How Thailand Frozen Foods Market is
Positioned?
Thailand is a rich
kingdom in terms of natural resources where every region of the country has its
own culture, the making domestic products exclusive in nature. The country’s
food industry has grown rapidly over the past decade owing to increased
consumption of processed foods such as frozen shrimp, sugar, poultry, canned
tuna, confectionary and snacks, canned pineapple and tapioca. Additionally,
Thailand has over ~ food and beverage processing factories consisting of SMSEs
and is one of the major producer and exporter of processed food products. The
Thai government has introduced policies in order to boost food production with
quality standards and safety, thereby making Thailand an attractive destination
for foreign investors. Thai companies were observed to add more food options to
their menus.
Thailand
frozen foods market generated revenues worth THB ~ million in 2012
which witnessed a decline to THB ~ million in the year 2015. The revenue
generation slowed down after 2012 owing to the country’s political turmoil and
high oil prices, thereby reducing the volume of production for frozen products,
sales and margin levels for producers, retailers as well as restaurants in
Thailand. Easy convenience offered by frozen products especially frozen ready
meals, frozen seafood and frozen fruits and vegetables owing to innovations in
freezing technologies helps to provide an extended shelf life. Some of the
major players operating in Thailand frozen seafood and meat market include Thai
Union group, CP Foods PCL, SK Foods PCL, Kuang Pei San Food Products PCL and
Prantalay.
Thailand Frozen Foods Market
Segmentation
By Type of Frozen Foods
The frozen seafood and meat segment dominated Thailand frozen foods
market with a revenue share of ~% in the year 2017 owing to the rising
consumption of seafood as well as meat in the country. The growing trend of
using canned products especially canned tuna, sardines and mackerel have also
led to increase in supply for frozen seafood in Thailand. Some of the leading
brands for canned seafood products include Sealect, Ayam, Three Lady Cooks and
others. The frozen ice-cream and desserts segment followed frozen seafood and
meat market with a revenue share of ~% in Thailand frozen foods market in 2017.
Frozen ready-to-eat meals and frozen fruits and vegetables segment were
collectively witnessed to capture the remaining revenue share of ~% in Thailand
frozen foods market in the year 2017.
By Region
The capital city of Thailand i.e. Bangkok region dominated the
country’s frozen foods industry with a revenue share of ~% in 2017. The demand
for convenient packaged foods such as frozen seafood and meat was witnessed to
rise owing to increasing consumer preference for pre-cooked products. In
accordance with Slipakorn University’s research the number of petrol stations
in Bangkok region selling frozen ready-to-eat meals was increasing. The Phuket
region followed Bangkok with a revenue share of ~%, Pattaya with ~%, Chiang Mai
with ~% and other regions such as Hat Yai, Chiang Rai, Khon Kaen and Hua Hin
collectively captured the remaining revenue share of ~% in Thailand frozen
foods market in the year 2017.
How Frozen Seafood and Meat Market
of Thailand is Positioned?
The country’s frozen seafood and meat market was observed to generate
revenues worth THB ~ million in the year 2012, which took a fall to THB ~ million
in 2017 owing to falling farmed shrimp supplies in Thailand. Rising Consumption
of Other Seafood Products for instance, fish, squid and crab is collectively
driving the demand for frozen seafood products amongst the Thai population. In
Thailand, frozen seafood and meat offered convenience at a larger scale to a
new generation of shoppers in terms of easy-to-cook ready meal solutions with
appropriate amount of nutritional content in them. The Thai market was also
driven by launch of ~ new processed fish products such as hala, out of which
the most popular storage type was frozen and chilled seafood products. Stores
for instance, 7-eleven, CP Freshmart and other leading chained super-markets
and hyper-markets in Thailand has also boosted the overall growth for frozen
seafood and meat market in the country.
