Yoghurt and Sour Milk Products in Thailand

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.

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