Industry Outlook 2025-2027: Beverage Industry

EXECUTIVE SUMMARY

Output by the beverage industry is forecast to rise at an average rate of 3.5-4.5% annually over 2025-2027. Domestic sales volume will expand at a similar rate, helped by: (i) growth in the economy, especially in the tourism sector, which will then boost activity in the restaurant and entertainment industries; (ii) steadily rising temperatures; (iii) ongoing urbanization, growth in convenience store networks, and expansion in platform delivery services, all of which will add to the range of channels through which beverages can be sold to consumers; and (iv) the development of a wide number of new health related products, especially non-alcoholic drinks. Exports will expand at the slightly slower rate of 2.0-3.0% per year, with sales supported by recovery in cross-border trade, but the increasing trend among Thai and transnational manufacturers to invest in production facilities in the CLMV nations will drag on growth in overseas sales, especially for alcoholic drinks.
 

Krungsri Research view

Although an uptick in economic activity and growth in the tourism sector will lift industry turnover through the three years from 2025 to 2027, players will have to contend with the impacts of steadily worsening climatic conditions on the cost of inputs.

• Distributors of mineral and bottled water: Revenue will rise on an improving outlook for the tourism sector and for the economy generally. Increasing consumer worries over health and wellness are boosting demand for safe and healthy products, and this will benefit manufacturers that are viewed as trustworthy and that maintain high production standards. Demand for bottled water from buyers in the CLMV countries, major markets for these products, will also tend to grow strongly.

• Distributors of carbonated drinks: Steadily rising temperatures will lift demand for refreshing and thirst-quenching drinks, while deepening consumer concerns over personal health are encouraging manufacturers to replace sugar with other sweeteners and to develop new products targeting health-conscious market segments. As such, income will tend to rise.

• Brewers: As elsewhere, the ongoing rebound in the tourism sector and a general uptick in the economy will lift revenue. Brewers will also benefit from the release of new products that are better aligned with consumer demand, including low-alcohol and low-calorie beers. However, stiffening competition and the rising cost of inputs will drag on profits.   

• Distillers: The increasing impact of health worries will mean that consumption of spirits will expand only weakly.  However, handcrafted products with an interesting backstory will be well placed to generate significant added value and to outpace overall growth in the segment.

Overview

The Thai beverage industry produces a comprehensive range of product lines, and these are sufficient to meet almost all domestic demand. Thus, 98.6% of drinks consumed domestically are produced within the country and just 1.4% is imported, of which by volume, 58% is of alcoholic drinks though considered by value, this rises to 80%. The industry is thus largely focused on supplying the domestic market, and 83.7%^1/ of all output is soaked up by the latter, with the remainder naturally being exported. As of 2023, a total of 409 sites producing beverages were registered with the Department of Industrial Works. The majority of these were located in the central region, and by province, the most important areas were: Nakhon Pathom (40 sites), Chonburi (30), Pathum Thani (29), Pra Nakhon Sri Ayutthaya (22), Samut Sakhon (21), and Bangkok (16). These were split between: (i) 349 sites (85% of the total) producing soft or non-alcoholic drinks, and (ii) 60 sites (15% of the total) producing alcoholic drinks.

In 2023, the domestic market for beverages absorbed 13.02 billion liters of drinks, these having a value of USD 25.32 billion2/. By volume, the market was divided between the non-alcoholic and alcoholic segments in the ratio 77:23 but by value, the relative importance of the two segments flipped to a ratio of 36:64. Details of the market are as follows (Figure 1).

• Non-alcoholic drinks: 10.6 billion liters of soft drinks were sold domestically in 2023, and these generated receipts of USD 9.05 billion. The most important products were mineral and bottled water, which accounted for 61.5% of sales (6.18 billion liters), followed in importance by carbonated drinks and soda (24.0%), ready-to-drink tea (4.2%), fruit juices (3.4%), energy drinks (2.9%), and other products (4.0%).

