Despite many cafes closing in the past year, the Thai coffee-shop business is expected to grow 15 to 20 per cent this year.
According to specialty coffee growers, the growth will be driven by the country’s economic improvement and higher demand from coffee drinkers.
Specialty Coffee Association of Thailand (SCATH) president Apicha Yaemkesorn says coffee shops can be easily opened on every corner in Bangkok and major provinces, and more will be seen as there are many new offices and condo buildings.
“The growth can also be expected to spread into small provinces and towns in the near future.”
Fewer than 10 per cent of Thais drink coffee, and those who do drink about 1.2 cups a day on average, compared with three cups a day for American coffee drinkers.
While about 30 to 40 per cent of coffee shops closed last year, the number of new entrants increases every year.
Apicha says that opening a coffee shop is not hard in Thailand as only a small budget is needed and coffee makers are inexpensive. “It is an ideal business for new entrepreneurs, but many of them have lack knowledge about coffee and cafe management skills.”
This year Thailand is projected to have a 15 per cent rise in arabica coffee planting areas in the north and a 5 per cent increase in robusta planting areas in the south. Rubber and palm growers in the south have turned to growing coffee because of low prices for rubber and palm oil.
Coffee beans can be harvested about three or four years after planting, says the Office of Agricultural Economics.
Apicha estimates the longer droughts in Thailand will reduce the supply of local arabica coffee beans to 7000 tonnes this year from 9000 tonnes last year, while robusta coffee beans will total 15,000 tonnes, down from 17,800 tonnes.
Arabica coffee beans are priced at about 180 baht (US$5.10) a kilo in Thailand and 80 to 90 baht/kg for robusta.
Volatile climate change and longer droughts are pushing Thai coffee bean prices higher than in Cambodia, Laos, Myanmar and Vietnam, which see prices around 95 to 105 baht/kg.
