Soft Drinks - Thailand

The Soft Drinks market in Thailand has been experiencing significant growth in recent years.

Customer preferences: Thai consumers have shown a growing preference for healthier beverage options, which has led to an increase in demand for low-sugar and natural ingredient soft drinks. This shift in consumer preferences can be attributed to a global trend towards healthier lifestyles and a greater awareness of the negative health effects of consuming sugary beverages. As a result, soft drink manufacturers in Thailand have been introducing new products that cater to these changing preferences, such as fruit-flavored sparkling water and natural fruit juices.

Trends in the market: One of the key trends in the Soft Drinks market in Thailand is the rising popularity of functional beverages. Thai consumers are increasingly seeking out beverages that offer additional health benefits, such as energy drinks with added vitamins and minerals, or sports drinks that help with hydration and recovery. This trend is driven by a growing interest in fitness and wellness among the Thai population, as well as an increased focus on personal health and well-being. Another trend in the market is the growing demand for ready-to-drink (RTD) beverages, particularly among busy urban consumers. RTD beverages, such as canned or bottled soft drinks, offer convenience and portability, making them popular choices for on-the-go consumption. This trend is further fueled by the increasing number of convenience stores and vending machines in Thailand, which make it easier for consumers to access their favorite soft drinks.

Local special circumstances: Thailand has a unique cultural and culinary heritage, which has influenced the Soft Drinks market in the country. Thai cuisine is known for its bold flavors and use of fresh ingredients, and this is reflected in the local soft drink offerings. Thai consumers have a strong preference for beverages that are refreshing and have a unique taste profile, such as herbal-infused drinks or drinks with a hint of tropical fruits. This preference for unique flavors has led to the development of a wide range of innovative soft drinks in Thailand, catering to the local palate.

Underlying macroeconomic factors: Thailand's growing middle class and rising disposable incomes have played a significant role in the development of the Soft Drinks market. As more Thai consumers have the financial means to afford soft drinks, the market has expanded to meet the increased demand. Additionally, the country's strong tourism industry has also contributed to the growth of the market, as tourists from around the world are exposed to and develop a taste for Thai soft drinks. In conclusion, the Soft Drinks market in Thailand is experiencing growth due to changing customer preferences towards healthier options, the popularity of functional beverages, the demand for convenience, local preferences for unique flavors, and underlying macroeconomic factors such as rising disposable incomes and a thriving tourism industry.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.