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27 Mar 2023

Industry

Non-alcoholic beverage market, 2023: Growing in line with marketing and advertising drives (Current Issue No.3394)

คะแนนเฉลี่ย

        KResearch projects that sales of non-alcoholic beverages (excluding those via food service) will grow 4.0 - 6.0 percent in 2023, down from the high base of 7.4 percent reported for 2022. Sales of non-alcoholic drinks via various retail outlets will continue to increase, thanks to the recovery in outdoor activities and tourism. However, their prices may decline as some consumers have increasingly switched to non-alcoholic beverages sold via food service. Given this, the non-alcoholic beverage market will likely grow at a slower rate during 2023.  
        Aside from the economic rebound, we at KResearch are of the view that the revival of marketing and advertising drives is another important factor helping stimulate the overall sales of non-alcoholic drinks, particularly new products that producers want to build brand awareness or increase confidence among consumers about their nutritional facts and health benefits. This is reflected in the fact that non-alcoholic beverage producers have to incur approximately THB20 (on average from 2018-2021) for every THB100 in their income, which is higher than the THB12 for those in the food business. Marketing or advertising, therefore, has a relatively important impact on sales of non-alcoholic beverages.  
        Looking ahead, although non-alcoholic beverages are considered healthy, their consumption frequency may not increase. Moreover, the life-cycle of some non-alcoholic beverages has become shorter with lower brand loyalty. As competition in the business remains intense due to the proliferation of new players, non-alcoholic beverage producers will likely face more challenges in bolstering consumption frequency or sales per each consumption in order to stay afloat. Additionally, the ability of each non-alcoholic beverage to generate substantial sales or become successful in the market tends to vary.  

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