According to the Bangkok Post on June 4, the Thai coffee market continues to grow, driven by consumer lifestyles, both domestic consumption, processing and export.
Phu Phong, Director of the Office of Trade Policy and Strategy of Thailand, said that the processing of fresh coffee in Thailand into instant coffee for export is a significant advantage in adding value to coffee products.
Between 2021 and 2023, the average annual growth rate of the Thai coffee market was 8.55%. In 2023, the market value will be 34.5 billion baht, an increase of 7.34% year-on-year from 2022. The instant coffee market value is 29 billion baht, accounting for 84% of the domestic market, and the fresh coffee market value is 5.52 billion baht, accounting for 16%.
Pupong said that factors supporting the growth include demand from working-age consumers and lifestyles seeking convenience in consuming beverages. Thailand's hot climate also drives the markets for iced coffee, instant coffee and bottled coffee, as well as some consumers who prefer freshly brewed coffee.
Thailand produced 16,575 tonnes of coffee in 2023, with Arabica accounting for 48.2% and Robusta accounting for 51.8%.
In terms of imports, Thailand’s coffee imports in 2023 were valued at US$338 million, up 12.9% year-on-year from US$300 million in 2022. This included US$185 million (62,171 tonnes) of green coffee, US$27.6 million (1,647 tonnes) of roasted and ground coffee, and US$126 million (15,947 tonnes) of instant coffee. Coffee imports in the first quarter of this year were valued at US$76.3 million, of which US$31.2 million were green coffee, US$6.15 million were roasted coffee, and US$38.9 million were instant coffee. Thailand imports a large amount of fresh coffee for domestic consumption and processed into instant coffee for export. Last year, Thailand’s largest instant coffee export market was Cambodia, followed by Laos and the Philippines. Thailand imported the most green coffee beans from Vietnam, followed by Indonesia and Laos.
In terms of exports Coffee exports in 2023 are expected to be worth US$126 million, up 15.6% year-on-year from US$109 million in 2022. Instant coffee exports were valued at US$121 million, roasted coffee US$2.75 million and green coffee US$2.2 million. Coffee exports in the first quarter of this year were valued at US$34.2 million, of which instant coffee was worth US$32.7 million, roasted coffee US$1.24 million and green coffee US$210,000.
