Other Hot Drinks in Taiwan

2020 IMPACT

Unseasonably mild winter weather weighs on demand

Volume sales of other hot drinks in the foodservice channel fell in 2020, but the decline in demand was much milder than for either or coffee. COVID-19 was not a significant factor: Other hot drinks are mainly consumed during cold weather, so the season for consuming them had almost finished by the time COVID-19 began to significantly impact consumer behaviour and purchasing patterns in Taiwan.

Other plant-based hot drinks, particularly grain and oatmeal products, are the main driver of retail current value sales growth

Other plant-based hot drinks account for the bulk of volume and current volume sales of other hot drinks in Taiwan and are also the main driver of growth. Grain and oatmeal products are popular, as they are perceived to be healthy, convenient and even a satisfactory substitute for a light meal.

Leader Mayushan Foods Co Ltd’s Max Green brand benefits from strong growth in demand for other plant-based hot drinks

Mayushan Foods Co Ltd grew its retail value share in other hot drinks throughout the review period, extending its lead over second-placed PepsiCo Inc. Mayushan Foods Co Ltd’s Max Green brand is particularly strong in other plant-based hot drinks.

RECOVERY AND OPPORTUNITIES

Increased focus on health and wellness will drive modest acceleration in retail current value sales growth

Foodservice volume sales of other hot drinks will rebound during 2020, but they will not return to their pre-pandemic level until 2023 – largely due to the lingering economic impact of the pandemic. However, growth in retail value sales will accelerate modestly later in the forecast period, as consumer interest in offerings with a health-and-wellness positioning grows.

Use of functional and fortified ingredients will increase

Functional and fortified ingredients will increasingly be utilised in other hot drinks, as manufacturers seek to differentiate themselves from their rivals. For example, black bean drinks are marketed to provide relief for those with swollen body parts.

Manufacturers of malt-based hot drinks will intensify their efforts to broaden their appeal beyond children

Rising consumer health-awareness has also created potential for fortified and functional malt-based hot drinks. Historically, malt-based hot drinks have only been consumed by children.