|
(Last updated: 10 Sept 2008)
Trends and opportunities
The market
The food consumption pattern of Thai consumers is changing. Quality and health rather than simply price are becoming key purchasing factors. Imported food items are popular among middle class and overseas-educated Thais who have higher disposable incomes and a growing preference for imported food items.
The majority of consumers still prefer fresh food markets. However, many consumers now shop at supermarkets, and ready-to-eat food items are replacing traditional wet market shopping and home cooking. Consumers perceive foreign produce as being of better quality than local produce.
A typical Thai family spends about 35 per cent of their total income on food and beverages. The ratio of imported food to domestic food is 30:70.
With higher levels of education and a growing awareness of healthy and natural products, Thai consumers are paying more attention to a healthy diet. They perceive Australia as a reliable and reputable source of clean, hygienic, superior quality products.
The provisions of the Association of South East Asian Nations (ASEAN) Free Trade Area arrangements are creating trade opportunities by continuing the reduction of tariff and non-tariff barriers between the member nations.
Opportunities
International cuisine has become increasingly more popular among Thais in the last 10 years. Imported processed food items include:
- fruit and vegetables
- smoked salmon, Japanese delicacies and seafood
- grain and cereal products
- chocolate and confectionary
- 100 per cent fruit juice and drinks
- jams and spreads
- dairy products and milk powder
- spaghetti
- salted snacks
- ready-to-eat meals
- meat and meat by-products
The government has developed a policy to present Thailand as the 'kitchen of the world'. This gives Australia an advantage as a quality supplier for raw materials for the manufacture of food products. These will be exported to a world market, which demands international standards for raw materials used in the production of exported food products from Thailand.
Thailand is also a major manufacturer of halal certified food for export to the Muslim world, so there are opportunities for Australian suppliers of raw materials who are halal certified.
Competitive environment
The US holds 10-15 per cent of the overall imported food market but this is gradually declining.
The demand for imported processed food and raw materials used for re-processing and re-exporting has increased. Tax incentives, transport costs and labour costs are key factors influencing foreign companies to relocate or switch to local production.
Tax incentives are effective in Thailand’s neighbouring countries such as Singapore, Indonesia, and Malaysia due to the ASEAN Free Trade Area agreement.
|