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Whisky in Taiwan

Taiwan’s Whisky Situation

Taiwan is one of the world’s top whisky users, placing fifth in 2017, after powerhouses such as the United States, France, and Germany. Its import purchases account for 4% of all worldwide imports. After Singapore, the state is Asia’s second-largest whisky importer, with $454 million in imports in 2017.

In Taiwan, whisky has the highest market share, with 61 percent. Seventy percent of all whisky products are single malt whiskies. High-end, craft bourbons, on the other hand, are gaining popularity. Also popular is Scotch whisky. Taiwan was the world’s fourth-largest importer of the industry in 2016, with imports exceeding US$2 million.

Taiwan is also home to two internationally known whiskey brands, Kavalan and Omar. Since its debut in 2008, Kavalan whisky has garnered a slew of prestigious prizes for its tropical-fruit flavour. Meanwhile, the government-owned Taiwan Tobacco & Liquor Corp owns Omar, who is equally as popular (TTL).

Whisky in Taiwan

Taiwan’s Love Affair with Scotch Whisky

By value, Taiwan is Scotch’s fourth largest market, with imports worth £75 million (US$93 million) in the first half of 2016. For many years, the state has been a big buyer of Scottish whisky, especially single malts. Scotch whisky is seen as a prestige symbol by many consumers, and it is especially popular as a luxury gift.

Scotch whisky was registered as a trademark in Taiwan in 2016. The Scotch Whisky Association (SWA) will now be able to take legal action against anyone attempting to create or sell phony Scotch as a result of the verdict. Consumers may now have even more confidence in the quality of Scotch they are purchasing thanks to the trademark. It also offered Scotch whisky companies exporting to the country a boost.

Only the Best for the Best

Due to its relatively wealthy consumer market, whisky distillers and retailers regard Taiwan as a major growth opportunity. The majority of these drinkers are drawn to higher-end varietals, especially rare and matured malts and blends. Many Taiwanese have become highly informed about the many types of whisky, and their tastes have become fairly sophisticated. Single malts, single casks, and limited-edition specialty types are among them. The average price of a bottle of whisky in Taiwan is £10 (US$ 12.5), which is higher than in France and the United States.

Limited Edition Whisky Brands in Taiwan

Taiwan is one of the few Asian markets where whisky auctions are held on a regular basis, with people gathering to bid on a variety of whisky items. A variety of limited editions are also being released exclusively for the Taiwanese market. The Glenlivet 13 Year Old Sherry Cask, the Macallan Boutique Collection, and the Dalmore 20 Year Old are just a few of the whisky brands available.

The Glenfarclas 180th Anniversary edition and the immensely popular Macallan AERA non-age-statement whisky are two more Taiwan exclusives. In Taiwan, Johnnie Walker also created a Blenders’ Batch series of limited edition whiskies. The Triple Grain American Oak, which has a 41.3 percent alcohol by volume (ABV), was released in April 2017.

Whisky consumption in Taiwan continues to rise, spurred by customers’ insatiable need for the premium spirit. There is considerable competition among brands since high-end and specialty whiskies may be imported into Taiwan at a comparatively cheap tariff compared to many other markets. Producers all over the world are putting more effort into product differentiation and marketing in order to pique the interest of rich Taiwanese consumers.

Taiwan : Types of Spirits Consumer

In Taiwan, consumer groups’ generational differences disclose a lot about their lifestyles, as well as their tastes and spending habits. Companies must adapt their products and marketing strategies to meet market demand and boost their chances of market success.

Types of Spirits Consumer in Taiwan

The Social Experience Seekers

This is the newest generation of customers, Generation Z. (20 years old and below). They’re known as trendy drinkers since they’re always the first to try new items on the market and are drawn to those with appealing designs and packaging. Gen Z is more inclined than previous consumer groups to be affected by ads and make impulsive purchases.

Drinking alcohol has a social context for the Social Experience Seekers. They enjoy drinking spirits when socializing with friends, at parties, or at other social occasions. The majority of them drink to unwind and relax after a long day. This group, which is young and adventurous, enjoys experimenting with novel flavors and combinations. Brands that reflect who they are and what they enjoy are appealing to them.

