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Thailand’s specialty coffee market grows 15% a year as consumers pay for quality

Thailand’s specialty coffee market is expanding by an average of 15% annually as consumers increasingly prioritize quality, origin and processing. Domestic supply constraints, EUDR exposure and import-tax differences remain obstacles to building a higher-value coffee industry.

Thailand’s specialty coffee market grows 15% a year as consumers pay for quality

Thai coffee demand shifts toward value

Thailand’s coffee market is entering a period in which consumers are paying more attention to quality even though average consumption remains below levels in Europe and Japan. Post Today, citing information from Thailand Coffee Fest 2026, reported that the country’s specialty coffee segment is growing by an average of 15% a year.

Thai consumers drink an average of 1.5–1.7 cups of coffee per person per day, compared with about 3–6 cups in Europe and Japan. The difference suggests room for further market expansion, but the emerging specialty segment is changing the basis of competition from volume alone to origin, processing methods, flavor profiles and producer stories.

A broader beverage market worth up to 67 billion baht

Kasikorn Research Center forecasts that Thailand’s beverage business market, including coffee shops, bakeries and ice cream outlets, will be worth approximately 66–67 billion baht in 2026. Specialty coffee operators are seeking a larger share of that spending by offering differentiated beans, roasting, preparation and café experiences.

The opportunity is not evenly distributed across the supply chain. Data cited by Post Today from the Thailand Development Research Institute and the Office of Industrial Economics indicate that domestic coffee production remains insufficient to meet demand. At the same time, 87% of upstream farmers face challenges related to the European Union Deforestation Regulation, or EUDR.

Processing and traceability move to the agenda

Industry participants also point to differences in Thailand’s import-tax treatment of instant coffee and processed raw materials. This makes tax policy relevant to investment decisions by processors and brands. The sector’s stated objective is therefore broader than selling more drinks: it wants Thailand to capture more value through farming, processing, roasting and finished consumer products.

The Specialty Coffee Association of Thailand and The Cloud are organizing the 11th Thailand Coffee Fest 2026 under the theme “Made by All of Us.” The event is designed to connect farmers, processors, roasters, baristas, entrepreneurs and consumers. Association president Natthiti Ampaiwan said each group performs a distinct role, from establishing the production base to creating flavor, customer experience and market demand.

A central proposal is to develop Thailand as a regional high-value coffee-processing base. Priorities include a more supportive tax structure, production technology and traceability throughout the supply chain. Organizers also see potential in turning residues from coffee production and processing into new products under circular-economy models, creating additional income for farmers and businesses.

Industry seeks stronger links with global buyers

Cloud and Ground managing director Changnoi Kunchorn Na Ayudhya said Thailand Coffee Fest aims to connect the domestic industry with international markets and provide access to trading partners, investors and overseas buyers. The approach aligns with TCEB initiatives intended to expand business-to-business channels and exports while raising the event toward Net Zero standards.

The Cloud has also secured rights from The World’s 100 Best Coffee Shops to create “The Best Coffee Shops Thailand.” Expert assessment and public voting will identify Thai cafés against international criteria, with the goal of advancing them into Asia-Pacific and global rankings. For producers and processors, however, international visibility will need to be supported by adequate supply, verifiable sourcing and investment across the value chain.

Full market analysis

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