Thai consumers are adjusting their coffee consumption habits as the economic slowdown persists, with a preference for cafes offering affordable options below 100 baht per cup. According to Korn Sanguankeaw, vice president of the Specialty Coffee Association of Thailand, there has been a notable shift in consumer behavior, with a surge in demand for more reasonably priced coffee choices.
While the majority opt for coffee priced between 60-80 baht on a regular basis, higher-priced coffees are still indulged in during special occasions or as a personal treat. Korn highlighted that the average spending per bill has decreased significantly, indicating a more cautious approach to discretionary spending among consumers.
Despite the challenges in consumer spending, the café sector has managed to maintain its momentum by diversifying its offerings. Korn pointed out that consumers have been exploring alternatives like smoothies and specialty chocolates, contributing to the sector’s resilience amidst the economic downturn.
Looking at the broader picture, the increase in global coffee bean prices has had a direct impact on the cost of coffee production and retail prices. Korn emphasized that factors such as global warming and reduced crop productivity have led to a 74.3% surge in coffee bean prices year on year, further exacerbated by the substantial import taxes imposed on coffee beans.
With the cost of coffee beans reaching up to 200 baht per kilogram, inclusive of various taxes and transportation expenses, the economic implications are felt throughout the coffee industry. The reliance on imported coffee beans, coupled with insufficient local cultivation, has underscored the challenges faced by coffee retailers and consumers alike.
As the market adapts to these economic dynamics, the beverage industry continues to witness shifts in consumer preferences and purchasing power. The evolving trends in coffee consumption reflect not only changing economic conditions but also the resilience and adaptability of businesses in response to market fluctuations.
Amidst the economic uncertainties, the coffee sector remains a dynamic and vibrant part of the consumer experience, offering a blend of affordability and indulgence tailored to the evolving needs and preferences of consumers. The interplay between economic forces and consumer behavior continues to shape the coffee industry, driving innovation and adaptation in response to changing market conditions.
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