Rocketing exports make Hong Kong a bright spot for Australian wine

Hong Kong was a “standout” destination for Australian wine in 2023, with value exports up 74% year-on-year. But how much is being on-shipped to China amid ongoing tariffs? Value exports of Australian wine to Hong Kong rose 74% YOY in 2023. In the 12-month period, Australia exported 9.4 million litres of wine valued at AU$290 million to Hong Kong (£149m), also representing an increase of 27% in volume compared to the same period in 2022. Peter Bailey, Wine Australia’s market insights manager, called Hong Kong an “interesting market” — much like Singapore, it is used as a “trading hub” with wine imports often on-shipped to other destinations. China, previously Australia’s biggest export market for wine, imposed punitive tariffs on the country’s wine in 2020 as a result of political tensions caused by the Covid-19 pandemic. The tariffs have had a major impact on Australia’s wine industry in the years since. In late October 2023, China’s Ministry of Commerce announced a review of the tariffs on Australian wine. The review is expected to take five months to conclude, meaning the two countries could come to a resolution in March. China’s tariffs could be an explanation for why exports to Hong Kong have risen so significantly in 2023, with wine potentially being shipped into China via the region. Looking at Wine Australia’s December 2023 figures, there were 531 exporters shipping wine to Hong Kong, an increase of 138 businesses compared to December 2022. This is still significantly lower than the 2720 exporters