Its food and beverage processing industry is made up of over 10,000 companies and fifty percent of production is sold outside of the country.
Competition in the food retail market is intense and modern retailers (hypermarkets, supermarkets and convenience stores) account for around 70 percent of total retail sales.
Food consumption is forecast to increase 36 percent to US$50.86 billion by 2015, driven by the increasing spread of mass grocery retail, which is making higher priced goods available to a wider consumer base.
Key consumer trends include:
- Growing urbanisation, rising disposable incomes and reduced time for food preparation at home is increasing demand for pre-packaged and convenience foods.
- A growing health consciousness leading to a trend towards healthier snack and drink options.
- Concerns around food safety and hygiene means food origin is an important consideration, particularly in the middle and high income groups.
Thailand’s hotel restaurant and institution (HRI) food service sector is made up of around 150,000 outlets. The sector is reliant on tourism and around 30 percent of the food and beverage products used are imported.
Regulations
Under the Closer Economic Partnership Agreement between New Zealand and Thailand, more than half of New Zealand’s exports to Thailand have duty free access.
The remaining barriers will be phased out in stages. New Zealand also has a free trade agreement with the ASEAN countries including Thailand.
All businesses producing or importing food for sale must be licensed by the Food and Drug Administration (FDA).
Labels for food products that are sold directly to customers must be in Thai.
Getting your product into the market
- Conduct market research in advance of entry and be aggressive in approaching and visiting potential distributors.
- Be prepared to support the distributor in registering and clearing products with the Thai authorities.
- Most importers and distributors, hotel and retail buyers use the internet to proactively search and find out product information. It is therefore worthwhile investing in a good website.
- Conduct strong marketing and promotion programmes, including product sampling.
- Work with the distributor to find the right price point and be prepared to sacrifice margin in order to increase volume.
Opportunities
- Consumers are demanding food that is safe, healthy and convenient and New Zealand has internationally recognised food safety standards and a reputation for innovation.
- Thai tourist arrivals are expected to experience strong growth in 2011, which will help boost food and beverage sales particularly in the high-end market.
