Alcoholic Drinks in Thailand

Report Summary

Discover the latest market trends and uncover sources of future market growth for the Alcoholic Drinks industry in Thailand with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

The Alcoholic Drinks in Thailand market research report includes:

• Analysis of key supply-side and demand trends
• Detailed segmentation of international and local products
• Historic volumes and values, company and brand market shares
• Five year forecasts of market trends and market growth
• Production, imports by origin, exports by destination
• Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

• What is the market size of Alcoholic Drinks in Thailand?
• What are the major brands in Thailand?
• Have there been any alcoholic drinks legislative changes over the past 12 months?
• How is the alcoholic drinks industry affected by the recession?
• What is consumed more; beer, wine or spirits?
• What have been the key trends seen in new product developments?
• Do alcoholic drinks consumers want value for money or added value?

Why buy this report?

• Gain competitive intelligence about market leaders
• Track key industry trends, opportunities and threats
• Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Alcoholic Drinks market research database.

EXECUTIVE SUMMARY

Recovering growth due to strong efforts by industry players

With the alcoholic drinks market in Thailand depressed by certain negative factors to do with economic and political uncertainty, some planned investments by domestic and international players were either cancelled or postponed. As a result, the overall market performance was therefore hindered and consumption was affected However, manufacturers made great efforts to stimulate the market via a wide range of activities and programmes. Even though the market tended to see a lack of dynamism in terms of new launches, aggressive marketing strategies were seen with the purpose of maintaining and strengthening players’ positions.

Potential for increasing wine consumption among Thai drinkers

While manufacturers had to work hard to boost demand for and consumption of beer and spirits, demand for wine needed less stimulation, especially among young working groups of consumers in urban areas. Even though demand for beer and spirits illustrated growth, wine led the way in terms of growth in 2011. As wine sales in Thailand remained comparatively small, room for growth was still clearly present in 2011. There was also an observable trend of wine drinking in pubs/bars and restaurants among Thai people. Many outlets for wine drinking were established, particularly in Bangkok and other urban areas. The demand was mainly driven by still red wine.

Domestic players control the major areas in the market

In 2011, domestic manufacturers continued to dominate the market against international manufacturers. With beer and spirits considered to be the two core products in the alcoholic drinks market in Thailand, both areas were controlled by domestic players, namely Boon Rawd Brewery Co Ltd and Thai Beverage Plc. Thanks to strong brand loyalty and distribution networks, these companies maintained their strong positions. On the other hand, the alcoholic drinks market was encountering fiercer competition. There was an emphasis on pricing and distribution networks as a number of Thai drinkers tended to be price sensitive, although the convenience factor could influence them to switch to alternative brands.

Off-trade channel more popular but the on-trade channel is emerging

In the Thai market, both the on- and off-trade channels played an important role in distribution. However, the off-trade channel was preferred. One reason for this was that alcoholic drinks were offered at cheaper prices in the off-trade. The off-trade channel continued to account for the majority of volume sales of alcoholic drinks in 2011. Major expansion of the off-trade channel benefited sales in terms of greater accessibility of alcoholic drinks. However, sales via the on-trade also showed positive growth thanks to strong efforts by manufacturers, especially during what is seen as the high season. Sales and consumption via the on-trade is therefore projected to continue to see an encouraging performance through pubs/bars, hotels and restaurants.

Improving economy promises further recovery in the forecast period

Over the forecast period the alcoholic drinks market is anticipated to see a faster growth rate with the hopes of market recovery, backed by a number of supportive factors. The core reasons will be the recovering situation in the Thai economy and Thai people’s lifestyle of drinking, since they tended to continue having a strong culture of drinking. The market will therefore maintain its attractiveness for manufacturers. Thailand’s wealth of nightlife venues will also continue to be the targeted areas for manufacturers for stimulating consumption and sales. Below-the-line promotions and activities are expected to be launched directly at the target audiences.

Table of Contents

Alcoholic Drinks in Thailand - Industry Overview

EXECUTIVE SUMMARY
Recovering growth due to strong efforts by industry players
Potential for increasing wine consumption among Thai drinkers
Domestic players control the major areas in the market
Off-trade channel more popular but the on-trade channel is emerging
Improving economy promises further recovery in the forecast period

KEY TRENDS AND DEVELOPMENTS
Alcoholic drinks consumption recovers to see a positive trend
Branding could be an most important focus for all players in the marketplace
Increasingly price-sensitive consumer boosts demand for low-priced products
On-trade sales benefit from the expansion of new chained and independent restaurants, pubs and bars
Key new product launches
Specialist retailers
Summary 1 Leading Specialist Retailers 2011
Market merger and acquisition activity
Summary 2 Merger and Acquisition Activity 2010-2011

