Consumers reserve expensive coffees for special occasions
Thai consumers are shying away from cafes offering coffee costing more than 100 baht a cup, as the economic slowdown continues to bite, Korn Sanguankeaw, vice president of Specialty Coffee Association of Thailand, said on Tuesday.
On the other hand, cafés which offer a cup of coffee at below 100 baht have witnessed significant growth of between 60-100%.
Consumers prefer coffee at 60-80 baht though they still opt for more expensive caffeine hits on special occasions or to reward themselves, he said.
Korn added that consumers’ spending amount per bill has dropped from 250 baht to 100-150 baht, citing data from Grab delivery service platform.
However, he confirmed that the café sector itself has not slowed amid the decline in consumer spending, saying that consumers instead looked for other drinks, such as a smoothie or Dubai chocolate.
“If we look at the food industry as a whole, we find that delivery orders are down, but indulgence is on the rise,” he said.
Korn went on to say that, like cocoa, global coffee bean prices have surged by 74.3% year on year due to global warming and a decline in crop productivity, a condition worsened by the 90% import tax imposed on coffee beans. One kilogramme of coffee beans now costs up to 200 baht when 90% import tax, 7% value added tax and transportation cost are included, he explained.
Coffee beans cultivated in Thailand were not enough to close the gap in the market, he added.