The Cultured Connoisseurs

These are the state’s Millennials (aged 21 to 34) that have a strong interest in alcohol and are eager to share their expertise with others. They are often in quest of something unusual or new to discover because they are sociable and have money at their disposal. When they’re out to dinner with pals, they like to drink a lot of alcohol. These youthful customers are also known for purchasing high-priced items that they believe are worthwhile.

The Cultured Connoisseurs are frequently described as mercurial, with fast shifts in brand loyalty. They have a lifestyle atmosphere that is termed as experiential. They require a significant amount of investment to persuade them to stick to a single product because they are more educated and more digitally savvy. To be patronized by this segment, brands must demonstrate their authenticity and relevancy.

The Easy-Going Bon Vivants

Taiwan’s Generation X customers are in the most stable stage of their lives, working full-time and often with their own families (35 to 49 years old). Their little income enables them to enjoy life and indulge in activities that bring them delight. They consider drinking to be an important part of their daily lives, a posh pastime that reflects their refined taste. These drinkers enjoy sipping spirits after a long day’s labor, whether alone or with others.

The Uncomplicated Bon Vivants are the state’s most mature and educated consumers. They recognize the relevance of product value and are more likely to stick with a particular brand. This group is nostalgic, and quality, value for money, and enjoyment are important to them. They’re also big fans of social media and internet shopping.

The Shrewd Traditionalists

Taiwan’s Baby Boomers (50 to 64 years old) and Silent Generation make up the oldest of the consumer groups (65 and up). They are generally linked with long-established spirits such as brandy, cognac, and whiskies, and they prefer to avoid trying new goods. While they enjoy consuming alcohol on occasion, they do so primarily for special occasions.

These elderly customers have more spending power than other demographics due to their substantial savings, pensions, and investments. They spend more money on items and services that improve their quality of life. The Shrewd Traditionalists, on the other hand, are financially astute and can be very price sensitive when making purchases.

While Taiwanese consumers may not have a long history of drinking spirits, they have been increasingly open to a larger range of alcoholic beverages in recent years. Companies have learned to adapt their marketing strategies to match the market’s changing consumer segments and cater to the evolving interests of drinkers. We’ll go over how to properly appeal to each demographic in upcoming articles.

Taiwanese craft beer

Taiwan’s Craft Brewing Scene

In Taiwan, beer is the most common alcoholic beverage. The market is well-stocked with imported beers, the majority of which come from the Netherlands, China, the United States, and Denmark. Lager is the most common beer in Taiwan, however craft beer has been increasingly popular in the last half-decade.

While craft beer has a small market share in Taiwan (about 1%), consumption is increasing at a rate of nearly 20% each year. Following the craft brewing boom of 2013, the island continues to see new breweries and bars open. In 2017, Taiwan had more than 25 independently owned breweries.

Meanwhile, the majority of Taiwan’s imported craft beers come from Belgium, France, Germany, and the United Kingdom. Younger, more urban, and open-minded consumers are the target demographic for these brews. In recent years, the number of young Taiwanese people interested in overseas flavors has constantly increased.

Taiwan is a small but burgeoning craft beer market.

Taiwan’s beer market is modest in comparison to Japan and South Korea, yet it is no less vibrant. Beer costs around NT$150-200 (approximately $5) per pint/500ml. This is projected to rise as consumption continues to rise and customers’ tolerance for higher prices grows.

While most normal beers are available in off-trade outlets like supermarkets and convenience stores, few craft brewers have been able to do so. In Taiwan, almost 75% of craft beers are sold on-premise.

They’re typically sold in specialty craft bars and taprooms, as well as Western restaurants and diners. Independent cafés, bistros, and bars are particularly popular.

Craft beers can be purchased off-premise in speciality craft beer bottle shops and high-end supermarkets. In Taiwan, nearly all craft beers available in supermarkets are imported. There is an increasing demand for American IPAs, session beers, stouts, and American wheat among craft beer lovers.

Taiwan’s Most Popular Craft Beer Brands

In 2013, the majority of Taiwanese breweries were restaurant-style establishments that served international-style craft brews from Germany and Belgium. Le Blé d’Or, Gordon Biersch, and Paulaner Brauhaus, for example, sell homebrewed German-style craft beers that pair well with a variety of foods.

Customers can choose from a wide range of specialty beers inspired by local fruits and flowers at local brewers like Sunmai and Alechemist. Winter melon sugar, local premium Oolong tea, and Changhua-grown jasmine blossoms are among the ingredients of Taiwan Head Brewers’ concoctions.

