Wine takes a bigger slice of Thailand's beverage market

Beer and whisky imports in Thailand are contracting, according to new analysis by IWSR, as wine and white spirits take a larger share of the market.

Thailand’s robust tourism industry and a bustling on-trade are creating new opportunities for drinks brands, IWSR data has revealed.

Total beverage alcohol (TBA) volumes in the country rose by 2% in 2024, but were flat over the 2019-24 period. However, this reflects a period of change rather than a contraction.

Beer and whisky, which traditionally dominate sales, are having to move over as 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.

Whisky is falling out of fashion.

Jalene Teng, IWSR senior market analyst, explained: “Thailand’s beer category is remaining resilient as it is popular with locals and tourists alike, and home-grown brands are increasingly elevating their branding efforts.

“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. 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 2024-29 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 benefitted US and Italian wines. Consumption of Italian wine grew by 9% during 2024, ahead of New Zealand (+7%), Australia (+3%) and Chile (+1%).

“Thai consumers are increasingly favouring wine over spirits – especially over brown spirits – for its perceived health benefits and lower intoxication levels,” said Teng. “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 has further fuelled growth.”