Taiwan’s rapidly expanding fitness industry is driven by a growing appetite for sports nutrition products tailored to local tastes and preferences.

By Simon Xiao

The modern world can be fast-paced, impersonal, and unfriendly at times. For many urbanites, personal fitness functions as an escape from busy routines – a ritual centered on self-improvement and self-care.

The rapid growth of Taiwan’s fitness industry has recently made headlines in the business world. Taiwanese gym chain World Gym’s IPO in January is just one example of the broader success of the personal fitness sector. Gym revenues in Taiwan have increased more than fourfold between 2013 and 2020. Globally, the health and fitness industry was valued at US$78 billion in 2021, with projections estimating a rise to US$125 billion by 2030, according to Statista.

Less attention has been paid to the industry fueling this surge in fitness enthusiasm: the sports nutrition market. This sector, which includes health-focused foods and supplements consumed before, during, or after exercise, caters to both professional athletes and casual gym-goers. It is growing in tandem with the rising interest in fitness.

In fact, an in-depth analysis of the global sports nutrition market by Astute Analytica projects a record revenue of US$23.8 billion by 2030, with a compound annual growth rate of 4.8% over the forecast period from 2022 to 2030.

The United States, with its strong sports culture, high participation rates, large market base, and advanced R&D capabilities, has positioned itself as the leader in this sector. The sports nutrition industry is dominated by American brands, encompassing both specialized sports nutrition companies and large food conglomerates.

But while American companies like Abbott, Cliff Bar, the Coca-Cola Company, PepsiCo, and Quest Nutrition dominate the industry, the American market is not the most lucrative. At nearly 40%, the Asia-Pacific region accounted for the largest share of sports nutrition revenue last year, according to American research and consulting company Grand View Research.

Kuo Chia-hua, president of the Asia Nutrition Society for Sports and Health (ANSSH), a research-focused organization, notes that over the past five years, general dietary supplements in Taiwan have seen an annual growth rate of 4%, while sports nutrition supplements have grown by an average of 7% per year. He adds that he expects Taiwan’s demand for sports nutrition products to continue growing in the coming years.

Kuo describes the Taiwanese sports nutrition consumer as urbane, well-educated, wealthy, and health-conscious. Personal fitness is both a means for urbanites to stay fit and a status symbol, particularly with expensive, niche fitness trends such as CrossFit, MMA, and Pilates.

“Taiwan Tinder profiles show that people view fitness lifestyles as a sign of accomplishment and worldliness,” Chiang Ying, professor of the Sociology of Sports at Chihlee University of Technology, told LinkSports. Personal fitness and sports nutrition products were introduced as luxury goods and remain as such.

Taiwan market expert Matthew Ryan agrees, noting that “in the last decade, being fit and healthy has become considered a symbol of being a successful person. The modern business class [in Taiwan] is now required to engage in fitness consumption and attain a specific body type to attain the status of being an accomplished person.” The connotations of success also mean that consumers are prepared to spend more money on high-quality products.

While sports nutrition covers everything from probiotics to electrolytes, “protein is the major category for both Taiwan and the U.S.,” Kuo says. “The biggest current trend in both markets is a shift toward more plant-based protein products, so that’s a segment we expect to grow in the upcoming years.” 

Distinct diets and dining habits among Taiwanese people could present challenges to market penetration among international companies. Jane Chao, a professor of nutrition and health sciences at Taipei Medical University, notes that Western diets typically include higher consumption rates of red and processed meats, high-fat dairy products, refined grains, sugary beverages, and desserts. In contrast, East Asian diets tend to emphasize a higher intake of fruits and vegetables.

Chao observes that while Taiwan’s younger generations are increasingly adopting a more Western diet, Taiwanese consumers are unlikely to adopt the exact set of products and practices of their American counterparts. And while unique domestic preferences may present a challenge for international companies, they’ve already presented an opportunity for others to capture a market that has yet to mature.

Customized solutions

Taiwan’s growing demand for sports nutrition products and the need for localized options has created a great opportunity for domestic startups. These new businesses, attuned to the Taiwanese palate and lifestyle, are well-positioned to fulfill niche preferences.

Spark Protein, a Taiwanese sports supplement brand founded in 2018, is among those that have found success in identifying the needs of domestic consumers. Co-founder Davie Yeh highlights several key traits of Taiwanese consumers, noting that their primary concerns are taste and serving size.

Anyone familiar with Asian culture knows that the biggest compliment a snack can receive is that it’s “not too sweet” – a stark contrast to the sugar-loaded snacks popular in the West. There is a logical explanation for this preference, as research indicates that people of Asian ethnicity experience taste more intensely than Caucasians.

A high-profile study on taste buds and ethnicity, published in 2020 by the University of Nottingham’s Sensory Science Centre, reveals that people of Asian ethnicity are not only more likely to be so-called “supertasters” with more sensitive pallets but also less likely to enjoy sweet flavors. Interestingly, the study also found that men overall prefer sweeter foods more than women do.

Spark Protein reduces the sweetness of its products and incorporates flavors familiar to the Taiwanese palate, such as sesame and tea from Alishan Township. Many of the company’s products are advertised as unsweetened or “10% sweet,” catering to local taste preferences.

The preferred serving size also differs in the Taiwan market. While the industry standard for protein bars is 60 grams, “most people in Taiwan said it is too big,” notes Yeh. “They cannot finish it at one time.” To accommodate these preferences, Spark Protein offers a 20-gram protein “bite” that has proven to be more suitable for the Taiwan market.

Another key feature of Taiwanese consumers, Yeh notes, is that they are cautious and prefer to try samples or make “test” purchases before committing to a product. Offering small, approachable sizes is crucial, as they are perceived as less risky investments compared to the larger package sizes commonly found in foreign markets.

Spark Protein releases new flavors and products each month to give customers “a reason to come back.” Yeh says that unique, novel products such as protein-infused coffee are particularly attractive to domestic consumers.

Chao of Taipei Medical University adds that convenience is another crucial factor for sales. She partially attributes the growing popularity of protein and granola bars in Taiwan to their increased availability in supermarkets and convenience stores.

“Convenience stores are also increasingly selling protein-rich food like chicken breasts that can be microwaved and eaten on-site,” she says. “Chicken breasts are very high-quality protein sources and having them readily available makes them an attractive option for consumers.”

Such convenience is important to counter the lure of fast-food products, which Chao cites as a contributing factor to rising obesity rates. In July this year, Taiwan’s Health Promotion Administration reported that the percentage of Taiwanese considered overweight (with a body mass index greater than 24) increased from 32.7% between 1993 and 1996 to a striking 45.4% between 2013 and 2016, making the Taiwanese population the most overweight in Asia.

“Compared to the United States, Taiwan still has a lower prevalence of obesity, but it’s on the rise,” especially among the younger generation, says Chao. She stresses that exercise and nutrition are important not only for adults but also for schoolchildren. “The younger generation is in particular shifting from typical Chinese dietary patterns to fast-food-centered patterns because it’s easily available.”

As for growing customer demographics, Yeh points to middle-aged consumers. “Right now, we’re focusing on the younger generation, but people are working out at increasingly later stages in life, too,” he says.

People in their 50s and 60s also have more money to spend than those in their 20s, Yeh adds. “And the great part is that we can reach them by advertising to their kids, which is our main customer base. Usually, they want to provide some care to their parents, for example by getting them to buy healthier products.”