Open to Imports

The Taiwanese government estimates the Taiwan organic market to be over $156M USD.

  • The total market size for organic packaged food and beverages in Taiwan in 2015 is US$24.2mn, making it the 34th largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in Taiwan is US$1.0, which ranks as the 36th largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Ying Chuan Food Co Ltd, which maintains 8.2% of total sales. This company is followed by Uni-President Enterprises and Union Rice Co Ltd.
  • Organic packaged food and beverages in Taiwan will see moderate year-on-year growth of close to 6% in 2015. This is much slower than the rest of the Asia Pacific region, which will experience more than 13% year-on-year growth in 2015.
  • Taiwan maintains a market size for organic packaged food and beverages of US$24.2mn in 2015, which is less than 0.1% of global category sales.
  • Within the Asia Pacific region, China, Japan, India, and Hong Kong all surpass Taiwan in total value sales of organic packaged food and beverages.
  • Taiwan will experience moderate forecast growth of sales of organic packaged food and beverages, at 5.5% from 2015–2020.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Taiwan in 2015 is US$24.2mn, making it the 34th largest market in the world by value.
  • Driven largely by the demand for organic rice, organic food sales will grow at a moderate pace, but organic beverage sales will remain negligible due to high prices and limited product availability.
  • Most organic food in Taiwan is domestically produced, with the exception of organic olive oil and organic baby food.

Market Trends

Competitive Landscape

  • The organic packaged food and beverage landscape is highly fragmented and competitive, as larger companies seek to capitalize on the demand for organic rice, and smaller players focus on niche products and consumer groups.
  • Although the landscape is fragmented, companies that have carved out sizeable market shares include Taiwan-based packaged food companies Ying Chuan Food Co Ltd, Union Rice Co Ltd, and Hohands Village Co Ltd.
  • No single company dominates the landscape, but Ying Chuan Food Co Ltd has the largest brand in organic packaged foods and beverages with just under 10% value share.

Prospects and Growth Opportunity

  • Organic food sales are projected to grow at a moderate rate through 2019, driven by Taiwanese consumers’ increasing focus on food safety and health. Organic beverage sales are projected to remain negligible due to high prices and limited availability.
  • Organic rice is projected to have the highest rate of sales growth through 2019, while organic baby food is projected to have the lowest due to declining birth rates.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy: 

  • Taiwan’s GDP has been growing since 2009 and is projected to continue to grow through 2017, albeit at a slower rate.
  • Private investment, manufacturing, tourism, and a strong domestic job market will support growth, while exports will play a smaller role as growth in China, a major trading partner, cools.
  • Unemployment is relatively low, but 17% of the workforce is employed at the minimum wage.

Population demographics: 

  • In 2015 Taiwan’s population was 23.4 million (5.9% higher than in 2008) with a median age of 39.5 years.
  • The country’s population is aging and will continue to do so in coming years, as Taiwan has the lowest fertility rate of any major Asian country.
  • Unless immigration increases, Taiwan’s low fertility rate will likely lead to a population decline in the future.

Income & expenditure: 

  • Taiwan has a sizeable middle class, and per capita income is projected to increase through 2030.
  • While per capita income has been growing since 2010, the average growth rate has been lower than that of the wider Asia Pacific region—a trend that is projected to continue through 2030.
  • Taiwanese consumers, with their relatively high incomes, spend less of their budgets on non-discretionary items (food, non-alcoholic beverages, and housing) than does the average Asia Pacific consumer. 
  • Total consumer spending is forecast to grow steadily through 2030.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

2012

2013

2014

2015

2016

2017

2018

CAGR
(12-15)

CAGR
(15-18)

                   

Health & wellness products consumption

3,287.2

3,383.1

3,472.5

3,551.7

3,594.1

3,641.5

3,698.7

2.6%

1.4%

Organic packaged food and beverages consumption

19.0

20.5

22.4

24.2

25.7

27.3

28.8

8.4%

6.0%

Organic packaged food consumption

19.0

20.5

22.4

24.2

25.7

27.3

28.8

8.4%

6.0%

Organic beverages consumption

-

-

-

-

-

-

-

-

-

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

0.6%

0.6%

0.6%

0.7%

0.7%

0.7%

0.8%

-

-

Economic & demographic data

Data type

2012

2013

2014

2015

2016

2017

2018

               

Total population

23.2

23.3

23.4

23.4

23.5

23.5

23.5

% Middle and upper class of total population

40.7%

40.7%

40.8%

40.7%

40.7%

40.6%

40.6%

% Population aged 65+

10.9%

11.2%

11.6%

12.0%

12.6%

13.3%

14.0%

% Population aged 0-14

15.1%

14.5%

14.2%

13.7%

13.2%

12.9%

12.6%

% Population with higher education degrees

22.1%

22.4%

22.6%

22.9%

23.2%

23.4%

23.6%

Average number of children per household

0.6

0.6

0.5

0.5

0.5

0.5

0.5

GDP per capita

19,818.8

20,470.4

21,577.2

22,442.5

22,838.6

23,415.8

24,046.2

Consumer expenditure per capita (US$)

