With China’s waning demand for imported wines, Hong Kong, the gateway to the mainland market, is feeling the pain from a weakening mainland market.
In the first six months of the year, Hong Kong’s wine imports suffered double digits drops in both volume and value.
Its import valued dropped by 26.6% year-on-year to HK4.55 billion (US$581.4 million), while its import value declined by 23.9% to 21.87 million litres, according to the latest data published by Hong Kong government.
As a result, the city’s re-exports also shrunk, where mainland China is the biggest destination accounting for roughly 90% of its re-export wine value.
Re-exports in value dipped by 64%, and its re-export volume decreased by 46%.
Whether the city’s wine sector will pick up in the second half remains to be seen. But overall economic outlook remains grim.
According to South China Morning Post, Hong Kong this year is unlikely to avoid a recession, gripped by the city’s ongoing anti-government protests despite the government’s HK$19 billion stimulus package.
In August, the city’s Financial Secretary Paul Chan described the city of having “a very difficult situation”, as it deals with ongoing protests, as well as uncertainties with US-China trade war and internal problems.
Hong Kong however still remains a top-end wine market, where its premium wine sales in the city account for more than 50% of total wine sales, according to IWSR.