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The Baby Food Sector in Taiwan, 2018

The Baby Food Sector in Taiwan, 2018

  • January 2019
  • 116 pages
  • ID: 5730565
  • Format: PDF
  • GlobalData

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The Baby Food Sector in Taiwan, 2018

Summary
The number of births fell significantly in 2016 and 2017, and in 2017 stood at only 193,844, equivalent to a birth rate of 8.2 per 1,000 population. Lower birth numbers have necessarily reduced the potential demand for baby food. However, living standards in Taiwan are high by Asian standards; the proportion of the population in poverty and living on welfare is below 2%. As the country has become more industrialized, the urban population has increased, as has personal wealth.

Volume sales declined by 3% from 2011 to 2017 to 11,191 tons, although in terms of value, sales have increased by 22% to NT$7.5 billion (US$244 million). All categories, except drinks, have experienced value growth since 2011. In 2017, per capita consumption of baby food stood at 18.2kg, compared with 20.8kg in 2011.

Milks account for the majority of sales of baby food (70% of value and 63% of volume in 2017), and although consumption is declining, per capita consumption among younger babies has held up relatively well. Cereals is the second largest category, accounting for 25.4% of retail sales value in 2017, the same level as in 2011. Supermarkets and hypermarkets have seen their role in the distribution of baby foods in Taiwan challenged over the 2011-2017 period by the increasing success of drugstores and baby stores.

Few companies involved in the baby food sector manufacture their products locally, and the market relies mainly on imports.As a result, GlobalData estimates that slightly less than 20% of baby food is produced in Taiwan.

Western foods are now commonly found on supermarket shelves, and imported foods account for the majority of baby food brands in Taiwan.Although many mothers feed their babies home-made food, demand for commercially prepared baby foods is rising due to their convenience.

According to major hypermarket RT-Mart, organic vegetable sales were 30% higher in November 2014 than in November 2013. These trends are likely to have a positive impact on the sales of organic baby food too.

"The Baby Food Sector in Taiwan, 2018", is an analytical report which provides extensive and highly detailed current and future market trends in the Taiwan market.

The report offers -
- Consumption data based upon a unique combination of industry research, fieldwork, market sizing work and our in-house expertise to offer extensive data about the trends and dynamics affecting the industry
- Detailed profile of the companies operating and new companies considering entry in the industry along with their key focus product sectors
- Market profile of the various product sectors with the key features & developments, segmentation, per capita trends and the various manufacturers & brands
- Overview of baby food retailing with a mention of the major retailers in the country along with the distribution channel
- Future projections considering various trends which are likely to affect the industry

Companies mentioned: Nestlé Taiwan Ltd, Standard Foods Corporation, Mead Johnson Nutrition (Taiwan) Ltd, Abbott Laboratories Services Corp, Taiwan Branch, Hipp, Want Want.

Scope
- In per capita terms, consumption of baby milks has fallen steeply, by 11.3% since 2011, ending 2017. This is largely due to higher rates of exclusive breastfeeding up to 2013, coupled with concerns about product safety.
- The baby milk market in Taiwan consists almost entirely of powder products. All the products were packaged in cans, tubs, and sachets.
- The cereals category is comprised of rice-based, wheat-based, and oatmeal-based cereals, with the latter being particularly popular. These cereals are reconstituted with milk or water.
- Over half of cereals are sold in boxes, although tubs are increasingly popular. A number of cans are also available.
- The meals category comprises of wet meals, with sweet varieties thought to be slightly more widely consumed by Taiwanese babies than savory meals.
- The baby drinks category is comprised almost entirely of fruit juices, although some mineral water brands have also been identified in previous years. Apple is the most popular flavor. Most drinks are sold in bottles, but a few cartons are available.

Reasons to buy
- Evaluate important changes in consumer behavior and identify profitable markets and areas for product innovation.
- Analyse current and forecast behavior trends in each category to identify the best opportunities to exploit.
- Detailed understanding of consumption by individual product categories in order to align your sales and marketing efforts with the latest trends in the market.
- Investigates which categories are performing the best and how this is changing market dynamics.

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