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: 73 | Publication date: Sep 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Economic crisis hurts off-trade sales of coffee and tea
2008 marked the start of a global economic crisis, which sent the Taiwanese economy into its first recession since 2003. This resulted in massive job losses, wage cuts and sharp falls in the wealth of Taiwanese consumers, due to a crash in property prices and the stock exchange. Off-trade spending thus declined sharply for many products, also resulting in off-trade sales of coffee and tea declining significantly in 2008 as consumers sought to cut back on their spending.
On-trade benefits from players’ focus on tea and coffee
While off-trade sales declined in 2008 over the previous year, on-trade sales proved resilient and achieved continued growth. The review period saw the expansion of specialist coffee shops across Taiwan, which resulted in a growing consumer interest in coffee. The success seen for specialist coffee shops meanwhile encouraged other on-trade players to expand their range of premium coffee, including cafés, restaurants, bars, hotels and even fast food players. By the end of the review period, meanwhile, a wide range of good quality coffee was no longer sufficient to differentiate on-trade outlets, with many thus turning their attention to tea, offering a wider range of good quality tea.
Domestic company Ten Ren Tea retains leadership
Taiwan’s only tea specialist company to be listed on the stock exchange, Ten Ren Tea Co Ltd, continued to lead hot drinks in 2008, a position that it retained since 2003. The company benefits from its wide and diverse range of tea and tea-related products, as well as the well-entrenched tea consumption culture in Taiwan. In addition, the company benefited from its affordable pricing during the economic downturn seen in 2008.
Supermarkets/hypermarkets the distribution channel of choice
Supermarkets/hypermarkets continued to be the dominant distribution channel for hot drinks in the off-trade in 2008. This was largely due to the large scale of chained supermarkets/hypermarkets, which makes it an attractive distribution channel for hot drinks players looking to attract a wide variety of consumers. Supermarkets/hypermarkets also benefited from organising promotional activities for leading brands and from their use of price promotions. The good value offered by this channel proved increasingly attractive to consumers during the economic downturn seen in 2008.
Focus on premium and healthy products to drive growth
Hot drinks is expected to see an improved off-trade volume and constant value growth during the forecast period in comparison to that seen during the review period. This will be chiefly due to consumers’ growing focus on premium and healthy hot drinks. Within coffee, there is expected to be a strong shift to high quality fresh coffee beans and fresh ground coffee. Within tea, the health and wellness benefits of fruit/herbal tea and green tea are meanwhile set to drive growth. Similarly, healthy products are expected to drive growth in “other” plant-based hot drinks during the forecast period.
Table of contents
HOT DRINKS IN TAIWAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Economic crisis hurts off-trade sales of coffee and tea
On-trade benefits from players’ focus on tea and coffee
Domestic company Ten Ren Tea retains leadership
Supermarkets/hypermarkets the distribution channel of choice
Focus on premium and healthy products to drive growth
KEY TRENDS AND DEVELOPMENTS
Economic recession puts the brakes on consumer spending
Growing interest in speciality coffee boosts sees focus shift to quality
Comfort consumption offers hope in recession-hit Taiwan
Rising commodity prices pose a challenge to producers
Gift packs offer a good potential for growth
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Hot Drinks Company Shares by Value 2004-2008
Table 12 Hot Drinks Brand Shares by Value 2005-2008
Table 13 Penetration of Private Label by Sector 2004-2008
Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 15 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 25 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
APPENDIX
Published Data Comparisons
Production/Import/Export Data
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - TAIWAN
GOOD YOUNG CO LTD - HOT DRINKS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Good Young Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 3 Good Young Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 4 Good Young Co Ltd: Competitive Position 2008
KING CAR FOOD INDUSTRIAL CO LTD - HOT DRINKS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 5 King Car Food Industrial Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 6 King Car Food Industrial Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 7 King Car Food Industrial Co Ltd: Competitive Position 2008
STANDARD FOODS CORP - HOT DRINKS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Standard Foods Corp: Key Facts
Summary 9 Standard Foods Corp: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 10 Standard Foods Corp: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 11 Standard Foods Corp: Competitive Position 2008
TEN REN TEA CO LTD - HOT DRINKS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Ten Ren Tea Co Ltd: Key Facts
Summary 13 Ten Ren Tea Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 14 Ten Ren Tea Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 15 Ten Ren Tea Co Ltd: Competitive Position 2008
COFFEE IN TAIWAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 Retail Sales of Coffee by Type: Volume 2003-2008
Table 27 Retail Sales of Coffee by Type: Value 2003-2008
Table 28 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 29 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 30 Standard Vs Coffee Pods 2004-2008
Table 31 Coffee Company Shares 2004-2008
Table 32 Coffee Brand Shares 2005-2008
Table 33 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 34 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 35 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 36 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN TAIWAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 37 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 38 Other Tea by Type: % Off-trade Volume 2005-2008
Table 39 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 40 Retail Sales of Tea by Subsector: Value 2003-2008
Table 41 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 42 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 43 Tea Company Shares 2004-2008
Table 44 Tea Brand Shares 2005-2008
Table 45 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 46 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 47 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 48 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN TAIWAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 49 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 50 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 51 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 52 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 53 Other Hot Drinks Company Shares 2004-2008
Table 54 Other Hot Drinks Brand Shares 2005-2008
Table 55 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 56 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 57 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 58 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013