Booming cocktail scene to boost HK alcohol sales
A predicted growth in consumer spending in Hong Kong will see sales of alcoholic drinks rise by 7.4% per annum between 2017 and 2021.
A booming cocktail scene will contribute to growing alcohol sales in Hong Kong
A new report published by BMI Research predicts that Hong Kong will see consumer spending grow by 5.4% per annum between 2017 to 2021, with total spending predicted to reach HK$1.95 trillion (US$251 billion) in 2021.
The report breaks spending down into five categories: food and non-alcoholic drinks, alcoholic drinks and tobacco, clothing and footwear, household goods, and personal care and effects.
The report found that of these categories, alcohol and tobacco will see the highest rate of growth at 7.1% per annum, while alcoholic drinks alone will see annual growth of 7.4% over the term.
This increased spending has been put down to a rapidly developing cocktail and bar culture in Hong Kong.
Drinking trends have changed and consumers’ ability and willingness to spend more on expensive drinks has increased, driving up demand for gin and liqueurs, which are commonly used in cocktails.
Hong Kong has already shown growth in this area; between 2007 and 2016 the value of imported alcohol increased. Liqueurs and cordials saw growth of 23% and gin saw gains of 7% per annum.
The report has forecast that UK gin producers will be the biggest benefactors from Hong Kong’s boom as consumer demand for premium and luxury gin grows. The UK is currently Hong Kong’s biggest import market for gin.
The report also cited a rise in disposable income as a factor promoting this growth. Between 2017 and 2021, it is estimated that the number of households with more than US$25,000 of disposable income will grow from 1.6m to 1.9m.
