Ready-to-Drink (RTD) Coffee & Tea - Taiwan

Taiwan, known for its vibrant food and beverage culture, has seen a significant growth in the Ready-to-Drink (RTD) Coffee & Tea market.

Customer preferences: Taiwanese consumers have shown a strong preference for convenient and on-the-go beverage options, which has contributed to the rise in popularity of RTD Coffee & Tea. The busy lifestyle of modern consumers, combined with the desire for a quick and refreshing pick-me-up, has fueled the demand for these ready-to-drink beverages. Additionally, the younger generation in Taiwan is increasingly embracing Western-style coffee and tea drinks, further driving the growth of the market.

Trends in the market: One notable trend in the RTD Coffee & Tea market in Taiwan is the increasing demand for healthier options. Consumers are becoming more health-conscious and are seeking beverages that are low in sugar and calories, as well as those that contain natural ingredients. As a result, companies in the market are introducing products that cater to this demand, such as sugar-free or reduced-sugar options, as well as drinks made with natural sweeteners or herbal extracts. Another trend in the market is the growing popularity of premium and specialty RTD Coffee & Tea products. Taiwanese consumers are willing to pay a premium for high-quality beverages that offer unique flavors and experiences. This has led to the emergence of artisanal and craft brands, as well as the introduction of limited edition or seasonal offerings. Companies are also focusing on packaging and branding to differentiate their products and attract consumers seeking a more premium experience.

Local special circumstances: Taiwan has a strong tea-drinking culture, with tea being a staple beverage in Taiwanese households. This cultural background has influenced the RTD Coffee & Tea market, with tea-based drinks being particularly popular among Taiwanese consumers. Companies have capitalized on this preference by offering a wide variety of tea-based RTD beverages, including traditional Taiwanese teas such as oolong and green tea, as well as innovative blends and flavors.

Underlying macroeconomic factors: The economic stability and increasing disposable income in Taiwan have played a significant role in the growth of the RTD Coffee & Tea market. As consumers have more purchasing power, they are able to indulge in the convenience and variety offered by RTD beverages. Additionally, the growing influence of Western culture, including coffee-drinking habits, has also contributed to the expansion of the market. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Taiwan has experienced remarkable growth due to customer preferences for convenience and on-the-go options, as well as the increasing demand for healthier and premium beverages. The local tea-drinking culture and favorable macroeconomic factors have further fueled the market's development. As the market continues to evolve, it is expected that companies will continue to innovate and cater to the changing preferences of Taiwanese consumers.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.