Development Trends and Strategic Transformation of Taiwan’s Coffee Industry: An Industry Life Cycle Perspective
Kun Yi Lu *
Feng Chia University, Taiwan.
*Author to whom correspondence should be addressed.
Abstract
In recent years, Taiwan’s coffee industry has experienced rapid expansion, driven by evolving consumer preferences, rising cultural significance, and increasing specialization in the food and beverage sector. However, the industry is now encountering significant structural shifts, as market saturation, consumer behavioral changes, and intensifying competition redefine the strategic landscape. This study explores the development and transformation of Taiwan’s coffee industry through the lens of the Industry Life Cycle (ILC) theory, supported by the Resource-Based View (RBV) and cultural branding theories. Employing a qualitative case study methodology, we analyze five representative firms across distinct stages of the life cycle, examining their strategic positioning, brand value creation, and adaptive capabilities. The findings reveal a fragmented and asynchronous development pattern within the industry, where firms must navigate complex transitions through context-sensitive strategies. The paper concludes with strategic and policy recommendations aimed at fostering sustainable growth, value differentiation, and cultural innovation. This research can help companies grasp industry trends and strengthen brand differentiation strategies. It can also assist policymakers in designing industrial policies to cultivate talent, promote cultural brands, and foster sustainable development.
Keywords: Taiwan coffee industry, industry life cycle, business strategy, cultural branding, qualitative research, market saturation, innovation