Taiwan’s beer market has undergone a significant transformation over the past two decades.
Before the liberalisation of the country’s alcohol industry in 2002, Taiwan’s beer market was highly regulated and dominated by a state monopoly.
As part of the reforms, the Taiwan Tobacco and Wine Monopoly Bureau, which had seen a gradual lessening of power over the island’s alcohol market, became the Taiwan Tobacco and Liquor Corporation (TTL).
While state-owned brewer’s Taiwan Beer brand still dominates the market with 55% market share, the opening up of the country’s beer economy has resulted in the swift growth in the formation of smaller-scale local breweries.
According to a recent report issued by the United States Department of Agriculture’s Taipei office, the island now plays host to “approximately 70 microbreweries”.
Although this is likely an over-estimation according to those familiar with Taiwan’s craft beer scene (who estimate the number of active breweries at around 40), the report forecasts 50% annual revenue growth for imported and domestic craft beer.
The post-liberalisation wave of microbreweries only control a small portion of the beer market: estimates vary between 1-3%, which would theoretically be a volume of around 110,000 hl annually.
A recent Statista report estimated 1 in 10 Taiwanese drinkers frequently consume craft beer. Amidst an expansion of distribution by local craft brewers into mainstream convenience stores and growth of alcohol delivery/ordering this year, the industry will be hoping for this number to increase.
Craft beer originally became popular due to imported products in demand amongst returning students, ex-pats and Taiwanese exposed to craft beer culture in Europe and the United States. Import still plays a significant role: Taiwan imported 360,000 litres of craft beer from the United States in 2019.
Craft beer is bucking the macro trends in Taiwan’s beer industry, which has seen an on-going decline in domestic brewing output in recent years. 2019 was no exception, with production decreasing slightly 5.467 to 5.462 million hl.
The country’s craft beer revolution has been partially powered by major local brewers Taihu Brewing, Sunmai and Redpoint Brewing Company significantly increasing their production capacity.
Larger players outside of the beer industry are breaking into the market, too. Local beverage conglomerate King Car Group, which owns award-winning whisky producer Kavalan, opened up craft brewery Buckskin in 2018. The brewery has subsequently opened up a chain of concept restaurants in Taipei.
Nevertheless, Taiwan still has the world’s 44th highest production output and ranks 10th in Asia (ahead of countries like Myanmar, Malaysia and Singapore).
Export is growing, too: the country exported 6 million litres of beer in 2019. While craft beer is only a small portion of this, well-regarded Taiwanese breweries like Sunmai and Taihu regularly export to Japan, Singapore and other markets.
The growing diversity of Taiwan’s craft brewing scene goes hand-in-glove with local drinkers’ growing appetite for better beer. Taipei’s selection as the host city for this year’s SEA Brew positively underlines The future for beer in Taiwan is looking bright.
