Hot Drinks in Thailand

Overview

Discover the latest market trends and uncover sources of future market growth for the Hot 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.

If you're in the Hot Drinks industry in Thailand, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Thailand for free:

• Coffee
• Tea
• Other hot drinks

The Hot 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  
• Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

• What is the market size of Hot Drinks in Thailand?
• What are the major brands in Thailand?
• How has an increasing desire for heart healthy or fiber-added drinks affected the hot drinks industry in Thailand?
• Are manufacturers changing packaging sizes and formats to fit an on-the-go lifestyle?
• How have changing demographics (for example an aging population) affected the hot drinks market in Thailand?

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 Hot Drinks market research database.

Sample Analysis

EXECUTIVE SUMMARY

Hot drinks continues to grow

Thailand’s economy continues to recover from the negative impact of the international financial crisis in 2009 as well as political turmoil in 2010. As a result, hot drinks volume and value sales increased in 2011. Strong volume growth was seen within all hot drinks areas. However, volume growth was marginal within standard black tea due to the maturity of the area. Nevertheless, hot drink products such as tea and coffee with shape management claims saw stronger growth over the same period.

Entry of premium fresh coffee products for home and office

The entry of fresh coffee pods and machines from Boncafé and Allo Malongo is also an indication of the changing behaviour of consumers. Coffee pods from both brands retail at around Bt25 while coffee machines retail at less than Bt10,000. A growing number of luxury hotel rooms are offering fresh coffee pods and machines instead of sachets of instant coffee. In addition, more offices are investing in coffee pods instead of serving instant coffee as it has a more prestigious image. Coffee pod sales continued to increase in Thailand in 2011, emerging as the most exciting innovation in hot drinks. It is important to note that coffee pods have not cannibalised on-trade coffee spending but rather generated an increase in the fresh coffee customer base in Thailand and in per capita consumption.

Multinationals continue to dominate sales

Nestlé (Thailand), AB Food & Beverages Thailand, Sara Lee Coffee & Tea (Thailand), and Super Coffeemix Mfg together accounted for almost three-quarters of off-trade value sales within hot drinks in 2011. Nescafé retained its status as the number one hot drinks brand in terms of off-trade value sales and was followed by AB Food & Beverages. These leading multinational companies invest in very aggressive advertising and marketing activities and new product innovations. Innovative product launches kept leading players abreast of changing consumer preferences and in some cases even opened up new consumer segments.

Volume growth through convenience stores and coffee kiosk channels

The fact more consumers are shopping for snacks and drinks in convenience stores, especially in city areas, is helping to boost demand for ready-to-eat packaged foods and snacks and hot drinks products that are consumed with them. Leading convenience store 7-Eleven has a dedicated section for hot drinks comprising a wide range of products including hot coffees, teas and malt-based and soybean drinks. Street stalls and kiosks on the other hand are among the most popular consumer foodservice channels in Thailand. The growth of street stalls and kiosks in the past 2-3 years can also be attributed to more direct support from hot drinks and other related manufacturers.

Functional hot drinks lead market growth over forecast period

The availability of healthy options continues to increase within hot drinks in Thailand. Coffee and tea brands with functional and shape management claims are leading growth within hot drinks in Thailand and functional hot drinks sales are set to grow further over the next few years. While the recession and competition from other functional foods represent a challenge, the area offers many opportunities for growth. New product launches announced within hot drinks in 2011 all contained some form of extra health benefits, either naturally healthy or fortified and functional ingredients. Functional hot drinks, which command premium prices, were responsible for a large share of the value growth within hot drinks over the review period

Table of Contents

Hot Drinks in Thailand - Industry Overview

EXECUTIVE SUMMARY

Hot drinks continues to grow
Entry of premium fresh coffee products for home and office
Multinationals continue to dominate sales
Volume growth through convenience stores and coffee kiosk channels
Functional hot drinks lead market growth over forecast period

KEY TRENDS AND DEVELOPMENTS

Consumers choose products with functional ingredients and shape management claims over standard hot drinks
Online marketing used to promote brands
Support from manufacturers fuels on-trade hot drinks sales
Convenience stores and petrol stations offer more hot drink products
Coffee consumption increasingly seen as fashionable lifestyle choice

