"Hong Kong Opens Up with Full Liquor Tax Abolition, Korea Barely Present [Report][Asia Liquor Hub]①"

The 17th Hong Kong International Wine & Spirits Fair
Hong Kong Strengthens Its Position as a Trade Hub with Last Year’s Spirits Tariff Reduction
Intense Competition Among Global Alcoholic Beverages: Baijiu, Whiskey, Wine, Sake, and More
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"Nongxiangxing (aroma type) is characterized by its rich floral and fruity notes, as well as a smooth, sweet finish on the palate. It is one of the most popular aroma types, with Wuliangye and Luzhou Laojiao being representative examples."

The 17th Hong Kong International Wine & Spirits Fair, hosted by the Hong Kong Trade Development Council (HKTDC) at the Hong Kong Convention and Exhibition Centre for three days starting November 6, 2025, was bustling with visitors from the entrance. The special booth for the "12 aroma types of Baijiu" set up by the China Alcoholic Drinks Association in the center of the venue was crowded with enthusiasts repeatedly inhaling the aromas from scent samplers.

The Baijiu booth at the 17th Hong Kong International Wine & Spirits Fair held in Hong Kong for three days starting from the 6th. [Photo by Koo Eunmo]

"Lowering Liquor Taxes Opened Up the Market"

This year’s event featured more than 620 companies from 21 countries, showcasing a wide variety of alcoholic beverages from around the world, including beer, wine, whiskey, sake, vodka, Chinese baijiu, as well as low-alcohol and non-alcoholic drinks. Over the three days of the fair, more than 8,200 buyers from 57 countries participated, and 11,000 general visitors also attended, sampling and enjoying a diverse range of beverages from various countries.

This year’s fair actively demonstrated Hong Kong’s ambition to become the center of Asian trade not only for wine but also for spirits. In particular, for the first time, a "World of Spirits" zone was established, featuring a variety of manufacturers from 14 countries, highlighting a stronger focus on spirits than in previous years.

Paul Chan, Hong Kong Financial Secretary, is explaining Hong Kong's liquor policy at the opening ceremony of the 17th Hong Kong International Wine & Spirits Fair held in Hong Kong for three days starting from the 6th.
[Photo by Koo Eunmo]

As a symbol of free trade in Asia, Hong Kong has rapidly emerged as a wine trade hub since it abolished all duties on fermented alcoholic beverages such as wine and beer in 2008. Wine imports, which stood at 1.6 billion HKD in 2007, soared to 12 billion HKD by 2016-an increase of more than sevenfold in a decade. The Hong Kong International Wine & Spirits Fair was first launched in 2008 with the goal of connecting global producers with the Asian market.

Hong Kong’s liquor industry experienced another significant change last year, when the government lowered the liquor tax on distilled spirits with an alcohol content of 30% or higher. Previously, a flat 100% duty was imposed on the import cost of all spirits, but now only the portion exceeding 200 HKD is subject to a 10% duty. For example, for a whiskey priced at 300 HKD, a 100% duty is applied to the first 200 HKD, and only 10% to the remaining 100 HKD. This approach provides greater benefits for higher-end spirits.

The tax policy’s effects have been immediate. According to the Hong Kong Commerce and Economic Development Bureau, from October last year, when the tax cut was implemented, to June this year, spirit imports increased by more than 20%, while the import value surged by 90%. Paul Chan, Hong Kong Financial Secretary, commented, "Hong Kong has always set global benchmarks for success," and added, "The change in the tax regime for premium spirits last year has invigorated Hong Kong’s liquor industry." He further emphasized, "I am confident that products from Hong Kong and China have tremendous potential in the global market," and encouraged everyone to experience them firsthand.

Baijiu from Guizhou Maotai exhibited at the 17th Hong Kong International Wine & Spirits Fair held in Hong Kong for three days from the 6th.
[Photo by Gu Eunmo]

A Cross-Border Laboratory for Alcoholic Beverages

At this year’s fair, Chinese baijiu drew the most attention. Six of China’s top ten baijiu brands-including Guizhou Maotai, Wuliangye, Yanghe, Luzhou Laojiao, Jiannanchun, and Langjiu-participated in the event, demonstrating the industry’s strong desire to expand into the global market.

