Based on the 2014 Nielsen Taiwan Market Information digest, the growth rate of the fast-moving consumer goods (FMCG) sector (146 categories) has decreased from 3.8 percent to 1.1 percent. As a result, it has become that much more important for manufacturers and retailers to identify the key market trends and capitalize on the ones with the most potential. To help companies in this challenging time, Nielsen has pinpointed what we feel are the top six retail market trends.
The large elderly population presents great business opportunities
According to the Ministry of the Interior, 2.69 million people in Taiwan were over 65 years old in 2013. This group represented 11.5 percent of Taiwan’s population, accounting for approximately one in every 10 Taiwanese. Some categories, such as hair care products, have experienced strong growth among this growing demographic.
Looking for the next opportunity after “year of the dragon” baby boom
2012 was the year of the dragon for Chinese culture, and many babies were born in that year because parents believed it would lead to prosperity. Due to the baby boom in 2012, the baby diaper and milk powder categories performed well.
As consumers become healthier, an opportunity arises in sport drinks
During the Taiwan food safety scandal in 2011, which shone a light on the use of a specific chemical agent (plasticizer DEHP) in an array of food products, sports drinks suffered the greatest impact. Now, with the help of Taiwan’s fast-growing sports population and running events, the sports drink and bottle water categories are outperforming.
Fresh-made grows in popularity as food safety remains paramount
In light the recent food safety issues, many of Taiwan’s consumers have gravitated toward fresh-made.
High price confectionary show great opportunity
While the total FMCG market in Taiwan slowed down in 2013, the snack food category grew steadily.
Health Economics: the challenges for premium Essense drink
Consumers are becoming more healthy and health-conscious, and health-related FMCG categories are growing as a result. The vitamin sector continued to improve last year, but the essence drink market has lost its footing recently, posting double-digit declines in consecutive 2 years.