Fine Wines/Champagne and Spirits in Thailand

2020 IMPACT

Absence of foreign tourists diminishes demand for fine wines/champagne and spirits

As with other categories within Thailand’s luxury goods market, foreign residents and tourists make a huge contribution to overall consumption of fine wines/champagne and spirits. This meant that the closure of Thailand’s borders to foreigners in response to the COVID-19 pandemic during 2020 had a huge negative impact on sales in the category.

The lockdown and social distancing place further pressure on category sales

With sales of fine wines/champagne and spirits already under pressure due to the absence of foreign tourists from Thailand in 2020, the category faced further difficulties during the year due to the restrictions that were placed on the ability of on-trade venues to operate at the peak of the COVID-19 pandemic. A high proportion of sales of fine wines/champagne and spirits are accounted for by the on-trade and the government-mandated shutdown of Thailand’s entire hospitality industry for an extended period during the quarantine lockdown at the peak of the COVID-19 pandemic thus placed substantial pressure on category sales.

Shift towards the off-trade supports sales growth and reduces impact of COVID-19

The drop in sales via pubs, bars, restaurants and other high-risk venues that were allowed to reopen during the fifth phase of the relaxation of lockdown measures was reflected in an easing of the pressure on demand on the retail channel as consumption shifted to the off-trade. Whether socialising outside of the home band during the lockdown.

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