The largest-ever baijiu pavilion immediately translated into tangible results on site. Liang Zhiheng, Brand Manager at Luzhou Laojiao in Sichuan Province, said, "We negotiated with buyers from South Africa, Malaysia, India, Japan, and other regions, exchanging insights on the potential and consumption trends in the Chinese baijiu market. We also secured several orders from hotels and supermarket chains."

Visitors are tasting wines at the 17th Hong Kong International Wine & Spirits Fair held in Hong Kong for three days starting from the 6th.
[Photo by Koo Eunmo]

Among non-Asian countries, Australia’s presence stood out. At this year’s event, a large number of Australian whiskey producers participated, rather than the more widely recognized wine companies. In particular, producers from Tasmania, which is emerging as the center of Australian whiskey, promoted their products through joint booths and seminars. Tasmania, Australia’s southernmost island, is considered to have the best natural conditions for beverage production in the country, thanks to its pristine environment, pure water, and high-quality grain cultivation. The state government’s efforts to modernize and streamline licensing and permit procedures have also led to a rapid increase in craft distilleries.

Martin Turmine, CEO of Old Kempton Distillery, explained, "Since whiskey distillation, which was previously prohibited, became legally permitted in the 1990s, many innovative producers have flocked to Tasmania. Above all, its proximity to Antarctica means there are many extremely clean water sources, and the climate is ideal for producing high-quality barley, making it the perfect region for producing top-tier whiskey."

The Australian booth at the 17th Hong Kong International Wine & Spirits Fair held in Hong Kong for three days starting from the 6th.
[Photo by Koo Eunmo]

Japan’s National Tax Agency Supports Domestic Alcohol Industry

Japan also showcased its status as a powerhouse in the alcohol industry, with nearly 40 companies participating. The Japanese government, through the National Tax Agency, actively supported domestic beverage companies in their efforts to expand into overseas markets. A representative from the Japanese booth explained, "Competition among sake producers in Japan is becoming increasingly fierce, so exploring overseas markets is seen as a strategic breakthrough. We are operating a joint booth to raise brand awareness and secure import buyers and restaurant channels."

Japan’s participation focused on sake, emphasizing that it is not just an alcoholic beverage, but a product that combines traditional Japanese food culture, brewing techniques, and regional branding. Most participating companies highlighted their use of unique local rice varieties and yeast strains to create distinctive character in their products. Takashi Ito, Head of Sales Planning at Akita Meijo, said, "We exclusively use Komachi rice from Akita Prefecture and a special Komachi yeast known for its green apple and lychee aromas. The cold winters allow for slow, low-temperature fermentation, enabling us to create sake that embodies Akita’s snowy heritage."

Tastings are being conducted at the Japanese sake booth at the 17th Hong Kong International Wine & Spirits Fair held in Hong Kong over three days starting from the 6th.
[Photo by Koo Eunmo]

Korea Left Out of the Celebration... Korean Alcohol Lacks Presence

While China took center stage and Japan also actively promoted its domestic beverages, Korean alcohol was barely visible at the event. Among the hundreds of participating companies, only one was from Korea: Ominara. Ominara is a distillery established in 2008 in Mungyeong, Gyeongbuk, by CEO Lee Jongki, a former Vice President of Diageo Korea. The company produces Omija-based sparkling wine "Omi Rose," omija distilled liquor "Gowoon Dal," and apple-based spirit "Mungyeong Baram." Notably, Omi Rose was served at the 2022 Korea-US summit and this year’s Korea-Vietnam summit banquet, helping to raise its profile.

Lee Ungho, Head Blender at Ominara, pointed to relatively weak technical capabilities as the reason for the low participation of Korean companies. He noted, "Most of our small-scale breweries, which operate under the banner of traditional liquor, tend to prioritize passion over expertise, and few possess genuine international competitiveness." He continued, "While most of the countries participating here have commercial brewing histories that easily exceed 100 years, Korea’s history is comparatively very short. The only fundamental way to catch up with this time gap is through technological advancement. To achieve this, producers need to invest more capital and effort, and institutional support must also be strengthened."

The only Korean company that participated in the 17th Hong Kong International Wine & Spirits Fair held in Hong Kong for three days from the 6th was "Ominara" from Mungyeong, Gyeongbuk [Photo by Eunmo Koo]