Carbonates in Taiwan

PROSPECTS

Carbonates still suffers from unhealthy image due to high sugar content

Growing health concerns in recent years have seen consumers pay closer attention to their sugar and calorie intakes. With debate escalating over the potential for long-term adverse health effects due to excessive sugar consumption, consumers are moving away from carbonates.

Saturation of demand contributes to low growth prospects

With demand for carbonates already under pressure due to a lack of new product development and the impact of the health and wellness trend, the fact that demand in the category is already almost completely saturated contributed to the category’s struggles towards the end of the review period. This has already been seen to some extent in non-cola carbonates and cola carbonates seems to be following suit.

Non-cola carbonates benefits from local taste for fruity flavours

Lemonade and orange carbonates each registered rising volume sales over the course of 2019. Both of these categories continues to benefit from the rising local interest in fruity flavours, a trend that shows no sign of slowing down or abating.

COMPETITIVE LANDSCAPE

Underperforming Pepsi Taiwan Co attempts to improve its position

Pepsi Taiwan Co ranked fourth in carbonates in Taiwan in 2019 and this represents a relatively poor position for the global player, which is generally ranked either first or second in carbonates in most countries. Faced with very strong competition from Swire Coca-Cola Taiwan and local players Hey-Song Corp and Oceanic Beverages Co, Pepsi is engaged in concerted efforts to improve its position in the category.

Traditional local brands continue to appeal to most consumers

Domestic players with local brands remain very strong in carbonates in Taiwan, with local name Hey-Song Corp for instance the only company currently capable of presenting a credible challenge to category leader Swire Coca-Cola. The strength of the local players is based mainly on the consumer demand for traditional local brands which have been available in the country for decades.

Files are delivered directly into your account within a few minutes of purchase.