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(Last updated: 13 Jul 2007)
Trends and opportunities
The market
The total alcoholic drinks market in Taiwan stands at around A$5 billion annually. Taiwan is the largest consuming country of French top quality cognac (eg. Hennessey XO) and Scottish whisky (eg. Johnny Walker). However, wine only represents about four per cent of the total market or around $200 million in sales annually, but wine consumption is on the increase.
Opportunities
The niche market for Australian wines will be low price wines (FOB $20-A$30 a case), ultra premium range (FOB $200+), and collectable items, while table wine range still remains as the largest market potential in terms of import dollars, (but with strong competition from Chile/Argentina)
Competitive environment
The local taste preferences are very complicated, but are mostly influenced by French wine. In Taiwan you can virtually buy wines produced from all the wine countries. Taiwan is not a wine producing country, but choices are vast, as retailers will sell different brands of wine at different price segments. Competition is very strong.
French wine continues to dominate the market (over 50 per cent), followed by USA, Australia and Chile. The market share growth rate of Australian wines last year was 15 per cent.
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Tariffs, regulations and customs
All imported wine must follow the Tobacco and Alcohol Administration Law published in 2000.
Current applicable wine tax and tariff is as follows:
- Wine tax: NT$7 (A$0.35) for each percentage point of alcohol per litre
- Import tariff: 10% for wine and 20% for sparkling wine and port
- Sales tax: 5% (GST)
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Marketing your products and services
Market entry
The wine market in Taiwan is quite well segmented and successful exporters have clearly segmented their product range accordingly to meet buyers' and importers' preferences. The market in Taiwan has five clearly defined segments (FOB are per case price):
- Low price wine range (FOB < A$20-A$30)
- Import price at FOB A$2 per bottle from France and Spain and retailed at approximately A$8-$12 locally
- Comprise mostly of poor quality French AOC wines
- Huge import volume
- Table wine range (FOB A$30-A$60)
- Mostly available in supermarkets, department stores, convenience stores, restaurants, and night clubs
- Retail in Taiwan at A$12-$30 or A$10-$25 in Australia
- Very competitive wine range but largest market for Australian and US wines, Chile, Argentina
- Premium range (FOB A$60-A$200)
- Available in restaurants, hotels, and selective bottle shops
- Most competitive segment for Australian wines now - too many wines in this segment from all countries
- Taiwan retail at A$30-$60 and A$20-$50 in Australia
- Consumers of this segment have good salary, knowledge of wine and eager to try different labels
- Ultra premium range (FOB A$200+)
- Available mostly at wine dinners, 5-star hotels, premium clubs, and VIP wine clubs
- Retail in Taiwan at A$60-$400 or A$50-$300 in Australia
- Collectible range
- Examples are Penfolds Grange, or Henschke Hill of Grace, etc
Market preference
( > mark means greater preference)
Wine body/structure preference:
- Red >>> White
- Full body and big > Medium >> Light body
- Warm climate > Cooler climate
- French oak > American oak >> Unoak
- Ready to drink >> Grapey and young tannin
- Reviews from RPJ, Decanter, Wine Spectator are essential in addition to local reviews
Wine bottle and label design preference:
- Slim or reserve taper (Italian and Bordeaux) >>> Short and fatty bottle
- Puncture hole at the bottom - Deep > Shallow > Flat (Not acceptable)
- Natural cork > Synthetic cork > Screw cap (retail price, less 30 per cent)
- Metal bottle neck > Plastic bottle neck
- Classic and simple label > Fancy label with many icons and colours
- Wood box > Lay down paper case > Stand up paper case
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Links and industry contacts
Wine–related resources
Cognac House - www.cognac-house.com.tw A local premium online order dealer
Wine - www.wine.com.tw Premium wine importer specialising in French and Californian wine
Australian resources
Australian Wine and Brandy Corporation (AWBC) - www.awbc.com.au |
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Contact details
The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.
Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.
Austrade:
- Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
- Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
- Administers the Export Market Development Grants scheme.
- Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
- Provides advice to the Australian Government on its trade and investment development activities.
- Delivers consular, passport and other government services in designated overseas locations.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au |
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