Sector Trend Analysis – Fish and seafood trends in Taiwan

Trade overview

In 2021, Taiwan was the world's twentieth largest importer of fish and seafood products, with US$1.8 billion in imports. This represents 1.1% of global fish and seafood imports and saw strong growth from 2017-2021. Taiwanese fish and seafood imports grew at a CAGR of 4.8% from 201-2021, rising from US$1.5 billion. Canada was the fourteenth largest importer of fish and seafood, with US$3.7 billion in imports, representing 2.2% of global fish and seafood imports. In 2021, Taiwan was a net importer of fish and seafood, with US$1.8 billion in imports and US$1.7 billion in exports, with net imports equal to US$119.3 million.

In 2021, Taiwan's three largest suppliers of fish and seafood were China (US$228.2 million, 12.4% market share), Japan (US$207.2 million, 11.3% market share), and Norway (US$203.4 million, 11.1% market share). Japan saw particularly fast growth in its seafood exports to Taiwan from 2017-2021, occurring at a CAGR of 17.7%. Canada was Taiwan's fourteenth largest supplier of fish and seafood, with US$39.0 million of fish and seafood exports to Taiwan, and a 2.1% market share. Taiwanese imports of Canadian fish and seafood grew at a CAGR of 2.1% from 2017-2021, somewhat behind the overall growth rate of Taiwanese fish and seafood imports.

The largest category of Taiwanese fish and seafood imports in 2021 was frozen shrimp and prawns (HS:030617), which saw US$287.5 million in imports (15.7% share), and grew at a CAGR of 5.5% from 2017-2021. This was followed by waste or animal fodder from fish or aquatic invertebrates (HS:230120), with US$193.7 million, (10.5% market share, CAGR of 1.4%). Fresh or chilled atlantic and danube salmon saw imports had US$174.7 million in imports in 2021 (9.5% market share, CAGR of 7.8%). Frozen scallops, the fifth largest category in 2021, was notable for having grown at a CAGR of 29.5% from 2017-2021.

Top five global fish and seafood suppliers by top three products to Taiwan, in US$ millions, historical

Canada's performance

In 2021, Canada was the fourteenth largest supplier of fish and seafood to Taiwan, with US$39.0 million in exports or a 2.1% market share. Canadian exports of fish and seafood to Taiwan grew at a CAGR of 2.7% from 2017 to 2021. Taiwan was a net importer of fish and seafood from Canada in 2021. In 2021, Taiwan had net imports of US$24.2 million of fish and seafood from Canada.

Top Canadian seafood exports to Taiwan included lobster, halibut, and salmon. Canadian exports of frozen halibut (HS: 030331) accounted for US$7.8 million in exports in 2021 (20.0% share of Canadian seafood exports to Taiwan), salmon (HS: 030214) accounted for US$7.1 million (18.2% share), frozen anchovies etc. (HS: 030359) accounted for US$6.7 million (17.2% share), frozen lobsters (HS:030612) accounted for US$6.4 million (16.4% share), and live lobsters (HS: 030632) accounted for US$6.2 million (15.9% share). The remaining 12.3% of Canadian seafood exports to Taiwan were split between various smaller categories. Canadian exports of anchovies and other small fish was registered rapid growth of a CAGR of 70.1% from 2017-2021, while halibut grew at a CAGR of 17.4%.

In 2021, Canada's US$7.8 million exports of frozen halibut (HS: 030331) to Taiwan gave Canada a 9.5% share and made Canada the third largest supplier, behind Greenland (US$43.5 million, 53.0% share) and Iceland (US$16.9 million 20.6% share). Canada was the fourth largest supplier of fresh or chilled salmon (HS: 030214) (US$ 7.1 million, 4.1% share) after Norway (US$143.4 million, 82.0% market share), the United Kingdom (US$14.9 million, 8.5% share) and Australia (US$8.9 million, 8.5%). Canada was the second largest supplier of frozen anchovies etc. (HS: 030359) (US$6.7 million, 22.5% share) behind Indonesia (US$7.2 million, 24.2% share). Canada was the largest supplier of frozen lobsters (HS: 030612) (US$ 6.4 million 78.0% market share), and Canada's only competitor of note was the United States (US$1.7 million, 20.7% market share). Canada was the second largest supplier of live lobsters (HS: 030612) (US$6.2 million, 49.6% market share) just behind the United States (US$6.3 million, 50.4% market share).

Retail sales by category and distribution

Total retail sales of fish and seafood in Taiwan were US$1.6 billion in 2021, having grown from US$1.4 billion in 2017. Total retail sales grew at a CAGR of 4.2% from 2017-2021, however the 2021 figure was down from a peak of US$1.9 billion the year prior. The Taiwanese fish and seafood market saw a large year-over year increase during the first year of the pandemic, with total retail sales growing by 22.7% in 2020, before falling by 13.5% in 2021. Taiwanese fish and seafood sales are expected to grow at a CAGR of 5.0% from 2022-2026, surpassing 2020 levels in 2024, and reaching US$2.1 billion in 2026.
Fish and seafood makes up a significant portion of the Taiwanese diet, with the average person consuming 35 kilograms of fish and seafood.^{Footnote 1}

In 2021, average consumer expenditure on fish and seafood was US$4,743.8, 11.4% of total expenditure on food. Seafood in Taiwan is available, affordable, and is perceived as healthy. There is growing concern among Taiwanese consumers, and consumers are often willing to pay a premium for foods that positively affect health or weight loss.^{Footnote 2} Weight loss is a subject of concern in Taiwan, where surveys have shown the country to have the highest percentage of overweight individuals in Asia.^{Footnote 3} There is a growing appetite for seafood products perceived as environmentally friendly, traceable, and sustainable. Organic foods are also rising in popularity. Many Taiwanese consumers also favour products that feature convenience and do not require them to cook at home.