MARKET DATA

Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2006-2011
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2006-2011
Table 3 Retail Sales of Hot Drinks by Category: Volume 2006-2011
Table 4 Retail Sales of Hot Drinks by Category: Value 2006-2011
Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2006-2011
Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2006-2011
Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2006-2011
Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2006-2011
Table 9 Total Sales of Hot Drinks by Category: Total Volume 2006-2011
Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2006-2011
Table 11 Hot Drinks Company Shares by Retail Value 2007-2011
Table 12 Hot Drinks Brand Shares by Retail Value 2008-2011
Table 13 Penetration of Private Label by Category 2006-2011
Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2006-2011
Table 15 Sales of Hot Drinks by Category and Distribution Format: % Analysis 2011
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2011-2016
Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2011-2016
Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2011-2016
Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2011-2016
Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2011-2016
Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2011-2016
Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2011-2016
Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2011-2016
Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2011-2016
Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2011-2016

APPENDIX
Production/Import/Export Data

SOURCES
Summary 1 Research Sources

Hot Drinks in Thailand - Company Profiles

Coffee Beanery Co Ltd in Hot Drinks (Thailand)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
Greentea Thai Ltd in Hot Drinks (Thailand)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Greentea Thai Ltd: Competitive Position 2011

Khao Shong Industry 1979 Co Ltd in Hot Drinks (Thailand)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 6 Khao Shong Industry 1979 Co Ltd : Production Statistics 2011
COMPETITIVE POSITIONING
Summary 7 Khao Shong Industry 1979 Co Ltd: Competitive Position 2011

Nature Gift 711 Part, Ltd in Hot Drinks (Thailand)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Nature Gift 711 Ltd Part: Competitive Position 2011

New Concept Product Co Ltd in Hot Drinks (Thailand)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 11 New Concept Product Co Ltd: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 12 New Concept Product Co Ltd: Competitive Position 2011

Coffee in Thailand - Category Analysis

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

Nestlé continued to lead coffee sales in 2010, recording a retail value share of 65%. Nescafé Protect Proslim, the line extension of Nescafé Protect, was introduced in 2010 and has helped the company to maintain its sales share and to compete with emerging competitors like Fitné and Nature Gift. In order to promote the brand, Nestlé focused on its content of white bean extract, which is a good source for lowering cholesterol and blood sugar. Continuous advertising and educational campaigns, online marketing via its own website (www.proslim.in.th) and the use of social network sites such as Facebook have helped to increase awareness of the product amongst consumers. However, Nescafé Red Cup and 3-in-1 remain the main sources of sales of Nescafé.

PROSPECTS

Coffee will continue to record healthy growth over the forecast period, with the area having a projected total volume CAGR of 4%. Fresh ground coffee, which has a projected total volume CAGR of over 4%, will lead growth. However, instant standard coffee will drive overall coffee sales, with demand for functional instant coffee rising strongly. Leading manufacturers continue to focus on aggressive advertising, marketing activities and new product innovation. Coffee has become more of a daily need product for both rural and urban area consumers due to several reasons. For example, coffee helps to provide energy during working hours and is popular whilst socialising with friends.

CATEGORY DATA

Table 26 Retail Sales of Coffee by Category: Volume 2006-2011
Table 27 Retail Sales of Coffee by Category: Value 2006-2011
Table 28 Retail Sales of Coffee by Category: % Volume Growth 2006-2011
Table 29 Retail Sales of Coffee by Category: % Value Growth 2006-2011
Table 30 Fresh Ground Coffee: Standard Vs Pods 2006-2011
Table 31 Instant Coffee by Type: % Value Breakdown 2007-2011
Table 32 Coffee Company Shares by Retail Value 2007-2011
Table 33 Coffee Brand Shares by Retail Value 2008-2011
Table 34 Forecast Retail Sales of Coffee by Category: Volume 2011-2016
Table 35 Forecast Retail Sales of Coffee by Category: Value 2011-2016
Table 36 Forecast Retail Sales of Coffee by Category: % Volume Growth 2011-2016
Table 37 Forecast Retail Sales of Coffee by Category: % Value Growth 2011-2016
Table 38 Fresh Ground Coffee: Forecast Standard Vs Pods 2011-2016

