Alcoholic
Alcoholic Drinks

Alcoholic Drinks in Thailand

Thailand

Euromonitor International's Alcoholic Drinks in Thailand market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

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Tables: 145  |  Publication date: Feb 2009
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Product coverage

Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine

Executive summary

Moderate growth due to economic recession

After a difficult year in 2007, alcoholic drinks recorded moderate growth in 2008 due to the effect of the economic recession. A the same time, uncertainty in the government ranks led to nationwide protests, with led to further social unrest and fall in consumer confidence. Collectively, these factors hindered the performance of alcoholic drinks. However, promotional campaigns by players with big marketing budgets as well as innovative new launches especially economically priced ones at timely periods helped to stimulate and sustain sales.

Key players expand product portfolios across price points

Similar to 2007, the operating environment for alcoholic drinks in Thailand bore witness to intense competition in 2008, with players trying to offer a wide range of products from premium to economy products. New products were launched across beer, spirits, wine and RTDs/high-strength premixes. Due to the impact of the economic downturn and constrained purchasing power for Thai consumers, players also offered super-economy products to boost consumption amongst low-income drinkers along with limited edition variants of products to build up portfolios and, sometimes, test consumer demand.

More intense competition with strong effort put into developing demand

Thai drinkers’ behaviour became more sophisticated during the review year, which led to more intense competition. During the review period, the rise in raw materials and production costs was partially passed on to end-consumers, with most products offered at slightly higher prices due to taxes and increasing cost. To counter this, manufacturers therefore tried to develop latent demand among drinkers and expand the customer base to stimulate higher consumption. One of the strategies put forth was to focus on strengthening distribution and enabling greater product availability of economically priced drinks and brands for consumers nationwide.

On-trade channel continues its dominance

Both on and off-trade plays an important role in the distribution of alcoholic drinks in Thailand, although the off-trade channel continued to account for the majority of alcoholic drinks’ volume sales in the country. This is despite the stricter regulations enforced in 2007 onwards which prohibits alcoholic drinks to be retailed at forecourt retailers in aim to reduce drink driving and drive related accidents. In addition, alcoholic drinks are also not to be sold through convenience stores located near pharmacies/drugstores, hospitals, religious places and educations institutions while all other locations of convenience stores face shorter retailing hours for alcoholic beverages as compared to other retail channels such as supermarkets and hypermarkets. On -trade channels such as pubs, bars, hotels and restaurants cater to socialising events and tourists while off-trade channels cater well to the needs of the domestic population.

Forecast period performance constrained

Affected by a combination of negative operating environment factors and an absence of growth drivers, volume growth of alcoholic drinks in Thailand is anticipated to decelerate over the forecast period. There is likely to be strong restrictions introduced regarding the pricing and distribution of alcoholic drinks as the country looks to further cement its stand on the Drink, Don’t Drive campaign as well as the further implementation of the draft bill of the Alcohol Control Act could result in an advertising ban for alcoholic drinks via television and outdoor advertising. Thai drinkers, particularly in middle- to low-income groups, are likely to reduce unnecessary spending due to financial constraints caused by an economic downturn. Value growth is likely to be held in check by the shift towards economy alcoholic drinks consumption as well.

Table of contents

ALCOHOLIC DRINKS IN THAILAND : MARKET INSIGHT

EXECUTIVE SUMMARY

Moderate growth due to economic recession

Key players expand product portfolios across price points

More intense competition with strong effort put into developing demand

On-trade channel continues its dominance

Forecast period performance constrained

KEY TRENDS AND DEVELOPMENTS

Poor economic outlook impacts alcoholic drinks sales

Travel and tourism supports performance of alcoholic drinks

Thai consumers become more sophisticated when going for a choice

Increase in drinkers despite growing health and wellness trend

Manufacturers focus on proactive marketing

Specialist retailers

Summary 1 Leading Specialist Retailers 2007

Market merger and acquisition activity

RURAL VS URBAN KEY TRENDS AND DEVELOPMENTS

Trends

Competitive landscape

Prospects

MARKET BACKGROUND

Legislation

TAXATION AND DUTY LEVIES

Table 1 Taxation and Duty Levies on Alcoholic Drinks 2008

Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008

Table 3 Selling Margin of a Typical Domestically Produced Beer Brand 2008 - Leo

Table 4 Selling Margin of a Typical Domestically Produced Wine Brand 2008 – Monsoon Valley

Table 5 Selling Margin of a Typical Imported Wine Brand 2008 – Jacob’s Creek

Table 6 Selling Margin of a Typical Domestically Produced Spirits Brand 2008 – Ruang Kao

