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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Ying Chuan Food Co Ltd leads organic products in Taiwan with a value share of 9.7% in 2019, followed by Union Rice Co Ltd with a share of 8.6% and Hohands Village Co Ltd with a value share of 5.5%.
  • The country ranks 43rd in terms of growth rate and 36th in per capita expenditure on organic products, partly due to the marginally low presence of organic beverages.

  • Driven almost exclusively by demand for packaged food, the organic segment in Taiwan recorded a market value of US$30.1 mn in 2019, representing 0.06% of global demand.
  • The general reluctance of consumers to pay a premium for organic food is limiting the customer base to the high-income segment of the population, which is a significant impediment to growth, with a forecast CAGR of 2.1% for the period 2019-2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Taiwan recorded an increase of 5.2% in 2019, registering a market size of US$30.1 mn.
  • Growth in organic packaged food was led by organic rice, with a value increase of 6.0% in 2019.
  • Demand for organic beverages in Taiwan is negligible, with a high likelihood of no significant sales for organic beverages over the forecast period 2019-2024.
Market Trends
  • Organic packaged food is the predominant contributor in terms of demand for organic products in Taiwan, growing over the last few years. Organic products are increasingly becoming popular and are well recognized by the consumers in Taiwan as they are aware of the benefits of organic cultivation. Additionally, demand for organic packaged food is also driven by consumer skepticism over advanced agricultural techniques in the wake of recent food contamination scandals.
  • Organic rice is a major category in Taiwan, contributing nearly half of all value sales coming from the organic rice, pasta and noodles category. This is not surprising as rice is a staple food in Taiwan and consumers are very loyal to specific brands. The high brand loyalty is also a result of the high level of consolidation in the category, with the share divided majorly between six leading players.
  • In light of the number of food contamination scandals, and a focus on food safety, there has been an increase in consumer awareness on organic beverages as well. However, the rise in knowledge is not yet able to allow for significant sales of organic beverages, with the likelihood of sales over the forecast period 2019-2024 remaining low, as consumers in Taiwan are still reluctant to pay more for drinks made using organic ingredients.
Competitive Landscape
  • From the negligible sales figures of organic beverages, the majority of sales made are under private labels, with organic offerings from international brands rarely seen in Taiwan. Most of the organic offerings originate from small local farms and distributors. Additionally, the organic certification standard differs in Taiwan, presenting barriers to entry for international players.
  • During the period 2014-2019, Qbebe was the first Taiwanese company offering certified organic prepared baby food. The company established a solid reputation for its brand through consistently high product quality and the regular launch of a diverse range of new organic products. In September 2019, the company launched its first retail store, in response to promising consumer demand. The company’s growth is driven by the willingness of Taiwanese parents to pay premium prices to obtain quality products with optimum nutritional value for their babies. With rising sales, the company is planning to expand into Hong Kong and Singapore in the near future.
  • For the period 2014-2019, the competitive environment in branded organic rice was consolidated between six major players: Ying Chuan Food Co, Union Rice Co, Hohands Village Co, Yeedon Enterprises Co, Hua-Tung Rice Corp and Chyuan Shun Food Enterprise Co, with the top 5 of these 6 companies having a collective share of about 33.0%. As rice is the most traditional staple foodstuff for Taiwanese consumers, they tend to be very careful when choosing the products and remain loyal to trusted brands.
Prospects And Growth Opportunity
  • Following several scandals over food safety in edible oils in Taiwan between 2013-2015 (the “black oil” scandals), consumers have struggled to source reliable edible oil brands, allowing organic edible oils to gain consumer attention. Edible oil contributed 22.4% of organic packaged food value sales in 2019, with the potential to increase sales further over 2019-2024, with an expected value CAGR of 1.7%.
  • As the population of Taiwan is undergoing a slow ageing process, there is an increasing importance for healthy eating. Additionally, the rising disposable incomes and increasing internet access are helping driving demand for organic products as consumers are more aware of the health benefits that organic eating offers.
  • Growth in organic packaged food is expected to be led by categories such as organic baby food and organic sauces, dressings and condiments, which are expected to record the value CAGRs of 2.8% and 2.3% respectively for the period 2019-2024. Overall, organic products are expected to witness increasing demand, with a value CAGR of 2.1% for the period 2019-2024.
General Health And Wellness Trends
  • Health and wellness continued to gain importance in Taiwan. In light of the recent food contamination scandals in 2014 and 2015, Taiwanese consumers have become significantly more focused on healthy eating and drinking, with an increase in attention towards product ingredients. Consequently, health and wellness products have a much broader scope in terms of positioning as pure and clean. Additionally, the long-term popularity of healthy eating habits among Taiwanese consumers indicates growth of health and wellness packaged food and beverages sales throughout the forecast period 2019-2024.
  • Since 2018, organic products are witnessing significant competition from naturally healthy products, with consumers preferring naturally healthy options over organic ones due to the perception of naturally healthy products being less processed in comparison to organic products. Clean eating is becoming increasingly important among consumers, and products with zero-additives are becoming the new benchmark for health and wellness among Taiwanese consumers.
  • With the rising concerns on the sugar content in packaged food and beverages, Taiwan’s Food and Drug Administration’s amended the Health Food Inspection Registration Review Principles to specify that food and beverage products certified as healthy are to have a refined sugar content below 25g per 100g. Furthermore, products exceeding 17g of refined sugar per 100g are required to be clearly labelled with warning messages such as “Be aware of sugar intake” or “Be aware of calorie intake”. Additionally, health certifications cannot be given to any products that exceed 25g of refined sugar per 100g, with the primary intention of empowering and educating consumers on the risks of excessive sugar consumption.
General Economics And Demographic Landscape

