Alcoholic Drinks in Taiwan

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

Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine

Executive summary

Alcoholic drinks market sees drop in total value sales

In 2006 total sales of alcoholic drinks in Taiwan declined in current value terms for the first time since 2001, due to market saturation. The slow economic growth also caused consumers to become more cautious in their spending, especially on non-necessities. Consumers also refrained from dining out, which was part of the reason for the drop in value for alcoholic drinks. Furthermore, strict drinking regulations led consumers to change drinking habits, with many choosing to drink at home.

New target segments stimulate growth

Since the alcoholic drinks market in Taiwan is saturated, companies seek new ways to increase the consumer base and thus raise growth potential. Women and young adults are the next target segments to which companies plan to promote their drinks. The growing social status of women, as well as the increased acceptance of female drinkers, has led to manufacturers recognising the untapped potential offered by this consumer segment, while young adults are keen to try a variety of alcohol products. It is also easier to nurture the drinking habits of young adults, since they have less drinking experience than their older counterparts, and can be potential loyal customers.

Specialists threatened by growing power of other retailers

Supermarkets and hypermarkets have started to introduce premium variants of wine and spirits to attract sophisticated consumers. Convenience stores also have wine sections, with products sold in smaller packages to attract new or moderate drinkers. Retailers have become more active in wines and spirits, and offer a wider range of products and better service. These emerging retail formats challenged specialist shops, as consumers have a wider choice of products and lower prices.

Gift sets important to sustaining sales

Alcohol gift sets boost value sales, especially during festivals such as Chinese New Year, Mid-Autumn Festival, Dragon Boat Festival and Father' s Day. During such festivals, consumers splurge on their loved ones and bosses to display their generosity and respect. Furthermore, with increasing awareness of wine and its health benefits, consumers find it very appropriate and convenient to give alcohol gift sets.

Alcoholic Drinks expect to perform favourably in the forecast period

While off-trade channels are likely to see demand for alcoholic drinks slow down in the forecast period, on-trade channels are going to be the growth contributor as the night scene continues to develop. In view of the emerging income polarisation where there is an increasing number of high and low income earners, and a dwindling number of middle income consumers, demand for economy and premium brands is likely to surpass that of the mid-priced brands.