Table 7 Selling Margin of a Typical Imported Spirits Brand 2008 – 100 Pipers

OPERATING ENVIRONMENT

Contraband/parallel trade

Duty free

Cross-border/private imports

MARKET INDICATORS

Table 8 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008

MARKET DATA

Table 9 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008

Table 10 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008

Table 11 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008

Table 12 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008

Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008

Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008

Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008

Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008

Table 17 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007

Table 18 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008

Table 19 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008

Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013

Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013

Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013

Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013

DEFINITIONS

Summary 2 Research Sources

LOCAL COMPANY PROFILES - THAILAND

BOON RAWD BREWERY CO LTD - ALCOHOLIC DRINKS - THAILAND

STRATEGIC DIRECTION

KEY FACTS

Summary 3 Boon Rawd Brewery Co Ltd: Key Facts

Summary 4 Singha Corp Co Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 5 Singha Corp Co Ltd: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 6 Boon Rawd Brewery Co Ltd: Competitive Position 2007

CHATEAU DE LOEI CO LTD - ALCOHOLIC DRINKS - THAILAND

STRATEGIC DIRECTION

KEY FACTS

Summary 7 Chateau de Loei Co Ltd: Key Facts

COMPANY BACKGROUND

PRODUCTION

Summary 8 Chateau de Loei Co Ltd: Production Statistics 2007

COMPETITIVE POSITIONING

GRANMONTE CO LTD - ALCOHOLIC DRINKS - THAILAND

STRATEGIC DIRECTION

KEY FACTS

Summary 9 Granmonte Co Ltd: Key Facts

Summary 10 Granmonte Co Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 11 Granmonte Co Ltd: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 12 Granmonte Co Ltd: Competitive Position 2007

SIAM WINERY CO LTD - ALCOHOLIC DRINKS - THAILAND

STRATEGIC DIRECTION

KEY FACTS

Summary 13 Siam Winery Co Ltd: Key Facts

Summary 14 Siam Winery Co Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 15 Siam Winery Co Ltd: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 16 Siam Winery Co Ltd: Competitive Position 2007

THAI ASIA PACIFIC BREWERY CO LTD - ALCOHOLIC DRINKS - THAILAND

STRATEGIC DIRECTION

KEY FACTS

Summary 17 Thai Asia Pacific Brewery Co Ltd: Key Facts

Summary 18 Thai Asia Pacific Brewery Co Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 19 Thai Asia Pacific Brewery Co Ltd: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 20 Thai Asia Pacific Brewery Co Ltd: Competitive Position 2007

BEER IN THAILAND

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR BACKGROUND

Lager price band methodology

Summary 21 Lager by Price Band 2008

Published data comparisons

SECTOR DATA

Table 24 Sales of Beer by Subsector: Total Volume 2003-2008

Table 25 Sales of Beer by Subsector: Total Value 2003-2008

Table 26 Sales of Beer by Subsector: % Total Volume Growth 2003-2008

Table 27 Sales of Beer by Subsector: % Total Value Growth 2003-2008

Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008

Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008

Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 32 Beer: Production, Imports and Exports: Total Volume 2002-2007

Table 33 Beer Exports by Country of Destination: Total Volume 2002-2007

Table 34 Beer Exports by Country of Destination: Total Value 2002-2007

Table 35 Beer Imports by Country of Origin: Total Volume 2002-2007

Table 36 Beer Imports by Country of Origin: Total Value 2002-2007

Table 37 Company Shares of Beer by National Brand Owner 2003-2007

Table 38 Company Shares of Beer by Global Brand Owner 2003-2007

Table 39 Brand Shares of Beer 2004-2007

Table 40 Forecast Sales of Beer by Subsector: Total Volume 2008-2013

Table 41 Forecast Sales of Beer by Subsector: Total Value 2008-2013

Table 42 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013

Table 43 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013

CIDER/PERRY IN THAILAND

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

RTDS/HIGH-STRENGTH PREMIXES IN THAILAND

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 44 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2003-2008

Table 45 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2003-2008

Table 46 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2003-2008

Table 47 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2003-2008

Table 48 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2003-2008

Table 49 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2003-2008

Table 50 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2003-2008

Table 51 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2003-2008

Table 52 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2003-2007

Table 53 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2003-2007

Table 54 Brand Shares of RTDS/High-strength Premixes 2004-2007

Table 55 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2008-2013

Table 56 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2008-2013

Table 57 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2008-2013

Table 58 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2008-2013

WINE IN THAILAND

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

Published data comparisons

SECTOR DATA

Table 59 Sales of Wine by Subsector: Total Volume 2003-2008

Table 60 Sales of Wine by Subsector: Total Value 2003-2008

Table 61 Sales of Wine by Subsector: % Total Volume Growth 2003-2008

Table 62 Sales of Wine by Subsector: % Total Value Growth 2003-2008

Table 63 Sales of Wine by On-trade vs Off-trade Split: Volume 2003-2008

Table 64 Sales of Wine by On-trade vs Off-trade Split: Value 2003-2008

Table 65 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 66 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 67 Volume Sales of Still Red Wine by Price Segment 2003-2008

