The Thai coffee market continues to grow, both in terms of domestic consumption and processing for export, driven by consumer lifestyles.
"Thailand has the potential to process raw coffee into finished coffee products for export, which is a key strength that helps add value to coffee products," said Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office.
Between 2021 and 2023, the Thai coffee market grew at an average annual rate of 8.55%. In 2023, market value reached 34.5 billion baht, expanding by 7.34% from 2022.
Of the total, instant coffee had a market value of 29 billion baht, accounting for 84% of the domestic market, while fresh coffee had a market value of 5.52 billion, tallying 16%.
Mr Poonpong said factors supporting the growth include demand from working-age consumers and a lifestyle seeking convenience for beverage consumption.
Thailand's hot climate also plays a role in driving the market for iced coffee, ready-to-drink instant coffee and bottled ready-to-drink coffee, he said.
However, some consumers enjoy the ambience and process of brewing fresh coffee, which also contributed to the growth level, said Mr Poonpong.
These diverse segments led to entrepreneurs studying consumer trends, enabling them to adapt to demand effectively, he said.
In 2023, Thailand produced 16,575 tonnes of coffee, divided into 48.2% Arabica beans and 51.8% Robusta variety.
Thailand's coffee imports have continued to grow since 2019.
In 2023, Thailand's coffee import value amounted to US$338 million, expanding by 12.9% from $300 million in 2022.
The total included imports of raw coffee valued at $185 million (62,171 tonnes), roasted coffee $27.6 million (1,647 tonnes) and instant coffee $126 million (15,947 tonnes).
In the first three months of this year, coffee imports were valued at $76.3 million, of which $31.2 million were raw coffee, $6.15 million roasted coffee and $38.9 million instant coffee.
Thailand imports a large quantity of raw coffee for domestic consumption and to process for export as instant coffee.
Last year, Thailand's top export market for instant coffee was Cambodia, followed by Laos and the Philippines.
Thailand imports the most raw coffee beans from Vietnam, followed by Indonesia and Laos.
On the export front, Thai coffee shipments have expanded since 2021. In 2023, coffee exports were worth $126 million, up 15.6% from $109 million in 2022.
The breakdown was $121 million for instant coffee exports, $2.75 million for roasted coffee and $2.20 million for raw coffee.
In the first quarter this year, Thailand's coffee export value tallied $34.2 million, comprising $32.7 million for instant coffee, $1.24 million for roasted coffee and $210,000 for raw coffee.