Wine in Taiwan

PRE-COVID-19 PERFORMANCE

Sake sees tariff reduction on imports from Japan, local products aim to compete

Sake in Taiwan saw smooth growth over the review period, with steady demand. Many consumers are highly price-sensitive, so they only have a few drinks when dining in a Japanese restaurant.

Can packaging offers convenience, younger drinkers increasingly important to wine sales

Canned wine saw growing popularity in Taiwan in 2019, as it is more sustainable given the packaging, and offers greater convenience for those wishing to drink small amounts. Taiwanese consumers care about environmental initiatives.

Hypermarkets gain traction in wine distribution

Instead of formal e-commerce web pages, online channels such as Facebook fan pages were prevalent for wine in 2019. However, due to the strict policy regarding the legal purchasing age for alcoholic drinks, consumers may not make purchases without proof of their age, meaning that e-commerce sales of wine could not take place, even though there is no specific law regulating online sales.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of wine are expected to fall by 12% in 2020 in light of the impact of COVID-19. This compares to an expected 1% rise forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.

Affected products within wine

Channel shifts have had a slightly positive impact on non-grape wine, other sparkling wine and still wines in terms of off-trade sales. This is due to the home seclusion trend, with consumers’ reduced ability to make purchases of alcoholic drinks in on-trade establishments leading to a shift towards off-trade purchases for home consumption.

Recovery and opportunities

Other sparkling wine is expected to see the strongest recovery in the post-pandemic environment, but even this will be with a moderate total volume CAGR. This category is expected to benefit from the product’s suitability to a wide range of consumption occasions, coupled with its low price and availability.

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