Table 68 Volume Sales of Still White Wine by Price Segment 2003-2008

Table 69 Volume Sales of Still Rosé Wine by Price Segment 2003-2008

Table 70 Volume Sales of Other Sparkling Wine by Price Segment 2003-2008

Table 71 Sales of Still Red Wine by Grape/Varietal Type 2003-2008

Table 72 Sales of Still White Wine by Grape/Varietal Type 2003-2008

Table 73 Sales of Still Rosé Wine by Grape/Varietal Type 2003-2008

Table 74 Sales of Still Red Wine by Quality Classification 2003-2008

Table 75 Sales of Still White Wine by Quality Classification 2003-2008

Table 76 Sales of Still Rosé Wine by Quality Classification 2003-2008

Table 77 Wine Production, Imports and Exports: Total Volume 2002-2007

Table 78 Wine Exports by Country of Destination: Total Volume 2002-2007

Table 79 Wine Exports by Country of Destination: Total Value 2002-2007

Table 80 Wine Imports by Country of Origin: Total Volume 2002-2007

Table 81 Wine Imports by Country of Origin: Total Value 2002-2007

Table 82 Company Shares of Still Light Grape Wine by National Brand Owner 2003-2007

Table 83 Company Shares of Still Light Grape Wine by Global Brand Owner 2003-2007

Table 84 Brand Shares of Still Light Grape Wine 2004-2007

Table 85 Company Shares of Champagne by National Brand Owner 2004-2007

Table 86 Company Shares of Champagne by Global Brand Owner 2004-2007

Table 87 Brand Shares of Champagne 2004-2007

Table 88 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2004-2007

Table 89 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2004-2007

Table 90 Brand Shares of Fortified Wine and Vermouth 2004-2007

Table 91 Forecast Sales of Wine by Subsector: Total Volume 2008-2013

Table 92 Forecast Sales of Wine by Subsector: Total Value 2008-2013

Table 93 Forecast Sales of Wine by Subsector: % Total Volume Growth 2008-2013

Table 94 Forecast Sales of Wine by Subsector: % Total Value Growth 2008-2013

SPIRITS IN THAILAND

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR BACKGROUND

Vodka, gin and other blended Scotch whisky Price band methodology

SECTOR DATA

Table 95 Sales of Spirits by Subsector: Total Volume 2003-2008

Table 96 Sales of Spirits by Subsector: Total Value 2003-2008

Table 97 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008

Table 98 Sales of Spirits by Subsector: % Total Value Growth 2003-2008

Table 99 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008

Table 100 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008

Table 101 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 102 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 103 Sales of Gin by Premium/Super-premium Split 2005-2008

Table 104 Sales of Vodka by Premium/Super-premium Split 2005-2008

Table 105 Sales of Flavoured vs Non-flavoured Vodka 2003-2008

Table 106 Spirits Production, Imports and Exports: Total Volume 2002-2007

Table 107 Spirits Exports by Country of Destination: Total Volume 2002-2007

Table 108 Spirits Exports by Country of Destination: Total Value 2002-2007

Table 109 Spirits Imports by Country of Origin: Total Volume 2002-2007

Table 110 Spirits Imports by Country of Origin: Total Value 2002-2007

Table 111 Whisk(e)y Production, Imports and Exports: Total Volume 2002-2007

Table 112 Brandy & Cognac Production, Imports and Exports: Total Volume 2002-2007

Table 113 Vodka Production, Imports and Exports: Total Volume 2002-2007

Table 114 Gin Production, Imports and Exports: Total Volume 2002-2007

Table 115 Rum Production, Imports and Exports: Total Volume 2002-2007

Table 116 Liqueurs Production: Total Volume 2002-2007

Table 117 Other Spirits Production: Total Volume 2002-2007

Table 118 Company Shares of Spirits by National Brand Owner 2003-2007

Table 119 Company Shares of Spirits by Global Brand Owner 2003-2007

Table 120 Brand Shares of Spirits 2004-2007

Table 121 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013

Table 122 Forecast Sales of Spirits by Subsector: Total Value 2008-2013

Table 123 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013

Table 124 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013

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