A significant reduction in Hong Kong's liquor duty has catered to the rising demand for premium spirits, particularly among younger consumers, which has strengthened the city's position as a global wine and spirits trading hub, according to industry leaders.

The policy, announced in 2024, slashed the import duty on liquor with an alcoholic strength over 30 percent from 100 percent to 10 percent on the portion of the price exceeding HK$200.

Speaking ahead of the upcoming International Wine and Spirits Fair, Jenny Koo, Deputy Executive Director of the Trade Development Council (TDC), hailed this move as a catalyst for growth across multiple sectors.

"That [was] very encouraging news for the whole industry because this will drive a lot more demand, and also bring in business to the warehouse, to the restaurant business, and of course, to further reinforce Hong Kong as the trading hub," she said.

The policy also aligned with a notable shift in global drinking habits, according to Master of Wine Debra Meiburg, who said while younger generations may be drinking less overall, their interest in spirits is growing.

She said younger people are increasingly drawn to "experiential cocktails over traditional drinking", seeking out "something beautiful, something attractive, something exciting and new". She said this trend is creating a fertile ground for innovation.

"That's why I was very pleased to see a number of Hong Kong distillers producing spirits using our Asian herbs and flavours that are not known so well around the world, which means we can offer a product uniquely Asian," she said.

Meiburg said there has been a rise in homegrown brands and this, combined with fine wines from around the world, meets the market's growing demand for diverse and authentic alcoholic beverages.

Koo said Hong Kong's duty reduction also provided a powerful impetus for international trade, and to leverage the new opportunities, the fair is launching an inaugural "World of Spirits" zone this year.

"We expect more than 200 exhibitors will be joining at this year's 'World of Spirits' so we hope that we could connect them with buyers, we could help them to export, especially the Chinese baijiu to overseas markets," she said.

The International Wine and Spirits Fair will be held from November 6 to 8 at the Hong Kong Convention and Exhibition Centre, featuring over 620 exhibitors from 21 countries and regions.