The alcoholic beverage market in Thailand comprises two main products:
beer and white spirits. Consumption of alcoholic beverages has fallen in the
past few years. Two main factors drive demand: growth in disposable
income and population growth. However, the growth in consumption has
been hindered by some negative factors, such as higher excise tax rates,
political uncertainty, more strict regulations and new restrictions, health
concerns, and various campaigns against drinking conducted by the
government.
Beer consumption rebounded in 2012, after the market shrank during the
past few years. The rebound came because private sector spending rose and
so did consumer confidence. We believe that the increase in beer
consumption in 2012 was driven in part by an increase in the excise taxes
collected on spirits. However, the recent hike in the excise tax and the
current economic slowdown should reduce alcoholic beverage consumption
in the second half of 2013.
Market competition remains intense. In the beer market, the Boon Rawd
Brewery Group holds the largest market share, followed by the ThaiBev
Group. For the spirits market, ThaiBev remains the dominant producer,
especially in the white spirits and blended spirits segments.
The alcoholic beverage market in Thailand comprises two main products:beer and white spirits. Consumption of alcoholic beverages has fallen in thepast few years. Two main factors drive demand: growth in disposableincome and population growth. However, the growth in consumption hasbeen hindered by some negative factors, such as higher excise tax rates,political uncertainty, more strict regulations and new restrictions, healthconcerns, and various campaigns against drinking conducted by thegovernment.Beer consumption rebounded in 2012, after the market shrank during thepast few years. The rebound came because private sector spending rose andso did consumer confidence. We believe that the increase in beerconsumption in 2012 was driven in part by an increase in the excise taxescollected on spirits. However, the recent hike in the excise tax and thecurrent economic slowdown should reduce alcoholic beverage consumptionin the second half of 2013.Market competition remains intense. In the beer market, the Boon RawdBrewery Group holds the largest market share, followed by the ThaiBevGroup. For the spirits market, ThaiBev remains the dominant producer,especially in the white spirits and blended spirits segments.
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