Asia's wine market is expected to grow 10-20 percent per year in the next five years with regional consumption set to double, a study released by a Hong Kong trade body said Tuesday.
Mainland China, Hong Kong, Taiwan, Singapore and Korea will lead growth as consumption value in the region excluding Japan will reach 130 billion Hong Kong dollars (16.67 billion US) in 2012 and 210 billion dollars in 2017.
Trade and Development Council (TDC) said mainland China will be the key driving force for Asia's growth with China being the biggest importer in volume. The country will import 870 million dollars worth of wine by 2017.
And Hong Kong will be well placed to take advantage of the Chinese growth after the government scrapped duties on wine and beer, TDC said.
In his budget address last month, Hong Kong Financial Secretary John Tsang announced the scrapping saying it was designed to promote the city as a wine trading and distribution market.
Industry players said the move will help Hong Kong develop as an international fine wine hub alongside London and New York.
Gregory Deeb, general manager of Crown Wine Cellars, said one million cases of fine wine will arrive in Hong Kong soon to take advantage of the removal of the wine duty, which previously stood at 40 percent.
"Hong Kong can become a fine wine trading centre in Asia," he told reporters as the TDC announced Tuesday it will hold the city's first International Wine Expo from August 14-16.
The expo will host wine dealers, cellars, producers and suppliers of related services from Hong Kong, Asia and the rest of the world.
After the government announced the scrapping of wine duty, auction house Bonhams on the same day announced it will hold in April what it said was Hong Kong's first wine sale in a decade.
Acker Merrall and Condit, the oldest wine merchant in the US, also said it will host its first wine auction in the territory in May to tap the growing market in Asia.