Some Consumers Reserving Expensive Coffees For Special Occasions – CoffeeTalk

Thai consumers are avoiding cafes offering coffee at more than 100 baht ($2.90) a cup due to the economic slowdown, according to Korn Sanguankeaw, vice president of the Specialty Coffee Association of Thailand. However, cafes offering coffee at below 100 baht have seen significant growth of 60-100%. Consumers prefer coffee at 60-80 baht but still opt for more expensive caffeine hits on special occasions or to reward themselves. Consumer spending per bill has dropped from 250 baht to 100-150 baht, according to data from Grab delivery service platform. Despite this, the café sector has not slowed, as consumers are looking for other drinks like smoothies or Dubai chocolate. Global coffee bean prices have surged by 74.3% year on year due to global warming and a decline in crop productivity, worsened by the 90% import tax imposed on coffee beans. One kilogramme of coffee beans now costs up to 200 baht when including 90% import tax, 7% value added tax, and transportation cost.

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