Page 308 - Social Enterprise A New Business Paradigm for Thailand

Figure 10.1 Coffee Product Supply Chain in Thailand, 2023

According to data retrieved via Google Maps under the Khon Mueang 4.0: Urban Futures in
Thailand project (Aphiwat Rattanawaraha et al., 2020), there were more than 36,300 coffee

shops in Thailand in 2019. Of these, over 5,900, or roughly 16%, were located in Bangkok.
Excluding the capital, Chiang Mai had the highest concentration of coffee shops, with about
5,600 (around 15%). The next highest numbers were found in Chonburi, Phuket, and Surat Thani,
each with approximately 2,000 shops. As of 2022, data gathered through internet searches
showed that the five largest coffee chains in Thailand operated nearly 6,300 branches combined,
generating total revenue of around 24.7 billion baht (BrandAge Online, 2023) 188 . Additionally, it
was reported that All Café 189 , which operates within 7-Eleven convenience stores, had 11,000
locations nationwide in 2023 (Prachachat Business, 2024). Although the number of coffee shops

has continued to rise, the trend of brewing coffee at home has also gained momentum. This is
due to improvements in coffee-making equipment, which are now designed to be more user-
friendly and, in some cases, double as home décor. In addition, the convenience of ordering
coffee beans online, where consumers can easily select their preferred varieties and receive
them within a short delivery time, has further fueled the growth of home brewing. As a result,
this trend is now seen as a growing challenge for coffee shops.

Coffee is considered a labor-intensive industry, particularly in the upstream stage involving
harvesting, and in the downstream stage at the café level. In contrast, the midstream stage can

leverage technology, especially for sorting coffee bean quality and executing various roasting
profiles. To illustrate how revenue from a single cup of freshly brewed coffee is distributed
across Thailand’s three-tier coffee supply chain—upstream, midstream, and downstream—this

188 As of 2022, Café Amazon had 4,007 branches (increasing to 4,159 in 2023), followed by Inthanin with 1,023
branches, PunThai Coffee with 703 branches, Starbucks with 409 branches, and True Coffee with 90 branches.
(BrandAge Online, 2023. Retrieved October 4, 2024, from brandage.com)
189 The eight coffee brands under CP Group include All Café, KUDSAN, ARABITIA, Jungle, TrueCoffee, Bellinee’s Bake
& Brew, Star Coffee, and Chester’s Coffee.
274