Thailand Instant Coffee Market Size, Share, COVID-19 Impact, Opportunities, And Trends By Type (Freeze-Dried Instant Coffee, Spray-Dried Instant Coffee, Others), By Distribution Channel (Offline (Foodservice, Retail (Supermarket/Hypermarket, Convenience Stores, Others)), Online), And By Province - Forecasts From 2022 To 2027

Published:  Jun 2022 Report Code: KSI061613696 Pages: 120

Thailand’s instant coffee market is projected to grow at a CAGR of 6.67% to reach a value of US$2175.879 million by 2027, from US$1384.556 million in 2020.

Thailand is showing noteworthy potential as the demand for instant coffee and speciality cafes are growing in number owing to the rising popularity and trend among the younger individuals and adolescent age groups. Though Thailand is not considered among the coffee-producing countries, the consumption of coffee among individuals of different age groups is still prevalent in the county. In conjunction, speciality cafes are expanding and accelerating their growth at a decent rate to capture the attention of younger consumers whose tastes and preferences are changing towards select roasts and other flavours. Instant coffee, however, is getting more popular among individuals, as it can be easily prepared at home and is easier to make than the other methods. There are organizations and associations in Thailand, such as the Specialty Coffee Association of Thailand (SCATH), which are also promoting the increase in the production of green beans in the country to meet the slowly rising demand for instant coffee and other types of coffee. Thus, this acts as a driving factor and bolsters market growth over the forecast period.

The popularity of tea as an alternative hot beverage is hampering the potential of the instant coffee market growth.

The consumption of tea among the older and middle-aged consumers in Thailand stems from the fact that tea is considered to alleviate the body and the mind, and it is given high importance in Buddhism, which is practised by a majority of the individuals in this country, thereby this factor is acting as an obstacle in the market growth.

Product Offerings by the market players in the Thailand Instant Coffee Market

The offering of better and advanced varieties of Instant coffee with enhanced flavour and aromas, among others, by existing and new players in different markets is estimated to lead to a rise in consumption and augment the market growth further over the forecast period.

Some of the product offerings have been mentioned below-

  • KHAO SHONG GROUP CO., LTD, which is a coffee manufacturing company that is based in Southern Thailand, offers different types of coffee products under its product portfolio. They offer two categories of instant coffee products, namely Agglomerated Instant Coffee and 3in1 Instant Coffee. Under the Agglomerated Instant Coffee Range, they offer their product called the “Khao Shong Coffee Agglomerated Instant Coffee Formula 1 (100% Coffee),” a product that is a full-flavored and aromatic coffee and is offered in a jar of 100g. It also offers this product in 50 sticks of 2g each. It offers its other product called the “Khao Shong Coffee Agglomerated Instant Coffee Mixture Formula 2 (92% Coffee, 8% Caramel)”, which is a rich and aromatic coffee product that if offered in a jar of 100g and 200g among some other options and has hints of caramel.
  • King Coffee Company Limited., which is another coffee manufacturer and distributor that is based in Thailand, provides its special product called the “Beautina Instant Coffee.” This coffee contains nine essential ingredients that cater to improving the health of the consumer.

Key Developments in the Market

  • In June 2019, Tim Hortons has signed an exclusive franchise and development partnership agreement with WeEat Company, a part of the Wattanavekin family group of firms, to expand the Tim Hortons brand in Thailand. Through this initiative, Tim Hortons is hoping to replicate its recent foreign success by focusing on a solid core hot and cold beverage platform, a localized food menu, and prominent Canadian branding in restaurant design to honor the brand's Canadian background.
  • In February 2020, Starbucks's premium instant (soluble) coffee flavors, Medium Roast and Dark Roast was launched globally by Nestlé in multiple countries, including Thailand. 
  • In June 2021, NESCAFE BLEND & BREW invested 700 million baht in a marketing campaign titled "Beyond the Goodness You Can See, There's Even Greater Quality Inside," to expand the penetration of its coffee mixes in the market.

COVID-19:

COVID-19 had a negative impact on the Thailand instant coffee market. The enforcement of nationwide lockdown by the Thailand government led to the closure of the institutions, corporations, coffee houses, food outlets, and many other public places, causing the sales to decline in these segments due to reduced foot traffic. Nevertheless, this led to increased sales in the domestic segment. The rapid adoption of the e-commerce segment further propelled the growth.

Segmentation

  • By Type
    • Freeze-Dried Instant Coffee
    • Spray-Dried Instant Coffee
    • Others
  • By Distribution Channel
    • Offline
      • Foodservices
      • Retail
        • Supermarket/Hypermarket
        • Convenience Stores
        • Others
    • Online
  •  By Province
    • Bangkok
    • Pattaya City
    • Phuket
    • Others
1. INTRODUCTION
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. RESEARCH METHODOLOGY  
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. THAILAND INSTANT COFFEE MARKET, BY TYPE
5.1. Introduction
5.2. Freeze-Dried Instant Coffee
5.3. Spray-Dried Instant Coffee
5.4. Others

6. THAILAND INSTANT COFFEE MARKET, BY DISTRIBUTION CHANNEL
6.1. Introduction
6.2. Offline
6.2.1. Foodservices
6.2.2. Retail
6.2.2.1. Supermarket/Hypermarket
6.2.2.2. Convenience Stores
6.2.2.3. Others
6.3. Online 

7. THAILAND INSTANT COFFEE MARKET, BY PROVINCE
7.1. Introduction
7.2. Bangkok
7.3. Pattaya City
7.4. Phuket
7.5. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES
9.1. Nestlé
9.2. KHAO SHONG GROUP CO., LTD.
9.3. King Coffee Company Limited

Nestlé

KHAO SHONG GROUP CO., LTD.

King Coffee Company Limited

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