Latest insights for Australian wine in Hong Kong and Taiwan

Hong Kong

Australia exported $126 million of wine to Hong Kong, our fifth-largest export market, in the year ended September 2016.

The Hong Kong wine market is made up entirely of imports and it is one of the few tax-free wine markets in the world, having removed all taxes on wine in 2008. 

According to Euromonitor (2015), consumers in Hong Kong are educated and knowledgeable regarding wine and, despite low overall alcohol consumption (2.0 litres per capita per annum), there is a relatively strong demand for wine.

Cabernet Sauvignon, Merlot and Shiraz are the three most popular red varieties, together accounting for 86 per cent of domestic sales in 2015. Chardonnay is the most popular white wine, accounting for around 60 per cent of white wine sales (Euromonitor).

Hong Kong is also a hub for the re-export of wine, which is actively encouraged by its government. Wine shipped to Hong Kong may then be sent to mainland China, Vietnam, Japan and other Asian destinations.

Australian wine is the second most imported wine, after that from France.

Australia's exports to Hong Kong have grown by an average of 19 per cent per year for the past five years. Since 2010, the value of wine exports from Australia to Hong Kong has grown from just over $40 million to $126 million.

Our exports to Hong Kong are almost entirely bottled wine and they are focused on the higher price points. In the year ended September 2016, the largest segment (71 per cent of the export value) was wines priced at $10 per litre FOB and above.

The average value of our wine exports to Hong Kong is $13.53 per litre, compared to $2.95 for all markets.

Cabernet Sauvignon makes up 35 per cent of exports to Hong Kong and the other popular varieties are Shiraz/Shiraz blends, Cabernet Sauvignon blends and Chardonnay/Chardonnay blends.

For more information about Hong Kong’s specific export requirements, duties and taxes, download Wine Australia’s Export Market Guide, which is available free for wine grape and export levy payers, and also for licenced wine exporters.

Taiwan

According to Debra Meiburg MW’s Guide to the Taiwan Wine Trade, when it comes to wine imports, Taiwan has an adventurous and mature wine-drinking population, who consume an average of 0.9 litres per person (Euromonitor).

Australian wine is the fourth most imported wine after France, the USA and Italy, and has 8 per cent of the market by value.

Taiwan is one of Australian wine’s top 15 export markets and is showing considerable growth, particularly at the higher price points. Importantly, Taiwan is the fifth largest market for Australian wines above $50 per litre FOB.

Value of our exports grew by 23 per cent in the year ended September 2016, while the five-year average growth has been 13 per cent. Almost all wine exported to Taiwan is bottled (92 per cent) and 88 per cent is red wine.

The trends for Australian fine wine exports are encouraging. Just over half (55 per cent) by value of wine exported was in the $10 per litre FOB and above price segment in the year ended September 2016, while the average value of our exports to Taiwan was $9.15 per litre.

Download Wine Australia’s Export Market Guide for more information about Taiwan’s export requirements, duties and taxes and Debra Meiburg MW’s Guide to the Taiwan Wine Trade, which are available free for wine grape and export levy payers, and also for licenced wine exporters.