F&B Insights Asia Magazine Issue3 F&B Insights Asia Magazine Issue3 | Page 9

Thailand’s
food industry set to prosper
Insight
Asia
ASEAN
Update
2
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016 saw Thailand rising as the world’s 13th leading food
exporter, up by two ranks from the previous year. When compared
to the rest of Asia, the kingdom ranked third worldwide, following
China and India. Given these positive signs, supportive government
policies and the recovering global economy, Thailand’s food
industry is more than ready to exper ience an impressive growth
rate in 2017, inviting new players to join its growing food industry.
The steady economic
growth in CLMV, in
particular, greatly
contributed to the
growth of Thailand’s
food exports last year, as
they replaced Japan as
the number one export
market for Thai food
products.
Food export grew by 7% in 2016, generating approximately USD
27.5 billion in export value, due to higher agricultural productivity,
low costs of animal feed ingredients and growing economies in the
CLMV (Cambodia, Laos, Myanmar and Vietnam) bloc. The steady
economic growth in CLMV, in particular, greatly contributed to
the growth of Thailand’s food exports last year, as they replaced
Japan as the number one export market for Thai food products.
A bright prospect lies ahead as the kingdom’s industrial sector in
2017 is projected to secure an upward trend, supported by the
improving domestic economy, stemming from the contributions
of public investment and tourism sector. Private investment,
meanwhile, is believed to grow in line with that of the government,
which also plans to implement a number of stimuli to spur the
country’s economy.
As for the food industry, the National Food Institute (NFI) expects
exports to grow by 8% this year, generating around USD 30 billion,
compared to 7% the year before. Major food products with an
expectedly high increase in export volume include shrimp, chicken
and canned pineapple, whilst the top five food exports are rice,
chicken, sugar, shrimp and canned tuna, in that order. Besides, the
Ministry of Tourism and Sports plans to implement a series of stimuli
to boost tourism, which will consequently drive demands for food
products to grow.
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