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-
Key Developments in the Market
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.
King Coffee Company Limited
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