Taiwan Food and Drink Report 2012

We remain cautious on the near-term retail outlook for Taiwan. A bleak outlook on the global economic environment, especially that of Taiwan's major trade partners – China, the US and Japan – are expected to have adverse ramifications on the country’s export sector. This phenomenon could potentially weigh on domestic consumer sentiment, prompting consumers to keep a tighter rein over their purse strings in 2012. Amid an increasingly cautious spending mood among local consumers, purchases of higher-value consumer products are unlikely to hold up strongly over the coming quarters. Over the long term BMI is still forecasting reasonably strong growth in the consumer sector to 2016, driven by sustained consumer demand, the opening up of the tourism sector, premiumisation and the further development of the retail sector.

Headline Industry Data (local currency) ?? 2012 per capita food consumption (value): +2.2%; forecast to 2016:+15.8% ?? 2012 alcoholic drinks sales (volume): +1.7%; forecast to 2016: +11.2% ?? 2012 soft drinks sales (value): +5.9%; forecast to 2016: +45.4% ?? 2012 mass grocery retail sales: +2.95%; forecast to 2016: +23.6%

Key Company Trends Branding And Diversification To Strengthen Uni-President's Prospects – Uni-President Enterprises is Taiwan's largest diversified food and beverage company by some distance. The company manufactures dairy products, baked goods, health foods, instant noodles and beverages. Product diversification has protected Uni-President to some extent from slowdowns in certain product categories, and this will remain a focus for the company. To retain its robust growth momentum, Uni-President will also have to focus its expansion efforts on overseas markets and the company's expansions in high-growth regional markets such as Thailand, China and Indonesia should allow it to reap fruitful rewards.

Key Risks to Outlook Falling exports – The key risk to our forecasts is a possible collapse in Taiwan's export sector as there remains a material risk from economic activity in China, the US and Europe taking a turn for the worse. External demand conditions look increasingly precarious, especially with credit tightening measures on the mainland clearly starting to display efficacy, constricting domestic demand and thus ultimately hurting Taiwan's exports. Should we see an acute deterioration in US and Europe economic activity or a hard-landing in China, we would expect Taiwan’s economic growth and consumer spending to be hit.

Table of contents

Chapter 1 - Executive Summary

Chapter 2 - SWOT Analysis

Taiwan Food Industry SWOT

Taiwan Drink Industry SWOT

Taiwan Mass Grocery Retail Industry SWOT

Chapter 3 - Business Environment

BMI’s Core Global Industry Views

Table: Agricultural Commodity Proces

Core Views Q

Asia Pacific Risk/Reward Ratings

Table: China Food & Drink Risk/Reward Ratings – Q

Table: Asia Pacific Food & Drink Risk/Reward Ratings – Q

Taiwan’s Food & Drink Business Environment Rating

Macroeconomic Outlook

Table: Taiwan Economic Activity

Chapter 4 - Industry Forecast Scenario

Consumer Outlook

Food

Food Consumption

Table: Food Consumption Indicators Historical Data & Forecasts

Canned Food

Table: Value/Volume Sales of Canned Food Historical Data & Forecasts

Confectionery

Table: Value/Volume Sales of Confectionery Historical Data & Forecasts

Drink

Alcoholic Drinks

Table: Taiwan Alcoholic Drinks Value/Volume Sales Historical Data & Forecasts

Soft Drinks

Table: Taiwan Soft Drinks Value Sales Historical Data & Forecasts

Hot Drinks

Table: Taiwan Hot Drinks Value Sales Historical Data & Forecasts

Mass Grocery Retail

Table: Taiwan Retail Indicators Sales Value by Format Historical Data & Forecasts

Table: Sales Breakdown by Retail Format Type

Food Production

Trade

Table: Taiwan Food & Drink Trade Indicators Historical Data & Forecasts

Chapter 5 - Food

Key Industry Trends And Developments

Branding And Diversification To Strengthen UniPresident's Prospects

Mainland Chinese Companies Increasingly Interested in Taiwan

Market Overview

Food Processing

Agriculture

Leading Players

Chapter 6 - Drink

Key Industry Trends And Developments

Demand for Scotch Whisky Remains Considerable

Taiwanese Companies Increasingly Targeting Mainland China

Market Overview

Alcoholic Drinks

Soft Drinks

Chapter 7 - Mass Grocery Retail

Key Industry Trends And Developments

Taiwan Not as Attractive as Other Asian Markets

Innovation Remains Key to Growth

Market Overview

Structure of Taiwan's Mass Grocery Retail Market by Estimated Number of Outlets

Table: Structure of Taiwan's Mass Grocery Retail Sales Value by Format (TWDbn)

Table: Structure of Taiwan's Mass Grocery Retail Sales Value by Format (US$bn)

Table: Average Sales per Outlet by Format

Chapter 8 - Competitive Landscape

Key Players

Key Players in Taiwan's Food & Drink Sector

Key Players in Taiwan's Mass Grocery Retail Sector

Company Analysis

Food

UniPresident Enterprises

IMei Foods Co Ltd

Want Want Holdings

Drink

Hey Song Corp

Swire CocaCola Taiwan

Taiwan Tobacco & Liquor Corp – Beverage Arm

Mass Grocery Retail

Taiwan FamilyMart Co

Carrefour

Chapter 9 - Risk/Reward Ratings Methodology

Table: Rewards

Table: Risks

Weighting

Table: Weighting

Chapter 10 - BMI Food & Drink Industry Glossary

Food & Drink

Mass Grocery Retail

Chapter 11 - BMI Food & Drink Forecasting & Sourcing

How We Generate Our Industry Forecasts

Sourcing

Chapter 12 - BMI Methodology

Food & Drink Business Environment Ratings

Table: Rewards

Table: Risks

Weighting

Table: Weighting

BMI Food & Drink Industry Glossary

Food & Drink

Mass Grocery Retail

BMI Food & Drink Forecasting & Sourcing

How We Generate Our Industry Forecasts

Sourcing

Related research categories

By sector: General drinks

By market: Taiwan (in Asia)