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The Baby Food Market in Taiwan 2017

The Baby Food Market in Taiwan 2017

Summary

The market for baby food in Taiwan is relatively small and has been severely affected in recent years by low numbers of live births. Although the convenience of baby food is attractive, breastfeeding remains important, whilst safety has also been an issue. Volume sales of baby food declined by 1.9% and value sales increased by 17.4% in 2006. Milks accounted for the majority of sales of baby food with 70% of value. Cereals is the second largest sector, accounted for 25.5%, meals & finger foods accounted for 3.6% and drinks was the smallest sector of the market with 1.1% of retail sales value in 2016. The number of births is expected to decline and the long-term trend towards increased breastfeeding will also severely hamper growth in future. Up to 2022, retail sales are expected to increase by roughly 1%, while volume sales may decline by 8%.

“The Baby Food Market in Taiwan 2017” is an analytical report by GlobalData which provides extensive and highly detailed current and future market trends in the Taiwanese market.

What else does this report offer?

  • Consumption data based upon a unique combination of industry research, fieldwork, market sizing work and our in-house expertise to offer extensive data about the trends and dynamics affecting the industry.
  • Detailed profile of the companies operating and new companies considering entry in the industry along with their key focus product sectors.
  • Market profile of the various product sectors with the key features & developments, segmentation, per capita trends and the various manufacturers & brands.
  • Overview of baby food retailing with a mention of the major retailers in the country along with the distribution channel.
  • Future projections considering various trends which are likely to affect the industry.
Scope
  • The volume sales of baby food market declined by 1.9% during 2010 to 2016 and value sales have increased by 17.4% at current prices.
  • All sectors, except drinks, have experienced value growth since 2010.
  • Milks account for the majority of sales of baby food with 70% of value and 61 % of volume in 2016.
  • The baby milk market in Taiwan consists almost entirely of powder products.
  • The only multi-national currently to manufacture in Taiwan is Standard Foods.
  • In recent years drugstores and baby stores have greatly increased their share of sales and have now overtaken supermarkets and hypermarkets.
Reasons to buy
  • Evaluate important changes in consumer behavior and identify profitable markets and areas for product innovation.
  • Analyse current and forecast behavior trends in each category to identify the best opportunities to exploit.
  • Detailed understanding of consumption by individual product categories in order to align your sales and marketing efforts with the latest trends in the market.
  • Investigates which categories are performing the best and how this is changing market dynamics.


