Spirits in Taiwan - 2025 Market Summary
KEY DATA FINDINGS
Total volume sales grow by 1% in 2024 to 44 million litres
Tequila (and mezcal) is the best performing category in 2024, with total volume sales rising by 4% to 171,000 litres
Kinmen Kaoliang Liquor Inc is the leading player in 2024, with a total volume share of 38%
Total volume sales are set to decrease at a CAGR of 2% over the forecast period to 40 million litres
2024 DEVELOPMENTS
Overall category decline in 2024 due to increasing inflationary spikes and budgetary constraints
A decline in volume sales of spirits in Taiwan in 2024 reflected inflationary spikes, which led to increasing costs and workforce, shipping, logistics and inventory issues. The cost of spirits is relatively high compared with other alcoholic drinks categories, and price sensitivity negatively impacted the category. However, current value sales received a moderate boost as a result of higher unit prices.
There is also more premiumisation visible in this category. Local consumers with greater purchasing power remain fond of premium whiskies or products aged over many years, and brands and flavours matter to them more than prices.
While whiskies used to be seen as a premium option for more mature Taiwanese consumers, brands have also started to invest in attracting a younger audience in this category too. Some brands have started working with celebrities and online influencers to help capture a younger audience while also increasing their investment in digital marketing campaigns. Given that there are many brands operating in the category, smaller players can benefit from offering the novelty factor, especially to younger consumers of legal drinking age. Therefore, promotions and digital marketing campaigns are visible all year round.
Customised limited editions or limited seasonal editions, especially during Lunar New Year vacations or summer holidays, have been proven beneficial in attracting interest. Many Scottish whisky brands and local spirits players were very active in launching variants on such occasions in Taiwan over the review period.
Younger adult consumers of legal drinking age are target demographic
Younger adult consumers of legal drinking age are the focus demographic for the majority of spirits brands. To throw off their old-fashioned image, some producers of spirits like cognac and brandy have penetrated the fashionable cocktail bar scene and have begun promoting their products as a good base for various cocktails.
Younger consumers of legal drinking age are gravitating towards spirits, for multiple reasons, including increased exposure to social media, the cocktail culture and rising disposable incomes. The rising cocktail culture is boosting interest and introducing consumers to various spirits they may not have tasted before. Spirits are one of the more popular categories in alcoholic drinks, and limited editions or exclusive products can attract younger audiences.
Spirits are mainly purchased through food/drink/tobacco specialists in taiwan
Like wine, spirits are mostly purchased through food/drink/tobacco specialists, where both chained and independent retailers can leverage their unique advantages. Chained specialists can utilise their websites to provide more product information to potential consumers. Selling alcohol online is currently prohibited in Taiwan, something which has often aroused heated discussion among manufacturers, distributors, retailers and consumers. However, providing information to consumers can help attract them to physical stores. Independent retailers mainly depend on proximity to local communities and bonding with nearby consumers. Offering lower prices and convenience also attracts customers, and supermarkets such as PX Mart have stocked more spirits than during the review period.
PROSPECTS AND OPPORTUNITIES
Spirits will see little momentum over the forecast period
Looking ahead, spirits is expected to see volume decline in both the off-trade and on-trade channels, and minimal current value growth.
Whiskies is the most significant subcategory in spirits and will likely register only moderate growth over the forecast period due to inflationary pressure and inventory and shipping issues. There are many brands in this subcategory, which generates fierce competition among manufacturers, distributors, and retailers. It also offers scope for smaller brands or new entrants to become established as long as they can provide speciality products for local consumers seeking the novelty factor.
Other than Kavalan and Omar, the two major Taiwanese whiskies brands, one or two smaller local brands are attempting to integrate local ingredients to present unique regional flavours.
Younger adult consumers of legal drinking age are often looking for new experiences. This has led to the growth of several different craft spirits, such as gin, whisky and vodka, incentivising domestic players to source local ingredients.
Increasing popularity of cocktails offers growth potential
The increasing popularity of cocktails among both younger and older consumers will present opportunities for spirits players, as these brands look to offer products that are specifically tailored for mixing drinks. The increased availability of premium spirits in Taiwan will further bolster this trend. Cocktails are seen as sophisticated drinks, and this positioning is boosting consumption. As such, local bartenders increasingly experiment with a broader range of both domestic and international ingredients, further diversifying the availability and flavour of these cocktails. Domestic ingredients, in particular, have proven popular with local consumers as they resonate with Taiwanese culture and evoke a sense of nostalgia. An increasing number of bars and restaurants specialising in cocktails has also contributed to the spirits scene in the country.
Government incentives can support local spirits brands
The Taiwanese government has continuously promoted and developed the local spirits industry, offering subsidies, incentives and other forms of promotion. Key initiatives include the Taiwan Wine and Spirits Festival, which provides local and international brands a platform to showcase their spirits. Several training and educational programs help bolster the knowledge of distilling spirits for Taiwanese professionals. The government also provides export assistance in various forms, such as category research, export documentation, and other logistical means. Looking ahead, domestic brands are expected to shift their focus from knowledge-based tasting events to outdoor lifestyle activities, which is seen as an effective way to reach a wider audience. Sponsoring outdoor activities such as mountain climbing, camping and music festivals is more eye-catching to younger audiences and offers higher brand exposure. Using social media platforms to build consumer engagement will also become more widespread, for example running competitions or encouraging followers to share photos and stories that relate to the product.
However, spirits, alongside all alcoholic drinks, cannot be sold online legally, and this will continue to present challenges for the category in the years ahead.
CATEGORY BACKGROUND
Vodka, gin, other blended scotch whisky, dark rum and white rum price band methodology
Classification for these spirits products is based purely on pricing, taking the leading brand by volume, as the benchmark price, which is indexed as 100%. The benchmark brand will be a mid-priced brand.