RTDs in Taiwan - 2025 Market Report

KEY DATA FINDINGS

• Total volume sales increase by 2% in 2023 to 10 million litres

• Suntory Holdings Ltd is the leading player in 2023, with a total volume share of 54%

• Total volume sales are set to rise at a CAGR of 2% over the forecast period to 11 million litres

2024 DEVELOPMENTS

Increasing demand for low-alcoholic drinks drives growth in rtds in taiwan in 2024

Much like the previous year of the review period, RTDs saw modest off-trade and current value growth in 2024 but a decline in on-trade sales.

Due to the outbreak of COVID-19, local consumers have become increasingly aware of their health and wellbeing, leading many to drink in moderation or seek lower-ABV drinks. This has benefited RTDs, with those seeking healthier options or aligning to “sober socialising” choosing low/no ABV RTDs. Consequently, the landscape has started to see an increase in the number of different RTD options, such as beer and wine RTDs and low/no alcohol RTDs.

Canned cocktails are another driver of growth, especially popular among younger adult consumers of legal drinking age. This is due to the convenience of purchasing these drinks, with consumers accessing them at a variety of outlets, including supermarkets and convenience stores. Canned cocktails have also become increasingly popular for outdoor events and indoor parties, as they can be consumed directly from the can or served in large serving bowls for gatherings, making it quicker and easier than buying and mixing separate ingredients.

After the COVID-19 pandemic, inflationary pressure and workforce insufficiency in logistics and sales have been significant issues for almost all industries in Taiwan. Therefore, prices are also a key concern among local consumers. However, younger demographics are more willing to embrace new products if they are reasonably priced and targeted at the right groups.

Younger consumers seeking new flavours support the category

Unique flavours attract local consumers looking for new and exciting drinking experiences. Young adults above the legal drinking age are also driving this trend, as their higher Internet usage and ability to seek out the latest drinking trends have driven them to seek out superior and specific tastes.

Spirit-based RTDs account for most sales in the category in Taiwan, and most are imported from other countries instead of produced locally. Japanese-made Suntory Horoyoi has held the most significant share in Taiwan since 2016 and remained dominant in 2023.

Meanwhile, natural and organic ingredients are another development that has occurred as a result of the COVID-19 pandemic. As local consumers continue to explore the health and wellness trend, producers are responding by using ingredients to create health-conscious beverages that also taste good.

Wine-based RTDs, such as sangria and mulled wine, have been emerging in Taiwan. Sangria is already familiar to some consumers, as it is served in Western-style restaurants. However, no significant brands of wine-based RTDs have entered Taiwan so far.

Japanese player Suntory Holdings Ltd’s Suntory Horoyoi continued to dominate sales of RTDs in Taiwan in 2024, consolidating its share. Second-ranking domestic player Taiwan Kirin Beer Co Ltd’s Kirin Hyoketsu also gained share in this highly consolidated category, while Smirnoff Ice and Ice Fire held only single-digit share.

New packaging design is vital in rtds to secure new consumers

Given that many local consumers who favour RTDs are females or of the younger generation, packaging and product designs have become an important driver of sales in Taiwan. Manufacturers are collaborating with local designers to create eye-catching packaging that attracts the interest of younger adult consumers of the legal drinking age. This includes lightweight and easy packaging with sustainable properties – with recyclable PET bottles and Tetra Pak packaging for larger gatherings.

In addition, there has been an increase in new types of packaging for different occasions, including pouches and boxes showcasing the versatility of RTDs.

PROSPECTS AND OPPORTUNITIES

Busier lifestyles and higher pressure are expected to continue to drive growth in rtds

When Taiwan returned to normal in 2024, the first full year when borders reopened after the COVID-19 pandemic, local consumers returned to their busy lifestyles. This bodes well for convenience stores, which has seen solid performance in terms of sales of RTDs throughout the review period, gaining ground at the expense of hypermarkets and continuing to represent the largest proportion of sales. Nevertheless, supermarkets will continue to successfully vie for share, remaining the second-largest distribution channel for RTDs for the foreseeable future. Meanwhile, e-commerce sales will remain negligible for as long as online purchases of alcoholic drinks remain prohibited in Taiwan.

The increase in canned RTDs is also a significant factor in the growing convenience trend. As the number of imported products increases, the entire category will be further bolstered over the forecast period.

Japanese rtds will continue dominating the category over the forecast period

Given the Taiwanese preference for Japanese brands in RTDs, especially among females and younger consumers, Japanese brands, including Horoyoi from Suntory and Hyoketsu from Kirin, are expected to continue launching specifically designed RTD variants in Taiwan in the years ahead.

Local brand King Car previously launched its Highball and Gin & Tonic products in RTDs, but the player has since been relatively quiet in the category. This company may seek to gain share by launching products and flavours geared towards a local audience, which has already proven to be a successful strategy in whiskies in Taiwan and other countries.

Rtds is expected to invest in the on-trade channel in the years ahead

Despite the general growth in demand, RTDs still lack a significant presence through the on-trade channel and the outlook for growth in this respect remains gloomy, albeit less so than it was earlier in the review period. A few bars in Taiwan are adopting on-tap cocktails, given the fact that hand-mixed cocktails are relatively time-consuming. This suggests there is potential for the growth of RTDs through the on-trade channel, especially if promotions and marketing back sales. RTDs with a lower ABV also have the potential to appeal to the new generation of Taiwanese consumers, many of whom prefer drinks with a lower alcohol content.