Other Dairy in Taiwan

2021 DEVELOPMENTS

Retail sales of other dairy benefit from home seclusion in 2021 but category experiences mixed performance

Demand for other dairy is predicted to improve through retail due to the ban on dine-in options for foodservice in 2021 as Taiwan introduced restrictions in May in response to a surge in COVID-19 cases. As a result, demand is being driven by the home seclusion trend with an increasing number of consumers dedicating time to cooking from scratch or preparing their own beverages which they would normally purchase from a specialist coffee shop or when eating in restaurants.

Marginal drop in demand through foodservice due to restrictions introduced in May

Other dairy is predicted to experience a drop in demand for other dairy in 2021 due to a ban on dine-in options as a result of restrictions due to a surge in the pandemic in May. While the decline is not expected to be as dramatic compared to some dairy categories as retail dominates volume sales, cream and coffee whiteners are predicted to record more significant volume declines during the year.

Local players attempt to add excitement to condensed milk

Other dairy remains a fairly consolidated competitive landscape led by Uni-President Enterprise, I-Mei Foods and Chung Hwa Food Industrial Co Ltd which all benefit from a strong presence in the dominant category of chilled dairy desserts, although smaller players under “others” are continuing to gain ground.

PROSPECTS AND OPPORTUNITIES

Strong competition from various dairy products to result in further declines through for coffee whiteners

While overall demand for other dairy through retail is predicted to normalise in line with a greater return to foodservice over the forecast period, the category will experience a mixed performance. Coffee whiteners for instance, is predicted to further decline in retail volume terms, as taking coffee with fresh milk is now more popular amongst local consumers.

Stable but undynamic demand predicted for chilled dairy desserts

Demand for the dominant chilled dairy desserts will remain stable over the forecast period although it will fail to see dynamic growth in line with health and wellness trends. The category has been gradually losing favour with health-conscious consumers due to its overly sweet and processed perception, in addition to a lack of innovation or entry of new products.

Cream will continue to appeal to home cooks, but high price will restrict target audience

As witnessed in butter, demand for cream through retail benefited from the home seclusion trend as a result of the pandemic, as consumers dedicated their time to cooking and baking from scratch, in addition to being a pleasant activity to be shared with children who were unable to attend school. While demand for cream is predicted to decline in 2022 in line with a likely switch towards foodservice as restrictions are relaxed and consumers regain their confidence in eating out, retail is still set to record a positive performance over the forecast period as demand for cream was already increasing prior to the pandemic, a factor supported by the convenience and growing penetration of consumer appliances for the kitchen.