Taiwan's retail sales, food/beverage revenue hit high in 2024

Taipei, Jan. 24 (CNA) On the back of strong domestic demand, Taiwan saw retail sales and revenue generated by its food and beverage sectors hit record highs in 2024, according to the Ministry of Economic Affairs (MOEA).

Data compiled by the MOEA showed retail sales rose 2.6 percent from a year earlier to NT$4.85 trillion (US$148 billion) in 2024, while revenue posted by the food and beverage industry rose 3.6 percent from a year earlier to NT$1.04 trillion in 2024.

Huang Wei-jie (黃偉傑), deputy head of the MOEA's Department of Statistics, said Taiwan's consumer price index grew 1.89 percent in 2024 but retail sales still grew 2.6 percent, indicating strong domestic demand despite inflationary pressure.

In addition, dining out expenses in Taiwan grew 3.13 percent in 2024, but sales generated by food and beverage operators still rose 3.6 percent, which provided additional evidence of strong domestic demand, Huang said.

In 2024, department stores, supermarkets, convenience stores and hypermarkets enjoyed record sales of NT$447.8 billion, NT$259.8 billion, NT$423.5 billion and NT$248.4 billion, respectively, up 9.2 percent, 5.4 percent, 8.7 percent and 5.1 percent from a year earlier.

Online retail sales also hit a new high of NT$653.3 billion in 2024, up 2.7 percent from a year earlier with retailers keen to diversify their sales channels, the MOEA said.

Sales posted by restaurants rose 2.9 percent from a year earlier to NT$838.7 billion, and revenue generated by beverage vendors grew 3.5 percent to NT$133.1 billion in 2024, with sales recorded by the catering business up 13.3 percent to NT$65.9 billion.

In December alone, retail sales totaled NT$433.2 billion, up 2.9 percent from a year earlier, buying boosted by an increase in demand ahead of the upcoming nine-day Lunar New Year holiday, which starts on Jan. 25.

The food and beverage industry posted NT$96.0 billion in sales in December, up 4.4 percent from a year earlier, with large scale countdown parties and pop concerts pushing up consumption, the MOEA said.

Looking ahead, Huang said retail sales are expected to range between NT$435.8 billion and NT$448.5 billion in January, up 3.1-6.1 percent from a year earlier and revenue posted by the food and beverage industry is forecast to range from NT$100.2 billion to NT$102.9 billion, up 11.6-14.6 percent.

Positive factors like an increase in minimum wages, tax cuts and cash dividend payments by listed companies are expected to maintain domestic demand and boost consumption this year, Huang said.

However, as the local population failed to grow and local departures still outpaced foreign arrivals, domestic consumption could be hindered by these negative factors down the road, Huang added.

In 2024, sales posted by the wholesale sector stood at NT$12.95 trillion, up 8.8 percent from a year earlier after revenue recorded in December rose 9.5 percent from a year earlier to NT$1.17 trillion, according to the MOEA.