Thailand’s booming coffee culture has resulted in the proliferation of both chain and artisan coffee shops. The growing number of coffee shops has resulted in increasing demand for coffee whiteners, condensed milk and cream throughout Thailand.
With the number of cafés and bakery shops increasing in Thailand, it has become less desirable to cook and eat at home for consumers. As a result, coffee whiteners and condensed milk saw retail volume growth slow further in 2019, with the latter registering a decline.
Another factor driving demand for other dairy through the foodservice channel is the growing popularity of bubble tea cafés and Thai milk tea shops, for which coffee whiteners is a key ingredient. Furthermore, the growing number of in-store bakeries and cafés offering Japanese-style baked goods, such as light and fluffy Japanese cheesecake and choux crème, are gaining in popularity.
Nestlé (Thai) Ltd’s Coffee-mate brand continued to dominate coffee whiteners in 2019. Coffee-mate is synonymous with coffee whiteners among local consumers because it was the first brand to enter the category in Thailand.
Some players in coffee whiteners are targeting specific foodservice channels as they look to increase their sales. For example, Coffee Dreamy is targeting the bubble tea market as it looks to grow its share.
Home consumption is favouring convenient, fat-free products, as was seen with the favourable response to squeezable condensed milk tubes and to new cans for evaporated milk and instant whipped cream. All of the leading players in condensed milk have launched squeezable bottles, which makes it easier to create sweet treats.
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This industry report originates from Passport, our Packaged Food market research database.