Thailand’s instant coffee market is anticipated to grow by 5% this year, driven in part by Nescafé Thailand’s plan to invest 620 million baht in brand communication advertising.
Jojo Dela Cruz, Business Executive Officer of Nestlé (Thai) Ltd.’s coffee and creamer division, reported that in the first quarter of this year, the value of the country’s instant coffee market reached 5.7 billion baht, reflecting a 5% increase compared to the same period last year. Additionally, the ready-to-drink coffee market was valued at 3.8 billion baht, marking a 10% rise from the previous year.
On average, Thai consumers drink about 340 cups of coffee annually.
“Nescafé commands more than 50% of the instant coffee market share in Thailand,” Mr. Dela Cruz stated.
The company’s marketing investment of 620 million baht will be pivotal in further promoting its brand this year.
Despite the ongoing growth of the Thai instant coffee market—fueled by changing consumer lifestyles—global coffee production is facing challenges due to climate change, which has led to a decline in supply.
Mr. Dela Cruz cited climate change and a shift toward growing alternative economic crops as factors contributing to reduced coffee production in Thailand. “It is projected that global coffee supply could diminish by as much as 50% by 2050,” he noted.
However, he did not provide specifics on how costs might increase due to the decrease in coffee bean production.
To promote sustainability in Thailand’s coffee sector, the company is implementing the Nescafé Plan 2030, which focuses on regenerative agriculture. This initiative aims to distribute high-yield coffee plantlets alongside training and technical support, which the company believes will enhance coffee yields and diversify agricultural production, ultimately improving farmers’ incomes while mitigating climate-related risks.
Furthermore, Nescafé is committed to purchasing coffee beans from farmers at global market prices.
In the latter half of the year, the company plans to introduce new products targeting the iced coffee segment, which currently represents 47% of total coffee consumption in Thailand.
While Mr. Dela Cruz did not disclose the company’s specific market value target for this year, he revealed that the overall instant coffee market was valued at 30 billion baht in 2023, with an expected growth of 3-5% compared to the previous year.
