Carbonates in Taiwan

2020 IMPACT

COVID-19 weighs heavily on on-trade volume sales

Both off-trade volume and current value sales of carbonates will decline in 2020. However, the rate of decline will be significantly slower than in previous years, indicating that COVID-19 will have, if anything, a positive effect on demand.

Health concerns regarding sugar and calorie content continue to depress demand

Off-trade volume and current value sales of carbonates declined during every year of the review period. Growing health concerns in recent years have seen consumers pay closer attention to their sugar and calorie consumption.

Manufacturers look to fortification as a growth driver

During the review period, lemonade/lime carbonates were the top performer in carbonates. A growing number of lemonade/lime products are fortified with vitamin C, leading some consumers to perceive them as a healthier alternative to other types of carbonates.

RECOVERY AND OPPORTUNITIES

The increasingly poor reputation of carbonates will keep growth in off-trade volume and current value sales static

Off-trade volume and current value sales of carbonates will stabilise during the forecast period, but there will be very little growth. Carbonates are increasingly perceived as inherently unhealthy drinks, earning them the rather unfortunate sobriquet ‘garbage drinks’ in some quarters.

Transparent offerings will proliferate as manufacturers of carbonates seek to defend themselves against the growing competitive threat posed by carbonated bottle water

Carbonates will face increasingly intense competition from carbonated bottled water, which consumers regard as being healthier, during the forecast period. In an effort to counter this, manufacturers of carbonates are increasingly launching new products in transparent liquid, which is perceived to be premium by many consumers.

COVID-19 will help to accelerate growth in e-commerce

Even before COVID-19, e-commerce was steadily growing in importance in carbonates in Taiwan. The onset of the pandemic accelerated this growth, as some consumers no longer wanted to visit crowded locations, such as convenience stores and supermarkets, which between them account for the bulk of off-trade volume sales of carbonates.