Taiwan is a fast-growing consumer market for beverages and magnet for new brands, large and small. Juice, soft drinks, packaged water, alcohol, and other major beverage categories are all enjoying strong year-on-year growth making it an excellent option, whether for companies seeking expansion options or simply diversify their exposure to different markets.
Weighing in at nearly US$ 2.7 billion in sales annually and per capita spending of US$ 112 the demand for caffeinated bean-based brews is well-established with lots of room to grow. The medium-term outlook is particularly bright with an estimated near 7% CAGR through 2025 according to Statista, a research firm.
Although convenience remains king, with ready-to-drink coffee beverages taking the single largest share of coffee sales in Taiwan, at-home brewing and single-serve options—such as pods—are increasing in popularity. Even in the RTD and instant coffee sectors consumers are both upgrading to more expensive options and diversifying their buying habits.
Alcohol brands enjoyed over $17 billion in sales in 2020 with an anticipated 6.47% CAGR through 2025.
Beer is the tipple of choice in Taiwan. Consumers are moving away from basic lagers, adding flavorful ales, IPAs, wheats, and stouts. In spirits, baijiu is giving way to whiskies, gins, liqueurs, and other imported options. Similarly, wine is growing popularity, particularly among the young.
Juice & Soft Drinks
Contrary to most markets, carbonated beverages do not dominate in Taiwan. Other RTDs are the beverage of choice, with most consumers opting for teas, coffees, bottled water, and the like. Although highly competitive, Taiwan is an attractive market given relatively high disposable incomes and exposure to foreign brands and purchase options.
Cool and refreshing juices are a feature of daily life in Taiwan, where summers are long, hot, and humid. Demand for juice is strong and enjoying steady year-on-year growth even as the market matures. Hidden in this growth is the shift away from juice drinks with high amounts of added sugar to 100% fruit juice beverages.
The market for juice and soft drinks in Taiwan is worth over US$3 billion and growing.
Taiwan’s economy grew by over 2% in 2020 and is projected to grow by nearly 5% in 2021. Incomes are high and growing, consumer are optimistic about the future and have good awareness of foreign brands and product options. For brands looking for a strong export market that has performed well in the face of the global pandemic Taiwan is a good choice.