Open to Imports

Country Content Sections/Tabs

Country Content Sections/Tabs

Quick Stats

Quick Stats

Organics Dashboard From Passport

  • The organic segment in Thailand is led by the Capital Rice Co Ltd with a value share of 48.0% in 2021, followed by Green Net Coop with a share of 15.6% and Nature’s Path Foods Inc with a value share of 2.4%.

 

  • Organic products in Thailand represent 0.04% of global demand with market size of US$25.5 mn and a per capita expenditure of US$0.37 in 2021, indicating that organic products are niche and supported by a small base of high-income consumers.
  • Despite a low global ranking in market size and per capita income, Thailand ranks in the top-10 for forecast growth with an anticipated value CAGR of 8.8% for the period 2021-2026.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Thailand recorded current value growth of 9.2% in 2021, registering a value of US$25.5 million.
  • Growth in organic packaged food was led by organic breakfast cereals, with an increase in the value of 12.1% in 2021.
  • Organic fruit/herbal tea led growth in organic beverages, recording a current value increase of 4.4% in 2021.
Market Trends
  • The Thai government’s 4-stage sugary beverages tax (initiated in 2017 and scheduled to end in October 2024) has encouraged manufacturers to revamp their portfolios with reduced sugar/zero-sugar options. Therefore, more naturally healthy and better for you products have been introduced in carbonates, juices, RTD coffee and RTD tea. 
  • Covid-19 has accelerated the growth trend in fortified/functional beverages; players are introducing soft and hot drinks with high vitamin content to lure the younger generation. Vitamins are preferred for general health and immunity against the Covid-19 virus. Therefore, manufacturers are focusing on product innovation in the category to widen their portfolio and gain the consumer base. Better for you is another category that has seen the introduction of healthier options such as no sugar beverages. 
  • Rising awareness regarding a healthy lifestyle is expected to drive growth and innovation in the fortified/functional category. Meanwhile, in hot drinks, fortified/functional benefits are more associated with herbal content (herb extracts) to appeal to the health-conscious consumers in Thailand. Local players have better know-how and greater access to preferred local herbs.
Competitive Landscape
  • Green Net Coop continue to lead the organic beverages market, with a value share of 23.1% in 2021 – the company has slightly regained the market share compared to 2020. Green Net Coop’s success is due to its role as a social enterprise, which links sustainable farmers and community enterprises with consumers. Apart from educating farmers on organic farming, the company also serves as a marketing channel for small-scale organic farmers through fair trade channels and distributes organic products in Thailand. As a result of these efforts, the company has raised a significant amount of awareness in the country and strengthened its presence in the category. The company retains a strong position in organic tea, with a value share of 31.7% in 2021 (49.7% value share in organic green tea).
  • Capital Rice Co Ltd dominates the organic packaged food market with a massive 61.6% value share; the company also dominates the overall organic category with 48% of value share in 2021. The company owns brands including Tai Tai and Great Harvest in organic packaged food. 
  • Organic beverages remain a comparatively more fragmented category because of low demand volumes and higher prices, preventing global players from entering the Thai market. Moreover, consumers in Thailand prefer products from niche players, as they are perceived to be more authentic. Additionally, the government’s efforts have effectively encouraged new entrants to pursue opportunities in the organic tea and coffee market, which is expected to grow.
Prospects And Growth Opportunity
  • Consumers are increasingly showing preferences towards zero sugar carbonates rather than reduced sugar alternatives, which will likely lead to growth in the category during the forecast period. Additionally, taxes on sugary drinks have also encouraged manufacturers to develop new formulations for sugar-free soft drinks. Coca-Cola’s Fanta introduced zero sugar carbonates in orange and strawberry flavours in February 2021. Boon Rawd Brewery Co. Ltd., a major player in bottled water in the country, launched Singha Lemon Soda and Singha Yuzu Lemon Soda in late 2020.
  • Thai consumers have increasingly started consuming coffee without added milk, sugar, or other sweeteners. The trend is emerging due to high health consciousness, and therefore, manufacturers are responding with innovation in developing a new range of products. Major brands in RTD coffee, such as Birdy and Nescafé, focus on black coffee and Americano products to cater to rising demand. The trend seems set to continue from the short to medium term.  
  • A hike in sugar tax is expected to drive new developments in the better for you hot drinks category. Consequently, players are expected to experiment with new formulations to launch low or reduced sugar products. Brands like Birdy and Khao Shong are likely to focus on adding reduced sugar coffees to their portfolios. For instance, Birdy launched 3-in-1 instant coffee with 25% reduced sugar in October 2020, while Khao Shong’s introduced a wide range of products with 50% less sugar. Furthermore, the reduced-sugar beverages category is set to see higher usage of sweeteners. Also, it is expected that companies will introduce products containing herbs (such as stevia) to improve the taste and flavours of better for you reduced-sugar beverages.
General Health And Wellness Trends
  • Consumers in Thailand are concerned about obesity, diabetes, and immunity. Covid-19 has further triggered the shift to health and wellness products; consumers are increasingly looking for healthy food and beverages and are avoiding high-sugar, cholesterol, and fat products. As a result, companies continue to invest in new product development within healthy alternatives. Therefore, the category is expected to witness a robust growth during the forecast period.
  • Products with high vitamin content, herb extract or other natural ingredients are in demand as consumers seek functional benefits to boost immunity. However, the growing pricing sensitivity of lower-income families due to job losses during the Covid-19 pandemic is a threat. Manufacturers must take into consideration that more local consumers are looking for value for money options. 
  • Increased demand for health and wellness packaged food and beverages due to factors like Covid-19 and the implementation of the sugar tax is set to see new entrants coming into the market. As a result, the competition is set to intensify, which is expected to eventually lead to a wider variety of price points (especially in organic and naturally healthy) and more accessibility to a broad range of consumer segments.
General Economics And Demographic Landscape

