Hot drinks in Laos faced economic challenges in 2024, with price adjustments occurring two to three times due to inflation. International brands such as Café Amazon have seen declining popularity, as consumers favour affordable local brands like Treeknoff, known for quality.
In 2024, hot drinks in Laos faced a series of economic and structural challenges, primarily driven by inflation, which has significantly diminished consumer purchasing power. The resulting decline in demand for non-essential goods has affected hot drinks, making affordability a key consideration for consumers.
In 2024, the Laotian economy saw a recovery from economic stagnation, yet structural challenges persist in hindering greater expansion. These include economic volatility, a lack of skilled labour, significant out-migration, and a business environment fraught with obstacles.
While annual inflation moderated by 31% in 2023, it remains a major concern, with rates expected to exceed 20% in 2024 due to the ongoing depreciation of the Lao kip and the country's dependence on imported goods. This persistent inflation has continued to erode real incomes, leaving many households struggling to keep pace with rising prices.
The development of the Thanaleng Dry Port, nearing completion in 2023, and the operational Laos-China Railway, launched in December 2021, have marked significant milestones in enhancing logistics and infrastructure within Laos. These initiatives have reduced transportation costs and streamlined supply chains, enabling hot drink companies, particularly coffee exporters, to improve their export capacities and reach international markets more efficiently.
Hot drinks in Laos is expected to benefit from increasing urbanisation, rising incomes, and a growing young population, all of which are likely to boost demand.
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