Taipei, Taiwan — After nearly three decades of rigorous competition, Taiwan’s coffee market has emerged stronger than ever, consistently importing over 50,000 tonnes of coffee annually for the past two years. This figure is nearly five times the amount imported 25 years ago.
In 1998, when global coffee giant Starbucks entered the Taiwanese market, the nation’s coffee imports, including raw beans, roasted coffee, and coffee products, totaled approximately 8,766 tonnes, according to import and export data.
The onset of the COVID-19 pandemic in 2020 saw Taiwan’s coffee imports exceed 50,000 tonnes. Although a temporary indoor dining ban in 2021 caused a slight dip below this threshold, imports rebounded to over 50,000 tonnes in 2022.
The value of these imports has also seen a substantial increase, rising from about US$44.33 million in 1998 to approximately US$347 million in 2023.
With about 12 grams of coffee powder needed to brew a cup of coffee, the Taiwanese consumed around 730 million cups in 1998, translating to about 32 cups per person annually. By 2023, this number soared to 4.24 billion cups, or roughly 184 cups per person each year.
Globally, the average person drinks about 126 cups of coffee annually. However, in Taiwan, the average is 58 cups higher, according to the International Coffee Organization. Despite this, Taiwan’s coffee consumption still lags behind countries with a “coffee addiction,” where the average exceeds 400 cups per person per year, such as Japan, South Korea, the US, and several EU nations, indicating room for growth in Taiwan’s market.
The past decade has seen a notable increase in coffee shops across Taiwan, reflecting the population’s growing penchant for opening such establishments. The number of beverage shops has risen significantly, with coffee shops growing from 1,592 in 2011 to 4,165 in 2022 — a growth rate of 1.6, according to Ministry of Finance business registration data.
Taipei boasts the highest density of coffee shops in Taiwan, averaging 3.4 shops per square kilometer, followed by Tainan with two and Taichung with 1.7.
In 2009, the main coffee chains in Taiwan included 85°C Bakery Cafe with 327 locations, Starbucks with 223, E-Coffee with 158, Dante Coffee with 127, Ikari Coffee with 64, Mr. Brown Coffee with 34, Is Coffee with 32, Barista Coffee with 32, Zhen Quo Cafe with 30, and Crown and Fancy Coffeehouse with 18, as per Taiwan Chain Stores and Franchise Association data.
By the end of 2023, Starbucks had expanded to 564 branches, 85°C Bakery Cafe to 394, and Cama Cafe to 154. Conversely, E-Coffee had dwindled to 42 shops, Barista Coffee to 16, and Ikari Coffee, Dante Coffee, and Mr. Brown Coffee had fewer than 20 locations each. All Is Coffee, Zhen Quo Cafe, and Crown and Fancy Coffeehouse outlets had closed by the end of last year.
Dante Coffee, Taiwan’s first local coffee chain, was sold to dumpling chain Bafang Yunji International Co in 2020. At the time, it had 67 branches but faced severe losses due to the pandemic, resulting in only 19 remaining locations. Bafang Yunji plans to introduce a new business model for Dante Coffee later this year.
Ho Ping-lin, chairman of Cama Cafe, highlighted the low entry barrier into the coffee business, noting that fast-food chains, bakeries, tea shops, and even gas stations sell coffee, leading to fierce competition. He mentioned that rising costs for staff, remodeling, and coffee beans require a minimum of NT$2.5 million to open a small shop, while larger ones need NT$5 million.
“Selling coffee is not very profitable,” Ho stated, adding that smaller or undistinguished coffee shops risk being quickly outcompeted.