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The roasted coffee market is valued at approximately 22.4 to 34.0 billion baht, calculated using
a price range of 400 to 600 baht per kilogram and a conversion ratio of 1.4 kilograms of green
coffee to 1 kilogram of roasted coffee. More than 84% of roasted coffee is used to produce

instant coffee (Euromonitor, citing the Trade Policy and Strategy Office, 2024). This leaves
around 8,410 tons of roasted coffee for the out-of-home market, such as cafés, coffee shops,
and restaurants, representing a market value of 3.36 to 5.05 billion baht, based on a 16% market
share. Given that one kilogram of roasted coffee can yield approximately 80 cups, including hot
and iced drinks, and assuming an average retail price of 40 to 45 baht per cup, the value of the
out-of-home coffee beverage market is estimated at 27.0 to 30.0 billion baht. This suggests that
the total value of Thailand’s coffee beverage market falls between 60.0 and 67.0 billion baht,
assuming that out-of-home consumption accounts for 40 to 45% of the total.
(Refer to Table 10.1 for a detailed breakdown.)

10.2 Coffee Supply Chain in Thailand

A supply chain refers to the interconnected process of activities that transform goods or
services, from their origin at the upstream level to their delivery to end consumers at the
downstream level. It involves horizontal linkages among all stakeholders to ensure an efficient
and seamless flow of resources, including capital, information, and products. A well-functioning
supply chain enhances both profitability and consumer satisfaction. Generally, the coffee supply
chain is divided into three levels, as illustrated in Figure 10.1:

1. Upstream – This stage includes coffee farmers and suppliers of production inputs. It is labor-
intensive, with labor costs averaging 6 baht per kilogram of cherry coffee. From 2021 to

2023, production declined as many farmers shifted to growing fruit trees and durian. Coffee
cultivation in highland areas also faces geographical and logistical challenges, such as steep
terrain, variable soil quality, water management issues, high elevation, small and scattered
plots, and remote locations with high transportation costs. Consequently, highland coffee
production costs are estimated to be around 20% higher than those of competitors (Siriporn
Kirtikarnkul et al., 2022).
2. Midstream – At this stage, coffee is processed into parchment and green beans. Processing

is often carried out by local communities or small-scale operators. Roasted coffee is
produced in roasting facilities, while instant coffee is manufactured by major companies
such as Nescafé and Khao Shong, as well as contract manufacturers. As of 2021, Thailand
had approximately 63 instant coffee production plants.
3. Downstream – This level encompasses service providers and end consumers. It involves the
distribution of coffee products to consumers, with a notable trend being the increasing
popularity of freshly brewed coffee shops.

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