In 2021, total retail sales of processed meat and seafood in Taiwan were US$668.1 million, having grown at a CAGR of 5.2% from 2017-2021. Of these sales US$170.1 million, or 25.5%, were processed seafood, having grown at a CAGR of 5.8%. Supermarkets were the leading distribution channel for processed meat and seafood, with US$282.0 million in sales, or 42.2% of the total market, and had the second fastest growth of any channel. The second largest distribution channel was e-commerce, which saw US$137.5 million in sales in 2021, and enjoyed a 20.6% market share. E-commerce was the category which enjoyed the fastest growth, having grown at a CAGR of 12.5% from 2017-2021, and was the only channel to have a faster growth rate than total processed fish and seafood sales. The e-commerce market in Taiwan is well developed, and Taiwan and has one of the highest e-commerce penetration rates in the region.^{Footnote 2}

Mixed retailers saw US$126.1 million in sales in 2021, making up 18.9% of the market. Hypermarkets accounted for US$62.3 million in sales, or 9.3% of the market however also saw the slowest growth, having grown at a CAGR of 1.7% over the historic period. Independent small grocers saw US$24.8 million in sales (3.7% share) while convenience stores saw US$19.3 million in sales (2.9% share). Convenience stores are popular in Taiwan, and the country has one of the greatest concentrations of these outlets per resident of any country. A typical Taiwanese consumer lives within a block of a convenience store. Space is at a premium in the country, and many consumers prefer to shop repeatedly in the same week rather than devoting space in their homes to store food. Convenience stores in Taiwan offer fresh food as well as packaged in addition to other services including arranging for an overnight delivery and even the payment of college tuition.^{Footnote 2}

Competitive landscape

In 2021, brand labels dominated the Taiwanese processed seafood market, enjoying an 88.1% market share, while private labels accounted for 11.9%. For both chilled and frozen processed seafood, private labels accounted for between 17-18% of the market, however private labels accounted for just 1.8% of the shelf stable seafood market. Jaan Sheng Foods Co Ltd was the largest player in the market, accounting for 17.0% of the processed seafood market, and 33.0% of the chilled processed seafood market. Tong Yeng Industrial Co Ltd was next, with 12.1% of the processed seafood market and 32.9% of the shelf stable seafood market. Bright Food (Group) Co Ltd was the largest player in the frozen processed seafood industry, with US$6.5 million in sales, 32.7% of the market and 3.8% of the market for all processed seafood in Taiwan.

Chilled processed seafood was the largest category of processed seafood, with US$87.8 million in sales, or 51.6% of the processed seafood market. Shelf stable seafood had US$62.4 million in sales (36.7% share) while frozen processed seafood accounted for the remaining US$19.9 million (11.7%). Frozen processed seafood was the category which saw the fastest growth, having grown by a CAGR of 11.7% from 2017-2019.

New product launch analysis

According to Mintel's Global New Products Database (GNPD), there were 1,535 total fish and fish products as an ingredient launched in Taiwan from 2017-2021. Of those products, 1,335 were food products (87.0% of all products launched), 194 were pet products (12.6%), and 6 were beverage products (0.4%). Of these launches, 700 were new products (45.6%), 554 were new variety/range extension (36.1%), and 214 were new packaging (13.9%). Taiwanese consumers tend to favour smaller packaging, due to limited storage space.^{Footnote 2} Taiwanese consumers often prefer to shop regularly rather than stock up on food. Flexible was the most popular packaging type, with 655 product launches (42.7%), 169 were trays (11.0%), and 141 were flexible stand-up pouches (9.2%).

Top sub-categories from 2017-2021 included fish products with 295 products (19.2%), prepared meals with 172 products (11.2%), and instant noodles with 133 products (8.7%). Top claims included no additives or preservatives with 325 products (21.2%), and free from added/artificial preservatives with 278 products (18.1%). Microwavable products saw 225 product launches (14.7%), with many Taiwanese consumers preferring ready-to-eat foods that do not require making a homecooked meal. 316 products were imported (20.6%) while 292 were listed as not imported (19.0%). Top flavours included unflavoured/plain with 231 products (15.0%) followed by prawn/shrimp with 54 (3.5%) and fish with 41 (2.7%). Popular ingredients included shrimp with 345 products (22.5%), fish and fish products with 221 products (14.4%) and tuna products (8.5%).

Examples of new product launches

Conclusion

In 2021, Taiwan was a net importer of fish and seafood, and the twentieth largest market in the world for imported fish and seafood. The market for fish and seafood is expected to see strong growth over the coming years. Canada is a key supplier of numerous goods. Canada was the third largest supplier of frozen halibut, and fourth largest supplier of fresh and chilled salmon, and was a major supplier of lobster.

Products that are perceived as healthier and more sustainably sourced have strong potential to succeed in the Taiwanese market. Taiwanese consumers value convenience and ease of storage. Canada's market share is relatively small, however there exists potential for Canadian exporters to find success in this market, by engaging with local stakeholders.

For more information

The Canadian Trade Commissioner Service:

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Resources

• British Columbia Ministry of Agriculture. Market Guide for B.C. Agrifood and Seafood Exporters
• Euromonitor International, 2022
• Global Trade Tracker, 2022
• Mintel Global New Products Database, 2022
• Taiwan News. Taiwan remains most overweight Asian country despite increase in exercise, June 2019.
• United States Department of Agriculture. Taiwan - Seafood Market Presents Niche and High Value Opportunities, March 2021.

Sector Trend Analysis – Fish and seafood trends in Taiwan
Global Analysis Report

Prepared by: Brendan Dwyer, Student

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