Hot drinks in Thailand saw higher off-trade volume and current value growth in 2018, compared with 2017. Manufacturers are responding to the key premiumisation, convenience and health and wellness trends to provide consumers with products that meet their changing needs and tastes.
The growing coffee and tea drinking cultures in the country are underpinned by the spread of specialist coffee shops and tea rooms, which offer a widening variety of more premium options. Rising disposable incomes are encouraging especially young adults to try new and more sophisticated products.
Led by Nestlé, international manufacturers continued to account for the bulk of retail value shares in hot drinks in 2018. Nonetheless, there remains a significant domestic presence, especially in certain categories.
There is significant new product development across hot drinks in Thailand. Premiumisation and health and wellness are driving this activity, with premium options and healthier ingredients to the fore.
Compared with 2018 and the review period as a whole, hot drinks is projected to see slower off-trade volume, but faster off-trade current value growth over the forecast period. While a level of market saturation is likely to dampen volume sales development, the premiumisation, health and wellness and convenience trends will add dynamism and value to the category.
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This industry report originates from Passport, our Hot Drinks market research database.