A recent study of the wine market in Asia concludes Hong Kong is in a position to gain from developing a regional wine trading and distribution center.
Though the Asia market represents only a small proportion of the total wine market, the 10% to 20% growth estimated for China in the next five years (including Hong Kong, Singapore, Taiwan and Korea) could double the current consumption value to $17 billion in 2012 and $27 billion by 2017.
It is estimated that China alone will import $870 million worth of wine by 2017.
International wine trading and distribution is largely controlled by London and, in recent years, the British have stepped up their marketing efforts in Asia. But Asia will need its own wine trading and distribution center, says the study, and Hong Kong and Singapore are struggling to dominate the Asia trade.
Hong Kong's geographical location, its airport, global transportation connections, transparent customs procedures and other strengths recommend it for the role of wine storage and distribution center, says the study. Essentially, it is suggesting Hong Kong remove some of the barriers in wine logistics and capitalize on its existing logistics strengths to facilitate this new role.
The study was conducted by Actrium Solutions (HK) Ltd.