The chilled/frozen chicken segment established itself as market leader
in the Thai frozen foods industry by capturing a little over half of the market
with a revenue share of ~% in the year 2017 owing to rising exports of frozen
and processed chicken in 2017 due to growing demands in Japan and other
European countries. The segment was followed by frozen shrimps, frozen fish and
frozen squid with revenue shares worth ~%, ~% and ~% respectively in the year
2017. Frozen seafood and meat is majorly distributed through modern grocery
retailers including hypermarkets, supermarkets and convenience stores. These
stores further sell the frozen items majorly to quick service joints and
restaurants. Hypermarkets in Thailand dominated the frozen seafood and meat
market with a revenue share if ~% in the year 2017, thereby, increasing the
customer base by providing frozen products at discounted prices.
The frozen seafood and meat segment in Thailand was observed to
dominate with a massive revenue share of ~% in the year 2017. The market was
witnessed to be highly fragmented with manufacturing companies who process and
export a wide variety of seafood and meat products, including basic raw frozen
products to semi-processed and value added products. Among seafood, mackerels
and sardines were detected as the major selling fish category whereas among
meat products, chicken, lamb, beef and pork were popular and widely available
in both retail and wholesale markets.
Over the forecast period, Thailand frozen seafood and meat market is
estimated to generate revenues worth THB ~ million by 2018E which are further
expected to increase to THB ~ million by the year ending 2022E, thus growing at
a CAGR of ~% in the forecast period 2018E-2022E. Increasing number of trading
partners coupled with strong export demand for processed seafood and meat
dishes from major countries such as Japan, Australia, China, Korea, US, EU,
Middle East and other Southeast Asian countries are further anticipated to
drive the demand for frozen seafood and meat products. The changing lifestyles
of Thai population coupled with busy schedules are further expected to boost the
demand for frozen processed foods in the country. Additionally, growing protein
needs amongst Thai population has also been driving the total retail sales of
meat, poultry and seafood products in frozen ready-to-eat format.
How
Frozen Ice-Cream and Desserts Market of Thailand is Positioned?
The frozen ice-cream and desserts market within Thailand showcased
limited growth potential by displaying a low revenue share of ~% in overall
Thailand frozen foods market in the year 2017 owing to rising health concerns
among Thai population. As a result, consumers were keen to reduce the
consumption of ice-cream and other frozen desserts because of high presence of
fat content. Extended period of hot weather coupled with developing lifestyle
trends in Thailand are some of the major factors which are driving the sales of
ice-cream and other frozen desserts in the country, especially during summers. In
2015, the consumption of ice-cream by the Thai people was evaluated at ~ liters
per capita. The consumption of frozen ice-cream and dessert items in Thailand
is much higher in urban areas which are backed by increasing consumer spending
coupled with wider availability of retail outlets. Single-portion dairy
ice-cream segment dominated with ~% revenue share in Thailand frozen ice-cream
and desserts market in the year 2017. Thai people prefer dairy ice-cream over
water-based because of the taste and overall nutritional content provided by
dairy including calcium, protein, iron, vitamin-D and A; and some amount of fat
content. Single-portion water based ice-cream and take home category
collectively captured the remaining revenue share of ~% in the year 2017.
Premium ice-cream segment established itself as market leader by
capturing a revenue share of ~% in Thailand frozen ice-cream and desserts
market in the year 2017. Super-premium and premium ice-cream tends to have low
overrun (air) and high fat content than regular standard ice-cream. The
remaining revenue share worth ~% was captured by standard type ice-cream in
Thailand frozen ice-cream and desserts market in the year 2017. The market was
observed to be highly concentrated with the presence of major players such as
Unilever Thai Trading Ltd, Nestle Thailand Ltd and Glico Frozen (Thailand)
Company Ltd, therefore, collectively capturing a market share of ~% in the year
2017. The remaining ~% revenue share basically consists of both international
and domestic companies who majorly produce premium and super-premium
ice-creams. Increasing Demand for Sweet Dishes in Thailand is further expected
to boost the demand for ice-cream in the country. The market is estimated to
generate revenues worth THB ~ million by the year ending 2018E. Surging health consciousness
among Thai consumers coupled with growing demand for reduced fat, light, soft,
no sugar added, lactose-free, gluten free and organic ice-cream in the country
will further drive the market in near future. Thailand frozen foods market is
estimated to generate revenues worth USD ~ million by the year ending 2022,
thus growing at a CAGR of ~% in the forecast period 2017-2022E.
