Taipei: Taiwan's retail sales ended a nine-year growth streak in 2025, slipping 0.2 percent from a year earlier as uncertainty over U.S. tariff policies affected demand for durable goods, according to the Ministry of Economic Affairs (MOEA).
According to Focus Taiwan, retail sales in Taiwan totaled NT$4.84 trillion (US$153 billion) in 2025, down about NT$9.5 billion, or 0.2 percent, from 2024. Despite the decline, the figure remained the second-highest annual sales total on record.
Chen Yu-fang, deputy head of the MOEA's Department of Statistics, reported that sales of cars, motorcycles, and related components, which made up 17.4 percent of total retail sales in 2025, decreased by NT$68.1 billion, or 7.5 percent, from the previous year. Many consumers, wary of how their incomes might be impacted by American tariff policies yet to be finalized, adopted a cautious approach towards significant purchases such as automobiles, leading to a slump in sales.
In addition to this, retail fuel sales also fell by NT$14.3 billion, or 5.4 percent, in 2025 due to declining international crude oil prices, as stated by the MOEA. However, excluding sales in the auto and motorcycle sector, overall retail sales saw a rise of 1.5 percent year-on-year.
Sales at department stores, supermarkets, hypermarkets, and convenience stores defied the broader downturn, increasing by a combined NT$46.4 billion, or 3.0 percent, which helped mitigate the overall decline. A positive development was observed towards the end of the year, as sales of cars, motorcycles, and related components in December rose by about 10 percent from a year earlier to NT$83.5 billion, reversing a nine-month downturn and suggesting a potential recovery in purchasing.
The food and beverage industry's revenue in 2025 rose 2.9 percent from the previous year to NT$1.07 trillion, even though December revenue saw a 1.1 percent decline to NT$95.0 billion. The December shortfall was attributed to consumers postponing spending for the Lunar New Year holiday, which is set to occur in February 2026, as opposed to late January in 2025.
Meanwhile, the wholesale sector's revenue increased by 8.7 percent from a year earlier to NT$14.07 trillion in 2025, bolstered by strong global demand for AI servers and related devices, according to the ministry. Looking ahead, the MOEA forecasts retail sales in January to range between NT$424.6 billion and NT$438.0 billion, representing a decrease of 1.8-4.8 percent from the previous year, with revenue in the food and beverage industry expected to range between NT$96.0 billion to NT$99.2 billion, down 6.1-9.1 percent.
Conversely, the wholesale sector's revenue is projected to rise 11-14 percent year-on-year to between NT$1.21 trillion and NT$1.25 trillion in January, driven by robust AI-related demand, Chen added.