Hot Drinks in Thailand
Euromonitor International's Hot 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: 71 | Publication date: May 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Hot drinks consumption continues to grow in 2008
Retail volume sales of hot drinks increased by 12% in 2008, which was slightly lower than the average volume recorded during the review period. Off-trade current value sales on the other hand increased by 16%, exceeding the average registered over the review period. The higher retail value growth was mainly driven by increases in manufacturer price. In volume terms, off-trade growth was stronger than on-trade, reflecting that most hot drinks in Thailand are actually consumed at home. The increasing popularity of functional coffee and tea, which retails at a higher price than their standard counterparts, also aided the superior value growth in 2008.
Functional weight management drinks impact hot drinks consumption
In 2008, increasing health concerns among Thai consumers spurred new interest in hot drinks, particularly in functional weight management products. During the review period, massive advertising by manufacturers of these functional hot drinks drove up demand. Manufacturers sought to capitalise on this trend by launching a variety of new hot drinks products such as strong/mild coffee, sugar free coffee, green tea, etc. Growing consumer interest allowed them to penetrate mainstream retail outlets towards the end of the review period. In 2008, most major grocery retail chains carried a wide range of functional weight management drinks alongside their coffee/tea section.
Coffee continues to be the strongest performer in 2008
Thai consumers still choose coffee as the hot drink of choice at home, in the office or at cafes. Coffee accounts for 77% of total volume sales of hot drinks in 2008. While instant coffee remains the favourite, the substantial increase in speciality coffee shops and kiosks serving premium fresh coffee is also growing in popularity as it is viewed as affordable luxury. With more money in their pockets, many Thai consumers are prepared to pay a little extra to indulge themselves. Thus, manufacturers focused on developing new premium coffee variants that compared favourably with standard products in terms of taste and quality. Coffee-based functional hot drinks also showed strong growth in demand as increasing health awareness and the trend towards healthier lifestyles continue. However, in the last quarter of 2008, consumers became more vigilant about their daily expenditure and cautious about spending on premium products.
Supermarkets/hypermarkets continues to dominate retail distribution
Supermarkets/hypermarkets continued to dominate hot drinks retail distribution in 2008, with leading operators in the channel taking advantage of the functional trend to attract more consumers. On-trade volume sales also registered strong growth over the review period, as more Thai consumers indulge in speciality coffee and wellness tea. The coffee shop boom has spread to more rural towns and shopping malls over the review period; however, this channel is expected to be negatively affected in the short-term due to the economic downturn. In the forecast period, direct selling is expected to emerge as an important distribution channel.
Hot drinks future is bright
Forecast period value growth for hot drinks is expected to outpace that registered in the review period. Key drivers for growth during the forecast period will continue to be convenience and health benefits. Functional hot drinks will stimulate coffee and tea growth whereas other hot drinks growth will be driven by innovative products such as those offering greater indulgence and fortification. Pricing will emerge as a key deciding factor over the short term, as consumers are expected to think twice before purchasing high priced products.
Table of contents
HOT DRINKS IN THAILAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Hot drinks consumption continues to grow in 2008
Functional weight management drinks impact hot drinks consumption
Coffee continues to be the strongest performer in 2008
Supermarkets/hypermarkets continues to dominate retail distribution
Hot drinks future is bright
KEY TRENDS AND DEVELOPMENTS
Functional drinks, the rising star of hot drinks
All–In-One convenient hot drinks products fare well
Growth of modern retail outlets impacts on product reach
Young, urban population emerging as a key audience for hot drinks
Premium drinks likely to be affected by economic slowdown
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Hot Drinks Company Shares by Value 2004-2008
Table 12 Hot Drinks Brand Shares by Value 2005-2008
Table 13 Penetration of Private Label by Sector 2004-2008
Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 15 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 25 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
APPENDIX
Published Data Comparisons
Production/import/export Data
Table 26 Imports/Exports of Hot Drinks for selected Sector 2004-2007
Table 27 Imports/Exports of Hot Drinks for selected Sector 2008
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - THAILAND
BONCAFé (THAILAND) CO LTD - HOT DRINKS - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Boncafé (Thailand) Co Ltd : Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Boncafé (Thailand) Co Ltd : Competitive Position 2008
GREENTEA THAI LTD - HOT DRINKS - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Greentea Thai Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Greentea Thai Ltd: Competitive Position 2008
KHAO SHONG INDUSTRY 1979 CO LTD - HOT DRINKS - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Khao Shong Industry 1979 Co Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Khao Shong Industry 1979 Co Ltd: Competitive Position 2008
UEY PO KEE TEA STORE CO LTD - HOT DRINKS - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Uey Po Kee Tea Store Co Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 9 Uey Po Kee Tea Store Co Ltd: Competitive Position 2008
COFFEE IN THAILAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 28 Coffee Machine Sales: 2002-2007
Table 29 Instant Coffee by Speciality Type 2004-2008
Table 30 Retail Sales of Coffee by Type: Volume 2003-2008
Table 31 Retail Sales of Coffee by Type: Value 2003-2008
Table 32 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 33 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 34 Standard Vs Coffee Pods 2004-2008
Table 35 Coffee Company Shares 2004-2008
Table 36 Coffee Brand Shares 2005-2008
Table 37 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 38 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 39 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 40 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN THAILAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 41 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 42 Other Tea by Type: % Off-trade Volume 2005-2008
Table 43 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 44 Retail Sales of Tea by Subsector: Value 2003-2008
Table 45 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 46 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 47 Tea Company Shares 2004-2008
Table 48 Tea Brand Shares 2005-2008
Table 49 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 50 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 51 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 52 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN THAILAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 53 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 54 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 55 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 56 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 57 Other Hot Drinks Company Shares 2004-2008
Table 58 Other Hot Drinks Brand Shares 2005-2008
Table 59 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 60 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 61 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 62 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013