52
NOV2017
FOOD FOCUS THAILAND
STRATEGIC
R & D
Thailand’s consumers have become more prudent with their
spending in recent years. In light of this,moreandmore consumers
are turning to online channels that give them access to competitive
offers and cheaper pricing. However, our research shows that high
quality remains a key driver of purchases, and consumers are still
willing topay apremium for products that are safe andnatural.
Furthermore, Mintel research shows that consumers are
increasingly becoming more mindful of the environment and what
theyareconsuming. Indeed,37%ofurbanThaispreferproducts that
maintain fair trade regulations,while justover three in10 (31%)prefer
products that carry an environmental certification from a credible
government or non-profit organisation.
Consumers are now also willing to pay a premium for ‘safe to
use’ claimsonproducts, as indicatedby two infive (40%)metroThai
consumers. This is the second biggest factor behind consumers’
willingness to pay a premium among urban Thais, following ‘better
product performance’ (43%)which is the leadingmotivator.The third
most important consideration for Thais to purchase productswith a
premiumprice tag is for them tobenaturaland formulatedusingpure
ingredients; over one in four (27%) metro Thais said that they are
willing topay apremium for everyday products that are ‘natural’.
With ingredient safety concerns on an upward trend globally,
consumersareon the lookout for products that highlight naturalness
as well as clean, pure formulations. The words ‘safe’ and ‘natural’
enhanceaproduct’sappeal toconsumers,and ‘free-from’perceptions
are likely to growwith the increasing concerns around food safety
and chemical contamination.
Although cheaper prices attract consumers inThailand,
it seems a product’s quality is the highest priority when
makingapurchasedecision.According tonew research
from global market intelligence agencyMintel, asmany
as three in five (58%) metro Thai consumers
1
rate high
qualityasakeypurchase factor,making this the leading
driver of buying decisions. Also ranking in the list of the
top five purchase influences among metro Thais are
convenience (42%),specialoffers (40%),durability (35%),
and finally, their favourite brands (26%).
GlutenBecomes thePerceivedVillain
Overall, just over one in 10metro Thai consumers are avoiding or
intending toavoidgluten.Whilegluten-freeandallergen-free trends
have not entered Asia in a big way just yet, awareness levels of
allergensandgluten intoleranceare risingamongmetroconsumers.
As many as six in 10 metro Thai consumers who are avoiding or
intending to avoid gluten are doing so because they believe it is
healthier,whileonly11%claim theyareallergic to it.Althoughnot all
whoareconcernedareallergic to it, thegrowingconcerndoesopen
up opportunity for gluten-freeproduct innovation.
Gluten-free claims grow across food and drink categories.
Between2012and2015, gluten-freeclaimshavegrownacross food
and drink categories, with sauces and seasonings, baby food and
dairy categories seeing a significant increase in 2015 as compared
to 2014.
Dairy andLactoseAvoidance
A tenthofmetroThais claim toeither avoidor are intending toavoid
lactose. Among this segment, 59% of them do so as believe it is
healthier to avoid it, while only 9% are actually allergic to lactose.
Withdairy, just over a tenthofmetroThais avoidor are intending to
avoid this in their diet; nearly half are doing so for perceived health
benefits, while one in four claim they are allergic. Just over one in
four of consumerswhoavoiddairy aredoing soas their current diet
does not allow consumption of this ingredient. Awareness is clearly
greater in Bangkok and the Greater Bangkok region, as those
consumerswhoare from this region tend tohaveastrongeravoidance
or intent of avoidanceas compared to those fromothermetroareas
acrossThailand.
Rise inAlternativeMilk
According toMintelGlobalNewProductsDatabase,betweenJanuary
2012 and September 2016, Thailand was the leading market in
SoutheastAsiawhen it came toalternativemilk launches. For some,
the awareness of alternativemilks is also an influencer of themove
away fromdairy. In recentyears,alternative rice-based,grain-based,
nut- or seed-basedmilks are often spotted in theThai marketplace.
Given thehigheractivity in thissegment, there isgreaterpotential
for innovationanddiversificationofbenefitsofferedandclaimsmade.
Supergrains likequinoaandchiaareseeinggrowthglobally, andwe
can see someof these ingredients already used inalternativemilks
inThailand.
Additional Information
1
1,963 internet users in theurbanareas of Thailand, aged18andabove
