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  • The total market size for organic packaged food and beverages in Taiwan in 2017 is US$26.7mn, making it the 37th largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in Taiwan is US$1.13, 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 9.0% 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 5% in 2018. This is much slower than the rest of the Asia Pacific region, which will experience approximately 13% year-on-year growth in 2018.
  • Taiwan maintains a market size for organic packaged food and beverages of US$26.7mn in 2017, which is less than 0.1% of global category sales.
  • Within the Asia Pacific region, China, Japan, India, and South Korea all surpass Taiwan in total value sales of organic packaged food and beverages.
  • Taiwan will experience slow forecast growth of sales of organic packaged food and beverages, at a 3.5% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Taiwan in 2017 is US$26.7mn, making it the 37th 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.
  • The competitive landscape in Taiwan is fragmented, but domestic companies hold the largest market shares.

Market Trends

Competitive Landscape

  • The organic packaged food and beverage landscape is fragmented and competitive.
  • A large number of multinational brands are present in Taiwan, many of which are parallel imports or handled by small agents.
  • However, domestic Taiwanese companies hold the largest market shares.
  • No single company dominates the landscape, but Ying Chuan Food Co Ltd has the largest brand in organic packaged foods and beverages with 9% value share.

Prospects and Growth Opportunity

  • Organic food sales are projected to grow at a moderate rate through 2022, 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.
  • Growth of organic rice sales is projected to drive overall category growth in coming years, while growth in organic baby food sales is projected to slow as the birth rate decreases.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy:

  • Taiwan’s GDP grew by 2.6% in 2017, and annual growth rates at or above 2.0% are projected through 2022.
  • A fiscal stimulus has boosted domestic demand, and the employment rate is slowly rising.
  • Approximately 17% of the workforce is employed at the minimum wage.
  • Labor skill should improve as the government extends compulsory education from nine to 12 years.

Population demographics:

  • In 2017 Taiwan’s population was 23.5 million with a median age of 40.4
  • 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:

  • Household savings are considerable, hindering the government’s efforts to move from an export-driven development model to one relying more on domestic demand.
  • In the 2017-2030 period total consumer expenditure and total disposable income will both grow at an average annual rate of 2.2%.
  • Spending on hotels and catering will see the fastest growth in the 2017-2030 period, driven by government investment in domestic tourism.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

     3,541.0

     3,623.6

     3,711.4

     3,809.6

     3,860.8

     3,912.8

     3,971.0

2.5%

1.4%

Organic packaged food and beverages consumption

USD million

          22.1

          23.6

          25.0

          26.7

          28.0

          29.1

          30.1

6.5%

4.1%

Organic packaged food consumption

USD million

          22.1

          23.6

          25.0

          26.7

          28.0

          29.1

          30.1

6.5%

4.1%

Organic beverages consumption

USD million

 

 

 

 

 

 

 

 

 

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

%

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

          23.4

          23.4

          23.5

          23.5

          23.6

          23.6

          23.7

% Middle and upper class of total population

%

              -  

              -  

              -  

              -  

              -  

              -  

              -  

% Population aged 65+

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.2

% Population aged 0-14

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

% Population with higher education degrees

%

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

Average number of children per household

children

            0.6

            0.5

            0.5

            0.5

            0.5

            0.5

            0.5

GDP per capita

USD per capita

   22,643.1

   23,508.4

   23,983.4

   24,350.1

   24,913.0

   25,438.3

   25,968.8

Consumer expenditure per capita (US$)

USD per capita

   11,601.6

   11,714.7

   11,951.6

   12,198.4

   12,310.8

   12,506.3

   12,726.2

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

USD per capita

     1,660.6

     1,707.6

     1,802.1

     1,851.0

     1,877.8

     1,915.5

     1,954.3

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

Taipei

             7.3

Top cities by population (2017)

2

Taichung

             2.8

Top cities by population (2017)

3

Kaohsiung

             2.8

Top cities by population (2017)

4

Taoyuan

             2.4

Top cities by population (2017)

5

Tainan

             1.8

Top grocery retailers by sales (2017)

1

PX Mart

 -

Top grocery retailers by sales (2017)

2

7-Eleven

 -

Top grocery retailers by sales (2017)

3

Carrefour

 -

Top grocery retailers by sales (2017)

4

Family Mart

 -

Top grocery retailers by sales (2017)

5

RT Mart

 -

USDA GATS data

Rank

2017

2016

2015

2014

  Export Value (US$, thousands)

1

Brocolli

2,081.0

Brocolli

3,787.0

Brocolli

4,252.0

Brocolli

6,951.0

2

Cauliflower

3,237.0

Cherries

154.0

Cauliflower

2,961.0

Cauliflower

2,704.0

3

Cherries

947.0

Celery

3,677.0

Apples

2,716.0

Apples

1,948.0

4

Lettuce

34.0

Cauliflower

4,170.0

Celery

2,088.0

Celery

1,793.0

5

Celery

2,644.0

Lettuce

86.0

Peach

1,092.0

Coffee Roast

987.0

Total

25,754.0

28,119.0

16,135.0

16,519.0

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 Taiwan Food Service - Hotel Restaurant Institutional (2017)
USDA's GAIN Report Taiwan Food Processing Ingredients (2018)
USDA's GAIN Report Taiwan Retail Foods (2016)

 

Definitions

Review definitions of terminology included in this website.