Hot Drinks in Taiwan
Euromonitor International's Hot Drinks in Taiwan market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 50 | Publication date: Jul 2006
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Executive summary
Healthy volume growth for all sectors in hot drinks
In 2005, hot drinks retail volume sales reached 16,189 tonnes, a growth of 3% over 2004. This was the result of positive growth in all three sectors. Coffee, tea and other hot drinks grew by 5%, 1% and 1% respectively in 2005 compared with 2004. Retail sales value growth for the hot drinks market in 2005 was 2% over 2004. While the bulk of tea drinkers still prefer traditional teahouses, manufacturers are spending large amounts on advertising to attract both tea and coffee drinkers. With the Taiwanese economy growing, consumers’ spending power has also increased.
Exposure of major coffee brands at on-trade drives volume and value growth
As consumers become more familiar with major global brands such as Starbucks, Illy, and Lavazza as the result of their continuous expansion in their on-trade outlets in the review period, the coffee culture is slowly penetrating into the lifestyle of the consumers. Brand campaigns are also organised to attract young urbanites. This therefore increases their receptivity level towards coffee taste and allows them to widen their choices of beverages. While tea still remains as the preferred choice among the majority due to its long history in the country, coffee enjoys high potential of growth. Especially with the active involvement of major brands, the spreading of the coffee culture helps to boost sales at both on-trade and off-trade channels.
Brand campaigns to increase brand exposure such outdoor advertisements is seen on the rise, with local coffee houses introducing coffee brands including Dante, Ikari and UCC (from Japan), IS Deluxe Coffee, and Barista Coffee Co, to allow their consumers to enjoy a wider selection of coffee just like tea variety. Consequently, increases consumers’ knowledge of the coffee of different countries and of different types.
Growing interest in trendier and healthier types of tea
With a 6% CAGR, fruit/herbal tea achieved the highest growth rate in value terms in the tea sector between 2000 and 2005. Although it is far from overtaking green tea in terms of sector share, this growth rate shows that consumers are more receptive to new flavours. Since fruit/herbal tea is also perceived as being healthier, consumers who are becoming more health conscious are also willing to pay more, causing unit prices to increase.
Supermarkets/hypermarkets retains position as leading distribution channel
In 2005, 60% of hot drinks were distributed through supermarkets/hypermarkets such as Carrefour. Since the advent of SARS, consumers have been purchasing beverages in larger packages, which are primarily available in supermarkets/hypermarkets. Although the SARS epidemic is over, consumers continue to buy products in larger amounts and also in bulk, for convenience. Products that are most popular off the shelf are coffee and Western types of tea, since traditional types of tea are available via other outlets such as teahouses and speciality stores.
Ten Ren Tea Co Ltd remains market leader
As in 2004, Ten Ren Tea Co Ltd is still the market leader. With its wide portfolio of tea products and distribution channels such as supermarkets/hypermarkets, convenience stores and specialist stores, Ten Ren Tea Co Ltd has established itself as the leading company synonymous with quality in Taiwan. At the same time, the company is able to tap into consumer purchasing behaviour through its own outlets, so it is able to react quickly to changes in trends.
