The Kingdom of Thailand is located in the very middle of Southeast Asia and is regarded as the gateway to Indochina. It is surrounded by Laos to the north and northeast, Myanmar to the north and west, Cambodia to the east, and Malaysia to the south. Thailand has a surface area of 513,115 square kilometers. According to 2020 data, the share of agriculture in the country’s GDP is 9%, of the industry is 33% and of the service sector is 58%.

In reference to IMF data, the country’s GDP, which is estimated to be 522 billion dollars in 2022 at current prices, is expected to be 556 billion dollars in 2023. According to current prices, Thailand is the 28th largest economy in the world among 196 countries as of 2022. Its GDP, which is expected to increase by 3.3% in 2022 compared to constant prices, is estimated to increase by 4.3% in 2023. With a population approaching 70 million, Thailand ranks 89th in the world with a per capita income of 7449 dollars in 2022.

Thailand has been implementing a development model aiming to move from an agricultural economy to an industrial-oriented economic structure by catching high growth rates in the 1980s, and now it is implementing its 20-year national strategy to catch up with the digital economy era within the framework of “industry 4.0”. The government has implemented various projects to become the logistics hub of the region. In addition, the Thai Government has adopted a new development model that it calls the “bio-circular-green economy”. This model is also included in the country’s 5-year strategic planning. In the model in question, 4 priority areas have been determined: agriculture and food, health care, energy and biochemicals, tourism, and the creative economy.

Thailand has the potential to become a prominent economic power in the region, thanks to its strategic location in Southeast Asia, its literacy rate, significant natural resources, large domestic market, and ever-increasing purchasing power. Thailand is one of the world’s leading rice producers and exporters.

The rising general level of well-being in Thailand in recent years has created optimism among people, increasing consumer demand for various products. With the rise in income; consumers, especially the wealthier ones, began to spend more on experiences like dining out and traveling. Younger generations tend to be interested in a healthy lifestyle, so they spend a lot of money on healthier food choices and supplementary products.

Now let’s take a look at the interesting bakery sectors of the country.

Thailand’s bakery sector has seen significant growth in recent years, with an increasing number of consumers turning to baked goods as a convenient and tasty snack. As a result, the industry has become increasingly competitive, with both local and international companies vying for a share of the market.

One of the key drivers of growth in the bakery sector has been the increasing popularity of convenience stores and supermarkets, which have made it easier for consumers to purchase baked goods on the go. In addition, the rise of online shopping has also contributed to the growth of the industry, as consumers can now easily order baked goods from the comfort of their own homes.

Despite the growth of the sector, the market is still dominated by small, independent bakeries. These bakeries often offer a wide range of traditional Thai baked goods, such as sweet and savory pastries and breads, as well as more Western-style products such as cookies and cakes. In recent years, however, there has been a rise in the number of larger, more specialized bakeries, which focus on particular types of baked goods, such as artisanal breads or gourmet desserts.

One of the key challenges facing the bakery sector is the increasing cost of ingredients, particularly flour and sugar. As a result, many bakeries have had to raise prices in order to remain profitable. In addition, the industry is also facing increasing competition from other snack food options, such as street food and fast food, which can be cheaper and more convenient for consumers.

Despite these challenges, the bakery sector in Thailand remains strong, with many consumers still viewing baked goods as an important part of their daily diets. As a result, the industry is likely to continue to grow and evolve in the coming years, with new products and innovations helping to drive growth.

In recent years, there has been a trend towards healthier baked goods in Thailand, with many bakeries offering a range of low-fat, low-sugar, and whole grain products. This trend has been driven by increasing awareness of the importance of a balanced diet and the need to address growing rates of obesity and chronic diseases in the country.

In addition to these health-conscious products, many bakeries in Thailand are also offering a wider range of flavors and ingredients, incorporating traditional Thai flavors and ingredients into their products. This has helped to differentiate the products of Thai bakeries from those of international competitors and has also helped to promote Thai cuisine to a wider audience.

Overall, the bakery sector in Thailand is an exciting and dynamic industry, with a wide range of products and innovations. As consumer demand for convenient and tasty snacks continues to grow, the industry is well-positioned to capitalize on this trend and continue to thrive in the future.

One of the key players in Thailand’s bakery sector is the Charoen Pokphand Group (CP Group), which is one of the country’s largest and most successful conglomerates. CP Group operates a number of bakery brands, including the popular 7-Eleven convenience store chain, which offers a range of baked goods. In addition, the company also operates the Super Baker bakery chain, which offers a wide range of fresh breads, pastries, and cakes.

Another major player in the industry is the Saha Pathanapibul Group, which operates a number of bakery brands, including BreadTalk and The Creamery. BreadTalk is a popular chain of bakery cafes that offers a range of freshly-baked breads, pastries, and sandwiches.

In addition to these larger companies, the bakery sector in Thailand is also home to a number of smaller, independent bakeries, which offer a more traditional and authentic range of baked goods. These bakeries often use local ingredients and traditional recipes to create a unique and delicious range of products.

THAILAND’S PASTA SECTOR

According to 2020 data, world pasta exports amounted to 11.8 billion dollars. Italy is the leading country with an export value of 3.5 billion dollars and a 30.2% market share. Italy is followed by China (980.1 million dollars), South Korea (792.3 million dollars), Turkey (761.2 million dollars) and Thailand (595.4 million dollars). 

Thailand’s pasta sector has seen significant growth in recent years, with a rising demand for pasta products among Thai consumers. This trend is being driven by a number of factors, including an increasing awareness of the health benefits of pasta, as well as the growing popularity of Italian cuisine in Thailand.

