Shifting trends
New players enter the market
At the end of 2022, the government passed three bills to increase opportunities for small-scale alcohol producers, leading to a surge in various Thai beer brands entering the market in 2023. This created excitement and additional choices for consumers.
Consequently, national brands like Singha and Chang have seen a decrease in buyers. This trend is also affecting international brands like Heineken and Budweiser, which have also experienced a decline in buyers. Meanwhile, many local brands have been able to grow their buyer bases by capturing market share from the larger, dominant brands.
Alcohol-free has yet to catch on
It is interesting to consider whether consumption in Thailand has been influenced by any health factors, especially among Gen Z. In the West, Gen Z consumers are quite concerned about their health, and alcoholic beverages are perceived by many as a ‘bad thing’. Brands should explore and identify health-related needs, and find opportunities to sell 0% alcohol, or vegan options, for example.
However, non-alcoholic beer – which is trending abroad – has not yet gained much traction in Thailand. Internationally, consumers choose to drink 0% alcoholic beverages across all product types, including 0% wine and 0% gin. This arises from a desire to maintain health while still wanting to socialise, which contrasts with the consumption goals in Thailand where the desire for alcohol is greater. Thai people often mix liquor with carbonated soft drinks to add sweetness, or soda to dilute it, indicating that they may not favour the taste of alcoholic beverages as much as they enjoy their effects.