Table of contents
HOT DRINKS IN TAIWAN : MARKET INSIGHT
EXECUTIVE SUMMARY
HOT DRINKS SALES
Market Performance
Table 1 Retail Sales of Hot Drinks by Sector: Volume 2000-2005
Table 2 Retail Sales of Hot Drinks by Sector: Value 2000-2005
Table 3 Retail Sales of Hot Drinks by Sector: % Volume Growth 2000-2005
Table 4 Retail Sales of Hot Drinks by Sector: % Value Growth 2000-2005
Competitive Environment
Table 5 Hot Drinks Company Shares by Retail Value 2001-2005
Table 6 Hot Drinks Brand Shares by Retail Value 2002-2005
Retail Distribution
Table 7 Retail Sales of Hot Drinks by Distribution Format: % Analysis 2000/2005
Table 8 Retail Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2005
Retailer Activity and Private Label Trends
Table 9 Penetration of Private Label by Sector 2001- 2005
Forecast Market Performance
Table 10 Forecast Retail Sales of Hot Drinks by Sector: Volume 2005-2010
Table 11 Forecast Retail Sales of Hot Drinks by Sector: Value 2005-2010
Table 12 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2005-2010
Table 13 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2005-2010
DEFINITIONS
LOCAL COMPANY PROFILES - TAIWAN
NESTLé TAIWAN LTD - HOT DRINKS - TAIWAN
COMPANY BACKGROUND
RECENT NEWS
PRODUCTION CAPACITY
STANDARD FOODS CORP - HOT DRINKS - TAIWAN
COMPANY BACKGROUND
RECENT NEWS
Summary 1 Summary - Standard Foods Corp: Operational Indicators 2005
PRODUCTION CAPACITY
TEN REN TEA CO LTD - HOT DRINKS - TAIWAN
COMPANY BACKGROUND
RECENT NEWS
Summary 2 Summary - Ten Ren Tea Co Ltd Operational Indicators 2005
PRODUCTION CAPACITY
Summary 3 Summary - Ten Ren Tea Co Ltd: Production Statistics 2005
UCC UESHIMA COFFEE CO LTD - HOT DRINKS - TAIWAN
COMPANY BACKGROUND
PRODUCTION CAPACITY
COFFEE IN TAIWAN
SECTOR PERFORMANCE
2005 headlines
Popularity of instant coffee drives growth
Positive volume and value growth of fresh coffee fuelled by popularity of global big brands
Retail fresh coffee spurs interest in home-brewed coffee
Instant coffee retail volume growth outpaces value growth as new entrants push down prices
Instant coffee now available in different flavours to stir interest among youngsters
Diverse forecast performance for different products
Table 14 Retail Sales of Coffee by Type: Volume 2000-2005
Table 15 Retail Sales of Coffee by Type: Value 2000-2005
Table 16 Retail Sales of Coffee by Type: % Volume Growth 2000-2005
Table 17 Retail Sales of Coffee by Type: % Value Growth 2000-2005
Table 18 Coffee Company Shares 2001-2005
Table 19 Coffee Brand Shares 2002-2005
Summary 4 Summary - Coffee: New Product Launches 2005
Table 20 Forecast Retail Sales of Coffee by Type: Volume 2005-2010
Table 21 Forecast Retail Sales of Coffee by Type: Value 2005-2010
Table 22 Forecast Retail Sales of Coffee by Type: % Volume Growth 2005-2010
Table 23 Forecast Retail Sales of Coffee by Type: % Value Growth 2005-2010
COFFEE PODS PERFORMANCE
Table 24 Standard Vs Coffee Pods 2004/2005
TEA IN TAIWAN
SECTOR PERFORMANCE
2005 headlines
Tea extends growth trend with exception of black standard tea
Black standard tea continues to post weakest performance
Fruit/herbal tea the best performer among tea products due to its perceived health benefits
Black speciality tea and fruit/herbal tea expected to be best forecast performers in constant value terms
Table 25 Retail Sales of Tea by Subsector: Volume 2000-2005
Table 26 Retail Sales of Tea by Subsector: Value 2000-2005
Table 27 Retail Sales of Tea by Subsector: % Volume Growth 2000-2005
Table 28 Retail Sales of Tea by Subsector: % Value Growth 2000-2005
Table 29 Tea Company Shares 2001-2005
Table 30 Tea Brand Shares 2002-2005
Summary 5 Summary - Tea: New Product Launches 2005
Table 31 Forecast Retail Sales of Tea by Subsector: Volume 2005-2010
Table 32 Forecast Retail Sales of Tea by Subsector: Value 2005-2010
Table 33 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2005-2010
Table 34 Forecast Retail Sales of Tea by Subsector: % Value Growth 2005-2010
OTHER HOT DRINKS IN TAIWAN
SECTOR PERFORMANCE
2005 headlines
Growth of other hot drinks dominated by other plant-based hot drinks
Other plant-based hot drinks sees minimal growth in volume terms
Chocolate-based flavoured powder drinks showing decline
Malt-based hot drinks the best performer
Higher quality and premium brands likely to increase sales value over volume in the forecast period
Table 35 Retail Sales of Other Hot Drinks by Subsector: Volume 2000-2005
Table 36 Retail Sales of Other Hot Drinks by Subsector: Value 2000-2005
Table 37 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2000-2005
Table 38 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2000-2005
Table 39 Other Hot Drinks Company Shares 2001-2005
Table 40 Other Hot Drinks Brand Shares 2002-2005
Summary 6 Summary - Other Hot Drinks: New Product Launches 2005
Table 41 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2005-2010
Table 42 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2005-2010
Table 43 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2005-2010
Table 44 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2005-2010