Alcoholic Drinks - Thailand

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

Customer preferences: Thailand is known for its vibrant nightlife and social drinking culture. Alcohol consumption is deeply ingrained in Thai society, with people often enjoying alcoholic beverages during social gatherings, celebrations, and meals. Beer is the most popular alcoholic drink in Thailand, followed by spirits such as whiskey and rum. Thai consumers also have a growing interest in wine and craft beer, as they become more exposed to international trends and flavors.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Thailand is the increasing demand for premium and imported products. As the economy continues to grow and disposable incomes rise, Thai consumers are willing to spend more on higher-quality alcoholic beverages. This has led to a surge in the popularity of imported wines, whiskeys, and craft beers, which are often perceived as more prestigious and offering unique flavors. Additionally, there is a growing trend towards healthier drinking options, such as low-alcohol or alcohol-free beers, as consumers become more health-conscious.

Local special circumstances: Thailand has a unique regulatory environment for the Alcoholic Drinks market. The government imposes strict regulations on the sale and consumption of alcohol, including restrictions on advertising and marketing. This has led to a more fragmented market, with smaller players often focusing on local or niche products. Additionally, the government periodically introduces tax increases on alcoholic beverages, which can impact consumer demand and pricing strategies for market players.

Underlying macroeconomic factors: Thailand's strong economic growth and increasing urbanization have contributed to the development of the Alcoholic Drinks market. As more people move to cities and join the middle class, they have greater disposable incomes to spend on leisure activities, including alcohol. The tourism industry also plays a significant role in driving the market, as Thailand attracts millions of international visitors each year who contribute to the demand for alcoholic beverages. However, the market is not without challenges. The ongoing COVID-19 pandemic has had a significant impact on the Alcoholic Drinks market in Thailand, with restrictions on social gatherings and reduced tourism affecting sales. Additionally, changing consumer preferences and health concerns may shape the future of the market, as consumers seek out healthier and more sustainable options. Overall, the Alcoholic Drinks market in Thailand is poised for continued growth, driven by evolving consumer preferences, increasing disposable incomes, and the country's unique social and regulatory environment.

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.