Craft beer in Taiwan is on the rise, thanks to a diverse range of styles and flavors that keep beer fans interested. High-end foreign craft beers are quickly gaining popularity among youthful drinkers eager for a change from their normal mass-market brews. Craft brewers are certain that it will soon become a big and appealing section of the Taiwan beer industry.

In Taiwan’s booming coffee market, there are more opportunities than ever before.

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Taiwan is a rapidly expanding coffee consumer market and a magnet for new companies, both major and small. With annual sales of approximately US$ 2.7 billion and per capita spending of US$ 112, the market for caffeinated bean-based drinks is well-established, with plenty of space for expansion. According to Statista, a research group, the medium-term forecast is particularly promising, with a CAGR of near 7% expected through 2025.

Consumer demand remains healthy even by Asia’s high growth standards, having survived the epidemic better than practically every other market internationally and with already high disposable incomes. Taiwan’s government is also investing in improving distribution infrastructure, signing free trade agreements, and stating that Taiwan is open to doing business with the rest of the globe.

Although convenience reigns supreme, with ready-to-drink coffee products accounting for the majority of coffee sales in Taiwan, at-home brewing and single-serve options—such as pods—are gaining traction. Consumers are upgrading to more expensive options and broadening their purchase patterns even in the RTD and instant coffee markets. Pour over coffee made with premium single origin beans or innovative and unique coffee styles are becoming increasingly popular among customers, particularly among the younger generation.

While major international brands such as Starbucks and Nestle continue to be major players in the market, they and other big brands have begun to lose market share to local and foreign upstarts as younger consumers (those under 40) move away from the staid options typical of their parents’ generation. This is creating more and more opportunity for new, small, medium, and niche brands to enter the market with unique branding or other strong selling features.

Given its location between areas that generate more headlines, such as Mainland China, and those that are already well-known to coffee brands, such as Japan and Korea, it is frequently disregarded. Taiwan is a high-growth consumer market for coffee in and of itself, with tremendous long-term potential for businesses willing and able to go in on the ground floor and make the necessary investments to create a brand—and sales—on the ground floor.

Taiwan’s Food Market : Emerging Trends

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Taiwan’s food market is worth about US$ 43 billion and ranks fifth in Asia in terms of per capita food spending, trailing only the region’s wealthiest countries like Singapore and Japan.

Taiwan, like many other prosperous Asian economies, is spearheading the region’s transition toward higher protein, healthier, and more diversified diets.

Taiwanese customers, like those in many other high-income economies, are becoming more health conscious and less price sensitive. Demand is shifting in favor of well-known overseas brands, higher quality, lesser sugar, and a willingness to try something new or different. Young people, in particular, are looking for meals and brands that fit their ideal lifestyle.

Because many Taiwanese are Buddhists, vegetarianism is prevalent, giving the island an ideal location for new dietary trends. Meat and dairy alternatives that do not contain any animal products, such as those offered by Beyond Meat (meat replacements) and Oatly (dairy replacements), can benefit from a small but growing market. Organic, ecologically conscious, or ethically sourced meals are increasingly gaining popularity, especially among young, well-educated, and urbane consumers. This pattern is expected to continue.

Food demand in Taiwan is surpassing wage growth, owing to the fact that much of that growth is in disposable income. Taiwanese consumers are upgrading their lifestyles by demanding more variety, novelty, and higher-quality food options.

This creates a compelling opportunity for both large and small businesses to provide healthy solutions that fit with today’s positive lives, which are often urban and convenience-oriented. While environmental and socially responsible businesses and goods are still making inroads in many Asian markets, they will be well-positioned to meet consumer needs in the long run.

Taiwanese e-commerce is growing.

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Fresh vegetables and groceries are helping to drive retail expansion in Taiwan.

Despite Taiwan’s strong reaction to Covid-19, the epidemic has fueled the expansion of e-commerce in Taiwan, as it has around the world, with fresh food playing a role.

Despite Taiwan being basically Covid-free, the USDA reports that Taiwan’s e-retail business has expanded from US$6.9 billion in 2019 to US$8.3 billion in 2020, since consumers choose “no-contact” buying choices to prevent the spread of Covid-19.

This tendency has been especially essential for the growth of online grocery orders, with Euromonitor forecasting a 10% increase in food and beverage e-commerce sales to US$806 million in 2020.

