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MARKET ACCESS SECRETARIAT
Global Analysis Report

Market Overview
Thailand
July 2014

MARKET SNAPSHOT
• Thailand had a gross domestic product (GDP) of
US$390.2 billion in 2013, which is expected to grow by 4.5% in
2014. The World Bank upgraded Thailand to an upper-middle income economy in 2011 due to significant social and economic growth.

CONTENTS
Market Snapshot ............................ 1
Production ...................................... 2
Trade .............................................. 3

• Thailand is the nineteenth-most populous country in the world with 68.2 million people. The population is expected to reach
69.3 million by 2017.

Consumer Foodservice .................. 4

• Annual consumer expenditure was US$3,243 per capita in
2013, with food and non-alcoholic beverages representing
US$908 or 28% of that total.

Market Characteristics.................... 7

• The consumer foodservice industry is expanding alongside a rising middle-class population, and is forecast to reach total value sales of US$23.8 billion by 2014.
• With growing disposable incomes, Thai consumers are seeking products that offer convenience. Packaged food sales continue to grow steadily, and are expected to reach a value of
US$11.9 billion by 2014.
• The top packaged food company in the market is currently
Nestlé SA with a 7.1% value share, followed by Unilever Group
(3.7%) and Ajinomoto Co Inc (3.6%).
• Thailand is the world’s largest exporter of canned tuna, and the largest shrimp and prawn exporter.
• The agriculture sector employs 39% of the work force and is estimated at 12% of GDP. Agricultural production is the main source of national income.

Retail Sales .................................... 5

Resources ...................................... 7

PRODUCTION
• Sugar cane remains Thailand’s primary domestic crop, with overall production increasing by 31.3% over the last five years, despite a drop in 2009. Volume production grew by a compound annual growth rate (CAGR) of 7.0% from 2008 to 2012.
• Other fresh tropical fruit and paddy rice showed the largest production volume growth in 2012 over
2011 with 13.8% and 9.3%, respectively.

Crop Production and Livestock in Thailand
Top ten crops
(tonnes)

2008

2009

2010

2011

2012

Sugar cane

73,501,611

66,816,446

68,807,800

95,950,416

96,500,000

Paddy rice

31,650,632

32,116,063

35,583,635

34,588,355

37,800,000

Cassava

25,155,797

30,088,024

22,005,740

21,912,416

22,500,000

Palm fruit oil

9,270,510

8,162,703

8,223,135

10,776,848

11,000,000

Maize

4,249,354

4,616,119

4,860,746

4,816,650

4,813,000

Natural rubber
Mangoes, guavas, mangosteens Pineapples
Other fresh tropical fruit Bananas

3,166,910

3,090,280

3,051,781

3,348,897

3,500,000

2,374,165

2,469,814

2,550,595

2,600,000

2,650,000

2,278,162

1,894,862

1,966,000

2,593,207

2,650,000

1,971,044

2,281,183

1,976,456

1,955,218

2,225,347

1,540,476

1,528,082

1,584,898

1,600,000

1,650,000

Source: FAOSTAT Agricultural Production, March 2014

Meat indigenous
(tonnes)
Chicken

2008

2009

2010

2011

2012

1,156,134

1,152,037

1,218,884

1,256,022

1,263,358

Pork

970,331

918,035

931,053

1,046,219

1,065,577

Beef

206,211

250,028

230,178

186,751

195,928

Duck

76,416

77,304

80,006

82,002

82,752

Buffalo

32,076

33,749

46,108

36,698

23,235

Source: FAOSTAT Agricultural Production, March 2014

Livestock
(head)

2008

2009

2010

2011

2012

Pigs

7,845,346

7,480,530

7,623,730

7,785,525

7,500,000

Cattle

6,699,999

6,647,325

6,497,996

5,891,000

5,393,000

Buffalo

1,699,469

1,670,511

1,622,646

1,588,000

1,542,000

Goats

374,029

383,796

380,277

427,567

450,000

Sheep

43,738

40,269

43,139

51,735

54,221

Source: FAOSTAT Agricultural Production, March 2014

Page | 2

TRADE
• Thailand is a net exporter of agri-food and seafood products. In 2013, Thailand’s agri-food and seafood trade surplus was C$17.3 billion with imports valued at C$14.7 billion, and C$32.0 billion in exports. Thailand’s agri-food and seafood imports grew at an average rate of 16.9% between 2011 and 2013.
• Thailand’s top agri-food and seafood imports in 2013 were soybean meal, frozen Skipjack tuna, soybeans, food preparations, and cotton. Key supplying countries were the United States, China, st Brazil, Argentina, and Australia. Canada was Thailand’s 21 -largest supplier of total agri-food and seafood products in 2013, with a 1.1% share.