MARKET BACKGROUND
Legislation
Table 1 Number of On-trade Establishments by Type 2006-2010

TAXATION AND DUTY LEVIES
Table 2 Taxation and Duty Levies on Alcoholic Drinks 2011
Summary 3 Import Tax
Table 3 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories 2011
Table 4 Selling Margin of a Typical Beer Brand 2011 – Chang
Table 5 Selling Margin of a Typical Wine Brand 2011 – Penfolds Bin 128
Table 6 Selling Margin of a Typical Spirits Brand 2011 – 100 Pipers 8 YO

OPERATING ENVIRONMENT
Contraband/parallel trade

MARKET INDICATORS
Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2006-2011

MARKET DATA
Table 8 Sales of Alcoholic Drinks by Category: Total Volume 2006-2011
Table 9 Sales of Alcoholic Drinks by Category: Total Value 2006-2011
Table 10 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2006-2011
Table 11 Sales of Alcoholic Drinks by Category: % Total Value Growth 2006-2011
Table 12 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Volume 2011
Table 13 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Value 2011
Table 14 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Volume 2011
Table 15 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Value 2011
Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2007-2011
Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006-2011
Table 18 Off-trade Sales of Alcoholic Drinks by Category and Distribution Format: % Volume Analysis 2011
Table 19 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2011-2016
Table 20 Forecast Sales of Alcoholic Drinks by Category: Total Value 2011-2016
Table 21 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2011-2016
Table 22 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2011-2016

DEFINITIONS
Summary 4 Research Sources

Alcoholic Drinks in Thailand - Company Profiles

Boon Rawd Brewery Co Ltd in Alcoholic Drinks (Thailand)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 6 Boon Rawd Brewery Co Ltd: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 7 Boon Rawd Brewery Co Ltd: Competitive Position 2011

Regency Thai Co Ltd in Alcoholic Drinks (Thailand)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 10 Regency Thai Co Ltd: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 11 Regency Thai Co Ltd: Competitive Position 2011

Siam Winery Co Ltd in Alcoholic Drinks (Thailand)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 14 Siam Winery Co Ltd: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 15 Siam Winery Co Ltd: Competitive Position 2011

Thai Asia Pacific Brewery Co Ltd in Alcoholic Drinks (Thailand)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 18 Thai Asia Pacific Brewery Co Ltd: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 19 Thai Asia Pacific Brewery Co Ltd: Competitive Position 2011

Wine Connection Co Ltd in Alcoholic Drinks (Thailand)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
Chart 1 Wine Connection Co Ltd: Wine Connection in Bangkok
PRIVATE LABEL
COMPETITIVE POSITIONING

Beer in Thailand - Category Analysis

HEADLINES

TRENDS
The consumption trend of beer continued to rely on domestic economy lager, especially in terms of market volume, owing to its affordable prices. Over the review period, the trend of switching was witnessed during the economic crisis in Thailand; a number of beer drinkers opted for cheaper alcoholic drinks, with beer considered to be expensive compared to other products, for example Sura Khao, mixed spirits and ad-mix whiskies. As a result, cannibalisation across product categories was seen and the trend was still lingering in 2011 because Thai consumers enjoyed and were comfortable with going for cheap products and some of them did not turn back to drinking beer as before. Due to this trend, the existing manufacturers will need to try harder to maintain beer sales and consumption.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
In 2011, Boon Rawd Brewery Co Ltd maintained the most significant share of 59% in terms of total volume in the beer category. Thanks to its strong portfolio and the brand loyalty to Singha and Leo and the imported brands Corona Extra, Miller Genuine Draft, Miller Lite and Asahi Super Dry, the company managed to maintain its leading position and enjoyed good sales. Thai Beverage Plc was the second biggest player with a share of 31%, followed by Thai Asia Pacific Brewery Co Ltd as the third player with a share of 5%.

PROSPECTS
Owing to the recovering economy in Thailand, beer is expected to illustrate a positive performance over the forecast period. The manufacturers can be expected to put a lot of efforts into stimulating sales, and the category will become more competitive. Moreover, research suggests that certain major players are believed to be preparing for the changes brought about through AFTA (The ASEAN Free Trade Agreement). The agreement would eliminate tariffs on beer imported from ASEAN members, reducing the barriers of access to the Thai market for foreign brands.