“Shoppers are gaining more trust in purchasing food and beverage products online, however obstacles exist for perishable products,” according to the report, citing improvements in supply chain systems and a shift in customer preferences.

“E-retail in the food and beverage industry has significant business potential, and an increasing number of shop owners and e-commerce platforms are capitalizing on newly emerging customer behaviors, particularly in the fresh product category.”

Businesses across the industry have adapted to keep up, with brick-and-mortar merchants joining e-retailers in an effort to meet the demand for fresh produce delivery.

According to the survey, “more brick-and-mortar retail players are aggressively investing in integrating their online and offline resources to give consumers with a more user-friendly purchasing environment.”

“PX Mart, 7-Eleven, Families, Simple Mart, RT Mart, Ai Mai, Costco, Carrefour, and Taiwan Fresh Supermarkets have all aggressively developed their e-retail platforms to service their clientele both offline and online,” according to the report.

“Moreover, both Momo Shop and PChome Online Inc have implemented logistics to provide fresh meal delivery.”

In Taiwan, what’s on tap? An analysis of Taiwan’s booze market

Taiwan, like South Korea, is one of Asia’s most cosmopolitan and wealthy markets, making it a preferred entry point for international businesses. The island nation’s alcohol market is worth over US$20 billion and is expected to expand at a 6.47 percent compound annual growth rate (CAGR) through 2025, thanks to rising earnings and consumer preferences for higher-quality beverages.

Beer

Beer, like most of Asia, accounts for the majority of alcohol sales in Taiwan, both in terms of volume and dollar value. In 2020, beer sales are expected to reach over US$13 billion. Although lagers account for about half of all beers sold in Taiwan, other styles such as wheat, IPAs, and stronger-flavored beers (such as stout) are becoming more popular. Many consumers, particularly those in metropolitan areas who are young and well-educated, are searching out higher-quality beers to enjoy socially rather than the light-flavored pale lagers that were popular at earlier generations’ dinner parties and business meetings.

Spirits

The second largest segment of Taiwan’s alcohol business, worth about $7 billion, is spirits, which include liqueurs. Dinner party classics for decades included baijiu, a native fire water, and cognac. This is quickly changing as customers of all demographics switch to whiskey, rum, gin, and other imported spirits. Even though foreign brands dominate, there is a young local whiskey business attempting to meet this expanding need.

Wine

Grape wines are becoming more popular. Whites are less common than reds, although roses are becoming more popular. Wines are seen as elegant, easy-to-drink low-alcohol alternatives to harsher liquors like baijiu. Wine, which is currently valued at about $2 billion, is expected to expand at a rapid rate in the coming years as part of a fundamental shift in consumer preferences.

The evolution of Taiwan’s alcohol market is being driven by differences in cross-generational preferences. Younger Taiwanese are looking for a combination of greater quality, new and innovative flavors, less alcohol, and healthier options. Demand for tasty full-bodied beers, international spirits, and grape wines is rising across the board as a result.

Taiwan’s economy has outperformed the rest of the world throughout the epidemic, increasing in 2020 and 2021. It should be a top priority for any company considering entry or expansion in Asia, with strong fundamentals, smart consumers, and expanding demand for most categories of imported beer, wine, spirits, and liqueurs.

The beverage industry in Taiwan is thriving.

Taiwan is a fast-growing beverage consumer market and a magnet for new brands, both big and small. Juice, soft drinks, bottled water, alcohol, and other key beverage categories are all experiencing strong year-over-year growth, making it a good alternative for businesses looking to expand or just diversify their market exposure.

Coffee

With annual sales of approximately US$ 2.7 billion and per capita spending of US$ 112, the market for caffeinated bean-based drinks is well-established, with plenty of space for expansion. According to Statista, a research group, the medium-term forecast is particularly promising, with a CAGR of near 7% expected through 2025.

Although convenience reigns supreme, with ready-to-drink coffee products accounting for the majority of coffee sales in Taiwan, at-home brewing and single-serve options—such as pods—are gaining traction. Consumers are upgrading to more expensive options and broadening their purchase patterns even in the RTD and instant coffee markets.

Alcohol

In 2020, alcohol brands generated over $17 billion in sales, with a 6.47 percent CAGR forecasted through 2025.

