Tea in Taiwan

PROSPECTS

Strong traditions support tea consumption

Chinese culture, which has a strong tradition of drinking tea, exerts a significant influence on Taiwan, supporting high levels of tea consumption. The ingrained tea-drinking habit supported stable consumption of tea bags in Taiwan at the end of the review period.

Demand shifting towards high-quality tea

Taiwanese consumers’ familiarity with tea means that there is a high level of differentiation between different types and qualities of tea in the market. Taiwanese consumers show a notable preference for other tea, such as oolong tea and barley tea.

Slimming tea sold primarily through direct selling channel

Slimming tea contrasts with other categories in that the majority of its sales are generated through direct selling. Brands such as Herbalife and USANA are specialising in slimming tea, promoting their products as containing premium ingredients.

COMPETITIVE LANDSCAPE

Ten Ren Tea retains lead but sees continued share erosion

Ten Ren Tea Co Ltd remained the largest player in tea in Taiwan in 2019. Green tea and jasmine tea are amongst Ten Ren Tea’s most popular products, with the company also providing traditional Chinese tea, such as Pu-Erh and oolong.

Small high-end players entering category

While Taiwanese consumers have tended to prefer branded tea, there is also a growing desire to purchase directly from producers to be sure of product origin. These trends have driven traditional tea growers and farmers’ associations to enter the fray with their own offerings.

Smaller players utilise e-commerce

Large tea brands like Ten Ren, Sun Ten, Lipton and Tradition dominate shelf space in retail outlets. This leaves limited room for smaller players to compete in traditional retail channels.

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