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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