Executive Summary

Aug 2019
Prospects
Foodservice drives sales thanks to growing acceptance of Western food in cafés and restaurants

Foodservice is a major driver of cheese consumption, with it accounting for the majority of total volume sales in Thailand, with this set to continue over the forecast period. Thai food culture is becoming more modern and cosmopolitan.

Local players look to develop retail sales of cheese through new innovations

The retail consumption of cheese remains low as it is not considered to be a common ingredient in Thai cooking, with it typically used only on special occasions when preparing Western food or desserts. In response to this, KCG Corp, a prominent local manufacturer and distributor, launched several new products at the end of the review period targeting retail consumers in an attempt to grow this channel.

Sliced processed cheese remains most popular thanks to low cost and convenience

Thai consumers are more familiar with sliced processed cheese than other cheese products due to several factors. Firstly, stores display sliced processed cheese on the shelf while displaying unprocessed cheese in a separate refrigerator.

Competitive Landscape
Players focus on introducing more affordable cheese to expand reach

Imported brands were among the most popular options over the review period with these seen to offer a better and more authentic taste. However, the high price of these products also impeded the development of cheese in Thailand with it remaining unaffordable for many consumers.

Bega Cheese expands presence with offer of affordably priced cheese

Australian company Bega Cheese, which looks to provide affordable cheese for everyday use, expanded its presence in Thailand at the end of the review period with it expanding its presence in convenience stores, especially the popular 7-Eleven chain. The company is looking to expand across Asia and its pricing strategy, whereby its products are priced similar to those of local options, is helping it to win over price-sensitive consumers.

Local dairy giant KCG retains lead as it continues to invest in new innovations

KCG Corp Co Ltd retained a healthy lead in cheese in 2019, with the company continuing to innovate with products such as Allowrie Squeeze Cheese and Imperial Selected Shredded Cheese. Offering a wide range of processed cheese products in formats such as sliced, triangles and squeezable the company is able to cater to local preferences while also benefiting from a strong and established distribution network.

Prospects
Sugar tax expected to have negative impact on some categories

The sugar tax that was proposed by the Thai government in September 2017 with it coming into effect in October 2019 after a two-year grace period. Manufacturers were given time to reformulate their products with alternative sweeteners or to reduce the added sugar content.

Targeted drinking milk products prove popular with healthier image

Consumers in Thailand have become more discerning and are increasingly looking for products that cater to their age group and lifestyle. Drinking milk products is evolving to capitalise on this trend, with players using special nutrients and positionings to target the elderly, children and active adults.

Health-conscious consumers switch to pricier other milk alternatives

Other milk alternatives remained the most dynamic category in 2019, albeit from a relatively low base. These beverages are made from ingredients ranging from nuts and legumes to grains.

Competitive Landscape
Nestlé launches sugar free option as companies reformulate products to avoid sugar tax

With the sugar tax coming into effect in October 2019 the major players in soy drinks have been forced to reformulate their products to avoid price rises. Both Lactasoy and Vitamilk, which dominate soy drinks, have taken this step.

Product shelf life influences consumer purchasing decisions

In soy drinks brands such as Tofusan and Homesoy that are offering chilled options over shelf stable products are benefiting from an increasingly health-conscious consumer base. Consumers perceive chilled products to be fresher and therefore healthier, and these brands offer single-serve packaging to overcome any reservations about wastage.

More affordable brands such as Almond Breeze win share in other milk alternatives

Previously products within other milk alternatives carried a high unit price, being targeted at niche consumer groups such as vegans and lactose intolerant consumers. However, over the review period demand exploded as products such as almond milk gained a reputation for their health benefits.

Prospects
Drinking yoghurt expected to be impacted by sugar tax

The government’s sugar tax was proposed in September 2017, with it coming into effect in October 2019 after a two-year grace period. During this period leading players have introduced products with a lower sugar content, or products with sweeteners.

Flavoured yoghurt viewed as less healthy and non-essential

Drinking yoghurt benefits from an established healthy image with consumers won over by claims of the benefits of probiotics in leading brands such as Yakult and despite the sugar tax it is likely to remain by far the largest category of yoghurt in Thailand. Meanwhile, flavoured yoghurt suffers from an image of being somewhat of a frivolous product.

Health-conscious consumers attracted to Greek options

Consumers in Thailand are increasingly looking for healthier options with regard to yoghurt. New product developments generally centre on features such as a clean label, low sugar and high protein, with low-fat yoghurt, yoghurt with a granola topping and Greek yoghurt all becoming commonplace in retailers.

Competitive Landscape
Impending sugar tax forces companies in drinking yoghurt to reassess their portfolios

Major players launched reduced sugar/no sugar drinking yoghurt in 2018/2019 as they looked to prepare for the introduction of the government’s sugar tax. New products included Betagen Light, Yakult Light, Dutchie life and Delight low sugar.

Health-conscious consumers help drive demand for fortified and plant-based yoghurt

Rising health consciousness amongst consumers has helped drive demand for plant-based yoghurt, with local and imported niche brands like Rivon and Joya benefiting from this trend. Consumers are attracted by the higher protein content of plant-based yoghurt compared to their traditional dairy variants, while it also attracts those looking to lead a vegan or lactose-free diet.

