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SPECIAL FOCUS



       Prices & Distribution Channels
       Retail price of processed fruit in the market is
       not expensive, as manufacturers use local
       materials which are fresh and relatively cheaper
       than imports. However, climate change and
       uncontrollable natural disasters such as floods
       and droughts have resulted in less farm yielding,
       which  later  resulted  in  increasing  cost  for
       processed  products’  prices.  Some  groups  of
       consumers such as foreigners and consumers
       with purchasing power may demands for import
       processed fruit and vegetables, especially ones



        Market Value for Processed Fruit and Vegetables in Thailand (2013 – 2017)  Market Value for Processed Fruit and Vegetables in Thailand (2018 – 2021)
       Million Baht                                              Million Baht












                2013     2014    2015    2016    2017                    2018f   2019f   2020f   2021f   2022f



       that cannot grow in Thailand such as cherry, strawberry, and blueberry   It is expected that by the end of 2018, the market value for
       also drive in increasing price per unit.               processed  fruit  and  vegetable  will  reach  2,123  million  baht,
          Modern trade is the main distribution channel for processed fruit   expanding 1.1% from the previous year. It is also forecast that the
       and vegetable, covering as high as 76.4% of the market share. Malls   market will continuously expand in the next 5 years at 0.9%, and
       listed in this category include hypermarkets like Makro, Big C, and   worth 2,197 million baht in 2022. Factors drawing back the growth
       Tesco Lotus, and supermarkets such as Tops, Central Food Hall,   are that Thai people still prefer fresh fruit and vegetables, which can
       Gourmet Market, and Home Fresh Mart. On the other hand, traditional   be easily purchased at the market and are not expensive as they
       retail stores gains 23.6% as the products are not very popular among   are domestically grown. Therefore, in order to compete with fresh
       consumers outside of the city who are more price-sensitive, due to   fruit and vegetables, enterprises should highlight their products’
       the abundance of fresh fruit and vegetables which are cheaper than   strengths such as convenience, ready-to-eat, delicate materials,
       the processed one.                                     availability in every season, or even use foreign farm products as
                                                              the main material.
       Marketing Campaign                                        Not only that, enterprises should not overlook the health trend
       Channels for market leaders to marketize their products in Thailand   that is becoming increasingly popular. Focusing on assets such as
       are as followed;                                       less-sugar or using natural sweetener like stevia to make the
          Online Marketing - Online marketing means you marketize your   products more interesting.
       products via online media to make them well-known. This includes   There isn’t much change in terms of distribution channels as
       using media such as website, social media such as facebook,   hypermarkets and supermarkets remain as the main distribution
       instagram, and line, to communicate with consumers. Online marketing   port for processed fruit and vegetables. However, online market has
       is one channel that manufacturers are increasingly interested in   become more and more prominent as online world has play a bigger
       because it can access consumers of new generation and can present   role in the daily life. This is another opportunity for enterprises to
       the content to create better understanding of the products. It is also   develop online channel to reach out to the new generation and offer
       not a costly channel that allows company to directly communicate   convenience purchase. Also, online channel allows enterprises to
       with consumers to develop their products.              be directly reached out by customers for suggestions and comments,
          New Packaging Developments – New packaging developments   which will help them improves their products.
       improves  brand’s  image  and  quality  to  distinguish  itself  from   Prices for processed fruit and vegetables are likely to increase
       competitors. Malee, for example, redesigned its canned fruit products   slightly due to the rising price of farm products and labour costs.
       to make them look more modern and easier to open.      Furthermore, climate change may obstruct farm yielding. Meanwhile,
          In-store Promotion – Encouraging consumers to make purchase,   marketing strategy – as there is no significant growth – may require
       especially in hypermarkets and supermarkets, is the main sale strategy,   enterprises to tackle the market a little bit more to create awareness
       as  many  consumers  would  return  to  buy  these  products  again.   and  attract  customers  to  consume  more  processed  fruit and
       Therefore, price is very important to the decision-making process.   vegetable products.
       Market leaders often use price to encourage consumption such as
       discount sales and special price gift package during special occasions.
       26  FOOD FOCUS THAILAND  AUG  2018
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