BANGKOK, Thailand – Nestle Thai Ltd, the marketer of Nescafe coffee, has branched out its business into out-of-home coffee to extend its sales opportunities.
Vladislav Andreev, the company’s executive officer for coffee and creamer business, said Nestle opened the first Nescafe Hub at BTS Chidlom a couple of weeks ago.
“It is the first time Nescafe is offering fresh roast and ground coffee to Thais,” said Mr Andreev.
Thailand’s total coffee market was valued at 64.7 billion baht (US$1.9 billion) in 2017, a 4% increase from 2016. Nescafe coffee is the market leader in Thailand, controlling a 50% market share.
Of the total coffee market, out-of-home coffee is worth 26.7 billion baht and the remaining 38 billion baht is from athome consumption.
The out-of-home coffee market has evolved rapidly over the past few years, with 8% growth in 2017.
Of the total out-of-home consumption, speciality coffee shops and cafes are highly popular with Thai consumers, with a market value of 17 billion baht and average growth of 15.7% per year.
He said coffee sales at Thailand’s transit hubs (skytrain, subway, airport, bus terminal and railway stations) account for over 1 billion baht per year.
Mr Andreev said the company believes that Nescafe Hub at BTS Chidlom will reach 15,000 commuters daily, with a sales target of over 300 cups per day for Nescafe Hub.
“There is a huge opportunity to grow the coffee market in Thailand both in homes and out-of-home. The per capita consumption of coffee in Thailand is relatively small at about 300 cups per year, compared to 400 cups in Japan and 600 cups in western nations,” he said.
