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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 45.6% in 2019, followed by Green Net Coop with a share of 16.2% and Nature’s Path Foods Inc with a value share of 2.2%.

  • Organic products in Thailand represent 0.04% of global demand with market size of US$20.2 mn and a per capita expenditure of US$0.29, indicating that organic products are niche and supported by a small base of high-income consumers.
  • Despite a low ranking in market size and per capita income, Thailand ranks 10th in forecast growth with an anticipated value CAGR of 8.5% for the period 2019-2024. The entry of new players and price reductions is making organic products more affordable.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Thailand recorded current value growth of 8.6% in 2019, registering a value of US$20.2 mn.
  • Growth in organic packaged food was led by organic dried baby food, with an increase in the value of 12.0% in 2019.
  • Organic fresh coffee led growth in organic beverages, recording a current value increase of 5.0% in 2019, while average unit prices witnessed a fall of 1.0%.
Market Trends
  • Health-conscious consumers primarily drove the demand for organic products in Thailand. However, with the importance of healthy eating increasing across the population, there is a demand for organic products from parents for their children and in households with elderly or sick members, as organic products are perceived as natural and a way to improve wellbeing.
  • Organic beverages have also witnessed a rise in demand over concerns of non-organic juice being “too sweet” and the concern of additives in regular beverages. Consumers are beginning to shift to organic drinks; however, the high unit price is a significant barrier for growth, as organic beverages are still not affordable to the mass market. With the prices expected to continue to remain high over the forecast period 2019-2024, the majority of demand for organic beverages is expected to be from wealthy consumers in categories such as organic coffee and organic tea while demand in organic packaged food is expected to be led by organic baby food and organic breakfast cereals.
  • Organic coffee is gaining popularity in Thailand on the back of the growing coffee culture and the rise in premium coffee establishments, which are increasing consumer awareness on the varieties of coffee.
Competitive Landscape
  • Green Net Coop leads the organic beverages market, with a value share of 23.5% in 2019. The company’s success is due to its role as a social enterprise, which works to link sustainable farmers and community enterprises with consumers. Aside from educating farmers on organic farming, the company also serves as a marketing channel for small-scale organic farmers through fair trade channels and works to distribute organic products in Thailand. As a result of these efforts, the company has managed to raise a significant amount of awareness in the country. Additionally, the company retains a strong position in organic tea, with the value share expected to continue to grow over the forecast period 2019-2024.
  • While high prices have limited demand for organic products in Thailand, several retailers, including Central Food Retail, have begun launching products under their My Choice private label brand to make organic packaged food products more affordable. The brand has organic offerings covering a variety of categories such as jasmine rice, dried pasta and fresh foods. With a significantly lower price tag, the organic products of My Choice brands are considerably more appealing than other brands.
  • Organic beverages remain a fragmented category as a result of low demand volumes and higher prices, deterring global players from entering into Thailand. Additionally, consumers in Thailand have a preference for products from niche players, as they are perceived to be more authentic. Increasing government initiatives to encourage farmers and manufacturers to enter the organic segment have driven an increase in the entry of local players into organic tea and coffee, albeit at a gradual pace. Overall, the market for organic packaged food and beverages is expected to grow from the increasing entry of local players and private labels.
Prospects And Growth Opportunity
  • While the consumer base for organic beverages is currently limited to high-income individuals, there is a growing demand from middle-income health-conscious consumers, as more consumers are preferring product quality and are willing to pay a premium for organic products. However, this represents a small number of consumers and is a far lower volume compared to the mass market. With prices witnessing a marginal decline, a further reduction in prices (as seen from organic packaged food player Lemon Farm via local sourcing and economies of scale gained from scaling up distribution networks) could help improve volume sales.
  • With the declining birth rate and increasing time constraints for parents, demand for healthy and nutritional products will boost the growth of organic baby food, which is expected to remain strong with a projected value CAGR of 11.4% for the period 2019-2024, supported further by the rising disposable income.
  • With consumers becoming increasingly sophisticated and knowledgeable, they are looking for fresh and authentic coffee for home consumption. As the number of health-conscious consumers looking for healthy coffee increases, organic products are becoming more popular across distribution channels, especially instant coffee and tea. However, a weak supply chain and high production costs drive a higher price for branded organic coffee, leading to organic coffee remaining a niche over the forecast period 2019-2024.
General Health And Wellness Trends
  • Demand for health and wellness beverages is witnessing a slow but substantial increase as a rising number of consumers are looking for products that offer a convenient way to maintain health, boost wellbeing and/or manage weight. Additionally, concerns over the risks of consuming sugar have led to consumers preferring offerings with reduced sugar, which has helped drive demand for better for you (BFY) and naturally healthy (NH) ranges of products. 
  • An influential factor towards the growing health awareness is the increasing consumer knowledge as a result of exposure to the internet and social media, with many online initiatives and marketing efforts aimed at promoting the importance of healthy consumption and proper nutrition. 
General Economics And Demographic Landscape

Economy:

  • The economy of Thailand is expected to witness gradual improvement with real GDP growth in 2020 expected to hit 2.7%, post gains of 2.4% in 2019.
  • Private final consumption recorded an increase of 4.3% in 2019, with a decline to 3.4% expected in 2020. New measures such as increased benefits for low-income earners and aid for farmers affected by the drought in 2019 are key drivers for growth.
  • Growth of real GDP is expected to gradually fall from 3.0% in 2021 to about 2.8% per year between 2023-2027.
     

