Cider/Perry in Thailand

PROSPECTS

Cider/perry growth supported by the health and wellness trend and rising demand from millennials

Cider/perry remained a small category in Thailand in 2018 but continued to record strong double-digit total volume and current value growth. This can be attributed to various factors, including the ongoing health and wellness trend, with consumers appreciating the use of real apples, as well as rising demand from millennials, who are looking for new alcoholic drinks options, especially women who find cider easier to drink than beer and other alcoholic drinks due to its sweet taste and low alcohol content.

Increasing competition

Thai consumers are being exposed to a wider range of imported cider brands, with Strongbow and Somersby having being launched in recent years to challenge existing brands such as Magners. Apple cider remained the dominant flavour in the category at the end of the review period although the launch of flavoured ciders such as Strongbow Red Berries suggests that other flavours could become popular over the forecast period and serve to further increase competition within the category.

On-trade remains the leading channel but off-trade continues to record the strongest gains

The on-trade continued to account for the bulk of cider/perry total volume sales in 2018 as most of the players present in the category remained focused on this channel in order to target mid- to high-income young adults, particularly in the Bangkok area. However, the off-trade continued to register stronger volume sales growth and is expected to overtake the on-trade in 2019 to become the leading distribution channel for cider/perry.

COMPETITIVE LANDSCAPE

Thai Asia Pacific Brewery assumes category leadership

Thai Asia Pacific Brewery became the leading player in cider/perry in 2018, relegating C&C Group into second position thanks to a massive rise in share of around 16 percentage points. This gain can be attributed to a number of factors, including the relaunch of Strongbow apple cider in 2017 and reducing the price of the brand to make it more accessible to young adult consumers.

Lack of marketing activity from other players

Other than Thai Asia Pacific Brewery, which has been investing in brand building activities for Strongbow, the category saw little in the way of marketing campaigns from other players in 2018. C&C Group and Siam Winery both continued to lose ground, while the share of “others” also declined significantly, primarily due to the withdrawal of Syder Bay from Boon Rawd Brewery in 2017.

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