• Alcoholic drinks: Domestic sales totaled 2.97 billion liters, which then brought in USD 16.27 billion in income. Beer was the most important market segment, and 2.18 billion liters of this were sold in the year (a 73.5% market share by volume). This was followed in importance by spirits (24.5%), ready-mixed alcoholic drinks (1.0%), wine (0.9%) and cider (0.1%).
   

In 2023, exports of Thai beverages brought in USD 2.78 billion from total sales of 2.54 billion liters (Figure 2). With an 18.4% share of the export market, Thailand’s most important trade partner was Cambodia, followed by Vietnam (a 13.3% market share), Myanmar (12.5%), China (11.2%) and the US (10.9%). Exports can be split into two main groups. (i) Overseas sales of non-alcoholic drinks accounted for 93.3% of the total by volume and 84.6% by value. The main markets for Thai soft drinks were Cambodia (19.0% of exports of soft drinks by volume), Vietnam (14.3%), China (11.9%), the US (11.5%), and Myanmar (10%). (ii) By volume and value, alcoholic drinks represented respectively 6.7% and 15.4% of all beverage exports. Here, the most important markets were Myanmar (47.3% of all exports of alcoholic drinks), followed by the US (14.4%), Cambodia (9.7%), Japan (5.5%) and Israel (2.6%).

Situation

Overall industry output remained broadly flat in 2023, inching up just 0.3%, but over 9M24, this strengthened 4.3% YoY. For 2024 as a whole, output is now expected to be up by 4.0-5.0% (Figure 4). The situation with individual product groups is described below.

• Non-alcoholic beverages: Output of the main product groups of mineral and bottled water, soda and carbonated drinks, and energy and electrolyte drinks edged up 1.7% in 2023. Demand rose on general growth in the economy, while players benefited from the decline in the cost of packaging (Figure 5). Over the first 9 months of 2024, output rose another 3.8% YoY as spending rallied, consumers increasingly returned to normal patterns of socializing and shopping outside the home, and the tourism sector continued to strengthen. For the year as a whole, output of non-alcoholic drinks is expected to rise by 3.5-4.5%.

  • Mineral and bottled water: Output increased by 1.9% in 2023 and then by another 1.8% YoY in 9M24. For 2024, production volume is forecast to rise by 1.5-2.5% (Figure 6).

  • Sodas and carbonated drinks: In 2023, output jumped 4.8%, followed by another jump of 5.8% YoY over 9M24, and for all of 2024, this is expected to be up by 5.5-6.5% (Figure 7).

• Alcoholic drinks: For the main products of beers and spirits, production contracted -4.9% in 2023 but this bounced back to an expansion of 6.2% YoY over 9M24, and so for the year overall, production is expected to be up 6.0-7.0%. This will be split between the following.

  • Beer: In 2023, high levels of stockholding encouraged brewers to cut back on production and to run down inventories and so output contracted -6.8% in the year. The industry was also affected by the increased cost of packaging (i.e., metal cans and glass bottles) and transport that then forced producers to implement price rises of 1.0-3.0%, having held back on these in the previous year. However, the segment swung back to growth of 6.9% YoY over the first 9 months of 2024 (Figure 8) as producers engaged in the restocking needed to meet rising demand, especially from sales in tourist areas that are reliant on purchases by overseas visitors. Stock levels have thus returned to normal (Figure 9), and for 2024, output should be up by 7.0-8.0%.

  • Spirits: Production rose 2.9% in 2023, moving in line with the increase in economic activity and the normalization of services in restaurants and in the entertainment industry. Moreover, although inventories were high, spirits have a much longer shelf life than beer and so it was not as necessary for distilleries to switch to a destocking cycle (Figure 11). Production has continued to expand in 2024, rising 3.5% YoY over 9M24 (Figure 10) on the ongoing rebound in the tourism sector and growth in the economy overall, and for all of 2024, this should be up by 3.5-4.5%.