  • Introduction
    • Executive Summary
    • Definitions: Market Sectors
    • Definitions: Terminology
  • Background to the Market
    • Births - Live Birth Rates: The number of births remains considerably above the low level of 2010, and in 2016 stood at an estimated 204,713
      • Table Birth & Population Trends, 2006-2016
    • Births - Birth Rates by Region: Almost half of all births take place in the Northern Region, where Taipei is situated
      • Table Live Births By Region, 2012 & 2014
    • Births - Incentives for Child Birth: The sharp decline in the birth rate has been a cause of serious worry for the government in Taiwan in recent years
    • Births - Incentives for Child Birth: The declining reproduction rate seems to be due to a combination of long-term factors
    • The Consumer: Living standards in Taiwan are high by Asian standards, fuelling demand for convenient and high quality foods
    • Socio-demographic Trends - Family Structure: In Taiwan the marriage rate has remained more or less stable at around 6-7 per thousand population
      • Table Trends in Marriages & Divorces, 2010-2015
    • Socio-demographic Trends - Number of Women of Child Bearing Age: In 2015, the number of women of child-bearing age stood at just over six million
      • Table Women of Child-Bearing Age, by Age Groups, 2010 & 2015
    • Socio-demographic Trends - Births by Age of Mother: The shift in births towards older mothers has been pronounced in the last five years
      • Table Live Births by Age Group of Mother, %, 2010-2015
    • Working Women - Female Employment: The number of women in the labor force in Taiwan has risen to just over five million in 2016
      • Table Number of Working Women, 2010-2016
    • Working Women - Legislation: Mothers in Taiwan are entitled to eight weeks' maternity leave on full pay
    • Regulations: Taiwan has adopted the International Code of Marketing of Breast-milk Substitutes
    • Breastfeeding Trends - Promotion: The Public Breastfeeding Act was passed in November 2010, and is widely enforced
    • Breastfeeding Trends - Prevalence: Although there has been a slight decline in breastfeeding rates in 2014 and 2015, they remain high by international
      • Table Exclusive Breastfeeding Rates, 2004-2015
    • Breastfeeding Trends - Prevalence: The proportion of babies exclusively breastfed is still demonstrably higher in BFHs than in non-BFHs
      • Table Breastfeeding Trends among Mothers who Deliver in Baby Friendly Hospitals
      • Table Breastfeeding Rates by Location, 2011
  • Market Overview
    • Market Overview: In volume terms, the market for baby food in Taiwan declined marginally (-1.9%) between 2010 and 2016
    • Market Overview: Milks continue to make up the largest part of the market, accounting for 61% of volume sales and 70% of value sales in 2016
      • Table Market Size, 2016, &Growth Rates, 2010-2016
    • Manufacturer Shares: The top four manufacturers jointly control threequarters of market sales
      • Table Baby Food: Trends in Manufacturer Shares, Value, %, 2010-2016
    • Manufacturer Shares: In terms of volume, Standard Foods now leads the market ahead of Nestlé
      • Table Baby Food: Manufacturer Shares by Sector, %, 2016
    • The Future: The structure of the market will change little in terms of value, with milks continuing to dominate
      • Table Projected Market Size, 2022, &Growth Rates, 2016-2022
  • Sector Analysis
    • Sector Analysis: Baby Milks
    • Milks Sector Trends: Consumption of baby milks in Taiwan has fluctuated over the past seven years, between 7,000 and 7,700 tons annually
    • Milks Sector Trends: The milks sector has been hampered by expanding breastfeeding rates, safety concerns and rising prices
    • Milks Per Capita Trends: : In per capita terms, consumption of milks has fallen steeply, by 21% over the period 2010-2016
    • Milks Segmentation: First stage milks have generally declined in importance - a result of the government's moves to promote breastfeeding
    • Milks Segmentation: The market in Taiwan consists almost entirely of powder products
    • Milks Segmentation: Prices in summer 2016 ranged from a high of NT$983 per kg to a low of NT$497 per kg
      • Table Baby Milks: Brand Price Positioning Analysis, 2016
    • Milks Segmentation: All the products found in storechecks were packaged in cans although other packs are found online
      • Table Baby Milks: Facings Allocation by Pack Size
    • Milks Manufacturer Shares: The leading manufacturers are Nestlé, followed by Mead Johnson and Abbott with a combined 78.5% of value in 2016
      • Table Baby Milks: Manufacturer Share Trends, 2010-2016
    • Milks Brands: The remainder of the market is split between a plethora of other suppliers
    • Sector Analysis: Cereals & Dry Meals
    • Cereals & Dry Meals Sector Trends: Sales have fluctuated at around 3,800 tons
    • Cereals & Dry Meals Per Capita Trends: Consumption of cereals per baby has fluctuated, but from 2014 onwards has been increasing very gradually
