Food, beverage and tobacco retail trade gradually shaking off the shadow of food safety incidents

Turnover of the food, beverage and tobacco retail trade exceeded NT$400 billion in ROC year 100 (2011), and grew by more than 5% in each of years 101 and 102 (2012 and 2013). In the fourth quarter of year 103 (2014), affected by the low-quality oil incident, sales momentum of some products declined, so full-year turnover grew by only 0.8%. From January to November of year 104 (2015), turnover reached NT$432.6 billion, up 2.9% year on year, gradually shaking off the shadow of food safety incidents and potentially challenging a historic high.

According to observations by the Department of Statistics of the Ministry of Economic Affairs, Executive Yuan, since year 100 (2011) the peak season has been concentrated in the second half of the year. The third quarter mainly benefited from demand for Zhongyuan Festival offerings and Mid-Autumn Festival gifts; the fourth quarter saw turnover higher than in other quarters because of the peak wedding season and rising demand for food consumption in cold weather, plus product promotions for Christmas and the New Year. Within the turnover of the food, beverage and tobacco retail trade, food products accounted for the largest share at 76.2%, beverages accounted for 17.2% (non-alcoholic beverages 12.2%, alcoholic beverages 5.0%), and tobacco accounted for only 1.6%.

In terms of sales channels, besides valuing traditional brick-and-mortar stores, businesses have also expanded to online retail. According to the results of the year 100 (2011) Industry, Commerce and Service Census, among food, beverage and tobacco product retail businesses, those selling through storefronts numbered 77,086, or 96.6%, the largest share, showing that traditional storefront sales remain the main sales channel for goods. However, with technological progress, the rise of mobile smartphones and changes in consumption habits, the number of businesses selling online increased from 489 in year 95 (2006) to 2,196, more than doubling, indicating a gradual upward trend in online sales channels for goods.

Along with online marketing, the popularity of tourism has also driven demand for leisure foods. According to observations by the Department of Statistics of the Ministry of Economic Affairs, Executive Yuan, the food, beverage and tobacco retail trade is gradually shaking off the shadow of food safety incidents and is expected to create another round of strong sales results.