Red wine is easily the preferred wine style and has benefited from reported health benefits associated with moderate wine consumption. Thai consumers lack detailed knowledge about wine and many hold the belief that red wine is "real" wine, while white wine and rosé are not. Most white wine sales in Thailand are to expatriates or female consumers.

New World wines have an advantage in Thailand as they are easier for consumers to understand, particularly with their easy-to-read labels and brand promotion. The most popular red wine varieties in Thailand are Cabernet Sauvignon, Shiraz and Merlot.

Price is a key factor in purchasing decisions, although wine is sometimes chosen to reflect the social status of affluent members of society.

Off-trade channels account for around 63% of the wine market, with 60% sold by supermarkets or hypermarkets, which are increasing in number and generally offer wine at competitive prices in lower price brackets.

Despite Thailand's tropical monsoon climate, a domestic wine industry has recently emerged. There are vineyards scattered around the country, concentrated mainly in the areas surrounding Bangkok.

Market Requirements

Australian wine will benefit from the Thailand-Australia Free Trade Agreement through preferential tariff treatment. However, internal taxes on wine in Thailand are hefty and the Agreement does not address these as they apply equally to imported and domestic wine.