The restaurant and beverage industry in 2025 is projected to expand by 4.6%, with a market value of THB 657 billion

• The restaurant and beverage industry in 2025 is projected to see a total turnover of THB 657 billion, growing by 4.6% from 20 YoY. This growth is driven by the continued expansion of domestic tourism, regional branch openings by operators, and increased consumer demand for new food and beverage options. However, the industry faces high competition, requiring careful investment consideration.
• Turnover in the restaurant sector is expected to reach THB 572 billion in 2025, growing by 4.8% YoY. The street food segment is anticipated to grow faster than others, driven by its popularity among both Thai consumers and international tourists. Meanwhile, the beverage industry (including bakeries and ice cream shops) in 2025 is expected to see turnover of 85.32 billion THB, growing by 3.2% from 2024.

Trends in the Domestic Restaurant and Beverage Industry
        In 2025, the restaurant and beverage industry is expected to see its turnover of THB 657 billion, an of 4.6%, but still lower than that reported for 2024(Figure 2).
        The increase, however, is expected to be driven primarily by the tourism sector, including both domestic and international travel, which is expected to show steady growth from 2024 (Figure 3). Gastronomy tourism is particularly popular among both Thai and international tourists. Additionally, Thailand has over 482 restaurants featured in the Michelin Guide. According to the Ministry of Tourism and Sports, spending on food and beverages by tourists is the second-highest category of spending during their trips.
        Furthermore, market growth is driven by rising prices in line with increasing business costs, along with the expansion of operators’ branches and marketing strategies that encourage higher spending per customer.

Competition in the Restaurant and Beverage Industry
        The domestic restaurant and beverage industry faces intense competition across all price levels and types of food. Thailand has a high restaurant density, with 9.6 restaurants per 1,000 people, which is considered a high ratio. By 2025, the number of restaurants and beverage outlets is expected to reach approximately 690,000 (Figure 4).
In 2025, both large and small new operators continue to show interest in investing in the sector. Operators in the market plan to expand existing restaurant and beverage chains and launch new restaurant and beverage brands to cover all market segments. The majority of these brands will remain in the Asian cuisine category. Additionally, the increase in the number of restaurants and beverage outlets is driven by the development of commercial areas, such as new shopping malls and office buildings, further supporting growth of the industry.
        Most investments from operators remain concentrated in Bangkok and other provinces, which are major tourist destinations, such as Chon Buri, Chiang Mai, and Surat Thani, because they are considered high-potential areas. The number of restaurants and beverage outlets in the Bangkok metropolitan area accounts for approximately 24% of the total number of restaurants and beverage outlets nationwide (Figure 5). 
        Furthermore, competition in the industry is also driven by foreign investments. Over the past 1-2 years, the restaurant and beverage sector has seen an increase in foreign investments. According to data from the Department of Business Development, the registered capital of restaurant and beverage businesses by nationality has consistently risen, with Chinese investments accelerating since the beginning of 2024. This trend is expected to continue growing (Figure 6).
Intense competition has also led to a high turnover of new and old operators. Data from the Department of Business Development reveals that restaurant closures have increased, with restaurant business deregistrations rising by 89% in the first 10 months of 2024 (YoY). Meanwhile, the number of new openings has remained unchanged, compared to the same period last year.

Trends in the Restaurant Industry
        In 2025, turnover within the restaurant industry (including full-service restaurants, limited-service restaurants, and street food outlets with storefronts) is projected to reach approximately THB 572 billion, growing by 4.8% YoY (Figure 7).
The growth of each type of restaurant is influenced by different factors, such as the location of the restaurant, the density of similar and diverse restaurant types in each area, as well as price, food quality/taste, and service. Additionally, consumer dining trends, the introduction of new and unique menu items, also contribute to the growth of restaurants.

• Full-Service Restaurants are expected to grow by 2.9% from 2024, reaching a value of THB 213 billion. Buffet restaurants remain popular among consumers who seek value for money and those with changing lifestyles. For a la carte restaurants, such as casual dining establishments offering Japanese, Korean, Thai, and Western cuisine in the mid-price range, the sector faces challenges from purchasing power and intense competition from the growing number of establishments.
• Limited-Service Restaurants are expected to grow by 3.8% from 2024, with a market value of THB 93 billion. Growth is driven by the expansion of operators in sectors such as pizza and fried chicken, as well as by full-service operators transitioning to a quick-service format to reach more customers and reduce operational costs.
• Street food stalls with seating are expected to grow by 6.8% from 2024, with a market value of THB 266 billion. This growth is attributed to the basic, easily accessible, and affordable menu items that continue to expand. Additionally, street food restaurants have gained popularity among both domestic and international tourists.

Trends in the Beverage Industry 
        In 2025, turnover in the beverage industry (including bakeries and ice cream shops) is expected to reach approximately THB85.32 billion, growing by 3.2% from 2024 (Figure 8). Part of this growth is driven by the expansion of both large and small operators, as well as the opening of new stores. Additionally, the expansion of foreign beverage franchises in Thailand is expected to increase. Furthermore, the introduction of new beverage and bakery products from abroad has stimulated greater consumer demand for beverages and baked goods.

Risks in the Restaurant and Beverage Industry

• Consumer purchasing power has not fully recovered, which is a key factor affecting the growth of the restaurant and beverage industry. The outlook for Thailand’s economic growth in 2025 remains highly uncertain, creating risks related to employment and consumer purchasing power.
• Operating costs are likely to increase in 2025. The overall costs for the restaurant industry, including utilities and rental fees, are expected to rise. Key cost factors include:

o    Labor costs, as operators must monitor government policies, regarding the minimum wage increase in 2025. This issue could impact medium and small-sized businesses.

o    Food raw material costs, which represent approximately one-third of the overall business costs in the restaurant industry. Abnormal weather conditions in several countries may drive up the prices of essential imported raw materials such as powdered milk, butter, cheese, cocoa, and wheat. Forward contracts for these materials in 2025 are expected to remain high, significantly affecting the costs for bakeries and Western food businesses.

• The increasingly diverse and complex consumer behavior is a critical factor for the service industry. Today, “novelty + experience + health + reasonable price” has become the new standard for consumers. Consumer preferences are increasingly variable, with low brand loyalty and frequent changes that are driven by trends, requiring operators to adapt their business models quickly.

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