Beer - Thailand

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

Customer preferences: Thailand has a long-standing tradition of consuming beer, with it being one of the most popular alcoholic beverages in the country. The Thai population has a preference for light and refreshing beers, which are often consumed to accompany spicy and flavorful Thai cuisine. Additionally, the younger population in Thailand has shown a growing interest in craft beers and unique flavor profiles.

Trends in the market: One of the key trends in the Thai beer market is the increasing demand for premium and craft beers. As the economy continues to grow and the middle class expands, consumers are willing to pay more for higher quality and unique beer offerings. This trend is also influenced by the rise of social media and the desire for consumers to showcase their experiences with unique and trendy products. Another trend in the Thai beer market is the growing popularity of low-alcohol and non-alcoholic beers. Health-conscious consumers are seeking alternatives to traditional alcoholic beverages, and low-alcohol and non-alcoholic beers provide a lighter and healthier option. This trend is also driven by changing consumer attitudes towards alcohol consumption and a desire for more responsible drinking options.

Local special circumstances: One of the unique aspects of the Thai beer market is the dominance of local beer brands. Thai consumers have a strong preference for local beers, which are often seen as more authentic and better suited to complement Thai cuisine. This preference for local brands creates a challenging environment for international beer companies looking to enter the Thai market.

Underlying macroeconomic factors: The Thai economy has been growing steadily in recent years, with increasing disposable incomes and a growing middle class. This has led to higher consumer spending on discretionary items, including alcoholic beverages like beer. Additionally, the tourism industry in Thailand has been booming, attracting millions of visitors each year who contribute to the demand for beer. In conclusion, the Beer market in Thailand is experiencing growth due to customer preferences for light and refreshing beers, the increasing demand for premium and craft beers, and the popularity of low-alcohol and non-alcoholic options. The dominance of local beer brands and the strong Thai economy are also contributing factors to the market's development.

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 alcoholic beverages, 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 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.