Understanding the key trends driving the non-alcoholic beverage market is a crucial step for players to orient and plan for their future.
Introduction
The non-alcoholic beverage market in Thailand is continuously growing and evolving, creating new opportunities for both local and international brands. With a young, health-conscious population and the rise of wellness trends, Thailand can be considered a hub for innovation in the non-alcoholic drink space. This article will explore the key trends shaping this market and their implications for drink manufacturers.
Market overview
The non-alcoholic beverage market in Thailand is projected to reach US$4.44 billion by 2025, according to Statista. It is expanding rapidly because of the changes in consumer lifestyles, tourism, and regional trade. There is a wide range of categories in the non-alcoholic beverage industry, including bottled water, carbonated soft drinks, fruit juices, ready-to-drink tea and coffee, energy drinks, and functional beverages.
In 2024, the market leader is bottled water. Key players in the Thailand market include global brands such as Coca-Cola and Pepsi, or famous local companies, like Oishi and Ichitan. Recovery from the COVID-19 pandemic, tourism resurgence, and increased beverage consumption per capita strongly contributed to the rise of non-alcoholic beverage revenue.
However, the evolving consumer preferences and emerging trends have led to many changes in the non-alcoholic beverage market in Thailand. When choosing a non-alcoholic drink, nutritional value and flavor factors are often equally important. Although Thai people are shifting to healthier drinks, “high nutritional value” and “functional benefits” claims seem to be more significant for them than “low sugar” or “no additives”.
Key non-alcoholic beverage trends in Thailand
The rise of healthy trends
Healthy drinks are getting a lot of attention on Thailand social media, especially the topics related to natural formulations. As a result, the market has witnessed a rise in the launch of beverages with plant-based and reduced-sodium claims. Besides, as the rates of obesity and diabetes are increasing, along with the new exercise tax on sugary drinks from 2017, Thais are seeking low and zero-sugar options.
Moreover, functional beverages are on the rise, with numerous new products launched from local and international brands. Beverages are introduced with several health benefits, such as immunity, minerals, and vitamin supplements. Many manufacturers have incorporated beauty functionalities, including brightening, skin smoothing, rejuvenation, and collagen supplements.
The pursuit of new experiences
According to Mintel research, new and unique beverage flavors are highly appreciated by Thai consumers, with 36% of them looking for new flavors to try most of the time. Thais are more inclined to try novel flavors when searching for drinks,creating more space for brands to develop and launch new products. Compared to other consumers worldwide.
In addition, the non-alcoholic beverage market has witnessed a rising demand for novel drinks for various occasions among Thai urban customers. However, the demand for each beverage on various occasions is different. For example, people prefer carbonated drinks for social gatherings, while juices are favored as an accompaniment to meals and snacks.
Rising demand for cooling and hydrating
Thailand’s hot climate, along with the rise of temperatures globally, drives demand for cooling and hydrating beverages. The soaring heat has led to a surge in social media conversations related to “cooling drinks” and “hydration”. Consumers are constantly seeking beverages with electrolytes, cooling herbs, and antioxidants to deal with extreme weather conditions.
Deep dive into non-alcoholic beverage categories
Juices
Thailand’s juice market is projected to continue to develop in the next few years, driven by wellness trends and increased demand for natural ingredients, additional minerals, and vitamins. With the tropical climate, Thailand is also abundant in fruits and vegetables. Moreover, it is a major fruit juice exporter in the world.
In the Thailand market, juices, especially 100% fruit juice, are becoming more popular since they are closely linked to snack and meal. Besides, there is still much room for improvement on other occasions, like bedtime, as the demand for sleep support among Thai consumers is increasing. It is a perfect opportunity for brands to reposition their products by supplementing calming ingredients.
Tea
In Thailand, 40% of people drink tea twice to six times a week, making it a popular drink. Thailand’s tea market is expected to experience continued growth, with the considerable rise of the ready-to-drink tea and bubble tea options.
The tea drink market is also affected by the popular trends of the beverage industry, like the health and wellness focus and adventurous consumption behavior. However, there are not many significant connections between this group and the particular events. Therefore, brands can seize opportunities by launching new products with additional health benefits and position tea with specific occasions, such as an afternoon snack companion.
Carbonated soft drinks
The warm and humid climate all year round in Thailand makes carbonated soft drinks a popular choice for refreshment. The majority of carbonated soft drink purchases are out of home consumption, at about 90%, especially in social gatherings. The increase in health consciousness also drives and shapes the future of this category. Carbonated soft drink brands are constantly innovating and diversifying their product offerings to expand their customer range. Besides, manufacturers are developing products to attract more consumers on other occasions, such as in the gaming field, with 36% of Thais spending 2-4 hours a day playing games.
Sports and energy drinks
Although sports and energy drinks are traditionally linked to physical activities, they have become more popular in work and study. A survey conducted by Mintel in 2024 indicated that 30% of men and 21% of women selected sports and energy drinks when working or studying. Meanwhile, 35% male and 28% female chose them when commuting.
This transformation opens more opportunities for brands to expand their target customers by offering more holistic benefits. Thai consumers are seeking sports and energy drinks not only to enhance their physical performance but also to improve their mental focus. Key players in this category include M-150, Red Bull, Carabao, and Sponsor.
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Conclusion
Generally, the non-alcoholic beverage market in Thailand is driven by the rise of health and wellness trends, the pursuit of new flavor experiences, and the rising demand for cooling and hydration. A variety of drinks, including juices, teas, carbonated drinks, sports, and energy drinks are affected by these key trends. Players can seize these opportunities to create new products and expand their brands in Thailand.
About Future Generation Co.,Ltd
Future Generation Company Limited is one of the largest beverage suppliers in Vietnam, with 30 years of experience in production and export. FGC is equipped with modern machines, such as Hotfill PET and TetraPak, ensuring high-capacity production. We strive to achieve our mission to become Vietnam’s leading healthy beverage company. Our factories also meet international standards, such as FSSC, HACCP, etc. In addition, we constantly innovate our machinery system, strengthen production capacity, and increase productivity.
FGC also provides Private Label Services. With this service, we can help customers to research and formulate beverages, design product labels and packaging, and create their own brands. This is an ideal solution for small and medium enterprises. Moreover, FGC provides free samples for customers to test before bulk orders. We also ensure delivery as fast as possible.
Contact
Address: R4 building, Office Quarter 02, Royal City, 72A Nguyen Trai St., Thanh Xuan Ward, Hanoi.
Phone: +84 24 73 000 125/ +84 24 73 063 369
Mail: info@vietnam-tea.com
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Sources:
https://www.mintel.com/insights/food-and-drink/non-alcoholic-beverage-trends-in-thailand/
https://www.statista.com/outlook/cmo/non-alcoholic-drinks/thailand
