Hot Drinks in Taiwan

Hot drinks playing out the ramifications of a modernised image

The Taiwanese hot drinks market is currently exploring the ramifications and opportunities resulting from a transformation in the image of coffee and tea. The rapid expansion of specialist coffee shops and cafés has established a central role for coffee in the lifestyles, social activity and self-images of young urban consumers.

Marrying convenience with quality

As in many product categories, the hectic character of modern urban lifestyles is driving a growing demand for products that are convenient both in terms of preparation and compatibility with on-the-go consumption. However, in tea and coffee, in particular, the demand for convenience is not strong enough to overcome the growing demand for greater product quality, as evidenced by the continued struggles of instant coffee mixes in 2019.

Growing opportunities for smaller players

Conditions in hot drinks increasingly favoured the development of smaller players at the end of the review period. In coffee and tea, the expansion of coffee shops and tea shops has created increasing consumer interest in high-end, artisanal products that place an emphasis on their origins and mode of production.

Premiumisation creating NPD opportunities

The premiumisation trend, as exposure to new products through specialist foodservice outlets leads to more sophisticated and experimental consumer demand, is creating significant opportunities for the development of high-end products with an artisanal or gourmet positioning in tea and coffee. The origins of tea leaves and coffee beans are becoming an increasingly significant selling point.

Positive outlook for hot drinks

Hot drinks is forecast to see retail sales grow faster over 2019-2024 than over the review period, in current value, constant value and volume terms. Coffee is set to see the most dynamic growth as it is increasingly adopted into the daily routines of Taiwanese consumers.

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