CATEGORY BACKGROUND
Lager price band methodology
Summary 22 Lager by Price Band 2011

CATEGORY DATA

Table 23 Sales of Beer by Category: Total Volume 2006-2011
Table 24 Sales of Beer by Category: Total Value 2006-2011
Table 25 Sales of Beer by Category: % Total Volume Growth 2006-2011
Table 26 Sales of Beer by Category: % Total Value Growth 2006-2011
Table 27 Sales of Beer by On-trade vs Off-trade Split: Volume 2006-2011
Table 28 Sales of Beer by On-trade vs Off-trade Split: Value 2006-2011
Table 29 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 31 Beer: Production, Imports and Exports: Total Volume 2005-2010
Table 32 Beer Imports by Country of Origin: Total Volume 2005-2010
Table 33 Beer Imports by Country of Origin: Total Value 2005-2010
Table 34 Beer Exports by Country of Destination: Total Volume 2005-2010
Table 35 Beer Exports by Country of Destination: Total Value 2005-2010
Table 36 Company Shares of Beer by National Brand Owner 2007-2011
Table 37 Company Shares of Beer by Global Brand Owner 2007-2011
Table 38 Brand Shares of Beer 2008-2011
Table 39 Forecast Sales of Beer by Category: Total Volume 2011-2016
Table 40 Forecast Sales of Beer by Category: Total Value 2011-2016
Table 41 Forecast Sales of Beer by Category: % Total Volume Growth 2011-2016
Table 42 Forecast Sales of Beer by Category: % Total Value Growth 2011-2016

Cider/Perry in Thailand - Category Analysis

HEADLINES

TRENDS
Cider remained insignificant in the Thai market in 2011 because there was only very limited demand for the product and it was also perceived as a niche product. All products available were found in premium outlets and the on-trade channel. They were also imported products. Due to the fact that cider showed low visibility in the marketplace, it generated limited consumption, since it is only consumed among a specific group of consumers. Expatriates, foreign tourists and Thais who have spent time abroad or experienced the product before tended to be the key consumers for cider; the customer base did not see an obvious expansion since there was no experiential marketing in 2011.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
As cider products continued to show low visibility, there were no clear leading brands and players in cider in Thailand in 2011, meaning that there was no brand ranking. Cider remained uncompetitive since not many players had entered it and all the products available were imported. As cider was perceived as being a non-dynamic area, it was likely not to be attractive to new players. Consequently, it was also not attractive to any distributors, so that they did not offer any private label brands in the marketplace.

PROSPECTS
Cider is expected to remain insignificant, illustrating a very small sales size over the forecast period. No clear developments are likely to be seen in cider as it will remain unattractive. The demand will likely remain niche and limited among specific groups of consumers, who were mainly expatriates, travellers and existing customers.

RTDs/High-Strength Premixes in Thailand - Category Analysis

HEADLINES

TRENDS
The leading players in RTDs/high-strength premixes maintained strong efforts to push the category’s performance in 2011. The sales were driven by many aspects, including the launch of marketing campaigns and activities across the whole year. While wine-based RTDs continued to dominate sales, spirit-based RTDs enjoyed increased penetration through the use of well-planned marketing strategies and consumer behaviour insight. The target included both male and female drinkers.

COMPETITIVE LANDSCAPE
In 2011, Siam Winery Co Ltd retained the most significant share of 75% in terms of total volume sales of RTDs/high-strength premixes. Bacardi (Thailand) Ltd was the second biggest player with a share of 7%, followed by Diageo Moet Henessy (Thailand) Ltd with a share of 6%. Owing to the high proportion of over 80% of total volume sales of RTDs/high-strength premixes that wine-based RTDs accounted for in Thailand in 2011, Siam Winery Co Ltd’s dominance of this subcategory meant that it was the leading player overall.

PROSPECTS
Over the forecast period, RTDs/high-strength premixes is expected to experience a positive performance. The growth will be driven not least by the dynamic advances in demand for spirit-based RTDs, although wine-based RTDs, which will also see positive growth, will continue to account for the biggest share of sales. Aggressive marketing activities and campaigns in various types of media are expected to help stimulate the rising sales, especially via the on-trade channel.

