Anticipated Uptick in Retail, Food, and Beverage Sales
Article Rewrite:
Set to Sizzle: Retail and F&B Sectors in May 2022
By Jim Johnson
This May, expect the retail and food & beverage sectors to keep their revenue engines humming, following a record-breaking month last April. According to the Economic Affairs Ministry, the growth is anticipated to be driven by festivals, new retail spaces, and hot-weather essentials.
Tomb Sweeping Day and Mother's Day are poised to boost retail sales, alongside the opening of fresh shopping malls. The food and beverage industry, meanwhile, gears up with the launch of cool, summer-friendly goods, such as new stores, products, and items aimed at keeping consumers comfortable during warmer months.
The Ministry's forecast reveals retail sales will inch up by 0.4 to 3.4 percent year-over-year, with figures ranging from NT$388.8 billion to NT$400.4 billion (equivalent to US$11.95 billion to US$12.31 billion). Food and beverage sales, on the other hand, are expected to expand by 2.2 to 5.2 percent, landing between NT$81.7 billion to NT$84.1 billion.
The surging growth in April, though slightly lower than the ministry's expectations, was a welcome change after a 3.8 percent drop in February. In the first quarter of the year, retail sales soared to a record NT$1.19 trillion, per ministry data. The food and beverage sector, meanwhile, touched a new high of NT$274 billion in three months.
April's food and beverage sales saw an impressive improvement of 2.8 percent year-over-year, compared to the previous month's 9.2 percent annual decline. This growth was attributed to new product launches, store expansions, and strategic promotions that boosted restaurant and beverage sales, in addition to the rising demand for in-flight meals.
As for the wholesale sector, it registered a 9.9 percent year-over-year increase in April, meeting the ministry's projected growth of 8 to 11 percent. This growth stemmed from increased demand for machinery equipment, pharmaceutical products, cosmetics, and clothing, despite a lackluster automotive market. In the first quarter, the sector's sales skyrocketed by an unprecedented 9.2 percent to NT$3.32 trillion.
For May, the ministry expects wholesale sales to grow by 4.3 to 7.3 percent year-over-year, landing between NT$1.1 trillion and NT$1.14 trillion.
In the broader context, consumer spending, health awareness, and up-and-coming trends form the backbone of Taiwan's retail and food & beverage industries. The cat food market, for instance, has flourished with a retail sales value of around $408 million as of 2023, showcasing the potential of Taiwan's pet care market. The RTD soft beverage market is projected to see significant growth in the coming years. Dining out also remains a popular activity, with around 43 percent of respondents in Taiwan dining out several times a week as of the end of 2024.
With these broader trends and factors at play, there's no doubt that May 2022 would have been a promising month for both the retail and food & beverage sectors in Taiwan.
- The retail sector, fueled by Tomb Sweeping Day, Mother's Day, and the opening of new shopping malls, is anticipated to witness a growth of 0.4 to 3.4 percent year-over-year in May 2022.
- In line with this growth, food and beverage sales are expected to expand by 2.2 to 5.2 percent during the same period, driven by the launch of summer-friendly goods such as new stores, products, and items.
- The ministry also foresees a growth of 4.3 to 7.3 percent year-over-year in wholesale sales for May 2022, primarily due to increased demand for machinery equipment, pharmaceutical products, cosmetics, and clothing.
- The food and beverage sector in Taiwan's broader context is influenced by consumer spending, health awareness, and emerging trends. For instance, the cat food market has flourished with a retail sales value of around $408 million as of 2023.
- The RTD soft beverage market is projected to see significant growth in the coming years, and dining out remains a popular activity in Taiwan, with around 43 percent of respondents dining out several times a week as of the end of 2024.
