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Thai Coffee Lovers Cut Back as Economic Pressures Brew

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How Thailand’s Coffee Culture Adapts Amid Economic Squeeze

Amid rising costs and economic challenges, Thai coffee lovers are shifting their habits, ditching pricey cups in favour of more affordable options. Despite the hurdles, Thailand’s café culture remains resilient, with businesses adapting to meet changing consumer preferences.


The Decline of Premium Coffee Purchases

With coffee prices soaring past 100 baht per cup, many consumers are reconsidering their caffeine budgets. According to Korn Sanguankeaw, Vice President of the Specialty Coffee Association of Thailand, there has been a 60% to 100% growth in cafés offering brews priced between 60 and 80 baht.

“Consumers still indulge on special occasions,” Korn noted, but the shift toward affordability is undeniable.

Delivery Data Reflects Changing Preferences

Data from Grab’s delivery platform reveals a significant drop in spending per coffee order, from an average of 250 baht to 100-150 baht, showcasing the impact of tightened budgets.


Rising Costs Challenge the Coffee Industry

Global Coffee Prices on the Rise

The industry is grappling with a 74.3% increase in global coffee bean prices, fueled by:

  • Climate change affecting crop yields.
  • A staggering 90% import tax combined with a 7% VAT.
  • Rising transportation costs.

Imported coffee beans now cost around 200 baht per kilogramme, making it harder for café owners to maintain profitability.

Local Coffee Production Falls Short

Thailand’s local coffee production cannot meet growing demand, leaving café operators heavily reliant on imports. This dependency exacerbates the impact of rising global prices and high import taxes.


Adapting to Consumer Preferences

Diversification in Offerings

To attract cost-conscious customers, cafés are expanding their menus to include alternatives like:

  • Smoothies
  • Dubai chocolate drinks

This diversification helps maintain customer traffic despite the economic downturn.

The Resilience of Thailand’s Café Scene

While many consumers are scaling back, the café culture remains a cornerstone of Thai social life. Operators are finding innovative ways to keep their businesses afloat, even as they face steep challenges.


Calls for Policy Reform

Korn Sanguankeaw stressed the urgent need for policy changes, particularly a reduction in the 90% import tax on coffee beans. Without such measures, many café operators risk losing profitability, threatening the long-term viability of Thailand’s thriving coffee scene.


Brewing a Balanced Future

The Thai coffee industry is at a crossroads. Consumers are adjusting their habits, and café owners are innovating to adapt. However, addressing the root causes of high costs—through policy reforms and improved local production—remains essential to sustaining the industry.

 

Ref – Thaiger

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Heavy Rain and Runoff Cause Damage on Koh Phangan

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Severe Weather Hits Koh Phangan and Surrounding Areas

On December 28, 2024, heavy rain and runoff affected several districts in Surat Thani province, particularly the tourist island of Koh Phangan. The intense rainfall triggered significant flooding, leading to the dramatic incident of a pickup truck being swept into the sea at Thong Nai Phan.

Pickup Truck Swept Away by Floodwaters

The pickup truck, owned by hotel employee Atsawin Busaba, was carried away by surging runoff from nearby hills. The vehicle became stuck at the mouth of a canal before being swept into the ocean. Fortunately, no one was inside the truck at the time. Atsawin reported witnessing the event but was unable to intervene as the current was too strong.

Viral Video Captures the Incident

A video of the pickup truck being swept away quickly went viral on social media, capturing the attention of many. Witnesses reported seeing other items, including a refrigerator and household goods, carried away by the powerful currents. Despite the chaos, onlookers refrained from attempting to help due to the dangerous conditions.

Flooding Affects Local Infrastructure

The flooding also impacted local infrastructure, with Ban Thong Nai Phan School inundated with approximately 30 centimeters of water in one building and its canteen. Fortunately, the school was closed for New Year holidays, preventing any disruption to classes. Additionally, floodwaters surrounded government offices, including the Koh Phangan district office and police station.

Ongoing Flooding Concerns in Surat Thani

As floodwaters continued to rise on main roads in front of various establishments, officials began assessing the damage once the rain subsided in the afternoon. Residents affected by flooding were advised to report to local authorities for assistance.

Warnings Issued for Continued Severe Weather

The Meteorological Department has issued warnings for strong winds and rain expected to persist until January 1, 2025, affecting southern provinces such as PhetchaburiSurat Thani, and Nakhon Si Thammarat. The northeastern monsoon is causing strong waves in the Gulf of Thailand, with heights reaching up to 3 meters in storm-affected areas. Small boats have been advised to remain ashore due to hazardous conditions.

