Juice in Thailand

PROSPECTS

Sugar tax increases negatively impact retail sales of juice

The Thai government is progressively increasing the levels of the sugar tax, which it introduced in September 2017, with the last increases introduced in October 2019. The tax is also progressive, in that differing sugar levels are taxed at different levels, with higher sugar levels subject to higher tax levels.

Coconut and other plant waters benefit from the health trend

Coconut and other plant waters was by far the most dynamic juice category in Thailand in off-trade volume and current value growth terms in 2019. While this was partly due to its ongoing emergence from a low base, the category’s performance was also bolstered by the fact that it has a comparatively healthy image.

Players use innovation and attractive packaging to try to maintain sales

Given the ongoing declines in juice consumption, players have been active in trying to attract consumers to their products using a number of innovative strategies. Many players have focused their new product development on producing healthier versions of their brands by introducing added nutrients and attractive package.

COMPETITIVE LANDSCAPE

Coca-Cola (Thailand) maintains its lead but loses ground to local players

Coca-Cola continued to lead juice in off-trade value and volume terms in 2019 thanks to the strong position of its Minute Maid brand in juice drinks (up to 24% juice). Its overall value share again contracted during the year as health concerns and the sugar tax caused demand in the juice drinks (up to 24% juice) category to fall sharply.

Companies eye export markets to grow revenues

Given the recent political uncertainties in Thailand, the weak economy and the introduction of the progressive sugar tax, the competitive environment in juice has intensified. Companies have therefore been looking to export markets to combat declining sales at home.

Competition in coconut water intensifies

Coconut and other plant waters was the star in terms of retail volume growth in 2019, and was the only category to record growth, albeit from a small base. This encouraged greater competition, with many new brands entering the category riding on the health and wellbeing trend by offering health-positioned products.

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