Sugar and Sweeteners in Thailand

2020 IMPACT

Increase in retail volume sales outweighed by slump in foodservice and institutional demand due to COVID-19

Total volume sales of sugar and sweeteners declined for the first time in six years during 2020: A modest acceleration in the rate of retail volume sales was significantly outweighed by a slump in demand from the foodservice and institutional channels arising from a significant decline in international tourism and the closure of schools for an extended period due to COVID-19. Conversely, retail demand for sugar and sweeteners was boosted by the fact that consumers were eating more home-cooked meals and eating out less.

Sugar tax may have raised consumer awareness of its health risk

The government introduced a new excise tax on sugar in October 2019 as part of its efforts to combat obesity in Thailand. While this tax has not impacted the price of sugar, as it is only levied on beverages containing sugar, it has raised consumer awareness of the health risks associated with the consumption of sugar.

RECOVERY AND OPPORTUNITIES

Increased international tourism and locals eating out more will drive recovery in foodservice demand

Demand for sugar and sweeteners from the foodservice and institutional channels will begin to recover during 2021. The recovery will be particularly rapid in the case of foodservice.

Increased awareness of health risks may cause local consumers to go sour on sugar

Partly as a result of publicity surrounding the government’s excise tax on sugar, consumer concern regarding the negative health effects of sugar consumption is likely to grow. Increased internet use will also play a role in this.