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An expanding economy, the rise in overseas arrivals, and the return to normal of entertainment services meant that demand from hotels, restaurants, pubs and bars was up, and as such, the volume of drinks sold to the domestic market surged 7.0%^3/ in 2023. These trends continued through the first 9 months of 2024 and so over this period, domestic sales volume climbed another 4.1% YoY. For all of 2024, domestic sales volume is thus expected to be up by 4.0-5.0%. The situation for individual market segments is described below.  

• Non-alcoholic drinks: Sales volume climbed 7.0% in 2023 and another 3.5% YoY in 9M24 on hotter than normal weather that was partly caused by the year’s El Niño. In addition, manufacturers have responded to intensifying consumer worries over health and a corresponding rise in demand for non-alcoholic drinks by developing a wider range of products, including vitamin- and mineral-enriched water and electrolyte drinks, as well as carbonated drinks made with non-sugar sweeteners. The total volume of goods sold to the domestic market is therefore forecast to expand by 3.5-4.5% across 2024. The outlook for individual segments is described below.  

  • Mineral and bottled water: Sales volume jumped 10.5% in 2023 with the three largest brands–Singha, Crystal and Nestlé–occupying more than 50% of the market. Growth continued through 9M24, with sales rising another 2.8% YoY (Figure 12), and so for the year, the quantity of mineral and bottled water sold to the domestic market is forecast to rise by 3.0-4.0%.

  • Sodas and carbonated drinks: The enforcement of the latest round of the sugar tax on 1st April 2023 limited sales growth to just 0.9%. As with water, sales were dominated by three brands–Coke, Pepsi and Fanta–that accounted for more than 70% of the market. Growth accelerated in the first 9 months of 2024, rising 3.8% YoY, and this rate should be maintained over the year as a whole. 2024 domestic sales should thus expand by 4.0-5.0%.

• Alcoholic drinks: In 2023, the rise in tourist arrivals and the return of social life to normal had positive impacts on businesses that sell alcohol, such as pubs, bars, and other entertainment sites, especially for those in the major tourist areas of Bangkok, Phuket, and Pattaya. Given this, the volume of goods sold to the domestic market rose 6.8% in the year. These trends continued to lift the market through the first 9 months of 2024 and this, combined with the decision to allow entertainment sites located in the five pilot regions of Bangkok, Phuket, Chonburi, Chiang Mai and Ko Samui and those in hotels nationwide to remain open until 4 a.m. (in effect from December 2023), lifted sales by another 6.5% YoY. Domestic sales volume was further boosted by 2024’s Songkran celebrations, which were the most crowded and widely celebrated since the pandemic, and this then helped to further boost demand from domestic and foreign tourists. The quantity of alcoholic drinks sold to the domestic market is therefore expected to climb by 6.5-7.5% across the entirety of 2024.

  • Beer: Sales volumes rose by 8.2% in 2023 and then 6.0% YoY in 9M24. This trend will continue, and so the volume of beer sold domestically will be up by 6.0-7.0% over 2024 (Figure 14). Demand is benefiting from the move by manufacturers to widen the range of choices available to consumers, which now includes non-alcoholic, fruit-scented, craft, and low-calorie beers. Nevertheless, almost 90% of sales are made by just three brands, namely Leo, Chang and Singha, though competition is increasing as new players enter the market (e.g., Carabao beer).

  • Spirits: The volume of spirits sold domestically improved 2.6% in 2023 and 8.4% YoY in 9M24, and for the year overall, growth should remain in the range of 8.5-9.5% (Figure 15). Sales are being lifted by recovery in the tourism sector and the entertainment industry, as well as by growing consumer interest in ‘handmade’ local spirits that have a unique identity and backstory, and an interesting or novel flavor. Nevertheless, sales of these products will remain limited and the three largest brands (Ruang Khao, Blend 285, and Hong Thong) continue to account for more than 70% of the market.

