Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Baby food; Bakery products; Canned/preserved food; Chilled processed food;
Confectionery; Dairy products; Dried processed food; Frozen processed food;
Ice cream; Impulse snack products; Meal replacement products; Meal solutions;
Noodles; Nutrition/staples; Oils and fats; Pasta; Ready meals; Sauces;
dressings and condiments; Snack bars; Soup; Spreads; Sweet and savoury snacks
Executive summary
Total market value growth
Total value sales of packaged food have grown with ready meals registering the
strongest growth. Factors such as availability, innovation, price, promotions
and most importantly, the hectic lifestyles which people are leading,
stimulated the demand for packaged food. Mature sectors led manufacturers to
invest in researching and developing improved products that would attract
consumer interest as well as drive market growth. However, meal replacement
products and dried processed food both saw a fall in value sales since there
were few new product launches to suit consumer demands.
Increase in unit prices
Unit prices across all sectors increased due to an increase in costs of raw
materials. Rising petroleum costs affected the cost of packaging as well as
transportation. Poor crop yields due to weather conditions affected the supply
of crops. This eventually led to an increase in prices when supply fell short.
Besides the increase in costs of raw materials, manufacturers increased the
prices of their new products since they had invested in developing products of
better quality with features that were beneficial to customers.
Multinational companies vs domestic firms
Many Made in China (MIC) brands surfaced in Taiwan over the review period.
These MIC brands are usually low priced, meaning that domestic firms which
offer products at affordable prices lose their competitive edge. On the other
hand, multinational brands which are usually premium products, are priced
higher and are targeted at a totally different group of consumers and are
unaffected by MIC brands. Multinational companies also have the resources to
develop new and improved products which domestic companies lack. With new
products, multinational firms are able to stimulate consumer interest and
increase sales in the sectors in which they operate.
Convenience stores an important distribution channel
Convenience stores have an increasingly important presence in Taiwan due to an
increase in the number of new outlets. People leading hectic lifestyles may
have grown accustomed to purchasing their meals in convenience stores since
these convenience stores can be found almost everywhere and offer a wide
variety of products to choose from. Manufacturers also often hold promotions
in convenience stores. Furthermore, the 24/7 opening hours allow consumers to
purchase packaged foods at any time of the day. Therefore, this is an
important distribution channel for packaged food, especially impulse foods.
Future growth driven by ready meals
The sales value of ready meals is expected to continue to grow over the
forecast period. Ready meals appeal to consumers who are convenience driven.
Besides serving as a solution to time-poor people, they also save small
households the trouble of preparing a meal. Furthermore, manufacturers'
intentions to invest in healthier ready meals will stimulate consumer interest
and contribute to further growth.
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