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: 53 | Publication date: Jun 2006
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- Get insight into trends in market performance
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Executive summary
Hot drinks strike growth despite hot climate
In general, the hot climate in Thailand is the major obstacle to a higher per capita consumption for hot drinks. Thai consumers much prefer cold drinks from the wide range available in both the on-trade and off-trade channels to cool themselves down. That said, over the review period, the hot drinks market in Thailand continued to register good growth due to the rising incidence of coffee consumption. Internationally popular foodservice outlets such as Starbucks Coffee Company positively impacted local consumption as coffee drinkers continued to shift from instant coffee to the high end, premium fresh coffee. As well as an increased number of coffee consumers in Thailand, the number of cups of coffee consumed by regular coffee drinkers rose too.
Health awareness and market sophistication to boost growth of tea
Continuing the trend of the previous year, the relatively mature tea sector witnessed revived popularity due to the expansion of green tea and fruit/herbal tea in 2005. The increasing health awareness amongst Thai consumers was also responsible for the growing popularity of tea since tea is perceived as having health and wellness properties. The increasing sophistication of Thai consumers partially contributed to the growth of tea during 2005. With more sophisticated and health conscious consumers, major tea players have come up with wider tea varieties to gain share of sector sales. In addition, the strong performance of RTD green tea also positively contributed to the growth of green tea.
Ovaltine galore within other hot drinks
Despite the rising presence of other brands, Ovaltine continued to stamp its authority within other hot drinks. Offering good quality at reasonable prices, malt-based hot drinks enjoy a tremendously large consumer base, including children, women, and the elderly. The brand reigns supreme in terms of brand image and brand recognition, bolstered by consistent advertising and promotion through various media. Over the review period, however, the strongest value and volume expansion was registered within chocolate-based flavoured powder drinks, emerging from a niche and considerably smaller sales base. This product, conversely, is positioned on the premium platform.
Raised unit price to target premium consumers
Due to the sophisticated nature of most hot drinks, consumption of hot drinks in Thailand is increasingly dependent on consumers with higher disposable income. The market is clearly divided into economy and premium price platforms. Premium products focus more on profit margin to afford low volume sales. This characteristic of the market drove imperative price increases during 2005.
Growth of sophisticated consumers to ensure long term market development
With progressively strong economic development, Thailand recorded a very low unemployment rate of merely 1.3% in 2005. Despite a high inflation rate of 4.5% in 2005, urban consumers tend to continue to spend on other unnecessary and luxury products. The growing domestic economy results in more middle to high-income consumers who can afford to be sophisticated when it comes to food and drink purchases. Hot drinks is expected to grow slowly but firmly under these conditions with the target consumer group being connoisseurs with low price-sensitivity. Euromonitor International projects a good 6% volume expansion over the forecast period, spearheaded by coffee and the revival of tea.
Table of contents
HOT DRINKS IN THAILAND : MARKET INSIGHT
EXECUTIVE SUMMARY
HOT DRINKS SALES
Market Performance
Table 1 Retail Sales of Hot Drinks by Sector: Volume 2000-2005
Table 2 Retail Sales of Hot Drinks by Sector: Value 2000-2005
Table 3 Retail Sales of Hot Drinks by Sector: % Volume Growth 2000-2005
Table 4 Retail Sales of Hot Drinks by Sector: % Value Growth 2000-2005
Competitive Environment
Table 5 Hot Drinks Company Shares by Retail Value 2001-2005
Table 6 Hot Drinks Brand Shares by Retail Value 2002-2005
Retail Distribution
Table 7 Retail Sales of Hot Drinks by Distribution Format: % Analysis 2000/2005
Table 8 Retail Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2005
Retailer Activity and Private Label Trends
Table 9 Penetration of Private Label by Sector 2001- 2005
Forecast Market Performance
Table 10 Forecast Retail Sales of Hot Drinks by Sector: Volume 2005-2010
Table 11 Forecast Retail Sales of Hot Drinks by Sector: Value 2005-2010
Table 12 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2005-2010
Table 13 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2005-2010
DEFINITIONS
LOCAL COMPANY PROFILES - THAILAND
GREENTEA THAI LTD - HOT DRINKS - THAILAND
COMPANY BACKGROUND
RECENT NEWS
Summary 1 Summary - Greentea Thai Ltd Operational Indicators 2005
KHAO SHONG INDUSTRY 1979 CO LTD - HOT DRINKS - THAILAND
COMPANY BACKGROUND
Summary 2 Summary - Khao Shong Industry 1979 Co Ltd Operational Indicators 2005
PRODUCTION CAPACITY
RAMING TEA CO LTD - HOT DRINKS - THAILAND
COMPANY BACKGROUND
Summary 3 Summary - Raming Tea Co Ltd Operational Indicators 2005
PRODUCTION CAPACITY
Summary 4 Summary - Raming Tea Co Ltd: Production Statistics 2005
UEY PO KEE TEA STORE CO LTD - HOT DRINKS - THAILAND
COMPANY BACKGROUND
RECENT NEWS
Summary 5 Summary - Uey Po Kee Tea Store Co Ltd Operational Indicators 2005
PRODUCTION CAPACITY
Summary 6 Summary - Uey Po Kee Tea Store Co Ltd: Production Statistics 2005
COFFEE IN THAILAND
SECTOR PERFORMANCE
2005 headlines
Growth diversified due to various new entries
Nescafé focuses on niche marketing to defend share of sector sales
Increasing popularity of house blend coffee induces demand for fresh ground coffee
New products galore!
