Singapore, Hong Kong, and Macau, as small and rich global cities, play a significant influence in Asia’s alcohol market, influencing consumption patterns throughout the region. This is one of the reasons why these are frequently the first entrance points for new brands looking to develop a presence in Asia.
Tipplers in Singapore are expected to contribute more than US$2.6 billion to the Southeast Asian city-alcohol state’s sales. The majority of this is made up of beer, with pilsners being the most popular draft. For individuals who enjoy spirits, cognac has the biggest market share; nevertheless, whiskey, gin, and liqueurs are eroding its advantage. Wine is in high demand, and it’s just getting stronger. According to Statista, the market will grow at a 7.29 percent compound annual growth rate (CAGR) through 2025. Although alcohol taxes and customs are high in Singapore, this is more than compensated for by high local salaries.
Hong Kong & Macau
Despite their separate histories, Hong Kong and Macau converge in many respects, and local distributors and importers, many of whom operate in both Special Administrative Regions, see them as a quasi-unified market (SAR). Drinkers happy to enjoy a variety of beers in British-style pubs remain a trademark of Hong Kong’s after-hours activity in the core business district. Imported options are more highly dominated in wine and liquors, particularly whiskey, vodka, and gin, making it an ideal destination for firms looking to expand.
Tourism, notably from China, drives much of Macau’s demand. Hong Kong and Macau are expected to have over $3 billion in alcohol demand in 2021, with a CAGR of 8.1 percent through 2025.
Asia’s wealthy global cities, despite their small populations, punch well above their weight. Consumers in these cities are more aware of existing alcohol options and are more receptive to new and innovative products. These features, together with the region’s great growth prospects, make Singapore, Hong Kong, and Macau excellent first markets for new brands.