Page 37 - FoodFocusThailand No.167 February 2020

SPECIAL REPORT

competitors, namely, Argentina and Chile that At any rate, Thailand has so far exported the above-mentioned food and beverage in
receive the same trade privileges as Thailand’s the form of fresh and semi-processed products: primary and intermediate processed foods
through their trade agreements with China. such as vegetable, fruits, condiments, processed food and organic drinks. Meanwhile,
2. Severe weather (drought/flooding) may Thailand’s competitors have begun to penetrate these markets to capitalize on the new
affect agricultural produce such as rice, global consumption trend as well. The production and development of advanced processed
pineapple, corn, and coconut. The products for exports such as plant-based or insect-based protein, medical food, herbal
inconsistency of supply may impact food extracts, dietary supplements and superfoods are still in their early stages. The production
processing facilities due to the shortage of raw volume is still small. To promote these innovative food products, Thailand will depend on
materials for production and an increase in investment, research and development, while adhering to internationally-accepted standards.
prices of raw materials. The shortfall will affect If Thailand succeeds in upgrading its food production, it will help create more business
export items such as ready-to-eat foods (RTE), opportunities for these newly-developed products.
canned pineapples, canned corn and various
processed coconut products (coconut milk
and coconut juice).
3. Appreciation of the Thai Baht, the Thai
currency has risen 7.4% since the beginning
of 2019 against major currencies and others
in the region, and may likely to continue
appreciating to 2020. This is because the US
dollar is weaker due to the grim outlook for the
US economy, which will become a key factor
preventing the Thai companies from competing
with others in terms of pricing in 2020.
In addition, close attention should be paid
to trade protectionism measures, especially
with regards to quality and standard
requirements to protect domestic trade (both
tariff and non-tariff measures) such as
environmental requirements (i.e., the
reduction-elimination of the plastic use) and
tax imposition on unhealthy products (i.e., a
tariff increase on products with high sugar
content).
KResearch projects that, for the outlook
of Thailand’s food and beverage exports,
future consumer trends will play a key role in
determining the production process and
product development. Products which respond
to future consumer trends, such as organic
produce, healthy food, ready-to-eat food
(RTE), plant-based and insect-based protein,
as well as medical food, will have strong
potential to grow because they match the
needs of consumers in importing countries.
The on-trend products include vegetable and
fruit, spices, herbs, condiments, chilled and
frozen ready-to-eat foods; they manage to
outperform the market. Although these
products currently register slight export values,
their growth rates are higher than the market
average and have strong prospects due to the
growing health consciousness of the new
generation of consumers who prioritize
convenience and speed. Also, since many
countries are becoming an aging society and
the population of seniors will become the
biggest demographic group in the next ten
years, the demand for products specialized
for the elderly is expected to be popular and
in high demand in the future.
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