10,789.6

11,069.6

11,523.5

11,719.4

11,998.8

12,376.7

12,791.2

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

1,459.4

1,508.1

1,589.1

1,639.3

1,691.6

1,758.8

1,830.6

Retailer & urban area data

Data category

Rank

Urban Area/retailer

Population
(mns)

       

Top urban areas by population (2015)

1

Taipei

7.0

Top urban areas by population (2015)

2

Taichung

2.8

Top urban areas by population (2015)

3

Kaohsiung

2.8

Top urban areas by population (2015)

4

Taoyuan

2.4

Top urban areas by population (2015)

5

Tainan

1.8

Top grocery retailers by sales (2015)

1

7-Eleven

-

Top grocery retailers by sales (2015)

2

PX Mart

-

Top grocery retailers by sales (2015)

3

Carrefour

-

Top grocery retailers by sales (2015)

4

Family Mart

-

Top grocery retailers by sales (2015)

5

RT Mart

-

USDA GATS data

Rank

2015

2014

2013

2012

1

Brocolli

Brocolli

Brocolli

Brocolli

2

Cauliflower

Cauliflower

Cherries

Cauliflower

3

Apples

Apples

Celery

Cherries

4

Celery

Celery

Cauliflower

Lettuce

5

Peach

Coffee Roast

Lettuce

Celery

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

Agriculture and Food Agency (AFA) of the Council of Agriculture (COA)

Agency(s) Contact Information: 

Agriculture and Food Agency, Council of Agriculture, Executive Yuan, R.O.C.
No.8 Kuang-hwa Rd., Nantou county
No.15 Sec 1, Hangzhou South Rd. Taipei City
Telephone: +886-49-2332-380; 886-2-2393-7231

Council of Agriculture 37 Nanhai Road, Taipei, Taiwan 10014, R. O. C.;
Telephone: +886-2-2381-2991

Website

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

Date of Implementation: 

2007

Regulation and/or Standard Scope: 

The Organic Agricultural Product and Organic Agricultural Processed Product Certification Management Regulations establish the basic aims and administration of the regulations. It covers important program definitions, applicability and details the certification process and requirements. Product in transition to organic may be labeled as such. Appendices cover specifics for crops, livestock, aquatic plants, processed products, as well as packaging, transportation, and permitted materials lists. Taiwan's organic regulations mandate that only products with 95% or greater organic content can be labeled as organic. Taiwan regulations do not allow product labeled as organic to test positive for any chemical residues.

The Imported Organic Agricultural Product and Organic Agricultural Processed Product Management Regulations establish the labeling and import requirements for organic goods. All materials, even natural materials, must be on the list in order to be used in organic production. The Taiwanese materials tables allow several substances which NOP prohibits in organic products. The list does not clearly indicate if materials are to be used for crop production, livestock production, processing or all areas of organic production.

Imported Products Requirements

Imported Products: 

In March 2009, Taiwan recognized the U.S. National Organic Program as equivalent to the Taiwanese Organic Regulations and accepted the use TM-11 documentation in lieu of transaction records required under Article 5 of the Taiwan's import regulation. For more information on the TM-11 requirements (.pdf; in English). Under this agreement, compliance with the Taiwanese Organic Regulations is not required except that systemic pain killers and analgesics including Lidocaine and Procaine are not to be used if NOP organic livestock products are sold to Taiwan. Only products that carry the USDA seal can be shipped to Taiwan under the equivalence recognition.

The United States has an export trade agreement (web site; in English) with Taiwan. The US National Organic Program maintains a list of accredited certifiers approved by the USDA, and indicates those that can issue TM-11 Export Certificates for exports going to Taiwan. 

Certification and Accreditation

Certification: 

A directory of approved certifiers is available from the Taiwan Accreditation Foundation.

Accreditation: 

Council Of Agriculture (COA) is the Accreditation body and Taiwan Accreditation Foundation (TAF) has been authorized as the only compliance assessment organization for Accreditation body by COA. TAF manages all organic certification bodies, including production, procession, package, and distribution certification, then approved by COA.

Additional Information

Additional Information: 

In November 2015, COA released draft legislation regarding the production, marketing, testing, and labeling of organic products, including imported products. Of particular interest, the draft text would mandate bilateral organic equivalency. See USDA GAIN Reports for more information.

USDA's GAIN Report Taiwan Exporter Guide (2017) 
USDA's GAIN Report Growing Demand for Organics in Taiwan Stifled by Unique Regulatory Barriers (2017) 
USDA's GAIN Report Taiwan Food and Agricultural Import Regulations and Standards - Narrative (2016)
USDA's GAIN Report New Organic Legislation developed by Taiwan authority (2015)
USDA's GAIN Report Food Service - Hotel Restaurant Institutional (2016)
USDA's GAIN Report Taiwan Food Processing Ingredients (2016)
USDA's GAIN Report Taiwan Retail Foods (2016)

 

Definitions

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