Taiwan’s coffee service industry is on track to surpass NT$40 billion (US$1.22 billion) in sales for the second consecutive year in 2024, highlighting the growing popularity of coffee and its lifestyle appeal across the island.
According to a report released by Taiwan’s Ministry of Finance (MOF), the coffee service industry, which encompasses coffee shops, wholesalers, and retailers, generated NT$37.67 billion in sales in the first 11 months of 2024. The MOF projects that the year-end sales figure will exceed NT$40 billion, sustaining the momentum achieved in 2023 when the industry reached a record NT$42.99 billion.
The industry’s growth reflects a long-term trend that began in 2018, with annual sales increasing by 36% from NT$31.65 billion in that year. Over the same period, the number of coffee shops has surged by 42.5%, or 1,438 new shops, bringing the total to 4,824 as of November 2024. This growth translates to an average annual increase of 6%, with coffee shops now making up more than half of the industry’s revenue.
A Thriving Coffee Market
The proliferation of independent coffee shops and large chains, along with convenience stores, supermarkets, and gas stations offering freshly brewed coffee, has driven the “black gold” boom. Coffee wholesalers and retailers have also expanded rapidly, with the number of outlets rising to 693 and 1,261, respectively, by November 2024.
Coffee shops alone accounted for NT$24.59 billion of the industry’s revenue in 2023 and generated NT$21.83 billion in the first 11 months of 2024. Despite the pandemic’s impact in 2021, when sales dipped by 2.5%, the coffee service industry has otherwise demonstrated consistent growth.
Rising Coffee Imports and Domestic Production
Taiwan’s growing coffee culture has fueled demand for imports, with the country bringing in a record 52,600 metric tons of coffee in 2024. Raw coffee beans accounted for 71% of imports, followed by other coffee products (16.3%) and roasted coffee (12.6%).
Domestic coffee production has also remained stable, averaging over 950 metric tons annually since peaking at 1,109 metric tons in 2018. Pingtung, Nantou, Taitung, and Chiayi counties remain the main coffee-growing regions, collectively contributing over 60% of the total domestic output. However, Taitung County’s production has declined in recent years due to reduced cultivation areas.
A Promising Future
The steady rise in coffee shop numbers, alongside the expansion of specialty coffee markets and higher consumer demand for quality coffee, underscores Taiwan’s robust coffee culture. As the industry approaches another milestone in 2024, it cements its place as a key component of the nation’s lifestyle and economy.