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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