How
Frozen Ready-to-Eat Meals Market of Thailand is Positioned?
Increasing Consumption of Frozen Ready-to-Eat Meals in Thai Urban
Areas: Thailand frozen ready-to-eat meals market revenues were evaluated at THB
~ million in 2012 which witnessed an increase to THB ~ million in the year
2017, thus growing at a six year CAGR of ~% in the review period 2012-2017.
Thai people who are accustomed to regular hectic lifestyles were observed to
purchase frozen ready-to-eat meals more often especially in Bangkok region and
other urban areas. Frozen ready-to-eat meals saw constant development in terms
of consumption over the last few years owing to wide availability of effective
packaging solutions in the country. Some of the widely used packaging options
in Thailand include corrugated freezer boxes which have cold insulation lining,
especially designed for storing frozen products such as processed fruits and
vegetables, seafood, meat and packaged ready meals. Other packaging options
include cans, microwaveable trays, folding cartons and other containers.
The frozen ready-to-eat meals were majorly sold through convenience
stores in Thailand, as the segment dominated with a massive revenue share of ~%
in the year 2017. It was observed that divorce rate among Thai people is high
thus, forcing many single parent families to work. As a result, time
constraints towards self-cooking have been driving the demand for packaged
ready meals in the country. On the other hand, traditional distribution
channels including small neighborhood stores, street vendors, mom & pop
stores and other independent small grocers captured the least revenue share of
~% in Thailand frozen ready-to-eat meals market in the year 2017. Large volume
institutions such as hospitals and company cafeterias are some of the major end
users who purchase frozen ready-to-eat meals in bulk.
Thailand frozen ready-to-eat meals market was observed to be highly
fragmented in the year 2017 on account of several frozen packaged ready meal
types including frozen ready-to-eat seafood, chicken, other meats, processed
fruits and vegetables and other snacks such as crisps, bread crumbs and boxed
food in variety of menus. In terms of market share, CP Foods Group dominated
Thailand ready-to-eat meals market with a revenue share of ~% in 2017. Frozen
foods manufacturers such as S & P Syndicate PCL, Unilever Group, Prantalay
Marketing Co Ltd, Saha Pathana Inter Holding Co Ltd (Saha Group), Thai Ha Co
Ltd, Alfredo Enterprise Co Ltd and others collectively captured the remaining
market share of ~% in the year 2017. Some of the major selling frozen food
brands for packaged ready meals in Thailand include CP, Quick Mea and Knor,
therefore collectively capturing a revenue share of ~% in 2017. The remaining
revenue share worth ~% was collectively captured by brands such as Mama, Kaset,
Prantalay, Neo Pizza, Pranprai and others.
Rising affordability and convenience offered by frozen ready-to-eat
meals compared to buying / preparing whole regular meals is further projected
to generate demand for packaged ready meals in Thailand in near future. The
market is expected to generate revenues worth THB ~ million by 2018E which is
further estimated to increase to THB ~ million by the year ending 2022E, thus
growing at a six year CAGR of ~% in the forecast period 2017-2022E. Introduction
of frozen vegetarian ready meal options are likely to boost the demand for
Thailand frozen foods market over long term. In addition, rising availability
of household equipments for instance, refrigerators with deep freezers and
microwave among middle income consumers are further estimated to create a
positive impact over Thailand frozen ready-to-eat meals market. Over the
forecast period, Thai consumers are expected to opt for packaged ready meal
options over street vended unhealthy food items on account of rising health
consciousness in the country.
How
Processed Fruits and Vegetables Market of Thailand is Positioned?