Close gap between volume and value growth
Instant standard coffee seeks growth from 3-in-1
Forecast performance
Table 14 Retail Sales of Coffee by Type: Volume 2000-2005
Table 15 Retail Sales of Coffee by Type: Value 2000-2005
Table 16 Retail Sales of Coffee by Type: % Volume Growth 2000-2005
Table 17 Retail Sales of Coffee by Type: % Value Growth 2000-2005
Table 18 Coffee Company Shares 2001-2005
Table 19 Coffee Brand Shares 2002-2005
Summary 7 Summary - Coffee: New Product Launches 2005
Table 20 Forecast Retail Sales of Coffee by Type: Volume 2005-2010
Table 21 Forecast Retail Sales of Coffee by Type: Value 2005-2010
Table 22 Forecast Retail Sales of Coffee by Type: % Volume Growth 2005-2010
Table 23 Forecast Retail Sales of Coffee by Type: % Value Growth 2005-2010
COFFEE PODS PERFORMANCE
Table 24 Standard Vs Coffee Pods 2004/2005
TEA IN THAILAND
SECTOR PERFORMANCE
2005 headlines
Growth accelerates due to rising health awareness
Adopted food and drink culture induces stronger tea drinking habit
Triumph of RTD green tea contributes to the sudden success of green tea
Health awareness drives demand for fruit/herbal tea
Black standard tea dominates
Product luxury results in major price increase
Lipton maintains leading position
Forecast performance
Table 25 Retail Sales of Tea by Subsector: Volume 2000-2005
Table 26 Retail Sales of Tea by Subsector: Value 2000-2005
Table 27 Retail Sales of Tea by Subsector: % Volume Growth 2000-2005
Table 28 Retail Sales of Tea by Subsector: % Value Growth 2000-2005
Table 29 Tea Company Shares 2001-2005
Table 30 Tea Brand Shares 2002-2005
Summary 8 Summary - Tea: New Product Launches 2005
Table 31 Forecast Retail Sales of Tea by Subsector: Volume 2005-2010
Table 32 Forecast Retail Sales of Tea by Subsector: Value 2005-2010
Table 33 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2005-2010
Table 34 Forecast Retail Sales of Tea by Subsector: % Value Growth 2005-2010
OTHER HOT DRINKS IN THAILAND
SECTOR PERFORMANCE
2005 headlines
Sluggish growth due to saturated malt-based drinks sales
Ovaltine on the move to reiterate its health and wellness benefits
Bakery boom promotes sales of chocolate-based flavoured hot drinks
Raised unit price due to expensive oil price
Other plant-based hot drinks lose sales to grey market
Forecast performance
Table 35 Retail Sales of Other Hot Drinks by Subsector: Volume 2000-2005
Table 36 Retail Sales of Other Hot Drinks by Subsector: Value 2000-2005
Table 37 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2000-2005
Table 38 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2000-2005
Table 39 Other Hot Drinks Company Shares 2001-2005
Table 40 Other Hot Drinks Brand Shares 2002-2005
Summary 9 Summary - Other Hot Drinks: New Product Launches 2005
Table 41 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2005-2010
Table 42 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2005-2010
Table 43 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2005-2010
Table 44 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2005-2010