The market

In 2007, the total still wine market in Taiwan was approximately US$87 million.

Exports of Australian wine to Taiwan have been steadily increasing since 1999 and in 2007 reached 1.8 million litres valued at around $9.5 million. In dollar value, Australia accounts for about 11 per cent of the import wine market, which is just second to France (54.5 per cent), followed by the USA (8.9 per cent) and Chile (7.2 per cent).  

In the past few years US wines significantly decreased, as Chilean wines rose to be the first growing export origin for market share. In the first half of 2008 French wine has a high growth rate at around 50 per cent per annum compared to the same period in 2007. It is most likely due to the high appreciation of French Bordeaux and Burgundy wines. Chilean wines grew by 47 per cent, while Australian wine decreased by 4.7 per cent due to the strong Australian dollar.

Opportunities

The consumer behaviour in Taiwan has led to an M-Style society. Middle price range (FOB A$80-A$200 per case) has become the most difficult segment and therefore requires more effort to be successful.

Today, consumers are either willing to pay for the premium and most famous wines or wants the cheapest possible wines from supermarkets and hypermarkets. While the low price wines (FOB A$20-A$60 a case) still remains the largest sales volume, this segment is dominated by French AOC Bordeaux and Chilean wines.

Ultra premium range (FOB A$200+), limited release and collectable items have become an important market for Australian wine in Taiwan.
Competitive environment

The local taste preferences are very complicated, but are strongly influenced by French wine growers and the US media, such as Robert Parker, Wine Advocate and Wine Spectator. The wine choices in Taiwan are vast, as retailers will sell different brands of wine at different price segments and competition is very strong.