Soft Drinks - Taiwan

The Soft Drinks market in Taiwan has been experiencing steady growth in recent years.

Customer preferences: Taiwanese consumers have shown a growing preference for healthier beverage options, including low-sugar and natural drinks. This shift in consumer behavior can be attributed to increasing health consciousness and a desire for more nutritious choices. Additionally, there is a growing demand for functional beverages that offer specific health benefits, such as energy drinks and sports drinks.

Trends in the market: One of the key trends in the Soft Drinks market in Taiwan is the rise of ready-to-drink (RTD) tea. Tea has long been a popular beverage in Taiwan, and the RTD tea segment has seen significant growth in recent years. This can be attributed to the convenience and variety offered by RTD tea products, as well as the perception of tea as a healthier alternative to carbonated soft drinks. Another trend in the market is the increasing popularity of flavored water. Flavored water is seen as a refreshing and hydrating option, especially during the hot summer months in Taiwan. The availability of a wide range of flavors and the low-calorie content of flavored water have contributed to its growing popularity among Taiwanese consumers.

Local special circumstances: Taiwan has a unique beverage culture, with a strong emphasis on tea. Traditional tea houses and tea ceremonies are an integral part of Taiwanese culture, and tea is consumed on a daily basis by many Taiwanese people. This cultural preference for tea has influenced the Soft Drinks market in Taiwan, with a wide variety of tea-based beverages available in the market.

Underlying macroeconomic factors: The growing Soft Drinks market in Taiwan can also be attributed to favorable macroeconomic factors. Taiwan has a stable economy and a high standard of living, which has led to increased disposable income and consumer spending. This has allowed Taiwanese consumers to have more purchasing power and to spend more on beverages, including soft drinks. In conclusion, the Soft Drinks market in Taiwan is experiencing growth due to changing customer preferences, including a preference for healthier options and functional beverages. The market is also influenced by local special circumstances, such as the cultural preference for tea. Favorable macroeconomic factors, such as a stable economy and high disposable income, have also contributed to the growth of the market.

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.