Page 35 - FoodFocusThailand No.167 February 2020

SPECIAL REPORT
SPECIAL REPORT

Thailand’s Food and Beverage Exports in 2020

Consumer Trends will Determine

Future Export Direction

Food and beverage segment is the sector which can sustain good growth when compared to other export
items that have experienced a contraction in the previous year. In the first eight months of 2019, Thailand’s
food and beverage exports totaled USD 17.749 billion, expanding 3.8% YoY.

KResearch predicts that Thailand’s food and beverage exports for growth of all food and beverage products in 2019. Home-grown
in 2019 may increase 3.5% YoY, or equivalent to USD 26.6 billion, fruits such as durian, mangosteen, longan and rambutan are still in
driven by key export items, namely, fresh and frozen and chilled fruit, high demand in markets such as China and ASEAN. In particular,
livestock products (chicken), wheat products, other ready meals and Thai durian imports in China last year broke the record, commanding
non-alcoholic beverages, which have continued to expand and are 98% of all durian imports in China.
still in demand in Thailand’s major trading partners, namely the 2) Livestock products, especially chicken products (fresh and
Chinese and ASEAN markets. processed), saw orders continuously coming from the Chinese and
In 2020, the value of food and beverage exports is likely to expand South Korean markets where the new generation of consumers have
within a limited range due to the slowing global economy, strong developed a preference for chicken meat. Moreover, the outbreak of
competition from competitors in the market and the upward trend of African Swine Flu has increased demands for substitute meat such
the Thai Baht. Moreover, the fact that some large-scale Thai as chicken. Thailand has managed to penetrate the Chinese market
companies have expanded their production and distribution bases to and enjoyed a larger market share after China opened up the market
for chilled and frozen chicken from Thailand in April 2018.
Thailand’s trading partners to replace exports may also be attributed In addition, products that have expanded well in the past 2-3
to a deceleration in the value of some food and beverage export items. years, such as wheat products, non-alcoholic beverages, spices and
Hence, the export value of food and beverage in 2020 is projected at herbs, have strong potential to grow in almost every market. The
USD 26.0-27.1 billion, with an expansion rate between a contraction growth is partly attributed to new consumer trends that have increased
of 2.0% and a growth of 2.0% YoY. demands for these products in the destination countries.
In the fourth quarter of 2019, the two export groups which are KResearch estimates that, for 2019, Thai food and beverage
expected to drive growth are: export will grow 3.5% (YoY), or approximately USD 26.6 billion due
1) Fresh, frozen and chilled fruit shows the brightest prospects to continuously expanding demands in Thailand’s trading partners.

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