The value of the drink industry in Thailand is expected to grow by 15% to 165 billion baht this year, say industry experts.
A model shows Dr MindZen, a new vitamin drink from iBeverage Co, at a launch party on Wedenesday. PATTARACHAI PREECHAPANICH
Four core products will help stir growth, namely energy drinks, green tea, sports drinks and soft drinks.
Besides hot weather prevailing in many parts of the country, with temperatures forecast to hit 40 degrees Celsius in the coming months, heavy promotion and new products from big players are key drivers.
Next week, Singha Corporation will announce its business plan for Sanvo, a new sports drink under its non-alcoholic portfolio.
Sermsuk, the bottler of "est" cola, recently relaunched Wrangyer energy drink in the market.
And iBeverage Co Ltd, owned by Chanin Thiencharoen, has launched Dr MindZen, a new vitamin drink.
Direct sales companies such as Nature Gift and Giffarine will also jump on the bandwagon.
With fiercer competition, media spending on drinks topped 5 billion baht last year, higher than for mobile phones.
Last year, the carbonated soft drink segment was worth 40 billion baht, trailed by energy drinks (20 billion), ready-to-drink green tea (12 billion) and sports drinks (10 billion).
Mr Chanin said demand for all drinks grew by 7%, 11% and 14% in 2010, 2011 and 2012, respectively.
"This year will set a record for demand growth for all drink categories, despite fierce competition," he said.
Apart from the four core categories, the 3-billion-baht functional drink market is attractive for newcomers as demand continues to grow. Only five or six big players compete in the market.
Customers with health concerns are willing to spend more money on products like vitamin drinks.
"We're worried that Thai drink firms, which are concerned with promotion rather than innovation, may be in for a hard time when the Asean Economic Community begins in 2016," said Mr Chanin.
He said iBeverage's Dr MindZen drink is aimed at working women.
It contains L-theanine to reduce mental and physical stress and relieve migraine headaches.
The company will spend 20 million baht promoting Dr MindZen. Sales for the drink are expected to reach 40-50 million baht in the first year.
Mr Chanin said vitamin drinks are widely consumed in the US and Japan, especially among those who concentrate on their work all the time.
The company plans to launch at least three new brands this year. A children's drink will debut in May, with the other two arriving in the second half.