By volume, exports dropped -1.5% to 2.5 billion liters in 2023, but by value, these increased 2.0% to USD 2.8 billion (Figure 16), with declines in sale volumes concentrated in sodas and carbonated drinks (-11.9%) and beers (-4.8%). Over 9M24, export volume returned to growth of 1.6% YoY, helped by strengthening economies in Vietnam and Lao PDR, while rising manufacturing and transportation costs pushed up prices and hence income from the export of beverages by 8.8% YoY. For 2024 overall, export volume is expected to rise by 1.0-2.0%, split between the following product categories.

• Non-alcoholic drinks: Export value rose 1.6% in 2023, but by volume, overseas sales slipped -1.3%, largely as a result of falling demand for Thai sodas and carbonated drinks in Cambodia and Lao PDR. In these countries, sales were impacted by the switch in demand to products imported from other countries, as well as by soft spending power that then dragged on discretionary purchases, including drinks. Nevertheless, exports of fruit juices to China performed well, and with these increasingly finding favor with Chinese consumers, sales into the country jumped 115.1%. Over the first 9 months of 2024, export volume and value rose by respectively 1.8% YoY and 11.7% YoY, and through the remainder of the year, sales will continue to benefit from the continuing strength of demand from China for fruit juices, even if demand for energy drinks, bottled water, and carbonated drinks weakens slightly on sluggish economic conditions in export markets. For 2024 overall, exports of non-alcoholic drinks are forecast to expand by 1.5-2.5% by volume.

  • Bottled and mineral water: Exports rose 1.1% by volume but were up a full 10.5% by value in 2023 on growth in sales into Lao PDR (+49.6%) and China (+13.2%), which together account for 44% of all exports from Thailand of bottled and mineral water, while over 9M23, although they jumped another 12.9% YoY by value, they declined -3.5% YoY by volume (Figure 17). In the period, sales were down -35.5% to Lao PDR, -5.8% to Cambodia, and -33.1% to Myanmar. These declines follow a period of sharply accelerating exports over 2022 and 2023 and, in the case of Myanmar, ongoing disturbances within the country. Growth in export value was largely attributable to the 23.0% increase in sales into China, where consumers have strongly positive views of Thai products. Over the rest of the year, sales of bottled and mineral water into markets in neighboring countries will benefit from the need to build stocks for the end of year celebrations, and so for all of 2024, declines in export volume are likely to be limited to between -2.5% and -3.5%.

  • Sodas and carbonated drinks: Exports slipped -11.9% by volume and -7.2% by value in 2023 due to weakness in the Lao PDR market, where sales were down by volume and value by respectively -30.5% and -29.8%. With the Laotian Kip sharply down in value, the cost of imports has risen and so consumers are tending to steer away from what are now luxury goods, such as carbonated drinks, and towards basics, such as drinking water. Over 9M24, although export value rose 12.3% YoY on the rising cost of inputs, which then lifted prices (Figure 18), export volume contracted by another -24.9% YoY following a substantial increase in exports in the preceding year and as health concerns increasingly push consumers towards drinking water instead of sweetened products. For 2024 overall, sales volume is thus expected to be down by between -21.0% and -22.0%.

• Alcoholic drinks: 2023 exports were down -5.2% by volume but up 4.3% by value, while over 9M24, these declined on both fronts, dropping -1.3% YoY by volume and -7.3% YoY by value. However, the situation is improving and although exports of spirits will tend to soften as importers run down their inventories, sales of beer into new markets will help to keep overall growth in exports in the range of 0.0-1.0% for all of 2024.

  • Beer: In 2023, exports strengthened 7.5% by value but fell back -4.8% by volume. This was largely a result of the -10.9% drop off in sales to Myanmar, Thailand’s most important overseas market for alcoholic drinks (the country accounts for 47.3% of sales), where the authorities tightened controls on imports, in particular of goods that are also made domestically, alcoholic drinks, and luxury/discretionary items. However, more open up of economic activities in the Middle East helped to boost 9M24 exports by 3.5% YoY by volume and 2.6% YoY by value (Figure 19). Sales to the UAE were especially strong (+23.9% YoY) thanks to the government’s relaxation of controls on the consumption of alcohol and liberalization of economic activities, as well as the uptick in business in hotels and restaurants. By volume, 2024 beer exports are therefore expected to rise by 3.5-4.5%.

