Demand For Cooling & Functional Beverages

bottled water

In the soaring summer of 2023, Thailand witnessed unprecedented temperatures, reaching a staggering 45.5°C. Mintel's recent research indicates that 70 percent of Thais actively focused on sufficient water consumption to maintain a healthy lifestyle during this extreme heat, emphasising their conscientious efforts to stay hydrated.

Social listening tools like Infegy Atlas revealed a surge in refreshment discussions, with 780k impressions since March 2023. This uptick coincided with the onset of the hot summer, indicating a proactive search for ways to cool down and positive sentiments around refreshments among Thai consumers.

Rashmika Khanijou, Senior Food and Drink Analyst at Mintel Reports Thailand highlighted that non-alcoholic beverages are expected to refresh and rejuvenate during extreme weather events. Ingredients like electrolytes and cooling herbs are expected to gain traction to counter the effects of heat on the body. With concerns about poor air quality due to extreme temperatures, antioxidant-rich inclusions are also becoming relevant to help the body cope.

In 2023, carbonated drinks (70 percent), bottled water (67 percent), and ready-to-drink coffee (60 percent) were the top choices for non-alcoholic drinks among consumers. The research points to a potential opportunity for hybrid drinks, with 47 percent expressing interest in trying them.

Hybrid drinks, especially coffee and juice hybrids ('joffee'), are gaining attention among Thai consumers. Research indicates that 58 percent of Bangkok residents are aware of and interested in trying these innovative beverages, presenting an opportunity for brands to develop appealing hybrid drinks with resonating flavours.

When making beverage choices, health value precedes Thai consumers' flavour (35 percent vs. 22 percent). No single flavour group is strongly perceived as 'functional,' making the synergy of flavour and function crucial for beverages to entice consumers and establish a unique identity.

Older Thais (Gen X) are more inclined toward health-conscious choices, with 43 percent preferring non-alcoholic beverages with low/no/reduced sugar. Nearly half of Thais prefer beverages with health-beneficial ingredients like collagen and probiotics, emphasising the scrutiny of ingredient lists for health-conscious choices.

While Gen Z represents a significant consumer segment, their consumption lags in certain categories. Brands can tap into this market by innovating with sweet flavour profiles, targeting Gen Z as 'Emotional Indulgers' leaning towards indulgent flavours. Adding added functional ingredients can help overcome the perception of unhealthy sweet flavours, offering a balanced and appealing choice for Gen Z consumers.