Thailand’s coffee market continues to flourish, driven by evolving consumer lifestyles and increasing demand for both domestic consumption and export. The country’s ability to process raw coffee into high-value finished products is a significant strength, according to Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office.
Between 2021 and 2023, Thailand’s coffee market experienced an average annual growth rate of 8.55%. In 2023, the market’s value reached 34.5 billion baht, marking a 7.34% increase from the previous year.
Instant coffee dominates the market, with a value of 29 billion baht, accounting for 84% of domestic consumption. Fresh coffee, meanwhile, holds a 16% share with a value of 5.52 billion baht.
“The growth is supported by the demand from working-age consumers and a lifestyle oriented towards convenience,” said Mr. Poonpong. He noted that Thailand’s hot climate also boosts the market for iced coffee, ready-to-drink instant coffee, and bottled coffee.
Despite the popularity of instant coffee, there is also a significant segment of consumers who enjoy the experience of brewing fresh coffee, contributing to the overall market growth, Mr. Poonpong added.
This market diversity has encouraged entrepreneurs to study consumer trends and adapt their products to meet evolving demands.
In 2023, Thailand produced 16,575 tonnes of coffee, with Arabica beans making up 48.2% and Robusta accounting for 51.8%.
Coffee imports have been on the rise since 2019. In 2023, the import value reached $338 million, a 12.9% increase from $300 million in 2022. This included $185 million for raw coffee (62,171 tonnes), $27.6 million for roasted coffee (1,647 tonnes), and $126 million for instant coffee (15,947 tonnes).
During the first quarter of this year, coffee imports amounted to $76.3 million, with raw coffee at $31.2 million, roasted coffee at $6.15 million, and instant coffee at $38.9 million.
Thailand imports a substantial amount of raw coffee for domestic consumption and to process for export, primarily as instant coffee. The leading suppliers of raw coffee beans to Thailand are Vietnam, Indonesia, and Laos.
On the export side, Thai coffee shipments have been growing since 2021. In 2023, coffee exports were valued at $126 million, a 15.6% increase from $109 million in 2022. This includes $121 million for instant coffee, $2.75 million for roasted coffee, and $2.20 million for raw coffee.
In the first quarter of this year, Thailand’s coffee export value totaled $34.2 million, comprising $32.7 million for instant coffee, $1.24 million for roasted coffee, and $210,000 for raw coffee.
Cambodia, Laos, and the Philippines are the top markets for Thailand’s instant coffee exports, showcasing the country’s growing influence in the regional coffee trade.