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SEP2017
FOOD FOCUS THAILAND
SCOOP
However,someacademicshaveclaimed that thegrowthof “superfoods”
isaphenomenonofmarketing, since these foodshavenot been formally
classified as such, based on the scientific approach. Nevertheless,
superfoods have gained popularity in developed countries due to the
growing healthier diet trend, which has significantly helped spur their
demand.
Research conducted by Mintel, a privately-owned, London-based
market research firm, shows that new F&B products with names related
tosuperfoods introducedbetween2011and2015hadsurged202%.Such
products typically contained quinoa, chia seeds and/or coconut. In 2015,
newF&Bproducts related to superfoods grew36%, largely indeveloped
countries, suchas theUS,Australia, Britain andCanada.
Coconut is aSuperfood
Coconut isoneofThailand’smajoreconomiccrops,andhasbeenclassified
asasuperfood.Coconutproducts, includingwholecoconuts,coconut juice
and oil, plus those derived from coconuts, such as coconut milk and
cosmetics, have benefited from the health craze and have thus become
popular inglobalmarkets.Anarrayofcoconut-relatedproductshasalready
made greater inroads into developed countries, such as coconut juice-
based beverages that come in many flavors, and coconut oil-based
cosmetics.Asa result, demand for coconutsand relatedproducts inworld
markets has increasedmarkedly.
Coconut Production cannot Keep Pace with Surging
Demand
Global consumption of coconuts and related products has grown
substantially in recent years, thanks to their growing popularity. In 2016,
global demand for coconut juice reached 160million gallons, equivalent
tooverUSD2.06billion,surging19.5%YoY.Globalconsumptionofcoconut
milk, a processed product from coconuts, performed well too, soaring
14.8%YoY toUSD 0.9billion.
Despite rising global demand for coconuts in line with the health-
conscious trend, coconut cultivation worldwide is falling. Between 2010
and2014,global coconutcultivationareaandoutputaveraged75.9million
rai and 68.8 billion coconuts p.a., or 906 coconuts/rai, suggesting that
coconut cultivation area and production are set to decline. In 2017, the
world’s major coconut-producing countries, in particular the Philippines,
are facing unfavorable weather conditions, thus causing their coconut
output to fall. Indonesia’sSulawesi, the country’smajor coconut growing
area, is facing dwindling coconut yield/rai, because most coconut trees
there have already exceeded theirmaturity, thus offering reduced yields.
India’s coconut cultivation has been adversely affected by infestations.
Given these circumstances, global coconut output is projected todecline
in2017.
Thailand’sCoconut
Coconut is one of Thailand’s major economic crops. In 2015, coconut
growingareas in thecountry totaledapproximately1.2million rai, yielding
about 1million tonsof coconuts.Apart of that totalwasuseddomestically
as rawmaterial for coconut milk processors, and the rest was exported.
Over thepast fiveyears, the ratioof domestic coconut consumption (also
for industrial use) toexportswas at 60:40.
Major coconut growing areas are in the southern region, with the
highest output seen in Prachuap Khiri Khan, Chumphon and Surat
Thani.Robust demandhas resulted inshortagesof coconutsasa raw
material for export-oriented processing. To address this issue, the
government has temporarily allowed businesses to import coconuts
from our neighboring countries, such as Indonesia and Malaysia,
though coconuts are still subject to import control.
Therearenumerouscoconut products inThailand, including fresh
and primary processed coconut products, such as coconut milk and
juice. Coconut milk is Thailand’s most important related export,
accounting for 75%of total coconut product shipments, largely to the
EU, US and Australia. Coconut milk exports show bright prospects
amid thegrowingpopularityofThai cuisine, increasednumbersofThai
restaurantsandhealth-conscious trendsabroad. In2016, thevalueof
such exports reached THB 10.9 billion, rising 12.6% YoY, and the
averagegrowth inexport valueover thepast fiveyearswasat 16.7%.
Other coconut products also exhibit promising growth as a result
of thehealth-conscious trendsanddemand forsuperfoods indeveloped
countries.These includecoconutoil– ithasbeenconfirmedby research
studies that its lauric acid offers health benefits for the body through
direct consumption or application via cosmetics. Coconut juice has
gained popularity in recent years, partly because of the health craze
and increaseddemand for Thai “NamHom” coconuts inChina, given
their fragrance and flavor. In addition, research studies show that
coconut juice contains a high amount of nutrients andminerals, thus
attracting a lot of athletes todrink it.
On account of soaring demand for coconut milk for use in Thai
cuisine and the proliferation of Thai restaurants abroad, especially in
the EU and US, KResearch is of the view that demand for coconut
milk will see continued strong growth. In 2017, we project that Thai
coconutmilkexportswill grow16.5% toTHB12.7billion.Major export
destinationsare theEUandUS.Given thepopularityof other coconut
products, their demandabroadwill bestrong, aswell.We thusproject
thatexportsofothercoconutproductswilladvance18.5% toTHB16.4
billion. However, Thai coconut product shipments remain low relative
to leading coconut trading countries, such as Indonesia and the
Philippines.
Opportunitiesfor
Thai CoconutsAbroad
SuperfoodTrends
The worldwide growth of health-conscious trends has
significantly helped bolster the production of some crops and
foods, classified by developed countries as healthy, or
“superfoods”.
