According to the latest report by IWSR, a global leader in alcoholic beverage data, beer and whisky imports in Thailand are contracting while wine and white spirits are taking a larger share of the market.
IWSR data highlighted that the country’s robust tourism sector has led to growing demand for alcoholic beverages.
IWSR reported that total beverage alcohol (TBA) volumes in the country rose by 2% in 2024, but were flat over the 2019 to 2024 period. However, this reflects a period of change rather than a contraction. Beer and whisky, which traditionally dominate sales, are moving to the side while wine and white spirits take more of the limelight.
Beer remains strong in Thailand, and accounted for over 80% of on-trade volumes in the premium-and-above price band in 2024. However, imported beers have struggled to compete with well-known local brands. Jalene Teng, IWSR Senior Market Analyst said, “Thailand’s beer category remains resilient as it is popular with locals and tourists alike, and home-grown brands are increasingly elevating their branding efforts. Meanwhile, wine is a growing category, with the market maturing and consumers gravitating towards it – and white spirits such as Tequila, rum, vodka and gin are fast becoming crowd favourites thanks to their huge popularity in cocktail bars.”
Tax reductions have boosted wine imports. Imported still wine volumes rose by 3% in 2024, according to IWSR data, and are predicted to continue to expand to 2029 at a CAGR of 3%. Sparkling wine imports also grew by 3% last year, although future growth is forecast to moderate, with a 2024 to 2029 CAGR of 1%.
Past free trade agreements have given Chilean and Australian wine a leg up in Thailand. But the new tax cut has particularly benefited US and Italian wines. Consumption of Italian wine grew by 9% during 2024, ahead of New Zealand (7%), Australia (3%) and Chile (1%).
Ms Teng added, “Thai consumers are increasingly favouring wine over spirits – especially over brown spirits – for its perceived health benefits and lower intoxication levels. Wine is seen as ‘age-defying’ and healthier, especially among women and urban professionals.
“Wine consumption is now closely linked to social occasions and shared experiences, often enjoyed in restaurants and wine bars, and at events. The rise of bottle shops and wine festivals in major cities have further fuelled growth.”
