Coffee and Taiwan: Trends, Opportunities and Soft Power Potential

As I stepped through the doors of Catalyst Roasters in Holborn, London, I was immediately hit by the lively chatter of patrons, aromas of freshly roasting coffee beans, and the gentle steam hiss preceding fresh espresso. What I hadn’t expected was that this independent roastery sells a rare Taiwan-grown coffee bean, Songyue Gesha, freshly roasted on the day of purchase.

Songyue Gesha—Gesha is a variety of arabica bean named after the town in Ethiopia where it originated—costs £17.50 (NT$660) for 60g at Catalyst Roasters. Although I had never spent above £8 (NT$330) for 200g of coffee beans before, I was eager to experience this Taiwan speciality for myself.

After grinding and drinking all 60g over the course of an afternoon, I can confidently say it was well worth the money. Songyue Gesha is some of the best coffee I have tasted. Each cup carries an incredibly varied flavor composition, with hints of citrus and tropical fruits, mellow rounded notes of honey followed by a deep, malty cacao aftertaste. So how did these incredible beans end up being enjoyed across the world in a central London roastery?

The strength of Taiwan’s coffee culture may be seen this weekend at the 2020 Taipei International Coffee Show, which will bring together exhibitors ranging from specialty Taiwanese roasters and major coffee brands, to the Central American Trade Office and Indonesian Economic and Trade Office. Both the business interest and the presence of expertise to cultivate coffee domestically highlights coffee’s strong influence in Taiwan. An influence which could offer Taiwan a unique opportunity to build and consolidate international trade links to sate growing Taiwanese demand for quality coffee.

Like the United States, Europe, and Japan, a correlation between decades of easy access to fresh coffee, from cafes to convenience stores, and the development of coffee culture is identifiable in Taiwan. Data from the International Coffee Organization shows that Taiwan has seen a steady increase in net coffee imports since the early 1990s. In 2017, the country had the highest levels of fresh coffee consumption per capita in Asia, at approximately 1.9kg per capita/year, and imported an average of 42.75 million kilos/year from 2016/17-2019/20.

Taiwan’s third wave coffee 

A key feature of coffee’s increasing popularity in Taiwan is the development of “third wave coffee.” Third wave coffee is broadly characterized as a move from generally accessible high-quality coffee through brands like Starbucks to considering coffee a luxury item to be savored and appreciated. Major third wave players such as California-based Blue Bottle Coffee are distinguished by placing huge importance on direct supply of single origin specialty beans and an appreciation of the coffee making process from cultivation to cupping.

The most visible indication of Taiwan’s development of a third wave coffee culture is the ubiquity of specialty coffee shops to meet the demand of discerning Taiwanese customers. Wenshan Roasting 聞山咖啡自家烘焙煎 provides a strong example, basing the company’s image around extensive experience roasting and sourcing speciality coffee beans coupled with staff passionate to provide customers with flavourful coffee. In keeping with third wave coffee appreciation ethos, Wenshan Roasting presents the entire process of cultivation, sourcing, and grinding its beans as fundamental to its artisanal coffee. They even provide classes on coffee cupping, syphoning and brewing. Through this Wenshan Roasting has built a homegrown brand centered around appreciation and an artisanal approach to coffee, in step with major third wave players like the Blue Bottle Coffee Company.

Aside from increasing consumption and discerning consumers, cultivation of award-winning coffee within Taiwan further illustrates the impact of coffee culture. Songyue Coffee Farm 嵩岳咖啡莊園 has received the highest global quality rating for its arabica beans and produces the Songyue Gesha I tried in London at Catalyst Roasters, the first company to import this specialty Taiwanese coffee to the UK.

Catalyst Roasters in London is the first business in the UK to import the rare Songyue Gesha coffee beans from Taiwan.        Credit: Max Lembke-Soh

Catalyst partners Dimitris Papailias and Haris Gkikas explained that the team was struck by the Songyue Gesha’s diverse flavor composition despite unusual cultivation conditions. Ideally, Gesha coffee requires high altitudes of over 1500 meters above sea-level and a temperature range of 18-23 degrees Celsius. The Songyue Gesha is grown at 1200 meters with temperatures ranging by as much as 10 degrees Celsius from day to night. Against the odds, these harsh conditions are actually key to the Songyue Gesha’s unique flavor according to Papailias.

“Together this means the coffee fruits mature much slower,” he explains, “this affects the cup profile as the coffee cherries have more time to develop a complexity and diversity of flavors.” Indeed, after receiving samples from the Songyue farm, Catalyst’s managers were so impressed that the team made a special trip to Taiwan to learn about Songyue Gesha and set up a direct supply.

Import demand offers a path to consolidating trade links

However, Taiwan’s domestic coffee production is relatively small, and despite its exceptional quality the time taken to cultivate small volumes of Taiwanese coffee can do little to keep pace with the demand of Taiwanese consumers who rely, therefore, on consistent imports.

This demand presents an avenue for Taiwan to consolidate business linkages with regional trade partners encompassed by the New-Southbound policy such as Indonesia, the top exporter of green coffee beans to Taiwan as of 2018. Though unlikely to have a substantial effect on current trade disruption, sustained demand for producers may go some way to build market confidence in Taiwan as an dependable partner amidst the notorious volatility of global coffee prices. Particularly as Taiwan’s economy has remained relatively unscathed and it remains an international exemplar for handling COVID-19.

If fruitful, this strategy could be applied more broadly to boost trade relations with international exporters, carrying the added benefit of diversifying market variety for Taiwanese consumers.

Though coffee trade volumes are marginal compared to Taiwan’s major technology industries, coffee has the added benefit of being a consistent focus of trade from major exporters seeking access to the Taiwanese market. One example is the United States International Trade Administration, which in September sought to assure US businesses of the value of exporting to Taiwan by expressing confidence in US abilities to maintain its 46% share of Taiwan’s roasted coffee import volume.

In terms of domestic production, consumer demand and trade potential, coffee has had a remarkable impact on Taiwan. If the enthusiasm of Catalyst Roasters is anything to go by it would not be inconceivable for homegrown coffee to join the list of Taiwan’s soft power beverages alongside bubble tea and Kavalan whiskey, that provide a gateway to awareness of Taiwan through international appreciation. From a Taiwanese consumer perspective, diversifying supply could also spell a leveling of prices while broadening variety. With all this in mind, coffee may offer an attractive solution – or at the very least a strong first step – in bolstering consumer choice, international trade relations and opening the door to more substantial connections between Taiwan and other countries.

With the Songyue Gesha still fresh in my thoughts, though sadly no longer in my cup, I consider that coffee may provide Taiwan with yet another area to show the world just how much it has to offer.

2020 Taipei International Coffee Show

Nov. 13 – 16 (Friday through Monday)

10:00 a.m. – 6:00 p.m.

Entrance

Regular Tickets: NT$200

Concession Tickets: NT$100 (aged between 65-69, or visitors with disabilities and one accompanying person)

Seniors over 70 years old and children under 12 years old may enter for free.

Venue

Taipei Nangang Exhibition Center, Hall 1

No.1, Jingmao 2nd Rd., Nangang District, Taipei City

(Feature photo by Max Lembke-Soh)