Government monitored Strict Food Standards Creating Challenges for Baked Goods Industry in Taiwan: Ken Research
Posted on 23 June 2017 by KenResearch Food and Beverage,
The bakery market in Taiwan is one of the most developed sectors in the economy. The market is now experiencing a slow expansion rate. The focus of the market is now moving towards restructuring itself, improving the safety and quality of food items and expanding in size. There is an increasing health consciousness amongst the consumers. They are now demanding healthier products and are giving more importance to details like the ingredients compositions. Natural butter and natural sweeteners, whole wheat flour, whole grains, dried fruits, fresh fruits, tree nuts etc. are healthier ingredients that are now gaining popularity. These ingredients are highly priced and with more and more consumers preferring them, this helps in the growth of the market and improving the quality of the products available.The disposable income of the population has been rising and the consumers are now able to afford the highly priced healthy ingredients.
According to the market research report "Baked Goods in Taiwan", the packaged leavened bread is the fastest growing segment in the market as its consumer base has been on a rise but the unpackaged leavened bread still has a much greater demand in the country. European-style bread is now being preferred by the consumers as they have more grains, seeds and nuts and are believed to be healthier than the local bread. They are more expensive and are sold through artisanal and chained bakeries.
In 2014, there were many food scandals which had shaken the consumer confidence in packaged goods. This however, led to better and stricter food safety standards. The government has imposed a greater level of monitoring over the market to ensure consumer safety and satisfaction. The consumers and media are also promoting and encouraging better food standards, leading to more quality conscious market rather than price oriented.
One of the major hindrance in the market growth is the popularity of eating out which cuts the revenue of packaged bakery goods.The baked goods market is already a well-developed market with intense competition. Therefore, there is less scope of growth and expansion of the industry. Uni-president Enterprises Corp is the leader in the baked goods market in Taiwan. It has gained and maintained this position because of the close ties with convenience stores which have helped in building a strong distribution network. The restructuring of baked goods industry has also lead to rise in competition as many new companies have entered the market.
There many fragments in the baked goods industry in Taiwan. Artisanal players have the largest market share. The accessibility of these artisanal bakers throughout the country is one of the major reasons for their strong position in the market. They are strategically located near transport stations and hubs and can be found in large cities and other urban areas along with many shopping centres. The market share of the artisanal bakeries has increased marginally and has led to the decline of other producers. The local bakeries offer freshly baked goods which are liked by the consumers. A wide variety of baked goods are available that differs from producer to producer along with differences in quality.
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