Thailand Instant Coffee Market - Forecasts from 2024 to 2029

Thailand's instant coffee market is expected to experience a CAGR of 6.51% throughout the forecast period, reaching a market size of US$2,367.640 million by 2029 from a valuation of US$1,522.476 million in 2022.

Demand for instant coffee is expected to be in high demand in Thailand due to its growing accessibility through a variety of channels, affordability, and convenience. Further, a decline in the market for aerated beverages is also driving the instant coffee sales in Thailand. Moreover, to attract younger customers whose tastes and preferences are shifting toward select roasts and other flavours, speciality cafes are growing and accelerating at a respectable rate. For instance, Khao Shong Coffee is a prominent player in the Thai coffee industry, which has been brewing up a storm of success in the global caffeine scene. Khao Shong is causing a stir by satisfying consumers' adventurous palates with coffee that has a healthier twist.

Additionally, the market is also expanding due to the growing number of individuals entering the workforce, their fast-paced lifestyles, rising income levels, and an increase in investments in cutting-edge manufacturing processes and the acquisition of premium coffee beans.

Increasing demand for flavoured coffee propels the market.

The growing preference for authentic flavors of coffee in Thailand is positively impacting the instant coffee market demand. Moreover, customers in Thailand are selecting coffee drinks more frequently as an improved substitute for sugary, carbonated drinks as the focus on health and well-being grows. Many producers of coffee beverages are developing new products and growing their current product lines in response to the growing demand from health-conscious consumers. In addition to the traditional coffee characteristics, they offer fresh and distinctive aromas like floral undertones and other unprocessed sensations to appeal to younger clients seeking unique tastes, which has led to an increase in coffee consumption. Further, international coffee chains are opening locations in Thailand, which is contributing to the instant coffee culture's increased popularity. The need for a variety of instant coffee flavors will increase if the nation remains a melting pot of cultural influences, propelling the industry forward. For instance, as per USDA, the total coffee production in Thailand increased from 650 thousand 60-kilogram bags during 2021/22 to 700 thousand 60-kilogram bags during 2022/23.

Market Key Developments

• January 2023, NESCAFÉ BLEND & BREW unveiled its largest campaign for 2023 to engage the younger generation, "The Right Sachet for the Life You Choose." In Thailand, NESCAFÉ's main product line is NESCAFÉ BLEND & BREW. For many years, NESCAFÉ has been the top coffee brand in Thailand, strengthening its relationships with the country's coffee enthusiasts. NESCAFÉ BLEND & BREW is a unique coffee mix that pleases all coffee enthusiasts with a well-balanced taste and aroma.
• June 2023/24, Thailand's Robusta coffee output reached 750 thousand 60-kilogram bags, while the total soluble coffee exports amounted to 1,100 thousand 60-kilogram bags during the same period. This underscores the significance of coffee as a major agricultural product for Thailand. As part of its strategic economic development plan, "Thailand 4.0," the Thai government is keen on positioning the country as a key global player in the "Future Food" market. To achieve this, the government has identified food and beverages as one of the five priority industries.

Segmentation:

By Type:

• Freeze-Dried Instant Coffee
• Spray-Dried Instant Coffee
• Others

By Distribution Channel:

• Offline
• Foodservice
• Retail
• Supermarket/Hypermarket
• Convenience Stores
• Others
• Online

By Province:

• Bangkok
• Pattaya City
• Phuket
• Others