  • Spirits: By volume and value, 2023 exports were up by respectively 1.5% and 6.9%. Sales to South Korea surged 714.0% by volume as importers looked to rebuild stocks, while by value, strong performers included China (+211.0%), Cambodia (+276.7%), India (+84.0%), Macau (+2462.0%) and Russia (+328.0%), where sales have been helped by the development of a wide range of generally premium, high-cost products. However, exports swung back to contractions of -8.6% YoY by volume and -10.6% YoY by value over the first 9 months of 2024 (Figure 20). This was partly due to importers running down stocks that had built up a year earlier, and so for all of 2024, export volume is expected to fall by between -7.5% and -8.5%.

Outlook

Total output from the Thai beverage industry is forecast to expand by 3.5-4.5% annually over 2025-2027. The outlook will be boosted by: (i) steadily strengthening domestic demand; (ii) the switch back to inventory building following a period of destocking as players prepare for an uptick in economic activity; and (iii) the development of a wide range of health drinks and the implementation of proactive marketing strategies. Nevertheless, growth will also come under pressure from: (i) the impact of climate change and the resulting increased variability in the weather system on the cost of the agricultural inputs used by the industry; and (ii) the switch to the use of more environmentally friendly packaging and the possibility that costs may increase in consequence.

• Non-alcoholic drinks: Domestic output should increase by 4.0-5.0% annually over the next 3 years on: (i) a 4.0-5.0% yearly increase in the production of bottled and mineral water; and (ii) growth of 3.0-4.0% in output of sodas and carbonated drinks. This will largely be driven by strengthening demand that will come especially from the rising number of foreign tourist arrivals, growth in the economy, and the return to normal of activities carried out outside the home. This will then encourage players to invest in the expansion and upgrade of their production capacity, and to bring newly innovative products to market that are a better fit for current consumer demand, especially with regard to health drinks.

• Alcoholic drinks: Overall output of alcoholic drinks will rise only slowly, growing by some 1.0-2.0% annually over the next three years, and both brewers and distillers will have to face with similarly low rates of growth. The market will be lifted by the ongoing rebound in the tourism sector and the domestic uptick in social activities, which will then push manufacturers to expand their production capacity, especially for craft or premium products. In addition, the introduction to the market of new products with innovative flavors and ingredients will help to expand the range of consumers with which brewers and distillers are able to connect. However, at the same time, players will need to adapt to changes in the regulatory and tax frameworks, as well as to the impacts of a more variable climate on the prices paid for agricultural inputs, for example for sugarcane and rice. Increasingly widespread concerns about personal health and welfare are also encouraging consumers to cut back on the consumption of alcohol, and going forward, this will impact production levels.

The quantity of beverages sold to the domestic market is forecast to expand by 3.5-4.5% per year. Sales will be lifted by: (i) steadily rising temperatures and, with this, increasing demand for refreshing soft drinks; (ii) growth in the economy and the ongoing increase in tourist arrivals, which will boost activity in restaurants, hotels, pubs, bars and other related businesses; (iii) continuing urbanization and the relentless spread of convenience stores, which is making it easier for buyers and sellers to connect; and (iv) growth in online distribution and platform-based delivery services that is then making it easier for consumers to purchase these goods (only for non-alcoholic drinks).

• Non-alcoholic drinks: Domestic sales volume is predicted to be up by 4.0-5.0% annually, split between growth of: (i) 4.0-5.0% for sales of bottled and mineral water, sales of which will be lifted by the growing consumer preference for pure, unadulterated drinking water; and (ii) 3.0-4.0% for demand for sodas and carbonated drinks, where sellers will benefit from the development of new products that include added vitamins and minerals, or that reduce the sugar content or replace this with non-sugar sweeteners, thereby responding better to changes in demand from new generation consumers. Nevertheless, although manufacturers are responding to changing market conditions with the release of new products, the tightening of the sugar tax, the next stage of which will be introduced in April 2025^4/, will continue to drag on demand.