    • Cereals & Dry Meals Segmentation: There has been a swing towards more sophisticated dried meals, at the expense of more basic cereals
    • Cereals & Dry Meals Segmentation: Organic products, such as those offered by Hipp, Hero, and Vitagermine command considerably higher prices
      • Table Baby Cereals & Dry Meals: Brand Price Positioning Analysis, 2016
    • Cereals & Dry Meals Segmentation: The only cereals identified in-store were the Quaker brand, which is sold in cans
    • Cereals & Dry Meals Manufacturers & Brands: The cereals sector is concentrated, with local manufacturer Standard Foods dominating sales
      • Table Baby Cereals & Dry Meals : Manufacturer Shares, 2010-2016
    • Sector Analysis: Baby Meals & Finger Foods
    • Meals & Finger Foods Sector Trends: Despite good growth, meals & finger foods continue to play a minor role, accounting for just 4% of volumes in 2016
    • Meals & Finger Foods Per Capita Trends: In 2016, per capita consumption of baby meals and finger foods amounted to 2.32 kg, a rise of 2% since 2010
    • Meals & Finger Foods Segmentation: Organic products are increasingly available in drugstores and specialist outlets
    • Meals & Finger Foods Segmentation: Per kilogram prices range from just over NT$400 to NT$800 for sweet meals and up to NT$1,100 for savory products
      • Table Baby Meals: Brand Price Positioning Analysis, 2016
    • Meals & Finger Foods Segmentation: Imported products in the finger foods segment retail at two or three times the level of locally produced goods
      • Table Finger Foods: Brand Price Positioning Analysis, 2016
    • Meals & Finger Foods Segmentation: For wet meals, the only packaging encountered in-store was jars, but pouches are also available
    • Meals & Finger Foods Manufacturer Shares: The cereals sector is concentrated, with local manufacturer Standard Foods dominating sales
      • Table Baby Meals & Finger Foods: Manufacturer Shares, 2010-2016
    • Sector Analysis: Baby Drinks
    • Drinks Sector Trends: Drinks represent the smallest sector in the Taiwanese baby food market; sales stood at just 280,000 liters in 2016
    • Drinks Per Capita Trends: Per capita consumption of drinks stood at 1.4 liters per baby in 2016, 25% down on 2010
    • Drinks Segmentation: Prices range from NT$143 per liter to NT$470 per liter
      • Table Baby Drinks: Brand Price Positioning Analysis, 2016
    • Drinks Manufacturers & Brands: Nestlé and Hipp are the leading players in the baby drinks sector
      • Table Baby Drinks: Manufacturer Shares, 2010-2016
  • Production and Trade
    • Production: GlobalData estimates that slightly less than 20% of baby food is produced in Taiwan
    • Imports: Taiwan imported baby milk and cereals worth US$69 million, equivalent to a weight of 6,489 tons in 2015
    • Exports: Exports are also at a relatively low level, although they rose strongly in 2015
  • Company Profiles
    • Company Profiles: The market is relatively concentrated, and in 2016 four manufacturers controlled 75% of total value sales
    • Company Profiles: Nestlé Taiwan Ltd
    • Company Profiles: Mead Johnson Nutrition (Taiwan) Ltd
    • Company Profiles: Standard Foods Corporation
    • Company Profiles: Abbott Laboratories Services Corp, Taiwan Branch
    • Company Profiles: Other Manufacturers
  • Distribution
    • Baby Food Retailing: Supermarkets and hypermarkets are thought to account for around 48% of baby food sales overall in 2016
      • Table Sales of Baby Food by Outlet Type, 2010-2016
  • Economic Background
    • Economic Background: While consumer goods form the bulk of the country's output, heavy industry has also been growing
      • Table Economic Indicators, 2010-2017
    • Key Macro-economic Forecasts: Overall, the outlook for Taiwan is mixed
      • Table Key Macro-Economic Forecasts, 2016-2022
  • Prospects and Forecasts
    • Birth and Population Projections: By 2022 GlobalData forecasts that the number of live births will be down to around 190,100 per year
      • Table Birth & Population Projections, 2010-2022
    • Birth and Population Projections: The number of women of childbearing age is expected to fall by over 8.4% between 2015 and 2022
      • Table Number of Women of Childbearing Age by Age Group, 2015 & 2022
    • Forecast Overview: Volume sales are expected to contract and to end 2022 at a level 7.8% lower than in 2016
    • Future Trends: The structure of the market will change little in terms of value, with milks continuing to dominate
  • Appendix
    • Appendix - The Baby Population: A slow but steady decrease in the baby population is foreseen, taking the total to 577,735 by 2022
      • Table Baby Population, Number of Babies, 2006-2022
    • Appendix - Market Value: Value sales of baby food rose 17% between 2010 and 2016, to NT$7.2 billion
      • Table Baby Food: Market Value, Constant Prices, 2010-2016
