Worldpanel’s latest household purchase data from across Taiwan has revealed 10 key FMCG trends brands can expect to witness in 2025.
Trend 1: Sustained value growth – but with slower momentum
The FMCG market is expected to grow by 3% in 2025. In 2024, increased consumer wealth brought about by a favourable economic environment boosted the demand for food items, and increased the consumption of non-food items, including personal care products. This year, growth in food will stablilise, while non-food will grow at a slower pace.
Trend 2: A declining birthrate, super-aging society, and smaller households
The changing population structure in Taiwan is profoundly impacting the market. According to the Ministry of the Interior, the number of newborns is gradually declining, while this year one in five people will be elderly. The proportion of single and childless couple households will climb to more than 30%. Brand manufacturers must pay more attention to product appeal and packaging formats to cater to consumers’ lifestyles.
Trend 3: Consumers elevate their quality of life through the purchases they make
According to Worldpanel data, overall per capita FMCG expenditure was 5% higher in Q3 of 2024 than the previous year, surpassing the consumer price index (CPI). This indicates that demand is rising, and consumers are seeking products with higher added value. Per capita spending on food categories such as snacks, desserts, and health supplements has increased by around 7%-12%, while personal care has seen a near 4% increase.
Trend 4: Health-consciousness leads to the pursuit of a more balanced diet
Taiwanese consumers' desire for a healthy life continues to be reflected in their consumption behaviour, as they fulfil nuanced and personalised needs through a broader range of product types. In addition to health supplements, everyday food and beverage products with added health benefits are also appealing, such as functional dairy products and sugar-free beverages. Brands that can identify market demands and develop innovative products to meet them will find growth opportunities.
Trend 5: A rebound in spend on health supplements
The overall health supplements market expanded 10% year-on-year in the third quarter of 2024, mainly benefiting from increased consumer spending. Demand is strong for products that support gastrointestinal health, beauty, and mobility, with sales growth ranging from 9%-17%. Smaller categories such as products that aid sleep also achieved double-digit growth with the introduction of new products from well-known brands.
Trend 6: Balanced beauty budgets, with a mix of high-end and mass products
Consumers have become more flexible in their choice of beauty products, while remaining rational in how they allocate their expenditure, leaning towards value for money. For instance, they are spending more to meet personalised needs in shampoo and hair care, while mass and derma beauty skincare products continue to be favoured for their efficacy claims. Since the pandemic has eased, the demand for makeup products has continued to recover, and the category is expected to maintain steady growth through 2025.
Trend 7: A desire for more refined home care products
The home care market remains relatively stable. As consumers' lifestyles become more refined, innovative and convenient product forms, such as laundry capsules, are attracting more consumers. Meanwhile, to meet more niche or sophisticated product usage scenarios, brands are introducing air fresheners with antibacterial and anti-mould benefits, bathroom cleaners that descale, and low-fragrance floor cleaners for pet-owners. In addition to innovation, brands must effectively communicate the unique aspects of their products and genuinely address consumer pain points.
Trend 8: More diverse shopping channels, as consumers open their wallets anytime, anywhere
More than three-quarters of Taiwanese shoppers now purchase daily necessities through e-commerce, driving double-digit growth in online sales. However, consumers have not abandoned offline channels. Sales performance in physical channels remained stable in Q3 of 2024, with hypermarkets and supermarkets showing slight year-on-year growth.
The continued enthusiasm for overseas travel has led to a significant increase in foreign purchases. Nearly 20% of households bought FMCG from overseas in the past year, with the most popular products health supplements, biscuits, and snacks.
Trend 9: Five rapidly rising festive gifting categories capture hearts
Taiwanese people appreciate a sense of ceremony. More consumers obtained FMCG products through gifting channels in the past year, and received gifts more frequently, driving growth in the market. Rapidly growing gift categories include health supplements, biscuits, snacks, tea, and chocolate. For brands, seizing popular occasions such as traditional festivals and Mother's Day is an unmissable opportunity to build relevance.
Trend 10: The sustainability trend continues
Worldpanel's global sustainability study Who Cares? Who Does? segments consumers based on their concerns and behaviour around sustainability issues. The proportion of Eco-Actives – the most concerned and active group – reached a new high of 24% in 2024, contributing US$561 billion to the global FMCG market. Brands that can segment consumers according to their willingness to take sustainable actions will maximise the effectiveness of their marketing.
Read the full report in Chinese – and reach out to our experts for a conversation about how your brands can succeed in Taiwan.