EXECUTIVE SUMMARY The Thai beverage industry heavily depends on the domestic market, accounting for over 79% of total sales. In 2022, the overall production and sales recovered after the COVID-19 pandemic, and economic activities were normal. However, during the first 8 months of 2023, the overall production and sales situation declined due to the purchasing power of consumers, which was affected by high living costs, as well as the increase in product prices due to rising costs and the sugar control tax increase. In 2024-2026, production is expected to grow slightly by an average of 1.5-2.5% per year. Domestic sales are expected to grow by 3.0-4.0% per year, driven by: Exports are expected to grow by 1.5-2.5% per year as neighbouring countries gradually reopen border trade checkpoints and purchasing power recovers. However, expanding production from Thai businesses’ overseas investments may limit export growth. The outlook for overall beverage producers in Thailand in 2024-2026 is expected to recover gradually, in line with the economic recovery, the restaurant industry, and domestic tourism. However, they may face higher water and agricultural raw material costs due to the intensifying El Niño phenomenon. Water and bottled mineral water producers: Revenue is expected to increase, driven by the recovery of the domestic economy and tourism, which will support water demand, especially from the restaurant, hotel, and entertainment industries. In addition, demand for clean, uncontaminated water from CLMV countries, which are major trading partners, is expected to recover after border trade returns to normal. Soft drink producers: The increasing business activities amid rising temperatures make consumers more inclined to consume refreshing beverages. Despite the impact of the sugar tax, many producers have adapted by using sweeteners instead of sugar. In addition, developing new products for health-conscious consumers, such as vitamin-infused soft drinks, alcohol-flavored soft drinks, and fruit-flavored sodas, will help boost revenue. Beer producers: Revenue is expected to recover gradually, driven by the restaurant, pub, bar, and nightlife venues that have resumed operations as normal to support increasing social gatherings. In addition, the release of various products with new and innovative flavours will continue to stimulate consumer interest. However, higher agricultural raw material costs due to drought may pressure profitability. Liquor producers: Consumption is expected to decline as prices rise in line with raw material costs. In a situation where consumers are still cautious about spending, coupled with consumer behaviour shifting to focus more on healthy beverages, producers are likely to accelerate product development by increasing the quality of alcohol ingredients to enhance satisfaction and a better consumption experience. The Thai beverage industry is expected to recover gradually in the next three years. However, the industry will face some challenges, such as rising water and agricultural raw material costs. Basic Information The Thai beverage industry has a production share of 98.3% of the total domestic consumption of beverages. It focuses on domestic sales, accounting for 78.7% of total production in Thailand. The rest is for export. The import volume accounts for only 1.7% of domestic beverage sales. The import volume of non-alcoholic and alcoholic beverages is 43:57 and 20:80 in value. In 2022, the Thai beverage industry had 393 factories registered with the Department of Industrial Works. Most of them are located in the Central region. Nakhon Pathom province has the most beverage factories, with 38 factories. The following are the provinces with the most beverage factories: Pathum Thani (30), Chonburi (29), Ayutthaya (24), Samut Sakhon (18), and Bangkok (18). The total number of beverage factories is divided into: In 2022, Thailand’s domestic beverage sales volume was 12,112.2 million litres, worth 14,363.3 million USD. It was divided into non-alcoholic beverages and alcoholic beverages, accounting for 77:23 in terms of volume and 40:60 in terms of value (Figure 1). The details are as follows: Non-alcoholic beverages The domestic sales volume of non-alcoholic beverages was 9,334.6 million litres, worth 5,703.2 million USD. It accounted for 77.1% and 39.7% of the total beverage sales in Thailand in terms of volume and value, respectively. The main products are bottled and mineral water, with a combined sales volume of 5,008.8 million litres, accounting for 53.7% of the non-alcoholic beverage sales volume. The following are the other products in order of sales volume: soft drinks and soda (31.1%), ready-to-drink tea (4.3%), fruit juice (3.5%), energy drinks (3.2%), and other beverages (4.2%). Alcoholic beverages The domestic sales volume of alcoholic beverages was 2,777.6 million litres, worth 8,660.1 million USD. It accounted for 22.9% and 60.3% in terms of volume and value of the total beverage sales in Thailand, respectively. The main product is beer, with a sales volume of 2,017.1 million litres, accounting for 72.6% of the alcoholic beverage sales volume. The following are the other products in order of sales volume: liquor (25.5%), ready-to-drink alcoholic beverages (0.9%), wine (0.9%), and fermented or matured fruit juice (0.1%). Key Highlights Export of beverages from Thailand In 2023, Thailand exported 2,580.3 million litres of beverages worth US$2.726.7 billion (Figure 2). Cambodia was the top export destination, accounting for 21.2% of the volume, followed by Vietnam (15.1%), Myanmar (12.5%), the United States (12.3%), and China (6.2%). Exports were divided into two categories: Summary The Thai beverage industry is an important contributor to the country’s economy. In 2023, the industry generated a total export value of US$2.726.7 billion, accounting for 2.7% of GDP. Non-alcoholic beverages accounted for 85.0% of the export value, while alcoholic beverages accounted for 15.0%. Key takeaways Development and Structure of the Beverage Industry in Thailand The commercial production of beverages in Thailand initially involved the production of alcoholic beverages by the government to replace imports. In the following period, the government opened up opportunities for private investors to produce alcoholic beverages, and the Board of Investment (BOI) continued to promote investment in the beverage industry. As a result, the beverage industry in Thailand expanded and was able to produce a variety of beverages, both alcoholic and non-alcoholic. The key developments in the Thai beverage industry are as follows: Non-alcoholic beverages In the early
