The alcoholic beverage market is expected to be vibrant during the New Year season, according to the Thai Alcohol Beverage Business Association (Tabba).
Kawee Sakawee, chairman of Tabba, said the association expects sales of alcoholic beverages are likely to approach pre-pandemic levels during the high season for tourism.
In 2019, the number of foreign tourists visiting Thailand reached nearly 40 million.
From Jan 1-Dec 22, 2024, Thailand welcomed 34.3 million foreign visitors, according to the Economics Tourism and Sports Division of the Ministry of Tourism and Sports.
The government aims to welcome 40 million foreign arrivals next year.
In addition, New Year celebrations, such as concerts, have returned to normal levels, referring to the levels seen prior to the Covid-19 pandemic, he said.
"In Thailand, drinking alcoholic beverages is often linked to celebrations. As the New Year festival approaches, so do these activities and I believe sales will see an improvement during this period," he said.
The association anticipates that the overall alcoholic beverage market will grow at a rate surpassing the country's average GDP next year.
This anticipated economic recovery will likely lead to an increase in celebratory activities among the public, with many people opting to consume alcoholic beverages during these events, he said.
Moreover, the recovery of the tourism sector is expected to have a positive effect on the food and beverage industry, also benefiting the alcoholic beverage market.
Additionally, the industry has noticed a growing trend towards premium products, which has contributed to the expansion of the premium alcoholic beverage segment this year. Tabba expects this trend to continue into 2025.
However, the business faces challenges, particularly due to high levels of household debt.
"When economic growth is uneven, we may observe a U-shaped recovery in the industry. The upper middle-class may start purchasing more expensive products, while those in the middle-income group may shift towards more affordable options," he said.