    • Appendix - Market Value: In constant price terms, overall sales went up just 10.6%
      • Table Baby Food: Market Value, Constant Prices, 2010-2016
    • Appendix - Market Value: In 2016 the market was valued at US$222.5 million, a 15% increase over 2010
      • Table Baby Food: Market Value, US$ Million, 2010-2016
    • Appendix - Market Volume: Consumption fell 1.9% between 2010-2016 to 11,707 tons
      • Table Baby Food: Market Volume, Tons, 2010-2016
    • Appendix - Per Capita Expenditure: Expenditure per baby fell by 4.3% between 2010 and 2016 to NT$35,132
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2010-2016
    • Appendix - Per Capita Expenditure: In real terms expenditure per baby fell 9.9% between 2010-2016
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2010-2016
    • Appendix - Per Capita Expenditure: In US$ terms per capita expenditure declined by 6.3% between 2010 and 2016
      • Table Baby Food: Per Capita Expenditure, US Dollars, 2010-2016
    • Appendix - Per Capita Consumption: Intake levels per baby have fallen 20% since 2010 to 57kgs
      • Table Baby Food: Per Capita Consumption, Grams, 2010-2016
    • Appendix - Milks: Consumption of baby milks in Taiwan has fluctuated over the past seven years, between 7,100 and 7,750 tons annually
      • Table Baby Milks: Sector Trends, 2010-2016
    • Appendix - Milks: Growing-up milks have seen their market share grow since 2012, increasing to 55% by 2016
      • Table Baby Milks: Sector Segmentation, Value & Volume, 2010-2016
    • Appendix - Milks: Similac (Abbott) is priced at the higher end of the pricing spectrum
      • Table Baby Milks: Brand Price Analysis, 2016
    • Appendix - Milks: The locally produced Tony Baby focuses on the lower end of the price structure
      • Table Baby Milks: Brand Price Analysis, 2016 (Cont..)
    • Appendix - Cereals & Dry Meals: Cereals & dry meals is the second largest sector in the Taiwanese baby food market, but volumes are static
      • Table Baby Cereals & Dry Meals: Sector Trends, 2010-2016
    • Appendix - Meals & Others: Meals & finger foods continue to play a minor role in the Taiwanese baby food market, but are the best performers in the market
      • Table Meals & Finger Foods: Sector Trends, 2010-2016
    • Appendix - Drinks: Drinks represent the smallest sector in the Taiwanese baby food market, and are set in decline
      • Table Drinks: Sector Trends, 2010-2016
    • Appendix - Imports: Imports - mostly comprised of milks & cereals - have fluctuated, between a high of 8,568 tons in 2013 and a low of 6,215 tons in 2011
      • Table Imports of Baby Food by Type, Value & Volume, 2010-2015
    • Appendix - Imports: In 2014, Ireland was the leading supplier of milks & cereals, accounting for 19.2% of the total value of imports
      • Table Imports of Baby Milks & Cereals by Country of Origin, Value & Volume, 2014 & 2015
    • Appendix - Exports: Exports rose strongly in 2015, reaching US$3.7 million; until 2015 exports of milks & cereals were low
      • Table Exports of Baby Food by Type, Value & Volume, 2010-2015
    • Appendix - Exports: Virtually all exports of milks & cereals go to Mainland China
      • Table Exports of Baby Milks & Cereals by Country of Origin, Value & Volume, 2013- 2015
    • Appendix - Value Forecasts: By 2022 the market is expected to reach a value of NT$7.3 billion, with cereals and meals driving growth
      • Table Baby Food: Market Value Forecasts, Constant Prices, 2016-2022
    • Appendix - Value Forecasts: In constant price terms the market is expected to fall by 3.3% , although meals & fingers foods will record growth
      • Table Baby Food: Market Value Forecasts, US Dollar Million, 2016-2022
    • Appendix - Value Forecasts: Market value is forecast to increase by just 1.1% between 2016 and 2022
      • Table Baby Food: Market Volume Forecasts, Tons, 2016-2022
    • Appendix - Volume Forecasts: The only sector to show growth by 2022 will be Meals & Finger Foods
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita expenditure will reach NT$38,268 by 2022
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2016-2022
    • Appendix - Per Capita Forecasts: Growth of 4.1% in real terms is a result of growth in all sectors except drinks
      • Table Baby Food: Per Capita Expenditure, US$ Dollars, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita expenditure is forecast to rise by 8.9% by 2022
      • Table Baby Food: Per Capita Consumption, Grams, 2016-2022
    • Appendix - Per Capita Forecasts: Overall per capita intake is expected to fall 0.7% to 56.8kg
      • Table Baby Food: Per Capita Consumption, Grams, 2016-2022
    • Appendix - Storechecks: Of the 57 facings recorded in store by GlobalData, the largest proportion, 33.3%, was accounted for by finger foods
      • Table Baby Food: Facings Allocation by Product Type
    • Summary Methodology
    • About GlobalData

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