Economy: 

  • The economy of Thailand is expected to witness gradual improvement, with real GDP growth in 2022 expected to hit 4%, post gains of 1.6% in 2021. 
  • Real GDP growth is expected to gradually fall from 4.5% in 2023 to about 3% per year between 2024-2030.
  • Private final consumption recorded an increase of 0.8% in 2021. It is expected to grow at a higher rate of 3.3% in 2022. 


 

Population demographics: 

  • The population in Thailand was recorded at 70 million in 2021, increasing by 7.1 million since 2000. There has been a slowdown in population growth in recent years, resulting in a decrease in the pool of young workers in the country for the medium term. 
  • The median age in 2021 was recorded at 40.5 years, up from 30.2 years in 2000, indicating the steady ageing process. By 2030, the median age is expected to reach 43.7 years. 
  • Furthermore, the population over the age of 65 is expected to increase from its 2021 share of 13.5% to 16.2% by 2025.

 

Income & expenditure: 

  • The savings ratio in Thailand was recorded at 8.3% of disposable income in 2021 and it is expected to hold steady in 2022. 
  • Consumer expenditure per capita amounted to US$4,403 in 2021, with an increase of 3.2% expected in 2022. Cumulatively, consumer expenditure is expected to witness a rise of 34.6% during the period 2020-2030, increasing at an annual average rate of 3.0%. 
  • Disposable income per capita in 2021 was recorded at US$4,006. The indicator is expected to increase by 3.1% in 2022. For the period 2020-2030, disposable income is expected to witness a cumulative increase of 31.1%, averaging 2.7% annually.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption

USD million

5,479.2

5,696.4

5,511.8

5,737.2

5,979.2

6,202.1

6,427.1

6,660.9

1.5%

3.7%

Organic packaged food and beverages consumption

USD million

18.8

20.5

23.4

25.5

27.7

30.2

32.9

35.8

10.7%

8.9%

Organic packaged food consumption

USD million

13.5

15.0

18.0

19.9

21.9

24.1

26.5

29.2

13.8%

10.1%

Organic beverages consumption

USD million

5.3

5.5

5.4

5.6

5.9

6.1

6.3

6.5

1.9%

3.3%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

0.3

0.4

0.4

0.4

0.5

0.5

0.5

0.5

-

-

 

[1] Health and Wellness Definition: Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products. The above definition and more can be referenced from the definitions table at the end of the report.

Economic And Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

Total population

million

69.4

69.6

69.8

70.0

70.1

70.2

70.3

70.3

% Middle and upper class of total population

%

26.4

26.4

26.4

26.4

26.4

26.4

26.5

26.5

% Population aged 65+

%

11.9

12.4

13.0

13.5

14.2

14.8

15.5

16.2

% Population aged 0-14

%

17.1

16.8

16.6

16.3

16.0

15.8

15.5

15.3

% Population with higher education degrees

%

16.8

17.0

17.3

17.5

17.7

17.9

18.1

18.2

Average number of children per household

children

0.6

0.6

0.6

0.6

0.5

0.5

0.5

0.5

GDP per capita

USD per capita

7,369.2

7,586.0

7,029.8

7,220.5

7,496.8

7,822.5

8,109.9

8,345.7

Consumer expenditure per capita (US$)

USD per capita

4,159.1

4,415.8

4,375.4

4,403.8

4,549.0

4,718.2

4,906.9

5,050.0

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

940.6

989.4

1,083.6

999.7

1,026.9

1,067.1

1,111.2

1,144.4

 

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

Bangkok

18.1

Top cities by population (2021)

2

Pattaya-Chonburi

1.8

Top cities by population (2021)

3

Hat Yai

1.0

Top cities by population (2021)

4

Chiang Mai

0.9

Top cities by population (2021)

5

Nakhon Ratchasima

0.8

 

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

Seven & I Holdings Co Ltd

Top grocery retailers by sales (2021)

2

Charoen Pokphand Group

Top grocery retailers by sales (2021)

3

Big C Supercenter PCL

Top grocery retailers by sales (2021)