Pasta is a versatile food that is high in carbohydrates, making it an excellent source of energy for active individuals. It is also a good source of protein, vitamins, and minerals, making it an essential part of a balanced diet. Additionally, pasta is easy to prepare and can be incorporated into a variety of dishes, making it a popular choice among busy individuals who are looking for convenient meal options.

The growing popularity of Italian cuisine in Thailand has also contributed to the growth of the pasta sector. Italian restaurants have become increasingly common in Thailand, and many Thais have developed a taste for the rich flavors and textures of Italian dishes. This has led to an increase in the demand for pasta products, as more and more Thais are looking to recreate their favorite Italian dishes at home.

One of the key players in Thailand’s pasta sector is Thai President Foods Public Company Limited, a leading producer of pasta products in the country. The company offers a wide range of pasta products, including spaghetti, macaroni, and noodles, in a variety of flavors and sizes. Thai President Foods also produces a range of organic and whole wheat pasta products, catering to the growing demand for healthy and natural food options in Thailand.

In addition to Thai President Foods, there are a number of other companies operating in Thailand’s pasta sector, including Nestle Thailand and Italian-Thai Development Public Company Limited. These companies offer a range of pasta products, including fresh, frozen, and dried pasta, as well as a variety of sauces and toppings.

The growth of Thailand’s pasta sector is expected to continue in the coming years, as more and more Thai consumers embrace the convenience and versatility of pasta products. With its growing popularity and the increasing availability of high-quality pasta products, the future looks bright for Thailand’s pasta sector.

In order to meet the growing demand for pasta, many of the companies operating in Thailand’s pasta sector have invested in new production facilities and technologies. In addition to investing in production capabilities, many companies in Thailand’s pasta sector are also focusing on developing new and innovative products. For example, Nestle Thailand recently launched a new line of frozen pasta dishes, which are ready to eat in just three minutes. 

The growth of Thailand’s pasta sector has also had a positive impact on the country’s economy. The increasing demand for pasta products has created new job opportunities, particularly in the food processing and manufacturing industries. In addition, the growth of the pasta sector has helped to support the development of the country’s agricultural sector, as many of the ingredients used in pasta production, such as wheat and tomatoes, are sourced from local farmers.

Overall, the growth of Thailand’s pasta sector is a testament to the increasing popularity of pasta products among Thai consumers. With its versatility, convenience, and nutritional value, pasta is an essential part of a balanced diet, and the growing demand for pasta products in Thailand is expected to continue in the coming years.

BISCUIT SECTOR 

The biscuit sector in Thailand is a significant part of the country’s food industry. Biscuits are a popular snack in Thailand and are consumed by people of all ages. The country’s biscuit market is highly competitive, with many local and international companies producing a wide variety of biscuits for the domestic market and for export. The major players in the Thai biscuit sector include companies such as Orca Food, Chia Tai Group, and Tipco Foods. These companies produce a range of biscuits, including sweet biscuits, crackers, and savory snacks. The Thai biscuit industry has benefited from the country’s strong economic growth and increasing disposable incomes, which have led to a rise in demand for convenience foods. However, the industry also faces challenges, such as rising competition from imported biscuit products and concerns about food safety and quality.

The biscuit market in Thailand is driven by increasing demand for snacks and convenience foods, as well as the rising popularity of international flavors and textures. In recent years, there has been a trend towards healthier and organic options, with many companies offering gluten-free and low-sugar options.

To stay competitive, companies in the Thai biscuit sector are focusing on innovation and product development, as well as expanding their distribution networks both domestically and internationally. The industry is also benefiting from government initiatives to support the growth of the food and beverage sector, including tax incentives and investment in research and development.

RICE IS VITAL FOR THAILAND 

Although Thailand typically produces 3 to 5 percent of the world’s rice, it accounts for nearly a quarter of global trade. The average annual yields of Thai paddy rice run to 30-32 million tons, or 20-21 million tons of milled rice. This is consumed by domestic and export markets in roughly equal quantities Thai rice is recognized globally for its high quality and as such it is in demand in a large number of countries.

Rice is one of the most important commodities in the agriculture sector. Rice is also one of Thailand’s staple foods, with each person eating, on average, almost 115 kilograms per year. Given its role as a vital economic crop, rice naturally has a central place in the provincial economy. In terms of land under cultivation, rice is Thailand’s most planted crop, taking 45% of all Thai farmland, and a total of 17.5 million Thais, or almost 1 in 5 of the population, are involved in rice production

The overarching importance of rice has naturally led governments of all types to pay special attention to rice farmers and their needs, and a wide range of policies to help rice farmers have been tried out over the years. These have included 1) price-based policies, such as the rice price guarantee scheme, the rice pledging scheme; and 2) other similar policies, together with other forms of help, including financial assistance with production costs for rice farmers and schemes to help with the costs of harvesting and improving rice quality.

Thai rice is recognized globally for its high quality and as such it is in demand in a large number of countries; Thailand’s most important export markets are China, the United States, the ASEAN region, Africa and the Middle East. The main export categories are white rice, jasmine rice and parboiled rice.

Over four million Thai households are involved in rice cultivation. Rice farmers have two main channels through which to sell their rice: they may sell directly to a local mill or they may sell on to or via middlemen such as agricultural cooperatives, paddy rice center market or paddy rice collectors, who will then distribute paddy rice to rice mills at a later date. 2) The intermediate segment comprises rice mills, which use unprocessed rice as an input to produce finished, milled rice. Typically, 1 kilo of paddy rice produces 0.6-0.7 kilos of milled rice.

Thai domestic milling capacity is significantly higher than demand; at more than 100 million tons per year, it is in fact more than three times domestic rice output. Large rice mills, defined as those with a processing capacity of over 20 tons paddy rice/day, that have invested in new technology to improve milling techniques and the quality of the rice which they produce and that have their own silos for the storage of rice often benefit for being within the same commercial network as exporters.