Economy:

  • The economy of Taiwan is expected to slow down with real GDP growth in 2020 expected to be 2.2%, declining from the 2019 rate of 2.4%. Continuous economic development is supported by the low level of unemployment, at the rate of 3.7% and the positive performance in exports, coupled with the growth in government investment on infrastructure.
  • The real value of final private consumption was recorded at a rate of 16.0% in 2019, with a rise of 1.8% expected in 2020. Growth in wages has helped support consumer spending. However, the high cost of housing in Taiwan is serving as a strong constraint.
  • With the outlook for the future, the present government is focusing on reducing economic dependency on China, with Taiwan’s New Southbound Policy aiming to promote trade and investment with other Asian countries. Growth of real GDP is expected to be 2.1% in 2021, before falling to reach around 1.7% per year by 2027. 
     

 Population demographics:

  • The population of Taiwan was recorded at 23.6 million in 2019. The median age in 2019 was recorded at 41.5 years, an increase of 9.9 years since 2000 and well above the regional average. The population of Taiwan is witnessing an ageing process, which is expected to continue at a faster pace over the next 15 years.
  • The ageing process is also influencing the fertility rate, which fell to 1.1 births per female in 2019, the lowest in any major Asian country. Fertility is expected to rise to 1.2 births per female by 2030.
     

Income & expenditure:

  • Taiwan recorded a savings ratio of 16.8% of disposable income in 2019, with a decline to 16.7% expected in 2020.
  • Consumer expenditure per capita in 2019 was recorded at US$12,686 and is expected to grow by 1.4% in real terms in 2020. For the period 2020-2030, consumer expenditure is expected to witness a cumulative increase of 17.0%, averaging 1.6% annually.
  • In 2019, the per capita disposable income in Taiwan was recorded at US$15,822, with an expected increase of 1.5% in 2020 in real terms. During the period 2020-2030, disposable income is expected to show a rise of 1.6% annually, recording a cumulative increase of 17.5%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

