Wine - Thailand

The Wine market in Thailand has been experiencing significant growth in recent years, driven by changing consumer preferences and a growing middle class.

Customer preferences: Thailand has traditionally been a beer-drinking country, with spirits and cocktails also being popular choices. However, there has been a shift in consumer preferences towards wine, particularly among the younger generation and urban dwellers. Wine is increasingly seen as a sophisticated and fashionable beverage, associated with social status and luxury.

Trends in the market: One of the key trends in the Thai wine market is the increasing demand for imported wines, especially from traditional wine-producing countries such as France, Italy, and Spain. Thai consumers are becoming more knowledgeable about wine and are seeking out high-quality and authentic products. This trend is also reflected in the growing number of wine bars, restaurants, and specialty stores that offer a wide selection of wines from around the world. Another trend in the market is the rise of online wine sales. E-commerce platforms have made it easier for consumers to access a wide range of wines and compare prices. This has led to increased competition among wine retailers and distributors, as well as more affordable prices for consumers. Online platforms also provide educational resources and reviews, helping consumers make informed choices about their wine purchases.

Local special circumstances: Thailand's tropical climate poses challenges for wine production, as grapes require a cooler climate to grow. However, there has been a small but growing trend of local wine production in Thailand, with vineyards located in cooler regions such as Khao Yai and Hua Hin. Local winemakers are experimenting with different grape varieties and techniques to produce unique and high-quality wines that cater to the local market.

Underlying macroeconomic factors: Thailand's economic growth and rising disposable incomes have contributed to the growth of the wine market. As the middle class expands, more consumers have the financial means to afford higher-priced products such as wine. Additionally, the growth of the tourism industry in Thailand has also played a role in driving the demand for wine, as tourists from wine-consuming countries seek out familiar beverages during their visits. In conclusion, the Wine market in Thailand is experiencing growth due to changing consumer preferences, the increasing demand for imported wines, the rise of online wine sales, local wine production, and underlying macroeconomic factors such as economic growth and the growth of the tourism industry.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.