Page 305 - Social Enterprise A New Business Paradigm for Thailand

been slightly more volatile over the past decade. Since 2021, global coffee prices have risen
steadily, driven by frost conditions in Brazil, one of the world’s top producers, and a shift by
more than 30% of Vietnamese coffee farmers toward durian cultivation, which has reduced

overall coffee supply.

Thailand has been actively promoting coffee cultivation for more than fifty years. In the early
stages, coffee varieties were imported and introduced as a replacement for opium in the
highland regions of northern Thailand, particularly between 1969 and 1992. In the South, coffee
became one of several alternative crops that offered farmers an additional source of income.
After a major outbreak of coffee leaf rust in 1973, government agencies began developing
disease-resistant varieties better suited to local conditions. Since 1975, both the public and
private sectors have continued to refine and expand a range of Robusta and Arabica strains
tailored for successful cultivation in Thailand. Beyond developing rust-resistant coffee varieties

tailored to Thailand’s climate, efforts have also focused on increasing the value of coffee
through the creation of regional identities, most notably by registering products under
Geographical Indications (GI). As of April 2025, a total of 11 coffee products had been granted
GI status across northern and southern Thailand, covering both Robusta and Arabica varieties.
From 2019 to 2023, Thailand saw a steady decline in the number of coffee-growing households,
cultivated land area, harvested area, and total green bean production. At the same time,
domestic demand continued to grow, driving up imports to meet the shortfall. In 2023,
approximately 27,800 farming households cultivated coffee on more than 200,000 rai of land
nationwide. That year, Thailand produced around 16,600 tons of green coffee beans, far below

the domestic demand of 93,600 tons, resulting in imports of roughly 62,200 tons, over 70% of
which came from Vietnam.

Coffee consumption in Thailand has been on the rise compared to previous years. In 2023, it
was estimated that the average Thai consumed around 300 cups of coffee per year, equivalent
to approximately 4.5 kilograms of roasted coffee per person. This remains below the levels seen
in Japan and Europe, where annual per capita consumption is estimated at 400 and 600 cups,
respectively, roughly 6 and 9 kilograms of roasted coffee. The growing popularity of ready-to-
drink beverages, along with increasing interest in freshly brewed coffee, has helped fuel steady

growth in the Thai coffee market over the past few years. From 2021 to 2023, the market
expanded at an average annual rate of 8.55%. According to Euromonitor, Thailand’s coffee
market was valued at approximately 34.47 billion baht in 2023, an increase of 7.34% from the
previous year. Instant coffee accounted for about 84% of this total (roughly 28.95 billion baht),
primarily using Robusta beans as the main ingredient. The remaining 16% (around 5.52 billion
baht) came from the fresh coffee segment, which relies mostly on Arabica beans (Trade Policy
and Strategy Office, Ministry of Commerce, 2024). Separately, online sources estimate that the

broader coffee beverage market in Thailand was worth about 60 billion baht in 2023 and is
projected to grow to 65 billion baht in 2024 (Jaturong Kabkaew, 2024). Approximately 45% of
this market value is attributed to out-of-home consumption, such as at cafés and coffee shops,

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