4

Central Group

Top grocery retailers by sales (2021)

5

FamilyMart Co Ltd

 

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Thailand

Year

Country

Rank of Product/Commodity

Product/Commodity

Export Value (US$)

2021

Thailand

1

Organic Vinegar and Substitutes

525,483

2021

Thailand

2

Organic Apples Fresh

137,159

2021

Thailand

3

Organic Peach/Nectarine Fresh

107,260

2021

Thailand

4

Organic Grapes Fresh

58,124

2021

Thailand

Total

Total Organics*

828,026

2020

Thailand

1

Organic Grapes Fresh

1,567,124

2020

Thailand

2

Organic Vinegar and Substitutes

264,008

2020

Thailand

3

Organic Cherry Tomato Fr/Ch

190,260

2020

Thailand

4

Organic Apples Fresh

76,005

2020

Thailand

5

Organic Cult Blueberries Fresh

16,680

2020

Thailand

Total

Total Organics*

2,150,473

2019

Thailand

1

Organic Apples Fresh

375,296

2019

Thailand

2

Organic Vinegar and Substitutes

311,117

2019

Thailand

3

Organic Grapes Fresh

172,500

2019

Thailand

4

Organic Carrots Fr/Ch

114,609

2019

Thailand

5

Organic Lemons Fr/Dr

30,000

2019

Thailand

Total

Total Organics*

1,048,338

2018

Thailand

1

Organic Apples Fresh

510,987

2018

Thailand

2

Organic Vinegar and Substitutes

173,737

2018

Thailand

3

Organic Lemons Fr/Dr

161,632

2018

Thailand

4

Organic Grapes Fresh

160,800

2018

Thailand

5

Organic Coffee Roast Not Decaf

31,171

2018

Thailand

Total

Total Organics*

1,067,707

 

Note : Total organics is the sum of all exports in a particular year   

Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2018 – 2021 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2018-2021 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

National Bureau of Agricultural Commodity and Food Standards (ACFS)
Department of Fisheries (for organic aquaculture).

Role of ACFS:
Supervise the exported agricultural commodities and food laboratories, and issue rules on agricultural commodity and food laboratory registration.

Agency(s) Contact Information:

National Bureau of Agricultural Commodity and Food Standards
Ministry of Agriculture and Cooperatives
50 Phaholyothin Road, Ladyao Chatuchak Bangkok 10900, Thailand
Telephone: (662) 561 2277
Contact: acfs@acfs.go.th

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

Organic Agriculture Part I: The Production Processing Labelling and Marketing of Organic Agriculture (TAS 9000-2546) 2003 (.pdf; unofficial English translation)

Thai Standards for Organic Aquaculture (TAS 9000-2546) July 23, 2003

Organic Agriculture Part II : Organic Livestock (.pdf; unofficial English translation)

Organic Marine Shrimp Farming (TAS 7413-25500) June 29, 2007 (.pdf; unofficial English translation)

Organic Snakeskin Gourami December 2010 (.pdf; unofficial English translation)

Assessment recognized the competence of certification bodies for agricultural products and foodstuffs. Organic agriculture 

Certification scheme for organic agriculture 

Date of Implementation: 2003

Regulation and/or Standard Scope:

The standards include minimum standards for production, processing, labeling, and marketing, to comply with international standards. They cover human foods, animal feeds derived from organic production of plants, cattle and aquaculture. The Standards are for standard-setting organizations, not standards for production, and were implemented in 2003.

Imported Products

No requirements for imported products.

Certification and Accreditation

Certification:

In addition to several local and international certifiers operating in Thailand, the Ministry of Agriculture and Cooperatives has four departments that provide certification:
Rice Department, Department of Fisheries, Department of Livestock DevelopmentDepartment of Agriculture

Accreditation Method:

Government

Accreditation:

National Bureau of Agricultural Commodity and Food Standards (ACFS), Office of Commodity and System Standards Accreditation ACFS launched accreditation service in 2004.

The accreditation procedures involve:
1. Review all documents of Certification Body's System (System audit)
2. On-site visit audit system (Office audit)
3. Audit the competency of Certification Body (Witness audit)
4. Decision on certification by Accreditation Review Panel

Additional Information

Reference Standards:

Codex Guidelines; IFOAM Basic Standards.

Additional Information:

USDA's GAIN Report Thailand Food Processing Ingredients (2021)
USDA's GAIN Report Thailand Food Service - Hotel Restaurant Institutional (2021) 
USDA's GAIN Report Thailand Exporter Guide (2021)
USDA's GAIN Report Thailand Retail Foods (2021)
USDA's GAIN Report Plant-Based Food and Beverage Market in Thailand (2021)
USDA's GAIN Report Thailand Online Food Delivery Market (2020)
USDA's GAIN Report Thailand's Pet Food Market (2021)
USDA's GAIN Report Thailand Food and Agricultural Import Regulations and Standards Export Certificate Report (2021)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2021)