Taiwan Food and Drink Report 2013
Report description
Generally speaking, we remain relatively pessimistic about the performance of Taiwan's food and drink market in the short- to medium-term, although we caution that select individual (premium) sectors are likely to outperform the overall market. However, upwards inflationary trends are also in play, which will have an impact on value growth of individual market segments. Still, going forward, barring any further disruptions to the food supply as weather conditions continue to normalise, we expect food price inflation to continue to head lower.
Headline Industry Data (local currency)
?? 2013 per capita food consumption (value): +1.86%; forecast compound annual growth rate (CAGR) to 2017: +3.22%.
?? 2013 alcoholic drinks sales (volume): +1.40%; forecast CAGR to 2017: +2.14%.
?? 2013 soft drinks sales (value): +5.88%; forecast CAGR to 2017: +8.07%.
?? 2013 mass grocery retail sales: +4.51%; forecast CAGR to 2017: +4.63%.
Key Company Trends
Taiwanese Restaurant Operator Targetting China in 2013: In November 2012, Taipei Times reported that prominent Taiwanese restaurant operator Tai Tong Food & Beverage Group (TTFB) is creating a 100%-owned TWD300mn (US$10.29mn) subsidiary, which will be used to expand its business in the future. The company is planning to expand to China in the course of 2013, specifically targetting eastern regions of the country. Moreover, TTFB is expecting to establish a fourth restaurant chain domestically in Q113, while also boosting the number of its current outlets to 70 by the end of 2013. TTFB operates around 40 restaurants affiliated with one of its three chains, namely Thai Town Cuisine, Very Thai Restaurant and 1010 Hunan Cuisine. Its longer-term plans include 100 outlets in other countries.
Key Risks to Outlook
Downside Economic Risks Remain Elevated - Our base scenario for the global economy in 2013 envisages US economic activity to remain subdued, while the eurozone's fiscal predicament continues to drag on, which will negatively impact exports from Taiwan. Furthermore, our expectations for the Chinese locomotive to weaken again in 2013 will also place a considerable drag on the Taiwanese economy, given that the mainland remains one of the island's largest source markets. While an uptick in local unemployment figures has yet to be witnessed, this is a result of businesses opting to place workers on unpaid leave as opposed to laying them off outright. All those factors represent downside risks to our forecasts, especially in light of the lack of foreign direct investment (FDI) inflows into Taiwan.
Table of contents
Chapter - Executive Summary
Chapter - SWOT Analysis
Taiwan Food Industry SWOT
Taiwan Drink Industry SWOT
Taiwan Mass Grocery Retail Industry SWOT
Chapter - Business Environment
BMI's Core Global Industry Views
Table: Core Views
Asia Pacific Food & Drink Risk/Reward Ratings
Table: Food & Drink Risk/Reward Sub-Factor Ratings, Q113 (score out of 10)
Table: Asia Pacific Food & Drink Risk/Reward Ratings, Q113
Taiwan's Food & Drink Business Environment Rating
Macroeconomic Outlook
Table: Taiwan – Economic Activity
Chapter - 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
Trade
Table: Taiwan Food & Drink Trade Indicators – Historical Data & Forecasts
Chapter - Food
Key Industry Trends And Developments
Taiwanese Restaurant Operator Targeting China in 2013
Wei Chuan Foods Setting Up Joint Venture
Branding And Diversification To Strengthen Uni-President's Prospects
Mainland Chinese Companies Increasingly Interested in Taiwan
Market Overview
Food Production
Food Processing
Agriculture
Leading Players
Chapter - Drink
Key Industry Trends And Developments
Demand for Scotch Whisky Remains Considerable
Taiwanese Companies Increasingly Targeting Mainland China
Market Overview
Alcoholic Drinks
Soft Drinks
Hot Drinks
Chapter - Mass Grocery Retail
Key Industry Trends And Developments
Far Eastern Looking to Expand Its Footprint in China
Innovation Remains Key to Growth
Taiwan Not as Attractive as Other Asian Markets
Market Overview
Table: 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 – 2012
Chapter - Competitive Landscape
Key Players
Table: Key Players in Taiwan's Food & Drink Sector
Table: Key Players in Taiwan's Mass Grocery Retail Sector
Company Analysis
Food
Uni-President Enterprises
I-Mei Foods Co Ltd
Want Want Holdings Ltd
Drink
Hey Song Corp
Swire Pacific Ltd (Coca-Cola Taiwan)
Taiwan Tobacco & Liquor Corp – Beverage Arm
Mass Grocery Retail
Taiwan FamilyMart Co
Carrefour
Chapter - Risk/Reward Ratings Methodology
Table: Rewards
Table: Risks
Weighting
Table: Weighting
Chapter - BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
Chapter - BMI Food & Drink Forecasting & Sourcing
How We Generate Our Industry Forecasts
Sourcing
Chapter - 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
The just-drinks office is currently: Closed
Office opening hours
Mon-Thursdays 9:00am-5:30pm
Fridays 9:00am-4:30pm
The office is closed during weekends.
Current time at just-drinks headquarters: 8:46am (Monday, 20 May 2013)
Need help? Contact the research team
