Coffee in Thailand

PROSPECTS

Fresh ground coffee pods category sees strong growth as consumers seek quality and convenience

Instant products dominate the coffee category in Thailand, and thus dictate its overall performance. Growth of instant coffee was weaker in 2019 compared with previous years due to its increasing maturity, however.

Consumers increasingly seek their favourite on-trade coffees in retail outlets

Growing awareness of the various types of coffee available is also driving demand for more premium options. Leading players are investing heavily in fresh coffee, and future innovations could focus on premium products and ingredients in more sophisticated variants and flavours.

Decaf and organic products not expected to gain traction

Despite the health trend evident throughout the hot drinks market, decaffeinated and organic coffee products are not expected to gain a high level of popularity in Thailand in the foreseeable future. The main reason for this is that the prices of such products are substantially higher than alternative offerings.

COMPETITIVE LANDSCAPE

Players increase focus on more upmarket categories such as fresh ground coffee and pods

Nestlé (Thai) Ltd dominates the coffee category in Thailand, and saw a slight value share gain in 2019. Nestlé has entered the out-of-home cafés environment with establishments called NESCAFÉ HUB, which offer a variety of fresh roast and ground coffees.

Doi Chaang Coffee Co Ltd aims to gain traction in pods with price competitive offerings

Similar to Nestlé, Doi Chaang Coffee Co Ltd has expanded its portfolio in fresh ground coffee pods with the Doi Chaang brand, which previously focused on fresh ground coffee and beans. The fresh ground coffee pods category is expected to gain share from instant coffee due to several factors.

Boncafé (Thailand) implements strategy to boost premium positioning, private label offer remains limited

One company at the forefront of efforts to build brand equity is Boncafé (Thailand). Boncafé is a leading and active brand in fresh coffee beans and fresh ground coffee.

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