Yakult expected to build on success with launch of Yakult Light

Yakult Sales (Bangkok) Co Ltd retained second place in the rankings in 2019. The company has built up a unique and effective operating model in Thailand over a period of decades, with Yakult Ladies delivering the products door to door through direct selling.

Prospects
Companies switch their attention to foodservice due to booming coffee culture

Thailand’s booming coffee culture has resulted in the proliferation of both chain and artisan coffee shops. The growing number of coffee shops has resulted in increasing demand for coffee whiteners, condensed milk and cream throughout Thailand.

Retail sales suffer as consumers switch to healthier options

With the number of cafés and bakery shops increasing in Thailand, it has become less desirable to cook and eat at home for consumers. As a result, coffee whiteners and condensed milk saw retail volume growth slow further in 2019, with the latter registering a decline.

Bubble tea, milk tea and Japanese cakes driving foodservice demand

Another factor driving demand for other dairy through the foodservice channel is the growing popularity of bubble tea cafés and Thai milk tea shops, for which coffee whiteners is a key ingredient. Furthermore, the growing number of in-store bakeries and cafés offering Japanese-style baked goods, such as light and fluffy Japanese cheesecake and choux crème, are gaining in popularity.

Competitive Landscape
Coffee-mate successfully launches new healthier line

Nestlé (Thai) Ltd’s Coffee-mate brand continued to dominate coffee whiteners in 2019. Coffee-mate is synonymous with coffee whiteners among local consumers because it was the first brand to enter the category in Thailand.

Focus switches to foodservice as retail sales struggle

Some players in coffee whiteners are targeting specific foodservice channels as they look to increase their sales. For example, Coffee Dreamy is targeting the bubble tea market as it looks to grow its share.

Players look for new innovations to stimulate interest and increase consumption

Home consumption is favouring convenient, fat-free products, as was seen with the favourable response to squeezable condensed milk tubes and to new cans for evaporated milk and instant whipped cream. All of the leading players in condensed milk have launched squeezable bottles, which makes it easier to create sweet treats.

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Dairy in Thailand

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Thailand with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Thailand, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Thailand market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Thailand?
  • What are the major brands in Thailand?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Dairy in Thailand - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

New regulation has negative implications for margarine and spreads
Foodservice sales of butter flourish as bakeries promote quality of ingredients
Increased awareness of the dangers of trans fats drives demand for pure butter

COMPETITIVE LANDSCAPE

Local players lead thanks to good value and trusted reputation
Foodservice channel offers potential for butter brands following ban on trans fats
KCG Corp maintains healthy lead with broad portfolio of local and imported brands

CATEGORY DATA

Table 1 Sales of Butter and Spreads by Category: Volume 2014-2019
Table 2 Sales of Butter and Spreads by Category: Value 2014-2019
Table 3 Sales of Butter and Spreads by Category: % Volume Growth 2014-2019
Table 4 Sales of Butter and Spreads by Category: % Value Growth 2014-2019
Table 5 NBO Company Shares of Butter and Spreads: % Value 2015-2019
Table 6 LBN Brand Shares of Butter and Spreads: % Value 2016-2019
Table 7 Distribution of Butter and Spreads by Format: % Value 2014-2019
Table 8 Forecast Sales of Butter and Spreads by Category: Volume 2019-2024
Table 9 Forecast Sales of Butter and Spreads by Category: Value 2019-2024
Table 10 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2019-2024
Table 11 Forecast Sales of Butter and Spreads by Category: % Value Growth 2019-2024

Cheese

HEADLINES

PROSPECTS

Foodservice drives sales thanks to growing acceptance of Western food in cafés and restaurants
Local players look to develop retail sales of cheese through new innovations
Sliced processed cheese remains most popular thanks to low cost and convenience

COMPETITIVE LANDSCAPE

Players focus on introducing more affordable cheese to expand reach
Bega Cheese expands presence with offer of affordably priced cheese
Local dairy giant KCG retains lead as it continues to invest in new innovations

CATEGORY DATA

Table 12 Sales of Cheese by Category: Volume 2014-2019
Table 13 Sales of Cheese by Category: Value 2014-2019
Table 14 Sales of Cheese by Category: % Volume Growth 2014-2019
Table 15 Sales of Cheese by Category: % Value Growth 2014-2019
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2014-2019
Table 17 Sales of Unprocessed Cheese by Type: % Value 2014-2019
Table 18 NBO Company Shares of Cheese: % Value 2015-2019
Table 19 LBN Brand Shares of Cheese: % Value 2016-2019
Table 20 Distribution of Cheese by Format: % Value 2014-2019
Table 21 Forecast Sales of Cheese by Category: Volume 2019-2024
Table 22 Forecast Sales of Cheese by Category: Value 2019-2024
Table 23 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024
Table 24 Forecast Sales of Cheese by Category: % Value Growth 2019-2024