In Taiwan, beer is the preferred beverage. Consumers are abandoning basic lagers in favor of flavourful ales, IPAs, wheats, and stouts. Baijiu is giving way to whiskies, gins, liqueurs, and other imported spirits in the spirits market. Similarly, wine is becoming increasingly popular, especially among the young.

Juice & Soft Drinks

Carbonated beverages do not dominate in Taiwan, as they do in most other markets. Teas, coffees, bottled water, and other RTDs are the beverages of choice, with most customers preferring for teas, coffees, and the like. Taiwan is an appealing market, despite its fierce competition, because of its comparatively high discretionary incomes and exposure to overseas brands and buy possibilities.

In Taiwan, where summers are long, hot, and humid, cool and refreshing juices are a staple of daily life. Juice demand is high, and even as the market matures, it continues to increase year after year. The transition away from juice drinks with a lot of added sugar to 100% fruit juice beverages is hidden in this growth.

The market for juice and soft drinks in Taiwan is worth over US$3 billion and growing.

Taiwan’s GDP expanded by more than 2% in 2020 and is expected to expand by over 5% in 2021. Consumers are enthusiastic about the future and have a solid understanding of global brands and product possibilities because their incomes are high and expanding. Taiwan is a good alternative for firms searching for a robust export market that has functioned successfully in the face of the worldwide pandemic.

M.S. Handelsgesellschaft mbH : Create wines with own distinct personality as a result of expertise and experience

For five generations, the Günther Schlink family has dedicated itself to viticulture on the Nahe. Wines whose individuality and independence precisely express our love for wine are made in close and amicable collaboration with our winemakers.

Günther Schlink is a Bad Kreuznach a der Nahe-based family business. Since 1886, wine production, trading, and a specific link with the product wine have been a family tradition. Great-grandfather Josef Barthelmeh instilled in us a passion for wine, and the fifth generation is now trained in oenology. They have a great working relationship with our winemakers, whom we’ve all known for a long time.

Günther Schlink family work with the winemakers to create wines that have their own distinct personality as a result of our expertise and experience. Günther Schlink family can deliver great quality at the best pricing because of these personal ties. For many years, they have also collaborated with premier wineries from various places across the world, particularly in Italy.

Very recently, M.S. Handelsgesellschaft mbH has been recognized and awarded TWO GOLD MEDAL Award by Taiwanese Newspaper :

Riesling – Ladies Choice – 2020 – Deutscher Qualitätswein Rheinhessen

Pinot Noir – Ladies Choice – 2020 – Deutscher Qualitätswein Rheinhessen

For more information about M.S. Handelsgesellschaft mbH please CLICK HERE:

The Evolution of Taiwanese Sparkling Wine

Prosecco and Cava are driving growth in the mainstream market, while Champagne continues to dominate the high end.

Red wine has traditionally dominated Taiwan’s wine market, bolstered by Bordeaux and Burgundy’s brand power. By comparison, most white and rosé wines have failed.

The exception is sparkling wine. Champagne is well-known in this country, yet it is a smaller market than Bordeaux or Burgundy. Less-expensive sparkling wines, such as Prosecco from Italy and Cava from Spain, have made inroads in recent years thanks to strong marketing in hypermarkets and supermarkets. Even some convenience stores now sell low-cost Champagne.

According to data published by the Chinese-language Wine & Spirits Digest, overall sparkling wine imports in Taiwan have increased by 15% since 2014, from 962,365 liters to 1.07 million. Imports from France, which are nearly entirely made up of Champagne, have increased by 26%. Imports from Italy, particularly Prosecco, have increased by 47%. Spain’s Cava has increased the greatest, with a 79 percent increase, but it also began at the lowest baseline.

“People are understanding that there are other sparkling wines besides Champagne,” says Steven Liu, publisher of Wine & Spirits Digest. “Prosecco is imported in large quantities by Carrefour and RT Mart, and it is sold for NT$300 to NT$500 per bottle. The cost is acceptable.”

According to Liu, the bubbles in sparkling wine soften the acidity, making it more drinkable for Taiwanese than still white or rosé wine (typically dismissed as “sour”).

At the same time, many sparkling wines’ carbonation and relative dryness are recognizable to Taiwanese beer aficionados. The transition from beer to sparkling wine isn’t as drastic as the transition from beer to still white or rosé wine.