• Alcoholic drinks: The quantity of alcoholic beverages sold domestically should grow by 1.5-2.5% per year over the next 3 years, split between growth of 1.5-2.5% for beer and 1.0-2.0% for spirits. The market will benefit from: (i) the continuing health of the tourism sector and of the economy more generally; (ii) the development of new products with a lower alcohol content, and of craft beers and spirits that cater to a wider range of tastes and that appeal to consumers looking for new experiences. Nevertheless, headwinds will blow against growth, and these will come from: (i) deepening awareness of the negative health consequences of alcohol  consumption, which is then impacting demand; and (ii) legal restrictions on the sale of alcohol that limit this to shops, department stores and food and drink outlets (i.e., to offline retailers), as well as strict controls on advertising that make it difficult for distributors to get their products in front of consumer eyes in the media and in online spaces.

Exports are likely to trend upwards by 2.0-3.0% per year over the next three years thanks to strengthening cross-border trade, although this will be balanced by rising investment by Thai and transnational players in beverage production in the CLMV nations that will then steadily undercut export volume.

• Non-alcoholic drinks: Exports of soft drinks will expand by 2.5-3.5% annually. (i) Overseas sales of bottled and mineral water will be up by 4.5-5.5% pa on strengthening economic activity and widening distribution channels in the CLMV nations, markets where health concerns are deepening and so demand for drinking water is rising. (ii) A number of headwinds, including increased investment in domestic beverage production by local, Thai, and transnational players, the relative price advantage of locally produced drinks over imported alternatives, and the switch among consumers to favor healthier drinks, will mean that annual exports of sodas and carbonated drinks will decline by between -1.5% and -2.5%. (iii) Exports of energy drinks, especially to Vietnam, will benefit from stronger sales to newly-employed younger consumers who are more likely to engage in regular exercise and who therefore express stronger demand for refreshing and easily consumed sources of energy, and as such, these should rise by 3.0-4.0% per year. (iv) Overseas sales of fruit juices should strengthen by 4.0-5.0% annually. In the main markets of the US and China, demand continues to rise for fruit juices to mix with other drinks and for beverages that provide health benefits and given widespread acceptance of the flavors of Thai products and the high-quality of their inputs and production standards, these are well placed to benefit from changing patterns of demand.

• Alcoholic drinks: Overall, exports are likely to contract by between -1.0% and -2.0% per year, and this rate of decline is expected to be mirrored in the figures for overseas sales of both beer and spirits. Sales will be hurt by: (i) Stiffening competition within these markets from domestic and overseas players and increasing investment in overseas production by Thai brewers and distillers, which will steadily undercut export volume and value. (ii) The ongoing disturbances in Myanmar (Thailand’s most important export market for alcoholic beverages) and uncertainty over the regulations governing Thai-Myanmar cross-border trade. Nevertheless, tailwinds will come from: (i) continuing economic growth in the CLMV countries, which will then lift consumer spending power; and (ii) the investments made by Thai players in improving production processes, which will then help Thai producers expand further into overseas markets.

Sustainability in the beverage industry

Issues connected with sustainability are taking on a much more central role in guiding business decisions within the Thai beverage industry. In particular, the ESG (environmental, social, and governance) agenda is helping to drive the greening of the industry, and with both consumers and investors much more concerned with the environmental friendliness and positive social impacts of beverage products, companies are having to adjust as they respond to changes in demand. This is taking the following forms.

• The environment

  • Promoting the use of sustainable packaging: Environmentally friendly packaging includes biodegradable plastics and packaging that can be reused or recycled. Players may also partner with manufacturers to design new types of packaging that require less plastic or other non-biodegradable inputs.