Thailand’s Top Agri-Food & Seafood Imports from the World, 2013
Commodity

Import Value
C$ millions

Soybean meal

1,589.9

Frozen skipjack tuna

1,224.1

Soybeans

1,045.8

Food preparations

777.0

Cotton, not carded or combed

754.1

Non-durum wheat

615.2

Cuttle fish and squid

289.8

Malt extract

282.2

Animal feed

259.9

Skim milk powder

252.5

Top Suppliers & Market Share
Canada's
Share
1
2
3
Argentina
Brazil
India
0.0%
51.9%
34.6%
12.9%
Taiwan
United States
Vanuatu
0.0%
19.9%
17.4%
12.6%
Brazil
United States
Argentina
2.7%
65.7%
22.1%
8.3%
United States
Singapore
China
0.5%
49.8%
13.7%
7.1%
United States
Australia
Brazil
0.0%
30.8%
25.7%
12.3%
United States
Australia
Ukraine
9.6%
37.7%
22.3%
18.4%
Peru
India
China
0.0%
25.5%
18.9%
18.8%
Australia
Malaysia
Singapore
0.0%
53.4%
17.6%
11.9%
United States
China
Netherlands
1.4%
36.2%
11.5%
10.0%
New Zealand United States
Australia
1.3%
26.4%
18.4%
15.4%

Source: Global Trade Atlas, February 2014

• Thailand’s processed food imports were valued at C$9.3 billion in 2013. Canada’s share was 0.5%.
The United States, Argentina, China, Brazil, and Australia were the largest suppliers of processed food to Thailand in 2013, providing 42.6% of the market. Thailand’s processed food imports had an annual growth rate of 4.5% between 2011 and 2013.
• Canada’s agri-food and seafood exports to Thailand were valued at C$124.5 million in 2013. Top exports were non-durum wheat, soybeans, canola meal, animal feed, and potatoes. In 2013, Canada registered an agri-food and seafood trade deficit of C$553.4 million with Thailand.

Page | 3

CONSUMER FOODSERVICE
• The foodservice industry in Thailand grew by a CAGR of 1.7% from 2008 to 2012 and further growth of 4.8% is projected to 2017. Fast food showed the most growth over the period from 2008 to 2012 with 12.7%. Over the forecast period of 2013 to 2017, fast food will remain the best performing category in terms of sales growth (9.4%), followed by full-service restaurants (5.7%). Street stalls/kiosks are the traditional outlets and remain the largest consumer foodservice category in
Thailand, accounting for 31.7% of total value sales, due mainly to middle-to low-income consumers.
• The fast-paced Thai lifestyle demands convenience and quick service when dining out but, according to Euromonitor, the negative assumption that fast food is unhealthy will impact the growth of this category. • According to market experts, tourism is key to the viability of the Thai foodservice market, as well as to overall imported food sales through this sector. For suppliers looking to access the Thai market, most hotel, restaurant and institutional (HRI) buyers source products through distributors.
Consumer Foodservice Sales in Thailand
Historic in US$ Millions, Fixed 2012 Exchange Rate

Category

CAGR
20082012

2008

Consumer Foodservice by Type
100% Home Delivery/Takeaway
Cafés/Bars
Full-Service Restaurants
Fast Food
Self-Service Cafeterias
Street Stalls/Kiosks
Pizza Consumer Foodservice**

2009

2010

2011

2012

20,484.4
599.2
5,627.3
4,806.6
1,569.7
347.9
7,533.7
249.3

21,077.0
646.4
5,854.7
4,844.7
1,743.8
355.4
7,632.0
276.8

21,504.9
663.0
6,091.7
4,783.2
2,011.9
337.3
7,617.7
273.8

21,323.7
683.3
6,308.1
4,685.3
2,304.7
303.4
7,038.9
274.4

21,875.4
714.6
6,555.1
4,831.6
2,536.6
295.8
6,941.7
296.8

1.7%
4.5%
3.9%
0.1%
12.7%
-4.0%
-2.0%
4.5%

CAGR
20132017

Consumer Foodservice Sales in Thailand
Forecast in US$ Millions, Fixed 2012 Exchange Rate

Category
Consumer Foodservice by Type
100% Home Delivery/Takeaway
Cafés/Bars
Full-Service Restaurants
Fast Food
Self-Service Cafeterias
Street Stalls/Kiosks
Pizza Consumer Foodservice**

