Omnichannel FMCG retailing
Though supermarkets and hypermarkets still accounted for nearly half of Taiwanese FMCG sales by the end of 2020, the proliferation of online shopping has altered people’s grocery shopping habits. In 2019, about two out of three consumers in Taiwan had shopped on e-commerce platforms, where food and daily necessities were listed as popular product categories. Furthermore, the outbreak of coronavirus at the beginning of 2020 further spurred the online retailing of FMCG in Taiwan. According to a survey in May 2020, more than 40 percent of consumers increased their online spending on food and groceries, followed by personal hygiene products and household cleaning products.On the other hand, traditional retail channels such as convenience stores and supermarkets were still popular among Taiwanese FMCG consumers, especially for food and snacks. Around 30 percent of Taiwan’s packaged food sales were sold via supermarkets. The local supermarket chain PX-Mart controlled more than 60 percent of Taiwan’s supermarket industry and ranked first among all FMCG retailers in Taiwan in terms of consumer recognition.
Latest trends in FMCG
Consumer behavior is heavily influenced by societal change and Taiwan’s aging society has made health food a significant driver in the FMCG market. The functional food and dietary supplement market in Taiwan was estimated to reach 150 billion new Taiwan dollars by 2019, with further expansion expected from the coronavirus pandemic. Around 70 percent of Taiwanese consumers of all ages took dietary supplements amid the pandemic, while most believed it could strengthen their immune system.Another ongoing trend among FMCG consumers in Taiwan is plant-based food. Many new consumers have welcomed plant-based products as a healthier, ethical and sustainable substitute for animal meat. As of August 2020, more than 85 percent of vegan and non-vegan consumers are willing to try plant-based meat.
