RTDs in Thailand - 2025 Market Report
KEY DATA FINDINGS
Total volume sales rise by 9% in 2024 to 29 million litres
Siam Winery Co Ltd is the leading player in 2024, with a total volume share of 70%
Total volume sales are set to grow at a CAGR of 1% over the forecast period to 31 million litres
2024 DEVELOPMENTS
Spy continues to lead the category
RTDs saw volume sales increase in Thailand in 2024. Consumers have been increasingly consuming the product since the end of the COVID-19 crisis, thanks largely to RTDs’ potential for on-the-go consumption. Consumers have returned to their normal routines and have engaged in more outdoor activities, which has positively boosted the entire RTDs category, as consumers see these products as providing a way of gaining refreshment and enjoying nightlife. However, sales remained well below the levels seen immediately prior to the pandemic.
As consumer knowledge of food labelling increases, people are scrutinising food labels more closely during purchases. Products from both international and domestic players have appeared with healthier contents, such as offering lower alcohol or sugar content. However, because the selection of healthy RTDs in Thailand is still limited, most price conscious consumers continue to value the product’s taste over its healthy label. Sugary and artificially flavoured RTDs remain the mainstream products for the mass market, driving the growth of the RTDs category. Healthy choices and low or no sugar content are likely to remain niche in the near future, especially as there is a wide range of non-alcoholic drinks that can provide similar tastes and flavours.
Siam Winery with its Spy brand remained the dominant player in RTDs in 2023, followed by second-placed, Diageo Moët Hennessy (Thailand). These brands are appealing to Thai consumers as they cater better to local preferences. RTDs from global brands such as Smirnoff Ice are perceived to be better quality. However, their higher price points put them at a disadvantage compared with local brands provided by local companies such as Siam Winery and Thai Spirit Industry. Although some consumers are brand conscious and are interested in premium products, most Thai consumers are price sensitive and tend to opt for more economical options with this trend being further exacerbated by the pandemic and the subsequent challenging economic climate. Prior to the onset of COVID-19, the leading brand, Spy, was launched in several innovative flavours, such as Spy White Gold and Spy Pink Sparkle, while its Spy Cocktail Collection features three products: Spy Butterfly Kiss, Spy Mai Tai and Spy Kamikaze. Spy’s lead is not only founded on high brand awareness amongst local consumers, but also on the company’s constant commitment to new product developments to maintain consumer interest and sustain brand awareness. With time having passed and customers getting bored, Spy responded to the consumer search for new and interesting drinks by launching three new products - Spy Muscat Flower Sparkle, Spy Apple & Umeshu Sparkle and Spy Angel Kiss.
Wine-based rtds still have room for new products and new players
Wine-based RTDs continues to account for the majority of market value and volume, as consumers are familiar with the taste of wine-based RTDs. Wine-based RTDs products are successfully marketed in Thailand, with marketing strategies and advertising communicating the products’ strengths to a wide range of consumers. Nonetheless, RTDs provides opportunities for both Thai and international producers to enter the segment and cater to domestic demand. There is potential for local wineries and beverage companies to explore the production of wine-based RTDs using locally sourced ingredients and flavours.
Increases in unit price
The strong wave of inflation at the end of 2022 affected the unit price of alcoholic RTDs in early 2023. Most of the brands increased their prices by around 1-2%. While national inflation was around 3.88% in the first quarter of 2023 compared with the first quarter of the previous year. Alcoholic drinks inflation was 0.69% comparing March 2022 with March 2023.
PROSPECTS AND OPPORTUNITIES
Imported brands will gain in popularity as people look for new products
Some international RTDs brands are available in Thailand, such as Bacardi Breezer, Smirnoff, Full Moon, Hoshi and Nite. In 2023, tourists and consumers were interested in trying new and innovative drink options. The growing demand has attracted international players to enter the market. These imported brands often offer a variety of flavours and styles to appeal to different tastes.
Healthy lifestyles set to influence development of rtds
The increasingly prominent health and wellness trend is affecting RTDs in terms of growing consumer concerns about the impact of consumption on health. People have become increasingly aware of the levels of alcohol and sugar in such products. Therefore, Spy, the key player, made a first move by launching Zeltzer Fizz Red Apple, which is an alcoholic sparkling water that exploded in popularity amongst the new generation of young adults of legal drinking age. The 5% ABV product is intended to be refreshing and easy to drink, and is notably made from natural ingredients, with red apple aromas, is low in sugar and contains less than 100 calories, making it more appealing for consumers who want an alcoholic drink but also have health concerns. Over the forecast period, innovations such as these are expected to become more regular, which will help to maintain and stimulate consumer interest in the category.
Retail remains key channel for rtds
The off-trade channel dominates total RTDs volume sales, which means that retail will play a crucial role in the development of the category during the forecast period. This is because people can easily gather at home and buy RTDs to consume together. The RTDs category has achieved extensive distribution, with very high levels of availability in local stores, convenience stores and large supermarkets.