2013

E

2014

2015

2016

2017

22,822.4
753.0
6,896.6
5,079.1
2,812.5
291.8
6,989.3

23,835.1
789.9
7,221.2
5,301.1
3,098.1
290.0
7,134.8

24,922.1
824.2
7,513.3
5,563.7
3,386.6
289.3
7,345.1

26,135.2
859.0
7,802.8
5,907.4
3,697.1
289.6
7,579.2

27,478.8
892.1
8,097.1
6,337.1
4,024.3
290.5
7,837.7

4.8%
4.3%
4.1%
5.7%
9.4%
-0.1%
2.9%

319.6

342.2

364.0

384.4

403.3

6.0%

Source: Euromonitor, February 2014 E = estimates based on partial-year data CAGR = compound annual growth rate
**Pizza consumer foodservice data is compiled from three different subsectors (fast food, full-service restaurants, and 100% home delivery/takeaway) for the purposes of comparison, but remains reflected within the figures for these subsectors, and thus the consumer foodservice total. As such, pizza consumer foodservice is not counted as its own sector within the consumer foodservice total.

Page | 4

RETAIL SALES
• Packaged food sales increased by a CAGR of 6.7% over the period of 2009 to 2013, with further increases of 8.3% forecasted to 2018. Within this category, the best performing segment was ready meals, registering a CAGR of 13.0% over the same period.

• Thais are aware of the importance of health and wellness. Sales of products under this category have increased by a CAGR of 9.0% over the period of 2009 to 2013. In the period 2014 to 2018, the CAGR for health and wellness products is forecasted to drop slightly to 8.3%. The naturally healthy sub-category was the best performer in 2009 to 2013 and will remain the leader during the forecast period. Agri-Food Retail Sales in Thailand
Historic in US$ Millions, Fixed 2013 Exchange Rate

Category
Health and Wellness by Type
Better For You (BFY)
Food Intolerance
Fortified/Functional (FF)
Naturally Healthy (NH)
Organic
Packaged Food
Baby Food
Bakery
Canned/Preserved Food
Chilled Processed Food
Confectionery
Dairy
Dried Processed Food
Frozen Processed Food
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Sauces, Dressings and Condiments
Snack Bars
Soup
Spreads
Sweet and Savoury Snacks
Hot Drinks**
Soft Drinks**
Pet Care

2009

2010

2011

2012

2013

3,598.3
299.0
15.6
2,467.9
807.9
8.0
8,496.3
715.4
798.9
202.7
47.5
447.2
2,059.5
1,331.6
318.3
293.1
112.4
438.2
404.8
10.5
110.1
942.8
13.3
10.3
61.0
747.7
952.7
3,605.7
382.2

3,922.0
336.8
16.6
2,665.4
894.2
8.9
9,097.4
741.5
874.8
220.3
52.8
481.1
2,176.0
1,460.9
345.8
304.0
128.6
470.3
433.0
11.2
123.7
996.7
14.4
10.8
63.8
803.8
1,019.3
3,817.6
424.7

4,197.6
359.0
17.8
2,815.7
995.4
9.7
9,657.7
782.9
968.7
248.6
59.1
509.8
2,251.7
1,550.8
370.0
322.1
140.8
509.5
470.9
11.7
140.0
1,046.5
15.4
11.3
66.7
853.7
1,082.2
4,089.4
482.9

4,653.9
400.2
19.3
3,037.5
1,186.1
10.8
10,267.3
835.8
1,037.2
256.9
65.0
545.4
2,405.4
1,612.7
407.6
353.2
152.1
525.5
495.7
12.4
158.3
1,101.7
16.4
11.9
69.9
912.2
1,154.1
4,541.1
556.0

5,087.9
444.1
20.8
3,247.0
1,363.9
12.0
11,010.1
892.7
1,116.5
268.9
71.8
586.2
2,586.8
1,705.3
452.0
392.2
165.0
561.5
523.4
13.1
179.8
1,163.1
17.6
12.7
72.1
996.6
1,232.5
4,848.5
636.3

CAGR
20092013
9.0%
10.4%
7.5%
7.1%
14.0%
10.6%
6.7%
5.7%
8.75
7.3%
10.9%
7.0%
5.9%
6.4%
9.2%
7.6%
10.1%
6.4%
6.6%
5.5%
13.0%
5.4%
7.1%
5.4%
4.3%
7.4%
6.7%
7.7%
13.6%

