Taiwanese consumers have tightened their belts and bought fewer imported fruits this year as their country’s economic slowdown has cut household incomes, reveal industry players.
Some importers suggest the tougher fiscal conditions may limit some corporate and consumer gift-giving budgets in the run-up to Chinese New Year on 8 February.
Apple imports, which can act as a barometer for the market since they are still the most heavily consumed imported fruit in Taiwan, fell by 3 per cent in 2014/15 in volume due to the weaker economy, according to a USDA report. Local market traders and analysts also note weaker demand for imported fruit and vegetables over the winter months.
Some say the struggling economy is hitting middle-class consumers particularly hard, and widening the gap between Taiwan’s rich and poor.
Taiwan’s pending presidential elections (January 2016) are also making consumers more cautious in their spending, says Ignacio Chang of importer She Sung Dae. And this reserve may continue until the new incumbent has set out his economic stall.
A cut to year-end bonuses will further limit consumer spending in the run-up to Chinese New Year, he adds.
Nevertheless, Chang and fellow importers agree that demand for imported fruits will still rise significantly before and during Chinese New Year, since it is the most important festival in the Taiwanese calendar, and one where people offer one another top quality fruits as gifts.
“No matter how rich or poor a household is, Chinese New Year is a day to spend some money to give gifts and celebrate,” says Steven Chu of produce consultancy Steven Chu and Associates. “The difference between the rich and not so rich families is that the rich family buys more expensive food items, and the not so rich family buys more reasonably priced food items.”