3,791.5

3,885.2

3,979.4

4,067.8

4,130.1

4,197.6

4,267.5

2.4%

1.6%

Organic packaged food and beverages consumption

USD million

25.2

27.0

28.6

30.1

31.1

31.8

32.5

6.1%

2.2%

Organic packaged food consumption

USD million

25.2

27.0

28.6

30.1

31.1

31.8

32.5

6.1%

2.2%

Organic beverages consumption

USD million

0.0

0.0

0.0

0.0

0.0

0.0

0.0

-

-

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

%

0.7%

0.7%

0.7%

0.7%

0.8%

0.8%

0.8%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

23.5

23.5

23.6

23.6

23.6

23.6

23.6

% Middle and upper class of total population

%

32.4

32.3

32.4

32.3

32.3

32.3

32.3

% Population aged 65+

%

12.5%

13.2%

13.9%

14.5%

15.3%

16.0%

16.8%

% Population aged 0-14

%

13.6%

13.3%

13.1%

12.9%

12.8%

12.7%

12.5%

% Population with higher education degrees

%

41.6

42.1

42.5

42.9

43.2

43.4

43.6

Average number of children per household

children

0.5

0.5

0.5

0.5

0.5

0.5

0.4

GDP per capita

USD per capita

24,162.7

24,701.7

25,162.0

25,904.7

26,313.1

26,952.5

27,491.6

Consumer expenditure per capita (US$)

USD per capita

11,845.5

12,100.7

12,426.0

12,686.7

12,870.5

13,086.6

13,307.0

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

USD per capita

1,770.0

1,747.4

1,791.2

1,845.3

1,868.4

1,908.3

1,948.5

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Taipei

7.3

Top cities by population (2019)

2

Taichung

2.8

Top cities by population (2019)

3

Kaohsiung

2.8

Top cities by population (2019)

4

Taoyuan

2.4

Top cities by population (2019)

5

Tainan

1.8

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Seven & I Holdings Co Ltd

Top grocery retailers by sales (2019)

2

Chyuan Lien Enterprise Co Ltd

Top grocery retailers by sales (2019)

3

FamilyMart Co Ltd

Top grocery retailers by sales (2019)

4

Carrefour SA

Top grocery retailers by sales (2019)

5

Dairy Farm International Holdings Ltd

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Taiwan

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Taiwan

1

Organic Apples Fresh

6,689,299

2019

Taiwan

2

Organic Head Lettuce Fr/Ch

6,681,055

2019

Taiwan

3

Organic Coffee Roast Not Decaf

2,420,435

2019

Taiwan

4

Organic Grapes Fresh

1,806,740

2019

Taiwan

5

Organic Cauliflower Fr/Ch

1,778,095

2019

Taiwan

Total

Total Organics*

23,008,969

2018

Taiwan

1

Organic Head Lettuce Fr/Ch

6,768,970

2018

Taiwan

2

Organic Apples Fresh

5,845,004

2018

Taiwan

3

Organic Celery Fr/Ch

2,369,766

2018

Taiwan

4

Organic Cauliflower Fr/Ch

2,334,159

2018

Taiwan

5

Organic Peach/Nectarin Fresh

1,488,452

2018

Taiwan

Total

Total Organics*

22,206,540

2017

Taiwan

1

Organic Head Lettuce Fr/Ch

7,487,087

2017

Taiwan

2

Organic Apples Fresh

5,597,940

2017

Taiwan

3

Organic Cauliflower Fr/Ch

3,241,834

2017

Taiwan

4

Organic Celery Fr/Ch

2,685,231

2017

Taiwan

5

Organic Peach/Nectarin Fresh

2,220,444

2017

Taiwan

Total

Total Organics*

26,929,027

2016

Taiwan

1

Organic Head Lettuce Fr/Ch

7,591,498

2016

Taiwan

2

Organic Cauliflower Fr/Ch

4,169,870

2016

Taiwan

3

Organic Broccoli Fr/Ch

3,786,856

2016

Taiwan

4

Organic Celery Fr/Ch

3,677,499

2016

Taiwan

5

Organic Apples Fresh

3,646,941

2016

Taiwan

Total

Total Organics*

28,121,429


Note : Total organics is the sum of all exports in a particular year   
Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

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:

 
 
Crucial operational details of Taiwanese organic standards reside in Appendix 1:  Parts 1-4 and Tables 1 - 3. (web site; in English)https://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=M0030093

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

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. 

Under Taiwan's Organic Agriculture Promotion Act, which came into force on May 30, 2019, Taiwan will cease to recognize al other organic systems (including the United States) as equivalent by May 30, 2020, unless those countries make new bilateral agreements.

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

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 (2020) 
USDA's GAIN Report Growing Demand for Organics in Taiwan Stifled by Unique Regulatory Barriers (2017)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2020)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
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 (2019)
USDA's GAIN Report Taiwan Food Processing Ingredients (2019)
USDA's GAIN Report Taiwan Retail Foods (2019)