Affordable specialty coffee thrives in Thailand despite economic slowdown
While the overall food service sector in Thailand has seen a decline in sales due to the economic downturn and slow recovery of tourism, coffee shops, particularly those offering affordable specialty coffee, are bucking the trend and experiencing growth.
- Despite a general decline in Thailand's food service sector, coffee shops are experiencing growth, with a 5% year-on-year increase in same-store sales.
- Affordable specialty coffee, priced under 100 baht, is a key driver of this trend, with sales surging by 46% in Bangkok and surrounding areas.
- Coffee shops exhibit greater resilience than other food businesses, boasting a lower first-year closure rate of 43% compared to 50% for restaurants.
- The demand for quality has shifted the market, with specialty coffee now accounting for 56% of total coffee sales across the country.
While the overall food service sector in Thailand has seen a decline in sales due to the economic downturn and slow recovery of tourism, coffee shops, particularly those offering affordable specialty coffee, are bucking the trend and experiencing growth.
According to Yod Chinsubhakul, CEO of LINE MAN Wongnai, during the Thailand Coffee Fest 2025, coffee shop sales are up, with same-store sales increasing by 5% year-on-year.
Specialty Coffee Under 100 Baht Gains Popularity
Specialty coffee shops offering quality brews at affordable prices (under 100 baht per cup) are seeing a clear surge in sales, especially in Bangkok and surrounding areas.
Existing stores have reported a 46% sales growth, while those in provincial areas grew by 19%. This reflects a growing consumer demand for "good value for money" rather than luxury.
Despite a decline in the number of new coffee shops opening (from 7,000 last year to 5,000 this year), coffee shops are surviving at a higher rate than restaurants.
The first-year closure rate for coffee shops is only 43%, compared to 50% for restaurants. Coffee is increasingly viewed as a functional drink consumed daily, driving its global consumption.
Chain coffee stores like Amazon are performing exceptionally well, ranking first on LINE MAN, while many non-chain SMEs focus on specialty coffee, especially in Bangkok and its suburbs, where specialty coffee accounts for over 60% of sales.
Specialty Coffee Surpasses Regular Coffee
According to LINE MAN Wongnai data, specialty coffee now accounts for 56% of total coffee sales nationwide and 66% in the Bangkok metropolitan area. Many non-chain coffee shops focus on this segment, offering a variety of coffee bean options for customers to choose from.
Matcha’s Popularity Soars, Competition Intensifies
Matcha has also seen a strong surge, with sales growing by 28% last year. However, the competition is fierce, with the number of matcha-serving shops increasing from 9,600 in Q2 of last year to 12,400 this year.
Technology Drives Sales Growth
In addition to quality and price, technology has become a crucial factor in the survival of modern restaurants and coffee shops:
Delivery: 22% of coffee shop sales on LINE MAN come from delivery services, with sales growing by 23% compared to last year.
Digital Payment: Over half of customers pay digitally, and those using digital payments spend on average 32% more per transaction, with credit card users spending the most per bill.
Digital Ordering: QR code ordering at tables has increased average sales per bill by 37%, reducing the need to wait in line at the counter.
In summary, while the economy may be slowing, coffee, particularly affordable specialty coffee, continues to thrive as it has become an essential part of daily life. With the right technological strategies in place, coffee shops have significant opportunities for growth in today’s market.
