Sports Drinks in Taiwan

2020 IMPACT

COVID-19 impacts on-trade demand, as consumers spend more time at home

COVID-19 will not have a significant effect on off-trade volume sales of sports drinks in 2020, as sports facilities like gyms remained open during the pandemic and people continued to exercise as normal. While it will have a significant negative effect on on-trade volume sales, as consumers socialised less outside of their homes due to a fear of contagion, this channel accounts for a relatively small proportion of total volume sales of sports drinks.

Sports participants turn away from sports drinks to reduced-sugar and sugar-free alternatives

Off-trade volume and current value sales of sports drinks have both been in steady decline for most of the review period. While demand is supported by the fact that consumer interest in sports and exercise as a health-maintenance strategy is growing, particularly among young people – who perceive it as important for maintaining a slim and attractive physique, as well as for relieving stress and ensuring a sharp mental focus – its high sugar content is increasingly its Achilles heel.

Backed by strong marketing, Vitalon Foods Co Ltd’s venerable Super Supau is synonymous with sports drinks for many

Off trade value sales of sports drinks in Taiwan remain dominated by two domestic brands: Vitalon Foods Co Ltd’s Super Supau and King Car Food Industrial Co Ltd’s Pocari Sweat. The fact that these products are very competitively priced in comparison with international brands like Swire Coca-Cola Taiwan Ltd’s Aquarius plays a role in this.

RECOVERY AND OPPORTUNITIES

Consumers will continue to drift away from sports drinks

Off-trade volume and current value sales of sports drinks will continue to decline throughout the forecast period. Consumers will continue to drift away from sports drinks to other soft drinks that contain less sugar.

Sponsorship opportunities continue to proliferate

Many professional young people in Taiwan lead very busy and stressful lives and it is considered increasing important to take care of one’s physical health in order to maintain one’s performance at work, and there is still potential for sports drinks to appeal to this group. The sponsorship of sporting events will remain one of the most important strategies for sports drinks manufacturers to get their attention, boost the profile of their brands and increase their value share.

With demand in decline, manufacturers will intensify their efforts to stand out from their rivals

Distinctive packaging is likely to be another strategy that players turn to in growing numbers in an effort to differentiate their brands from those of their rivals. If demand is declining, the only way for a manufacturer to drive sales growth is by taking sales from rival brands.