 Population demographics:

  • The population in Thailand was recorded at 69.6 million in 2019, increasing by 6.7 million since 2000. Population growth has slowed down recently, leading to a decrease in the pool of the country’s young workers for the medium term.
  • The median age in 2019 was recorded at 39.7 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 proportion of the population over the age of 65 years is expected to increase from its 2019 value of 12.4% to 19.6% by 2030.
     

Income & expenditure:

  • The savings ratio in Thailand was recorded at 8.2% of disposable income in 2018, with a decline to 7.6% expected by 2020.
  • Consumer expenditure per capita amounted to US$4,583 in 2019, with an increase of 3.4% expected in 2020. 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 2019 was recorded at US$4,122. The indicator is expected to increase by 2.5% in 2020. For the period 2020-2030, disposable income is expected to witness a cumulative increase of 29.3%, averaging 2.6% annually.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

5,247.8

5,467.3

5,723.8

5,952.4

6,134.8

6,333.3

6,543.7

4.3%

3.3%

Organic packaged food and beverages consumption

USD million

16.1

17.3

18.6

20.2

21.9

23.7

25.7

7.9%

8.3%

Organic packaged food consumption

USD million

11.1

12.2

13.4

14.8

16.2

17.8

19.6

10.1%

10.0%

Organic beverages consumption

USD million

5.0

5.0

5.2

5.5

5.7

5.9

6.2

3.2%

4.3%

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

%

0.3%

0.3%

0.3%

0.3%

0.4%

0.4%

0.4%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

69.0

69.2

69.4

69.6

69.8

70.0

70.1

% Middle and upper class of total population

%

25.8

26.4

26.4

26.4

26.5

26.5

26.5

% Population aged 65+

%

11.0%

11.4%

11.9%

12.4%

13.0%

13.5%

14.2%

% Population aged 0-14

%

17.7%

17.4%

17.1%

16.8%

16.6%

16.3%

16.0%

% Population with higher education degrees

%

16.1

16.4

16.8

17.0

17.3

17.5

17.7

Average number of children per household

children

0.6

0.6

0.6

0.6

0.6

0.6

0.5

GDP per capita

USD per capita

6,795.8

7,190.0

7,569.1

7,807.1

7,850.7

8,110.6

8,335.8

Consumer expenditure per capita (US$)

USD per capita

3,919.8

4,144.7

4,396.7

4,583.1

4,740.1

4,907.8

5,073.3

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

USD per capita

964.1

971.7

1,028.9

1,079.1

1,099.2

1,142.8

1,184.9

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Bangkok

17.9

Top cities by population (2019)

2

Pattaya-Chonburi

1.8

Top cities by population (2019)

3

Hat Yai

1.0

Top cities by population (2019)

4

Chiang Mai

0.9

Top cities by population (2019)

5

Nakhon Ratchasima

0.8

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Seven & I Holdings Co Ltd

Top grocery retailers by sales (2019)

2

Tesco Plc

Top grocery retailers by sales (2019)

3

Big C Supercenter PCL

Top grocery retailers by sales (2019)

4

Central Group

Top grocery retailers by sales (2019)

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$)

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

2017

Thailand

1

Organic Apples Fresh

335,601

2017

Thailand

2

Organic Lemons Fr/Dr

209,260

2017

Thailand

3

Organic Strawberries Fresh

153,684

2017

Thailand

4

Organic Grapes Fresh

80,890

2017

Thailand

5

Organic Cherries Fresh

20,000

2017

Thailand

Total

Total Organics*

824,861

2016

Thailand

1

Organic Grapes Fresh

174,408

2016

Thailand

2

Organic Apples Fresh

141,682

2016

Thailand

3

Organic Strawberries Fresh

101,013

2016

Thailand

4

Organic Cherries Fresh

33,173

2016

Thailand

5

Organic Lemons Fr/Dr

21,500

2016

Thailand

Total

Total Organics*

491,451


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 2016 – 2019 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 2016-2019 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 (2020)
USDA's GAIN Report Thailand Food Service - Hotel Restaurant Institutional (2019) 
USDA's GAIN Report Thailand Exporter Guide (2019)
USDA's GAIN Report Thailand Retail Foods (2019)
USDA's GAIN Report Thailand Food and Agricultural Import Regulations and Standards - Narrative (2016)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2019)