Thailand processed fruits and vegetables market revenues were
evaluated at THB ~ million in 2012 which were observed to increase to THB ~
million in the year 2017, thus growing at a six year CAGR of ~% in the review
period 2012-2017. Rising health consciousness among Thai consumers has made
processed fruits and vegetables as an absolutely necessary option for people
who want to maintain a healthy lifestyle. The processed fruits and vegetables
market in Thailand is in growing stage and showcasing a volatile growth rate
between ~% over the review period 2012-2017. Increasing number of working women
in Thailand coupled daily hectic lifestyles has also driven the demand for
convenient frozen processed fruits and vegetables in the country as there is no
need to wash, peel and cut them. The growing trend of making fruit based
smoothies in Thailand also created a positive impact on the country’s frozen
fruits market.
Shelf-stable fruits & vegetables segment established dominated the
market with a massive revenue share of ~% in the year 2017. Shelf stable fruits
and vegetables can be easily stored on the pantry shelf for at least one year
and do not have to be cooked or refrigerated to eat safely. The frozen fruits
and vegetables segment captured the remaining revenue share of ~% in Thailand
processed fruits and vegetables market in the year 2017. They have been gaining
popularity as convenient ready foods in Thailand owing to advancement in
freezing technologies such as Individual Quick Frozen (IQF) provides fruits and
vegetables with an extended shelf life.
Hypermarkets were witnessed to dominate Thailand processed fruits and
vegetables market with a massive revenue share of ~% in 2017. The segment was followed
by supermarkets, independent small grocers and other grocery retailers with a
collective revenue share of ~% in the year 2017. Thailand processed fruits and
vegetables market in 2017 was observed to be moderately concentrated and has a
minimum of ~ companies manufacturing and distributing both shelf stable as well
as frozen fruits and vegetables. Majority of these companies are located in
outer Bangkok, and also in the production areas of Rayong, Chantaburi; Chiang
Mai and Lampoon regions. In terms of revenues, Malee Sampran PCL dominated
Thailand processed fruits and vegetables market with a market share of ~% and
was followed by Universal food PCL with a revenue share of ~% in 2017. The
remaining ~% revenue share was collectively captured by Talley's Frozen Foods
Ltd, Hi-Q Food Products Co Ltd, Peace Canning (1958) Co Ltd, Doi Kham Food
Product Co Ltd, Con Agra Brands Inc and others in the year 2017.
Thailand processed fruits and vegetables market is further estimated
to generate revenues worth THB ~ million by 2018E which are further estimated
to increase to THB ~ million by the year ending 2022E, thus growing at a six
year CAGR of ~% over the forecast period 2017-2022E. Rising demand for diverse
fruits with distinct flavor especially Mangosteen, durians and longans are also
expected to boost the market revenues for processed fruits and vegetables in
Thailand in near future.
Thailand Frozen
Foods Market Future Outlook and Projections
Over the forecast period, Thailand frozen foods market will prepare
itself to meet the future demand expected from significant investment proposed
in the country’s food processing segment. The market is expected to generate
revenues worth THB ~ million by the year ending 2018E. Increasing consumption
of food culture blends for instance, Japanese sushi and frozen surimi products
such as fish balls, crab sticks, hanpen, kamaboko coupled with wide usage of
Thai spices was witnessed in the country. The surging trend is further expected
to attract more foreign tourists, thereby driving the demand for frozen surimi
products in the future. The frozen seafood and meat segment is further
anticipated to dominate more than half of the Thailand frozen foods market with
a revenue share of ~%, thus evaluated at THB ~ million by 2022E. Increasing
demand of processed and ready-to-eat options coupled with growing number of
retail outlets in the country is majorly driving the demand for frozen meat,
poultry and seafood products in the country. Thailand frozen foods market
revenues are expected to reach a total of THB ~ million by the year ending
2022E, thus increasing at a CAGR of ~% in the forecast period 2017-2022E.
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