Thailand Food and Drink Report Q2 2009
Business Monitor International, April 2009, Pages: 70
Vast agricultural output, relative market immaturity and a strong food consumption growth forecast all make Thailand one of South East Asia’s most exciting investment opportunities. However, despite its attractiveness as an investment prospect this quarter has seen little merger and acquisition activity and only minimal expansion activity as both domestic and international companies struggle with the sluggish global economic conditions. BMI has subsequently revised its GDP growth forecast for Thailand in 2009 downwards from 3.8% in late 2008 to just 1% now.
The country’s export-oriented economy looks set to suffer as it struggles with waning global demand and deteriorating consumer spending power in the US, the EU and Japan (the three regions account for a combined 34% of all Thai exports) and this is forecast to worsen in 2009, with BMI forecasting US GDP to contract by 2.04%, while the Japanese economy will shrink by 2.26% and growth in Europe will stand at –0.73%.
Despite concerns over the economy and weakening consumer confidence, this quarter has seen a number of companies confirm investment plans. Thailand’s leading food manufacturer Charoen Pokphand Foods (CPF) has announced it intends to invest THB750mn (US$21.5mn) expanding its domestic operations, while retailers: CP All, Tesco Lotus and Siam Makro have all confirmed plans to invest in expansions. With per capita food consumption forecast to grow 60.2% to US$756.7 in 2013 and sales through modern retail outlets expected to reach US$20.07bn in 2013 these investments are not surprising.
However, one retailer not feeling so confident is Central Retail who announced in January it was planning to delay its proposed THB10bn (US$281.7mn) investment due to economic uncertainty. Elsewhere, this quarter saw Finnish food company Raisio’s Thai partner Saha Pathanapibul announce plans to launch Benecol, a dietary supplement drink, in Thailand, indicating that the country still poses an attractive investment opportunity. The launch of Benecol will help both Raisio and Saha Pathanapibul take advantage of expected growth in Thailand’s soft drink sector, with BMI predicting value sales to grow by 38% from 2008 to reach US$3.41bn in 2013.
Regardless of economic pressures and an increasingly challenging operating environment, activity this quarter demonstrates that many companies remain committed to Thailand and says much about the remaining potential in the country.
Executive Summary
- SWOT Analysis
- Food
- Thailand Food Industry SWOT
- Drink
- Thailand Drink Industry SWOT
- Mass Grocery Retail
- Thailand Mass Grocery Retail Industry SWOT
- Business Environment
- Asia Pacific Food & Drink Business Environment Ratings
- Table: Regional Food & Drink Business Environment Ratings
- Thailand Food & Drink Business Environment Rating
- Macroeconomic Outlook
- Table: Thailand - Economic Activity
Food
- Industry Forecast Scenario
- Food Consumption
- Food Consumption Indicators - Historical Data & Forecasts
- Canned Food
- Confectionery
- Instant Noodles
- Value/Volume Sales of Selected Food Sub-Sectors - Historical Data & Forecasts 20
- Trade
- Thailand Food & Drink Trade Indicators - Historical Data & Forecasts
- Industry Developments
- Market Overview
- Agriculture
- Organics
- Food Processing
- Trade
- Dairy
Drink
- Industry Forecast Scenario
- Alcoholic Drinks
- Thailand Beverage Sub-Sectors - Value Sales Historical Data & Forecasts
- Soft Drinks
- Industry Developments
- Market Overview
- Alcoholic Drinks
- Soft Drinks
- Retail
- Industry Forecast Scenario
- Thailand MGR Sales Value By Format - Historical Data & Forecasts
- Thailand Grocery Retail Sales By Format - Historical Data & Forecasts
- Industry Developments
Market Overview
- Structure of Thailand's Mass Grocery Retail Market By Estimated Number Of Outlets
- Structure of Thailand's Mass Grocery Retail Market - Sales Value By Format (US$bn)
- Thailand Average Sales Per Outlet By Format (US$mn) - 2007
Competitive Landscape
- Key Players
- Food and Drink
- Key Players In Thailand's Food & Drink Sector, 2007
- Mass Grocery Retail
- Key Players In Thailand’s Mass Grocery Retail Sector, 2
- Company Analysis
- Food
- Chokchai
- Charoen Pokphand Foods (CPF)
- Thai President Foods
- Drink
- Thai Beverages Plc (ThaiBev)
- Thai Asia Pacific Brewery (Thai APB)
- Singha Corporation (formerly Boon Rawd Brewery)
- Mass Grocery Retail
- CP All Ltd
- Carrefour
- Siam FamilyMart
- Tesco Lotus
- Central Food Retail Company Ltd (CFR)
Appendix
- Country Snapshot: Thailand Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Non-Agricultural Wages, 2001-2020
- Food & Drink Business Environment Ratings
- Ratings Methodology
- Ratings Overview
- Ratings System
- Indicators
- Limits Of Potential Returns
- Risks To Realisation Of Potential Returns
- Weighting
- Weighting
- BMI Food & Drink Industry Glossary
- Food & Drink
- Mass Grocery Retail
- BMI Food & Drink Forecasting & Sourcing
- How We Generate Our Industry Forecasts
- Sourcing
- Chokchai
- Charoen Pokphand Foods (CPF)
- Thai President Foods
- Thai Beverages Plc (ThaiBev)
- Thai Asia Pacific Brewery (Thai APB)
- Singha Corporation (formerly Boon Rawd Brewery)
- CP All Ltd
- Carrefour
- Siam FamilyMart
- Tesco Lotus
- Central Food Retail Company Ltd (CFR)
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