Thailand's soft drinks industry is one of the region's most exciting, and we forecast solid growth over our five-year forecast period to 2017. Soft drinks volume sales are forecast to grow at a compound annual rate of 4.0% to 2017; in value terms, growth of 7.5% is expected as premiumisation continues to drive growth.
Carbonates will be the underperformer of the soft drinks complex , with sales increasing by a compound annual average growth rate of 5.7%, in value terms . That said, this growth is coming from a far higher base than the other soft drinks categories. Juices and energy drinks will outperform, with value sales increasing by a compound annual average growth rate of 7.9 % and 9.2 % respectively over the five years to 2017 amid rising consumer health consciousness and a growing awareness of alternative non-carbonate options.
|Thailand - Soft Drinks Sales|
Key drivers behind our favourable growth outlook for soft drinks will be rising disposable incomes and consumer confidence, along with a growing tourism sector. The competitive nature of the industry and high level of investment will also be major driving forces behind this forecast growth. Should government measures to reduce alcohol consumption prove effective, the soft drinks sector coul d witness even stronger growth. V alue sales are expected to grow at a quicker rate than volume sales owing to the continued trend of consumers trading up to healthier and trendier - yet more expensive - products such as energy drinks, juices and bottled water . This will be to the detriment of the cheaper carbonates sector.
I n October 2012, it was reported that s oft drinks giant PepsiCo had announced plans to invest THB18.4bn (US$600mn) in Thailand by 2015 as part of its programme to build capacity and improve its distribution and marketing. As part of the plan, the firm will invest THB5.2bn to build a new production facility in Rayong Prov i nce.