Community Preparedness Amid Adverse Weather

The recent heavy rainfall and subsequent flooding on Koh Phangan highlight the importance of community preparedness during adverse weather conditions. As authorities continue to monitor and respond to the situation, residents are urged to stay vigilant and heed safety warnings.

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Nakhon Sawan Lantern Festival: The Ultimate Photo Spot This New Year

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Experience the Magic of the Nakhon Sawan Lantern Festival

The Nakhon Sawan Lantern Festival is back for its seventh edition, themed “Light Of Blessing,” hosted by the Tourism Authority of Thailand (TAT) Nakhon Sawan Office in collaboration with the Nakhon Sawan Chamber of Commerce and other agencies. This vibrant festival features stunning lantern sculptures that combine art, light, music, and beautifully landscaped gardens, making it a must-visit destination for photography enthusiasts this New Year.

Highlights of the Festival

Visitors to the festival will encounter three realms of lanterns, a lantern sculpture contest, and a Tree of Wishes. One of the main attractions is the breathtaking light and sound tunnel, which provides perfect photo opportunities for guests. The festival showcases both large and small lantern sculptures, creating a visually captivating experience that celebrates local culture and artistry.

A Growing Tradition in Pak Nam Pho District

The Nakhon Sawan Lantern Festival has become an annual highlight in the Pak Nam Pho district, gaining popularity over the years. With spectacular light shows and beautifully crafted lanterns, the festival creates a warm and inviting atmosphere. It is an experience not to be missed for art lovers and those looking to immerse themselves in the local culture of Nakhon Sawan.

Festival Details and Schedule

The festival runs from December 27, 2024, until January 1, 2025, from 5:30 PM to 10 PM at Sawan Park (Nong Somboon) in Nakhon Sawan Province. This event not only highlights the artistic talents of local communities but also promotes tourism activities year-round.

Celebrating Cultural Diversity

The festival emphasizes the cultural diversity of Thai communities with Chinese heritage. During this event, various sub-groups create unique and beautiful lantern sculptures that reflect their cultural identities. Although separate from the Chinese New Year celebrations, the festival aims to foster community development and generate income through tourism.

A Must-Visit Event This New Year

The Nakhon Sawan Lantern Festival promises to be a dazzling celebration filled with light, art, and culture. As visitors gather to enjoy this enchanting event, it serves as a reminder of Thailand’s rich traditions and community spirit. Don’t miss out on this ultimate photo spot as you welcome the New Year in style!

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Prime Minister Inspects Bangkok Bus Terminals to Ensure Traveler Safety

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PM Paetongtarn Shinawatra Visits Southern Bus Terminal

On December 28, 2024, Prime Minister Paetongtarn Shinawatra visited the Bangkok Southern Bus Terminal in Taling Chan district to ensure the safety of travelers heading to southern Thailand during the New Year holidays. The inspection aimed to assess safety standards for public vehicles and drivers, including shift changes and alcohol testing.

Commitment to Passenger Safety

In a social media post, the Prime Minister emphasized the importance of passenger safety, stating, “Today we inspected the safety standards of both public vehicles and the drivers.” She wished all Thais a safe journey home to spend time with their loved ones and urged motorists to avoid drinking and take breaks if they feel fatigued.

Previous Inspection at Northern Bus Terminal

The Prime Minister also visited the Bangkok Northern Bus Terminal, known as Mo Chit 2, on December 27. During this visit, she advised transport officials to strictly adhere to safety regulations and ensure that adequate vehicles are prepared for travelers returning to their hometowns for the holidays.

Special Holiday Announcement for New Year

To facilitate domestic travel, the government has declared December 30 as a special holiday, creating a five-day long weekend from December 28 to January 1. This initiative aims to encourage more people to travel during the festive season.

Anticipated Travel Volume During Holidays

The Transport Ministry estimates that approximately 17.37 million personal vehicles will be traveling in and out of metropolitan Bangkok during this period. Additionally, more than 17 million trips are expected on public transport, including buses, vans, trains, boats, and airplanes.

Focus on Road Safety Measures

In light of the increased travel volume, authorities are ramping up road safety campaigns to prevent accidents during the holiday season. The Prime Minister’s inspections reflect a broader commitment to ensuring that all necessary measures are in place for a safe and enjoyable New Year celebration for all travelers.

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