Beer in Taiwan - 2025 Market Summary
KEY DATA FINDINGS
Total volume sales fall by 3% in 2023 to 498 million litres
Stout is the best performing category in 2023, with total volume sales rising by 3% to 395,900 litres
Taiwan Tobacco & Liquor Corp is the leading player in 2023, with a total volume share of 38%
Total volume sales are set to decrease at a CAGR of 2% over the forecast period to 454 million litres
2025 DEVELOPMENTS
Beer registers decline in 2024 due to a range of socioeconomic and behavioural factors
Post-pandemic, Taiwanese consumers have faced weakened purchasing power, and expenditure on beer reduced in 2023, leading to a decline across all metrics, albeit at a slower rate than seen during the previous year of the review period in current value terms. Inflationary pressure and shipping and logistics issues resulting from the import and transportation processes also significantly impacted the category. For local brands, workforce insufficiency is a significant issue, while increasing shipping costs are of greater concern to imported brands.
Given ongoing price sensitivity, many more brands of beer have appeared in convenience stores across Taiwan, while major brands offered more affordable variants and sought to appeal to a range of tastes.
Meanwhile, younger consumers in Taiwan are becoming increasingly health conscious, with the COVID-19 pandemic causing some people to reflect on their lifestyle choices. Stricter drink-driving regulations have also led local consumers to become more aware of the perils of drink-driving and hence to consider drinking in a healthier and more responsible way.
Major and craft brands strive to connect with local consumers
Given the wide variety of brands available in Taiwan, local consumers can be choosy about flavours, packaging designs and the retail channels they frequent. This means that competition within the category is fierce, and all major and craft brands have launched new products to attract consumers. For example, Taiwan Beer has launched One Taiwan Beer and Brew Lab, amongst others, in an attempt to expand its consumer base.
Moreover, manufacturers tap into notions of cultural heritage and seek to bond with consumers through sports and musical events such as festivals. Craft beers have also been trying to break into on-trade channels. Craft beer has significantly impacted the category, offering a wide variety of flavours and ranges, including IPAs, fruit beers and stouts. Craft beers are also available across the price spectrum. New tea beer products have even been launched, for example by PEKOE, to appeal to young and foreign consumers, especially after Taiwan reopened its national border in 2023.
Convenience stores remains the leading retailing channel for beer in 2023
The International Beer Festival in June sees intense promotional activity and hundreds of keg machines imported from Japan to provide fresh draft beer for local consumers. Japanese brand Kirin also collaborates with local on-trade channels and outlets to promote its own keg machines.
Overall, the retailing landscape saw little change in 2023. However, Poya offered a slightly greater variety of alcoholic drinks, including beers, and even launched its co-branded beer with a locally renowned craft beer brand.
Convenience stores remained the leading distribution channel for beer, representing the largest percentage of sales ahead of supermarkets and hypermarkets. Nevertheless, the latter two distribution channels successfully vied for share, thanks to their ability to offer a wide range of beers across the price spectrum. Meanwhile, e-commerce sales are negligible as online purchases of alcoholic drinks remain prohibited in Taiwan and only non-alcoholic beers can be sold through this channel.
PROSPECTS AND OPPORTUNITIES
Beer set to register decline due to shrinking consumer base and rising health consciousness among younger consumers
Over the forecast period, beer is expected to see volume decline in both the off-trade and on-trade channels, and limited current value growth, which will largely result from increases in average unit prices.
Domestic brands Taiwan Gold Medal and Taiwan Beer, produced locally by Taiwan Liquor & Tobacco Corp, are expected to maintain their respective leading positions in this highly fragmented category. However, the gap between other players has been shrinking due to the emergence of new brands in craft beer.
Heineken opened its new beer brewery in South Taiwan in 2024, the global player's first domestically produced beer line. Many local and imported players have been observing the player’s next move with interest, and this may shape the category’s direction of travel in the years ahead.
Localisation set to continue intensifying over the forecast period
Given the fierce competition within this category, brands in beer will capitalise on appeals to cultural heritage in the years ahead. Taiwan Beer will nurture consumer relations through the use of local raw materials (such as tea) and various sports and musical events. Kirin tends to import Japanese brands to attract younger consumers, while Heineken will likely focus on its light yet unique European flavour to secure interest.
Non-alcoholic beer is not especially popular in Taiwan, including amongst the younger generation, who often prefer RTDs. However, non/low alcohol beer may yet tap into the country's growing health and wellness trend. Moreover, non-alcoholic beer has the advantage of being available on e-commerce platforms such as momo.com and PChome Online, with online sales of these products taking off during the lockdown when bars and restaurants were forced to close. Besides being seen as a healthier option, non/low alcohol beer also appeals to those who have to drive to parties and social occasions.
Additionally, consumers in Taiwan enjoy diversity in their beer and often enjoy experimenting with different brands and flavours in what is a saturated category. Japanese brands maintain a strong position, benefiting from strong brand exposure and wide distribution. The success of recent beer festivals means that they could become a more common feature over the forecast period, alongside other events such as craft beer festivals. With local consumers regarded as receptive to new tastes, it is expected that the competitive landscape within beer could become even more fragmented in the years ahead.
Sustainable development will remain a key focus for manufacturers
With increasing environmental awareness among Taiwanese consumers, both local and imported brands will maintain focus on sustainable development trends, including recycling beer bottles, using more local raw materials and launching more domestically produced beer. The industry is actively paying attention to how Heineken will develop its newly invested Taiwan plant in 2024 and over the forecast period. Looking ahead, beer manufacturers will not only launch new seasonal flavours and limited editions to attract consumers seeking novelty but also deploy innovative online marketing campaigns to attract interest.
CATEGORY BACKGROUND
Lager price band methodology
Premium: Budweiser Taiwan, Heineken Taiwan, Asahi & Mercuries and Taiwan Kirin Beer. These are often imported beer brands mainly focusing on off-trade channels and trying to penetrate on-trade channels, which local beer brands dominate. Mid-priced: Taiwan Tobacco & Liquor Corp. Being the category leader, this local player has eight product lines and has been active both in on-trade and off-trade channels. However, imported and regional craft brands have eyes on the on-trade channel.
Local craft beer brand Taihu Brewing has been actively marketing itself through on-trade and off-trade channels over the review period. Due to its quickly changing product packaging and limited seasonal flavours launched all year round, it is welcome among younger generations.
Another local brand, Taiwan Brewer, has launched new tea beer products to appeal to young and foreign consumers, especially since Taiwan reopened its national border in 2023.