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Thailand Coffee and Tea Capsules Market Stimulated by Aggressive Brand Promotions

Published on Oct 22, 2018

According to the latest report by IMARC Group, titled “Thailand Coffee and Tea Capsule Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, the Thailand coffee and tea capsules market reached a value of US$ X Million in 2018. Besides having one of the most advanced food processing industries in Southeast Asia, Thailand also represents a major coffee producer in Asia. The most common variety of coffee produced is Robusta, a lower-quality coffee which is majorly used in instant coffee products. However, in the recent years, Thailand has experienced a few changes in its coffee production patterns, i.e., a shift from Robusta production farms to more sustainable and socially responsible Arabica farms. In addition to this, the Specialty Coffee Association of Thailand (SCATH) has been formed which intends to encourage a culture of increasing quality and sustainability. Moreover, tea is perceived as a healthy beverage in the country owing to its health benefits such as lowering the stress levels, aiding weight loss, protecting bones, reducing the risk of heart attack and stroke, and boosting the immune system.

The region’s mounting incomes have resulted in an increased consumer demand for convenient, high-quality and ready-to-drink beverages, leading to an augmented demand for coffee, tea and milk capsules. Another factor which is supporting the demand is the median age of the Thai population, i.e., 37 years old which is ageing and increasingly urbanised. Other than this, Thai consumers are considered to be brand-conscious and brand-loyal. They embrace freedom of choice and are enthusiastic about trying new beverages available in the market. Additionally, the confluence of use of social media platforms such as forums for professionals and coffee as well as tea lovers to share information, and the fact that about 40% of the region’s purchases are digitally influenced has attracted a large consumer-base. In a country like Thailand, women are recognized as a lucrative consumer segment with high growth potential as they have substantial purchasing power, and are more likely to do research and buy products online than men. Furthermore, advertising and trade promotion remain important marketing tools, especially for the sale of consumer goods like coffee and tea capsules. Consumers often acknowledge receiving free samples given in supermarkets and shopping malls as part of a brand’s marketing campaign.

Boncafé is the first company to manufacture capsules in Thailand under its market leading brands Boncafé and Segafredo. Besides this, Nestlé has also opened a new Nespresso boutique at the Siam Paragon luxury shopping mall in Bangkok, so as to raise awareness and provide convenience to the populace. Additionally, numerous other players are trying to set their base and thus, focusing on marketing and premium variants to maintain their competitive edge. Looking forward, the market value is projected to exceed US$ X Million by 2024, expanding at a CAGR of XX% during 2019-2024.

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