Other Hot Drinks in Thailand - Category Analysis

HEADLINES

TRENDS

Malt based hot drinks continued to dominate other hot drinks during 2011, accounting for 98% of total volume sales. However, it should be noted that growth rates within the area are falling and were amongst the slowest within other hot drinks in volume terms in 2011, mainly due to increasing maturity and the strong penetration of other hot drinks.

COMPETITIVE LANDSCAPE

PROSPECTS

Other hot drinks has respective projected forecast period constant retail value and retail volume CAGRs of 2% and 1%. The maturity of malt-based hot drinks will put downwards pressure on growth rates within other hot drinks over the coming years. However, the introduction of Nescafé Protect Proslim Cocoshape and the on-going trend towards slimming choco drinks might help to rejuvenate sales of other hot drinks in the future. Nevertheless, in the short term other hot drinks will continue to record slow growth due to the sluggish performance of malt-based hot drinks.

CATEGORY DATA

Table 39 Retail Sales of Other Hot Drinks by Category: Volume 2006-2011
Table 40 Retail Sales of Other Hot Drinks by Category: Value 2006-2011
Table 41 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2006-2011
Table 42 Retail Sales of Other Hot Drinks by Category: % Value Growth 2006-2011
Table 43 Other Hot Drinks: Standard Vs Pods 2006-2011
Table 44 Other Hot Drinks Company Shares by Retail Value 2007-2011
Table 45 Other Hot Drinks Brand Shares by Retail Value 2008-2011
Table 46 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2011-2016
Table 47 Forecast Retail Sales of Other Hot Drinks by Category: Value 2011-2016
Table 48 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2011-2016
Table 49 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2011-2016
Table 50 Other Hot Drinks: Forecast Standard Vs Pods 2011-2016

Tea in Thailand - Category Analysis

HEADLINES

TRENDS

Tea total volume sales continued to increase during 2011. On-trade sales increased faster than off-trade sales due to the growing popularity of tea cafés and tea houses in Thailand. With the exception of Thai-Chinese groups, Thai people are not familiar with the idea of drinking tea at home. Furthermore, tea products also face strong competition from concentrated powder tea, which can be consumed with ice and still tastes good once no longer cold. As Thailand is a hot and humid country, consumers tend to prefer cold drinks.

COMPETITIVE LANDSCAPE

Domestic players accounted for 40% of tea retail value sales in 2011. Leading player New Concept Product has had a longstanding presence in tea with its Fitné brand and has gained strong consumers awareness. Other tea areas such as Oolong tea and green tea are dominated by local players which have a better understanding of Thai consumer tastes. On the other hand, international players such as Unilever and AB Food & Beverages focus on black tea, which is not as popular amongst Thai consumers.

PROSPECTS

Tea has a total volume CAGR of 3%. The lack of development within areas like black tea, instant tea and other tea means that growth will be sluggish over the forecast period.

CATEGORY DATA

Table 51 Retail Sales of Tea by Category: Volume 2006-2011
Table 52 Retail Sales of Tea by Category: Value 2006-2011
Table 53 Retail Sales of Tea by Category: % Volume Growth 2006-2011
Table 54 Retail Sales of Tea by Category: % Value Growth 2006-2011
Table 55 Tea: Standard Vs Pods 2006-2011
Table 56 Tea Company Shares by Retail Value 2007-2011
Table 57 Tea Brand Shares by Retail Value 2008-2011
Table 58 Forecast Retail Sales of Tea by Category: Volume 2011-2016
Table 59 Forecast Retail Sales of Tea by Category: Value 2011-2016
Table 60 Forecast Retail Sales of Tea by Category: % Volume Growth 2011-2016
Table 61 Forecast Retail Sales of Tea by Category: % Value Growth 2011-2016
Table 62 Tea: Forecast Standard Vs Pods 2011-2016