Drinking Milk Products

HEADLINES

PROSPECTS

Sugar tax expected to have negative impact on some categories
Targeted drinking milk products prove popular with healthier image
Health-conscious consumers switch to pricier other milk alternatives

COMPETITIVE LANDSCAPE

Nestlé launches sugar free option as companies reformulate products to avoid sugar tax
Product shelf life influences consumer purchasing decisions
More affordable brands such as Almond Breeze win share in other milk alternatives

CATEGORY DATA

Table 25 Sales of Drinking Milk Products by Category: Volume 2014-2019
Table 26 Sales of Drinking Milk Products by Category: Value 2014-2019
Table 27 Sales of Drinking Milk Products by Category: % Volume Growth 2014-2019
Table 28 Sales of Drinking Milk Products by Category: % Value Growth 2014-2019
Table 29 NBO Company Shares of Drinking Milk Products: % Value 2015-2019
Table 30 LBN Brand Shares of Drinking Milk Products: % Value 2016-2019
Table 31 Distribution of Drinking Milk Products by Format: % Value 2014-2019
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Volume 2019-2024
Table 33 Forecast Sales of Drinking Milk Products Products by Category: Value 2019-2024
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2019-2024
Table 35 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2019-2024

Other Dairy

HEADLINES

PROSPECTS

Companies switch their attention to foodservice due to booming coffee culture
Retail sales suffer as consumers switch to healthier options
Bubble tea, milk tea and Japanese cakes driving foodservice demand

COMPETITIVE LANDSCAPE

Coffee-mate successfully launches new healthier line
Focus switches to foodservice as retail sales struggle
Players look for new innovations to stimulate interest and increase consumption

CATEGORY DATA

Table 36 Sales of Other Dairy by Category: Volume 2014-2019
Table 37 Sales of Other Dairy by Category: Value 2014-2019
Table 38 Sales of Other Dairy by Category: % Volume Growth 2014-2019
Table 39 Sales of Other Dairy by Category: % Value Growth 2014-2019
Table 40 Sales of Cream by Type: % Value 2014-2019
Table 41 NBO Company Shares of Other Dairy: % Value 2015-2019
Table 42 LBN Brand Shares of Other Dairy: % Value 2016-2019
Table 43 Distribution of Other Dairy by Format: % Value 2014-2019
Table 44 Forecast Sales of Other Dairy by Category: Volume 2019-2024
Table 45 Forecast Sales of Other Dairy by Category: Value 2019-2024
Table 46 Forecast Sales of Other Dairy by Category: % Volume Growth 2019-2024
Table 47 Forecast Sales of Other Dairy by Category: % Value Growth 2019-2024

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

Drinking yoghurt expected to be impacted by sugar tax
Flavoured yoghurt viewed as less healthy and non-essential
Health-conscious consumers attracted to Greek options

COMPETITIVE LANDSCAPE

Impending sugar tax forces companies in drinking yoghurt to reassess their portfolios
Health-conscious consumers help drive demand for fortified and plant-based yoghurt
Yakult expected to build on success with launch of Yakult Light

CATEGORY DATA

Table 48 Sales of Yoghurt and Sour Milk Products by Category: Volume 2014-2019
Table 49 Sales of Yoghurt and Sour Milk Products by Category: Value 2014-2019
Table 50 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2014-2019
Table 51 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2014-2019
Table 52 Sales of Flavoured Yoghurt by Flavour: Rankings 2014-2019
Table 53 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2015-2019
Table 54 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2016-2019
Table 55 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2014-2019
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-2024
Table 57 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2019-2024
Table 58 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2019-2024
Table 59 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2019-2024

Packaged Food in Thailand - Industry Overview

EXECUTIVE SUMMARY

Packaged food records growth in 2019, but government policies put pressure on certain players
Healthy living and social media both impact packaged food sales in Thailand
Small and niche brands benefit from adapting quickly to consumer tastes
The expansion into the online marketplace will drive growth for packaged food
The forecast for packaged food remains positive, and competition will continue to be fierce

FOODSERVICE

Sales to Foodservice
Foodservice operators favour local manufacturers who offer more affordable products
Growth in packaged food volume sales to foodservice operators set to continue
The rise of food franchises and casual-dining results in positive value sales of packaged food to foodservice
Consumer Foodservice
Third-party online food delivery services are becoming increasingly popular
Social media influencers have an impact on the foodservice choices consumers make
Consumers are increasingly visiting buffet restaurants, to experience a variety of cuisines
Category Data
Table 60 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 61 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 62 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 63 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 64 Sales of Packaged Food by Category: Volume 2014-2019
Table 65 Sales of Packaged Food by Category: Value 2014-2019
Table 66 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 67 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 68 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 69 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 70 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 71 Penetration of Private Label by Category: % Value 2014-2019
Table 72 Distribution of Packaged Food by Format: % Value 2014-2019
Table 73 Distribution of Packaged Food by Format and Category: % Value 2019
Table 74 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 75 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 76 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 77 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

DEFINITIONS

SOURCES

Summary 1 Research Sources