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Asia Retail Deep Dive: Seoul & Taipei Market Intelligence
Inside: Taiwan's $600M whisky boom, Korea's retail shifts, and exclusive buyer insights for 2025
Peter Park
February 08, 2025
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Hello ,
No one hears you if you sneeze in the middle of New York. But if you sneeze in a library, everyone does. The same concept applies to work.
It's better to dominate a small pond than drown in an ocean.
We hear so much about China, USA, India and Southeast Asia.
Gone are the days of the ‘Asian Tigers’ 🐯 - Taiwan, Hong Kong, Korea and Singapore whose economies grew significantly in the 80s/90s.
These economies are now growing at 2-3% p.a. and their consumers are more sophisticated and value-seeking than ever. Being cheap or luxury alone won’t cut it.
They are not the ‘hot’ markets anymore.
In a world where differentiation matters, going after niche opportunities, whether cultural, commercial or personal, is not a bad strategy.
In this week’s YPA bite-sized insights into Asian Retail, we look at the Taiwanese whisky market, my take on emerging consumer trends in South Korea, and what you can do to satisfy the Asia-based buyer demand.
Next time you are in Seoul or Taipei, see how a sneeze can reverberate through the metro cabins! For now, let’s walk through the streets of Seoul and Taipei with me.
Yours Truly,
Peter Park / 박규형
Taipei: Whisky, Whisky… and more Whisky
 Zhongxiao Fuxing |  Broody Hen Scotch |  Near Taipei 101 |
Walking through the streets of Taipei before the Lunar New Year is exciting.
One thing you notice is the rather excessive whisky advertisements. They are found everywhere - building facades, shopping malls, subway stations.
If you really like it, you might be buying cartons of whisky to gift to your close friends and clients.
Taiwan is the world’s fourth-largest importer of Scotch Whisky consuming $0.6 billion worth of the liquor. It’s still growing at 8-10% per year. How was this possible?
When Taiwan joined the World Trade Organization (WTO) and agreed to abolish import tariffs and lower taxes on distilled liquors like whisky. 0% Tariff and 5% VAT apply to imported whisky. The excise tax on Distilled Liquor is NT$26 per litre per alcohol % (ABV). So a 700ml 40% bottle would attract NT$7 excise tax or US$0.20!
Taiwanese consumer standards are sophisticated, dominated by the high standards set by the likes of Balvenie and Macallan. However, an importer noted a decline in the overall quality of the well-known brands as a result of increased production in recent years. This may present opportunities for niche quality brands with affordable pricing to enter Taiwan.
Broody Hen (pictured in the middle above) is one of the value-range whiskies I introduced to Taiwan through the partnership with Cheval Rouge and Summerhall Distillery. I’ve shared three lessons I learned from this export deal, and how I actually did it.
‘New-world whiskies’ that are not Scotch, Bourbon or Japanese need to be both affordable and unique to even consider Taiwan. It’s not an easy ask. Market is also down a little now so consumers will stick to the usuals and time yourself wisely.
Seoul: Convenience is King
👑 Convenience is King
Why did Olive Young with its nationwide 1,400+ stores become the sole leader in the H&B (Health & Beauty) space while its competitors LOHBS (Lotte) and Lalavla (Watsons) closed their shops?
Why is the CVS (Convenience store) density the highest in the world? That is, 1,130 people per store (46,000 stores).
Why is Coupang dominating the market with its Rocket delivery (<24hr) service?
💊Competition in Probiotics is Fierce
It is the third largest health supplement category ($1B) in the $6.2B market. The largest is Ginseng followed by Vitamins. All but vitamins contracted in 2024 so it’s past the peak.
What is interesting is that 84% of the products on the market grew at 0.4% in 2023. Take the other 16% made up of functional probiotics that have more specific applications or benefits.
🍪Gaps in the market for health snacks
The last few years have been all rages with Zero Sugar, High Protein, and Low Calorie. But these are no longer competitive points of differentiation. Half of the snack bars in a CVS store (GS25) that I visited were protein-related. I have yet to see a significant innovation leap in this space.
Certain categories like gummy bear where Haribo's and Trolli command 60%+ market share could be a tough one to crack. Vegan/Vegetarian-related trens also have potential, albeit still niche - see Euromonitor’s Fastest Growing F&B Trends.
🥃Whisky market will go more mainstream at a lower price
The Korean drew the global attention with its 40% growth in 2023. But don't be fooled as the market is moving away from try-new-at-all-cost to lower price. This was evident in the availability and variety of whisky highballs in pretty much all bars and restaurants that I visited in Seoul.
Unless you are Macallan, Balvenie or Springbank, focus on value-for-money positioning. Noting Korea’s 100%+ distilled liquor tax, look up online pricing as a starting point.
Will the premium demand come back? Unlikely anytime soon…
The culture of company dining out in South Korea is less popular compared to pre-COVID. Dining out seems to be the legacy of our parents’ age.
Driven mostly by Gen-MZ (Millenials + Gen Z), consumers prefer to drink selectively on their own or with their close friends in intimate environments. They may not drink a lot but they are willing to spend premium.
What Asian F&B Buyers Want in 2025
Market Intelligence Deep-Dive
Differentiation is key - 34% of distributors onboard less than 10% of approached brands.
ANZ requires a 12-month commitment window vs. Asia's dynamic "in-and-out" approach.
Data availability varies significantly (unlike ANZ, Asian market data isn't readily accessible) so you must ask for it.
Strategic Shifts by Category:
⚡Health/organic/natural products: 23% → 27% growth
⚡Frozen foods: 37% → 30% decline
⚡Confectionery: 35% → 25% decline
ANZ Brands' Competitive Advantages
👍Clean/natural appeal resonates strongly
👍Freight advantage over EU competitors
👍Favorable FX conditions compared to USD strength
Actionable Tip
Focus on value chain integration - listing fees and marketing investments are non-negotiable, but need to be worked into the overall strategy.
Do the regulatory compliance review early. It can cause so many problems particularly if you have many ingredients and natural/functional claims. Yup I'm feeling the pain right now!
You can download their free report here. Thank you Cameron Gordon and Nada Young for your valuable contribution to the export community.
Email - [email protected]
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