Source: Euromonitor, February 2014
CAGR = compound annual growth rate
**Note: Hot drink and soft drink values are based on a fixed 2012 exchange rate

Page | 5

Agri-Food Retail Sales in Thailand
Forecast in US$ Millions, Fixed 2013 Exchange Rate

Category

2014

2015

2016

2017

2018

Health and Wellness by Type
Better For You (BFY)
Food Intolerance
Fortified/Functional (FF)
Naturally Healthy (NH)
Organic
Packaged Food
Baby Food
Bakery
Canned/Preserved Food
Chilled Processed Food
Confectionery
Dairy
Dried Processed Food
Frozen Processed Food
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Sauces, Dressings and Condiments
Snack Bars
Soup
Spreads
Sweet and Savoury Snacks
Hot Drinks**
Soft Drinks**
Pet Care

5,552.6
486.5
22.5
3,483.9
1,546.4
13.3
11,864.3
959.9
1,209.5
285.3
79.6
632.6
2,796.2
1,817.2
502.9
420.8
179.2
602.8
559.3
13.9
203.0
1,234.6
18.9
13.4
76.7
1,091.5
1,304.8
5,242.1
717.8

6,019.0
530.3
24.2
3,717.8
1,732.2
14.6
12,729.5
1,029.5
1,302.4
302.3
87.1
680.3
3,010.8
1,934.1
552.9
454.0
193.6
647.4
594.2
14.9
225.1
1,305.1
20.7
14.2
81.1
1,181.6
1,370.9
5,612.7
799.8

6,522.2
574.6
25.8
3,974.7
1,931.1
16.0
13,625.8
1,101.7
1,404.5
320.1
95.0
731.5
3,235.0
2,046.7
602.6
491.6
208.7
695.3
632.3
16.0
247.1
1,377.8
22.3
15.0
85.7
1,270.1
1,439.4
6,010.4
881.2

7,067.0
620.0
27.5
4,258.3
2,143.7
17.4
14,575.2
1,178.9
1,518.8
339.0
103.1
787.7
3,472.6
2,162.0
654.4
534.5
225.8
746.8
674.2
17.2
269.6
1,451.9
23.8
15.9
90.7
1,357.8
1,513.7
6,446.8
962.8

7,649.5
666.5
29.0
4,568.0
2,367.0
18.9
15,586.7
1,263.2
1,645.2
358.7
111.4
848.0
3,724.8
2,282.9
707.5
582.1
244.6
803.6
720.1
18.5
292.9
1,529.1
25.2
16.8
96.1
1,447.8
1,593.4
6,918.1
1,044.2

CAGR
20142018
8.3%
8.2%
6.6%
7.0%
11.2%
9.2%
7.1%
7.1%
8.0%
5.9%
8.8%
7.6%
7.4%
5.9%
8.9%
8.4%
8.1%
7.5%
6.5%
7.4%
9.6%
5.5%
7.4%
5.8%
5.8%
7.3%
5.1%
7.2%
9.8%

Source: Euromonitor, February 2014
CAGR = compound annual growth rate
**Note: Hot drink and soft drink values are based on a fixed 2012 exchange rate

Page | 6

MARKET CHARACTERISTICS
• According to market experts, costs of entry into the Thai market can be high, but can also generally be negotiated. Furthermore, only a selection of retailers import directly from suppliers, so business relationships with distributors are important, and consolidation is key.
• Supermarket/hypermarket chains are now present in the Thai retail market, making the capacity to import quite significant for Canadian manufacturers looking to access the market.
• However, physical proximity and lower import tariffs due to bilateral agreements, will likely allow some regional competitors to maintain an advantage in terms of market share.
• Thailand’s agricultural policies are underpinned by trade measures such as high import duties, that are close to double those levied on food and beverage products, as well as non-tariff measures including various sanitary and phytosanitary (SPS) import conditions, low volume tariff quotas, and high to very high out-of-quota import duties.

RESOURCES
Euromonitor International (2014).
FAOSTAT (2014). Agricultural Production – Thailand.
Global Trade Atlas (2014). Import and export statistics – Thailand.
World Bank (2014).

Page | 7

Market Overview: Thailand
© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2014).
Photo Credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada.
For additional copies, to request an alternate format, and for all other inquiries regarding this publication, please contact:
Agriculture and Agri-Food Canada, Global Analysis Division
1341 Baseline Road, Tower 5, 4th floor
Ottawa, ON
Canada K1A 0C5
E-mail: infoservice@agr.gc.ca
The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.
Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of
Agriculture and Agri-Food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.
Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.
Page | 8

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