ProWine Hong Kong will be a ‘catalyst for recovery’ in 2025

The team behind ProWine Hong Kong are in full prep mode for this year's fair, taking place 14-16 May. db finds out what we can expect from the exhibition. Josh Gu, project director of ProWine Hong Kong, has high hopes for this year’s fair. “We expect it to be a catalyst for the recovery of the Hong Kong wine and spirits market,” he says. The city state is still in recovery mode from challenges brought about by the global pandemic, but recent policy changes have reaffirmed the city’s place at the centre of trade in Asia. In October, Chief Executive John Lee Ka-chiu slashed Hong Kong’s spirits tax in a landmark move. Since then, trading volumes have boomed, rising by 60% in the first few months of this year thanks to Lee’s decision. ProWine Hong Kong will be the first major trade fair at which spirits producers will be able to feel the full positive impact of the changes, something the ProWine team are ready for. Gu explains: “The reduction of the spirits tax lifted the market confidence, favouring the export of international spirits to Hong Kong, including Chinese baijiu.” Spirits producers aren’t the only ones feeling an upward trading trend. As well as Chinese baijiu and spirits more widely, international white wines are growing in popularity in Hong Kong, something this year’s ProWine fair is ready to tap into. “High-quality white wines will still be in the spotlight, led by German Riesling and New Zealand Sauvignon Blanc,” Gu says. Renee Zhao is director of marketing and communication for ProWine in Asia. She says that an influx of people from Mainland China into Hong Kong has shifted consumer tastes. “An interesting trend is the changing demographics – more and more Chinese are working and living in Hong Kong, this is also worth looking at when we consider the consumer preferences.” ProWine Hong Kong has its finger on the pulse of what wine and spirits drinkers are looking for.

Global trade

International trade tensions are putting a strain on the drinks industry internationally, making it even more critical for businesses to operate in markets which are showing resilience. “Despite geopolitical changes, Hong Kong remains one of the key trading hubs in Asia, because of its free trade policies and global connectivity,” Gu explains. For wines and spirits companies, Hong Kong connects them with the vibrant economy of the Greater Bay Area, made up of a total of 11 towns populated with 80 million residents, contributing over 11-12% of China's GDP. As such, operating in Hong Kong, a market “which radiates to both southern China and north-east Asia”, as Gu puts it, is as critical as ever. As Hong Kong continues its recovery journey, its opportunities will only grow. Gu says: “It takes time to rebuild the market confidence, this remains the biggest challenge for Hong Kong and Asia more widely. If there is a term to describe the current market status, I would say it is ‘awakening’, old patterns are being eliminated and new opportunities are arising.”

What’s special about this year's exhibition?

This year at ProWine Hong Kong, we can expect to see new MWs from China and Singapore, who will deliver masterclasses at the fair, hear about new trends and taste new products. The fair will host the inaugural ProWine x the drinks business Asia Green Awards to celebrate the best sustainability practices around the world. Traditional wine and spirits will be on show, as well as innovative cider and perry offerings. The show will also host the largest-ever German wine pavilion (162sqm with 14 co-exhibitors), as well as regional pavilions including the Junta de Castilla y León and Toro Designation of Origin from Spain, New South Wales from Australia, Business France, CAP/Wines of Portugal and the Italian Trade Agency (ITA). In partnership with Geisenheim University, ProWine has also kicked off the ProWine Business Survey in key Asia markets - starting from China. The survey addressed key trade topics such as: ‘what are the best-selling categories in the next three years from the perspective of production and trade’, ‘what are the most effective ways and approaches to engage with Chinese wine consumers’, ‘what are the most promising export markets for Chinese wines’. Zhao shares: “More valuable insights from the ProWine Business Report will be anticipated during ProWine Hong Kong 2025. The aim is to exchange ideas over the very key topics — how to do better business in today's wine and spirits market and the driving forces for future growth."