower than the prior year. The largest decline was recorded in 2018 at 74.7%, while the largest increase occurred in 2019 at 33.3%.

Annual dynamics of product's imports to Hong Kong in kind, 2017-2020, l

From 2017 to 2020, Germany (37.8% of imports in kind), Italy (25.8% of imports in kind), and France (10.5% of imports in kind) continued to be the main suppliers of vermouth and other flavoured wine to Hong Kong. Together, they formed 74.1% of total imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Hong Kong in kind, 2017-2020

Imports in value, K $ US

Volatility characterized the market behavior during these years. Imports varied from a high in 2017 to a low in 2020, with a 3.9-fold difference. In 2020, Hong Kong imported a total of 25.7 thousand US dollars of vermouth and other flavoured wine, down 61.2% year-over-year. The largest increase was recorded in 2019 at 3.7%.

Annual dynamics of product's imports to Hong Kong in value, 2017-2020, K $ US

Throughout 2017 to 2020, Italy (30.7% of imports in value terms), Germany (22.6% of imports in value terms), and the Netherlands (13.9% of imports in value terms) remained the key partners in imports in value terms. Together, they accounted for 67.2% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Hong Kong in value, 2017-2020