  • Promoting sustainable agriculture: Sourcing inputs that have been grown sustainably is becoming increasingly important, and manufacturers should pay greater attention to using organically grown inputs, cutting their reliance on chemical inputs, and supporting growers who use crop rotation strategies. Companies should also favor farmers who grow a wide range of products, thus helping to support biodiversity and increasing the drawdown of atmospheric carbon.

  • Using water resources sustainably: Manufacturers are tending to focus more heavily on reducing the quantity of water used in production and then on improving waste-water management, thereby increasing the potential for the reuse of this.

  • Cutting carbon emissions: The transition to renewables (e.g., solar and wind) or increased investment in energy-saving technologies (e.g., reusing heat generated from production processes) will help to cut industry emissions.

  • Improved waste management: Better waste management processes that reduce the quantity of waste generated across the length of production processes, the increased reuse of inputs, and the implementation of principles drawn from the ‘circular economy’ will help to cut the quantity of resources that are used. This will also allow materials to be reused or repurposed, including for example packaging materials and the byproducts of manufacturing processes.

• Social issues

  • Extending the range of healthy drinking choices: This will include better labelling of products and ensuring that their nutritional content is clearly displayed and encouraging the responsible consumption of alcohol. The latter will involve the development of low- or non-alcoholic drinks and the promotion of a safer drinking environment, especially for women.

  • Increased social responsibility: Players will more carefully assess the impacts of their activities on sites where they carry out business activities, from constructing breweries and distilleries through to their operation. Companies will also be more active in supporting the local communities where they operate, for example by building clinics and providing financial support for children from disadvantaged families.

  • Creating a positive work environment: Companies will focus on providing greater care for their employees through improved safety and welfare (e.g., by providing staff training programs).

  • Forestation and restoration programs: Players will need to join with forestation and reclamation projects as part of efforts to offset their carbon emissions and to promote local biodiversity. Manufacturers should also support sustainable farming activities.

• Governance

  • Transparency and accountability: Players will need to ensure that corporate governance is transparent, for example as this relates to the release of data on compliance with ESG strategies and goals. Communications with employees will also need to be clear so that staff are able to understand the importance of ESG-related issues and the role to be played by them in reaching these targets.

  • Promoting diversity: Goals should be set for increasing the diversity and inclusiveness of the board and opportunities increased for individuals from underrepresented or disadvantaged groups to demonstrate their potential. This will not only help to address problems with inequity in society but will also improve talent recruitment and retention within the company.

  • Risk management: Management of risk connected to business operations should be improved, for example as this relates to the potential impacts of climate change on operations.

1/ Source: Euromonitor, Ministry of Commerce
2/ Based on the Bank of Thailand’s average exchange rate for 2023 of THB 34.81 to USD 1.
3/ Data for the 2023 domestic sales volume is from Euromonitor, 9M24 data is provided by the Office of Industrial Economics, and forecasts are by Krungsri Research.
4/ The sugar tax is calculated on the basis of the sugar content of the drink (sugar tax owed = (tax rate for the sugar content of that drink x net volume in milliliters)/1,000)).
Rates are published in the 2022 excise rates documents (the 28th issue), which revised the tax rates for non-alcoholic drinks. (i) Taxes on non-alcoholic drinks are now calculated on the basis of sugar content and added value. Initially, increases in tax were relatively mild, but these are being hiked at an accelerating rate every 2 years, with the next phase due to take effect on April 1st, 2025. (ii) Coffee and tea have been removed from the list of tax-exempt drinks (they had been included on this list because their sale promoted consumption of agricultural produce and because they were judged to have health benefits), and as such, taxes on these have risen (for details, please see Box 1).
5/ Source: Announcement by the Excise Department on the criteria for charging tax on the value of fruit and vegetable drinks.
6/ Source: Announcement by the Excise Department on the criteria for charging tax on fruit and vegetable drinks that have been sweetened or that contain other additives.