CATEGORY DATA

Table 43 Sales of RTDS/High-strength Premixes by Category: Total Volume 2006-2011
Table 44 Sales of RTDS/High-strength Premixes by Category: Total Value 2006-2011
Table 45 Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2006-2011
Table 46 Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2006-2011
Table 47 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2006-2011
Table 48 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2006-2011
Table 49 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2006-2011
Table 50 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2006-2011
Table 51 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2007-2011
Table 52 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2007-2011
Table 53 Brand Shares of RTDS/High-strength Premixes 2008-2011
Table 54 Forecast Sales of RTDS/High-strength Premixes by Category: Total Volume 2011-2016
Table 55 Forecast Sales of RTDS/High-strength Premixes by Category: Total Value 2011-2016
Table 56 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2011-2016
Table 57 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2011-2016

Spirits in Thailand - Category Analysis

HEADLINES

TRENDS
In 2011, switches in drinking behaviour were witnessed among Thai consumers. However, it did not tend to be a switch from a subcategory to another subcategory within spirits. It was rather a switch across different types of alcoholic drinks. For example, there was a switch from beer to spirits as well as a switch from other alcoholic drinks to wine. As mentioned earlier, the switch from beer to spirits was seen as a result of the price sensitivity among low-income Thai consumers. In addition, thanks to the trend of strong penetration of wine varieties as well as wine drinking among urban consumers, many drinkers were just starting to taste wine and wine drinkers were just starting to enjoy a wide range of wine offerings. Apart from this, there was also some drinking behaviour that remained unchanged. For example, the drinking behaviour with regard to brandy among Thais. While many people tended to drink brandy “on the rocks”, many Thais liked to drink brandy with mixers. They tended to mix brandy with ice and other carbonated drinks like soda, coke, fruit juice or even energy drinks.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
In 2011, Thai Beverage Plc maintained the most significant share of 76% in terms of total volume in spirits. Pernod Ricard (Thailand) Ltd was the second biggest player with a share of 3%, followed by Diageo Moet Henessy (Thailand) Ltd as the third biggest player with a share of 2%. Sura Khao and mixed spirits dominated the majority of spirits sales in Thailand, and Thai Beverage Plc controlled these areas of the market.

PROSPECTS
Over the forecast period a promising performance is expected to be witnessed in spirits. Overall spirits is expected to be driven by strong demand for specific products, including rum, tequila, white spirit, mixed spirit and ad-mix whisky. The increasing consumption will be backed up by the recovering economic situation together with the improving purchasing power of Thai consumers. Domestic players are expected to continue to dominate and control spirits sales in Thailand although international players are expected to be more dynamic with integrated marketing strategies.

CATEGORY BACKGROUND
Vodka, gin and other blended Scotch whisky price band methodology
Summary 23 Benchmark Brands 2011

CATEGORY DATA

Table 58 Sales of Spirits by Category: Total Volume 2006-2011
Table 59 Sales of Spirits by Category: Total Value 2006-2011
Table 60 Sales of Spirits by Category: % Total Volume Growth 2006-2011
Table 61 Sales of Spirits by Category: % Total Value Growth 2006-2011
Table 62 Sales of Spirits by On-trade vs Off-trade Split: Volume 2006-2011
Table 63 Sales of Spirits by On-trade vs Off-trade Split: Value 2006-2011
Table 64 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 65 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 66 Sales of Gin by Price Platform 2006-2011
Table 67 Sales of Other Blended Scotch Whisky by Price Platform 2006-2011
Table 68 Sales of Vodka by Price Platform 2006-2011
Table 69 Sales of Flavoured vs Non-flavoured Vodka 2006-2011
Table 70 Spirits Production, Imports and Exports: Total Volume 2005-2010
Table 71 Spirits Imports by Country of Origin: Total Volume 2005-2010
Table 72 Spirits Imports by Country of Origin: Total Value 2005-2010
Table 73 Spirits Exports by Country of Destination: Total Volume 2005-2010
Table 74 Spirits Exports by Country of Destination: Total Value 2005-2010
Table 75 Brandy & Cognac Production, Imports and Exports: Total Volume 2005-2010
Table 76 Gin Production, Imports and Exports: Total Volume 2005-2010
Table 77 Liqueurs Production, Imports and Exports: Total Volume 2005-2010
Table 78 Rum Production, Imports and Exports: Total Volume 2005-2010
Table 79 Vodka Production, Imports and Exports: Total Volume 2005-2010
Table 80 Whiskies Production, Imports and Exports: Total Volume 2005-2010
Table 81 Company Shares of Spirits by National Brand Owner 2007-2011
Table 82 Company Shares of Spirits by Global Brand Owner 2007-2011
Table 83 Brand Shares of Spirits 2008-2011
Table 84 Forecast Sales of Spirits by Category: Total Volume 2011-2016
Table 85 Forecast Sales of Spirits by Category: Total Value 2011-2016
Table 86 Forecast Sales of Spirits by Category: % Total Volume Growth 2011-2016
Table 87 Forecast Sales of Spirits by Category: % Total Value Growth 2011-2016