|
|
|
|
|
|
Frozen Vegetables Grow Popular on Taiwan
By Andy Pasek
For centuries, Taiwan’s consumers
have served fresh vegetables with their daily diet of rice or
noodles. Today, although more meat and fish are consumed,
vegetables remain an important part of Taiwan’s diet.
But in the last five years, despite the Asian financial crisis, changing lifestyles and economic development on Taiwan are creating a shift in buying patterns. Consumers are discovering they have less time to shop and prepare meals at home. This is especially true for Taiwan’s women, who are entering the workforce in record numbers. Consumers are learning that frozen vegetables are convenient and easy to prepare, and when it comes to storage, they have a longer shelf life.
As a result, frozen and canned vegetables purchases are up, creating excellent export opportunities for U.S. frozen potatoes, corn, broccoli, cauliflower, and other vegetables.
Taiwan’s total frozen vegetable imports, though erratic at times, reflect an upward buying trend. In fact, the United States is the leading supplier of frozen vegetables to Taiwan. According to Taiwan Customs information, U.S. frozen vegetable exports to Taiwan totaled approximately $21.9 million in 1998, compared to $21.5 million in 1997.
The majority of these exports were frozen potatoes for use at quick-serve restaurants and Western-style franchises.
However, sales of frozen and canned vegetables to Taiwan’s schools, hospitals, army canteens and other institutions account for a growing portion of the U.S. frozen vegetable market.
Sales of frozen vegetables also have increased in the ever-growing number of hypermarkets on Taiwan, and to an extent, to supermarkets.
Taiwan’s Fast Foods Increase Vegetable Sales
The United States has earned a superior reputation for high-quality vegetable products, including frozen potatoes. About 80 percent of U.S. frozen potato imports to Taiwan are sold in fast-food restaurants such as McDonald’s and Kentucky Fried Chicken. The other 20 percent is distributed by wholesalers to street stands or small stores, or is sold directly to supermarkets. Unfortunately, U.S. frozen vegetables sold in Taiwan supermarkets often are subjected to hefty slotting fees and promotional costs.
The boom in the number of Western-style
and fast-food restaurants on Taiwan has created a demand for
french fries, increasing the sales of U.S. frozen potatoes. In
1998, the expansion of TGI Fridays, Planet Hollywood, and Hooters
have resulted in a 12-percent growth of U.S. frozen potato
shipments to Taiwan. Fast-food sales also have grown at
franchises such as McDonald’s and Kentucky Fried Chicken.
Currently, McDonald’s has more than 300 fast-food establishments on the island; by 2000, that number is expected to exceed 400.
The impact of the Asian economic crisis caused prices of U.S. frozen potatoes to rise by as much as 12 percent. As a result, some importers began buying frozen potatoes from France, the Netherlands and other countries. But as the exchange rate begins to stabilize, and with the poor outlook for Europe’s potato crop this season, Taiwan’s importers are looking for other sources of frozen potatoes.
Currently, residents of Taiwan spend a yearly average of about $55 per person on fast foods, compared to consumers in Hong Kong, who spend about $230 per person a year.
Another big vegetable import besides potatoes is corn. Frozen corn is mainly served in box-lunches for Taiwan’s schools and hospitals, mixed with other vegetables.
U.S. frozen and canned corn exporters face no local competition in the Taiwan market, but competition does exist from exporters such as Australia. As a result of the Asian financial crisis, a stronger U.S. currency has made imports from New Zealand and Canada temporarily more economical.
Distribution Channels for Frozen Vegetable Imports
In general, Chinese and Western-style restaurants, retailers and food service buyers purchase frozen vegetables from wholesalers, who purchase from importers.
Some large retailers and food service buyers purchase directly from importers, and in some cases, larger food service buyers even act as their own importers since they often import large quantities. Smaller firms in the food service/retail sector generally purchase from wholesalers and have to absorb the predictable markups. Bulk purchases of frozen potatoes are the exception as they are nearly all imported directly by the leading fast-food chains.
U.S. Vegetables Face Obstacles on Taiwan
Despite growing demand, there are still several obstacles U.S. frozen vegetable products face on Taiwan. For one thing, U.S. frozen vegetables must compete with an abundant supply of fresh fruits and vegetables that are grown locally year-round. These familiar fresh vegetables, sold daily in many of the traditional "wet" markets, do not require that consumers learn new preparation methods.
As is often the case throughout the
world when new products are introduced, there is much to be
gained from consumer education. Market-conscious U.S. exporters
will quickly recognize the payoff in teaching people on Taiwan
how to cook and serve a variety of frozen vegetable products.
Many consumers are just beginning to realize that frozen vegetables are every bit as nutritious as fresh produce. Fortunately, the high-quality image that U.S. frozen vegetables have thus far maintained on Taiwan has helped to increase sales at the retail level.
In addition, to stock up on frozen vegetables, most of Taiwan’s consumers need more household freezer space. Then too, the high cost of electricity to power commercial refrigeration units discourages some markets from stocking a large inventory of frozen vegetable products.
U.S. exporters of frozen peas have their own unique obstacles to overcome on Taiwan. In the last two years, intense marketing campaigns by Denmark, Sweden, Australia and New Zealand have convinced Taiwan’s importers that their respective peas are larger, plumper, and easier to eat with chopsticks. The resulting sharp reduction in U.S. frozen pea exports is being addressed through active marketing efforts.
Label Requirements of Taiwan
Imported frozen food products sold on
Taiwan must clearly display label information in Chinese on the
package, including the type of frozen food, the method of storage
and cooking instructions. The following businesses may apply for
an exemption from the Chinese language labeling requirements of
Taiwan:
For further information contact:
Agricultural Trade Office
American Institute in Taiwan
#54 Nan Hai Road
Taipei 100, Taiwan
Tel: 886-2-2337-6525
FAX:886-2-2305-7073
Homepage: http://www.ait.org.tw/
___________________________________
The author is a reports and marketing specialist with the
Agricultural Trade Office in Tapei, Taiwan. Tel.:
886-2-2337-6525, Ext. 242; Fax: 886-2-2305-7073; E-mail: ato@mail.ait.org.tw
Potato Skin Outbreaks
Here’s a niche market that bears watching. In an effort to pump up profits, Taiwan’s family dining and fast-food restaurants are currently experimenting with potato specialty products like potato skins. Local food handlers have the option of using Western-style toppings or substituting the more familiar palette of traditional oriental flavorings.
|
|