The growth of the Thai coffee market continues to rise steadily, propelled by both local consumption and processing for overseas markets. Director-General Poonpong Naiyanapakorn of the Trade Policy and Strategy Office highlighted Thailand’s strength in transforming raw coffee into finished products for export, enhancing the value of its coffee offerings.
From 2021 to 2023, the Thai coffee market experienced an impressive average annual growth rate of 8.55%, reaching a market value of 34.5 billion baht in 2023, showing a 7.34% increase from the previous year. Of this value, instant coffee represented 84% of the domestic market at 29 billion baht, while fresh coffee accounted for 16% with a value of 5.52 billion baht.
Various factors, such as the demand for convenience among working-age consumers, have been driving forces behind this growth. Thailand’s warm climate has also contributed to the popularity of iced coffee, ready-to-drink instant coffee, and bottled coffee beverages. Additionally, the appeal of brewing fresh coffee has continued to attract consumers, further boosting market growth.
The market segmentation has prompted entrepreneurs to closely monitor consumer preferences and adapt their strategies accordingly. With a coffee production of 16,575 tonnes in 2023, with a split of 48.2% Arabica and 51.8% Robusta beans, Thailand has maintained a steady growth in coffee imports since 2019.
In 2023, Thailand’s coffee import value rose to US$338 million, an increase of 12.9% from the previous year. These imports included raw coffee, roasted coffee, and instant coffee, catering to both domestic consumption and export demands. Notably, Thailand’s top export destinations for instant coffee included Cambodia, Laos, and the Philippines, while Vietnam, Indonesia, and Laos were the primary sources of raw coffee imports.
Thailand’s coffee exports have seen a significant uptick, with exports totaling $126 million in 2023, reflecting a 15.6% increase from the previous year. The majority of the exports comprised instant coffee, highlighting the country’s expertise in this segment. Overall, the Thai coffee market continues to flourish, driven by a combination of local consumption trends, export potential, and adaptation to changing consumer preferences.
