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Growing demand in Taiwan Brews Opportunities for US Coffee

By: Alexis Rubinstein, Managing Editor - Coffee Network

 
Alexis Rubinstein
Managing Editor

CoffeeNetwork (New York) - According to the International Monetary Fund (IMF), Taiwan’s GDP per capita is poised to surpass Korea and Japan, making it the highest earning country in Eastern Asia. Despite the pandemic, the Taiwan economy continues to boom, and its consumers’ demand for high-end food and agricultural products grow. According to the International Coffee Organization, Taiwanese consume 2.85 billion cups of coffee per year, or 204 cups per person. The market is deep in the third-wave coffee phase, meaning the consumers are no longer satisfied by quick but low-quality coffee, such as instant coffee, nor commercialized coffee, such as chain coffee brands. Rather, coffee has become more an experience than a simple drink on the go. Consumers are paying attention to the planting, picking, storing, and roasting of the beans. Varieties, origins, environment, and stories behind the farms are factors affecting consumer decisions. Third-wave coffee stores roast their own beans, which usually feature qualities including unique flavor, small-batch, environmentally friendly, fair trade, single origin and more.

Taiwan consumers have extremely easy access to coffee. In 2021, there were more than 3,000 newly registered coffee shops, not including shops that registered as eateries for tax purposes. Specialty coffee is also provided in convenience stores and chain coffee stores. 

Taiwan imports unroasted coffee beans mostly from Central and South America while importing the most roasted beans from the US. Total import value shows a steady growth in the past three years.

Besides getting a quick cup from a shop, Taiwanese consumers also enjoy brewing their own coffee at home. Louisa and Cama both provide monthly coffee bean subscription services with quarter-pound, half-pound, and one-pound options for customers to try out different flavors. For people without a grinder, drip bags are also popular and are common in workplaces.

No tariff is imposed on unroasted or roasted coffees imported from the US into Taiwan. For roasted coffee, importers shall apply for inspection from the Food and Drug Administration, Ministry of Health and Welfare. For unroasted coffee, besides applying for Food and Drug inspection, importers shall also apply for inspection from the Bureau of Animal and Plant Health Inspection and Quarantine Council of Agriculture.

While other US states roast coffee, Hawaii is the only state in the US that produces green coffee beans. It is one of the most iconic agricultural products from the islands, known for its gourmet flavor and high-end quality. It is also known for its small production size with approximately 2.3 million kilograms of green bean produced per year, which is less than one percent of all coffee grown in the world. These qualities match well with what Taiwanese consumers look for when purchasing coffee - small batch production, unique flavors, and farm stories. Combined with the rising GDP per capita in the market, ATO-Taipei believes Taiwan is full of opportunities for Hawaii coffee.

ATO-Taipei encourages U.S. coffee producers and exporters to consider exhibiting in the Taiwan International Coffee Show, the biggest coffee show in the country. It is organized by the Taiwan Coffee Association, a King Car Group affiliated organization dedicated to promoting coffee trade and culture. Held annually in November, the show has exhibitors from the US, Taiwan, Indonesia, India, Brazil, Peru, Guatemala, Honduras, El Salvador, and visitors from the US, China, Malaysia, Japan, Canada, the Philippines, Singapore, Indonesia, and Vietnam. Hawaii coffee producers are encouraged to work with the Hawaii Coffee Association and the Synergistic Hawaii Agriculture Council to take advantage of their marketing resources and promotion support in Taiwan.

Alexis Rubinstein

  • Coffee

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