In Thailand, 2020 and 2021 were hallmark years for functional and fortified food and drinks. Even as the pandemic concerns dissipate, the mindful consumption trend strongly influences Thai youth's food and drink choices.
Better-for-you drinks are thereby in vogue in Thailand. Beverage manufacturers are vying to launch products with less sugar, fat, and calories in light of the proposed sugar tax hike in 2023.
Health and wellness trends have reshaped the Thailand beverages market, which is forecast to surge by a value compound annual growth rate (CAGR) of 7.4 percent between 2022 to 2027, according to GlobalData, a leading data and analytics company.
Tim Hill, Key Account Director at GlobalData Singapore, stated that the pandemic triggered the 'vitamins in everything' trend in Thailand, and despite the pandemic impact waning, health and wellness trends strongly influence consumers' beverage choices. Health and image-conscious Thai youth are increasingly mindful of their fat, calorie, and sugar intake.
To reduce their risk of lifestyle diseases, such as diabetes and obesity, consumers are opting for food and drinks with less of these 'food villains'. This ties in with GlobalData's 2023 survey, wherein 56 percent of Thai respondents said they associate low-fat products with a healthy lifestyle. Fifty-three percent of Thai respondents in the same survey said the same for low-sugar products and 45 percent for low-calorie products.
Bobby Verghese, Consumer Analyst at GlobalData, said that beverage companies had responded to this trend by stepping up research and development on better-for-you refreshments. Since cola has come under fire in recent years for its empty calories, carbonates makers are spearheading this trend to stem the consumer shift to other soft drinks categories.
For instance, in April 2023, market leader Coca-Cola rolled out its OOHA-flavoured soda as a 'zero guilt' drink with an eye-catching zero sugar, zero calories, and zero fat tagline.
"Notably, while low-calorie brands and labels account for less than a tenth of the Thai carbonates market, the segment's value sales surged by 20 percent CAGR over 2020 to 2022," said Verghese.
Furthermore, Hill commented that while iced and RTD (ready-to-drink) tea drinks were earlier perceived as healthier alternatives to sugary colas, the sugar tax levy 2017 exposed many products with high sugar load.
Given the proposed sugar tax hike, iced and RTD tea drink makers were launching low-sugar variants, such as Suntory PepsiCo's new TEA+ Oolong Honey Lemon, which claimed to contain only 4.6 grams of sugar per 100ml.
The sports and energy drinks categories are also set for a similar shakeup, as evident from the TCP Group releasing its 'Sponsor Go Zero Percent Sugar' sports drink in May 2023.
Not to be left behind, alcoholic beverage makers are also tapping this trend.
Similarly, dairy and dairy alternative drinks are also capitalising on health and wellness trends through beverages to dispel the public notion that their products can cause body weight gain.
This is evident from recent launches, such as Lactasoy Chocolate Soy Milk, which is claimed to have 26 percent less sugar, and Green Spot's Vitamilk soy milk, which contains 50 percent less sugar.
Young consumers, in particular, are paying more attention to their health and diets, so the demand for food and drinks with less sugar, calorie, and fat can only accelerate in the coming years.
The proposed sugar tax hike will further accelerate the development of novel better-for-you products in Thailand. Across the Asia-Pacific, better-for-you is fast becoming a mainstream trend that beverage brands and private labels cannot ignore if they want to build a loyal following among the young Millennials and Gen Z cohorts.
