Hong Kong’s spirits import value has overtaken that of wine for the first time since 2007, following a sharp tax reduction that has fueled a surge in demand and re-export activity. According to the latest figures released by the Legislative Council Secretariat, the value of duty-paid imported spirits rose by 46 percent between 2016 and 2024, reaching HK$6.48 billion.
The spike in imports was particularly pronounced in the wake of the government’s liquor tax cut, with a nearly 60 percent increase recorded in the 6.5-month period ending in April 2024. The move appears to have accelerated Hong Kong’s transformation into a regional hub for premium spirits.
Despite the rapid rise in import value, local consumption remained modest by global standards. In 2023, Hongkongers consumed an average of 2.2 liters of spirits per person—less than half the global average of 4.9 liters. Wine consumption fell even more sharply, dropping by 46 percent to just 0.40 liters per person between 2016 and 2023. In contrast, per capita spirits consumption remained relatively stable at around 0.82 liters.
Re-export activity has been a major driver behind the increase in spirits imports. A substantial share of spirits brought into the city is re-exported, particularly to mainland China, which accounted for 57 percent of Hong Kong’s spirits re-exports and 26 percent of its wine re-exports in 2024. China currently ranks as the world’s fourth-largest market for whisky and the tenth-largest for wine.
While the import and re-export sectors have flourished, Hong Kong’s bar industry continues to struggle. In 2024, bar revenues remained 25 percent below pre-pandemic levels recorded in 2019, and the number of bars declined by 24 percent over the same period.
In contrast, specialty alcohol retailers saw a 20 percent uptick in business, likely bolstered by the new tax incentives. These retailers are increasingly catering to a clientele interested in premium and collectible liquors.
The Legislative Council Secretariat expressed optimism that the government’s 90-percentage-point duty cut on spirits costing more than HK$200 to import will bolster Hong Kong’s status as a global auction center for fine liquors, positioning the city as a premier marketplace in the international spirits trade.
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