Thailand’s exports of ‘summer products’ up 13% YOY to US$1.27 billion

Thanks to the government’s free-trade negotiations and export promotion campaigns, Thailand’s exports of summer-related products in the first quarter of 2024 expanded 13% year on year to a total value of US$1.27 billion (45.93 billion baht), government spokesman Chai Wacharonke announced on Saturday.

Chai said that in 2024 Thailand is expected to be among the top 10 global exporters of products that see higher demand during the summertime, including air-conditioners (ranked third globally), ice cream (fourth globally), and canned and processed fruits (sixth globally).

He said the government under leadership of Prime Minister Srettha Thavisin has continued negotiating free-trade agreements with several countries to allow more types of Thai products to penetrate potential foreign markets with as few obstacles as possible.

These products include:

• Electric fans, which are now exempted from import tariffs in 18 countries, including ASEAN, Australia, China, New Zealand
• Ice cream, enjoying tax-free import in 17 countries including ASEAN, China, South Korea, India, Chile, and Peru
• Sunglasses and sunscreen, import tariff-free in 17 countries
• Air-conditioners and components, import tariff-free in 16 countries 
• Canned and processed fruits, import tariff-free in 15 countries

Meanwhile, the Ministry of Commerce’s Trade Policy and Strategy Office (TPSO) reported that Thailand’s export of ice cream has been on the rise for seven consecutive years, with average expansion of 12.43% per year.

At the end of 2023, Thailand ranked 11th globally among the biggest ice-cream exporters in a market that has a total value of $86.72 billion, growing 8.8% year on year.

In top 10 positions were Germany, France, Belgium, the Netherlands, Italy, Poland, the United States, Spain, the United Kingdom and Hungary. This also makes Thailand Asia’s No 1 ice-cream exporter.

Thailand’s total ice-cream export last year was valued at $396 million, increasing 11% year on year, the office said. 

As for the first quarter of this year, Thailand’s ice-cream exports amounted to $35.35 million, a contraction by 2.8% year on year, due to a drop of sales in South Korea, which had seen huge expansion last year of more than 66%.

The TPSO estimated that ice-cream exports this year will continue to expand in line with rising global temperatures during the summer that drove consumers toward snacks that help in cooling off.

“Thai ice-cream products have an advantage of lower cost of raw materials that can be domestically produced,” said TPSO chief Poonpong Naiyanapakorn. “However, manufacturers must also adapt to the trend of health-conscious consumers by providing healthier alternatives to traditional ice cream.”

Thanaphong Juiprasert, managing director at Maxfood Group, said China and Malaysia were the company’s largest markets for ice cream last year, but Saudi Arabia is a high-potential emerging market as it opens trade channels to Arab and African countries.

Maxfood Group exports 99% of its fruit-flavour and mochi ice cream overseas and only sells 1% in the home market.

The company expects to start exporting to the Middle East and African markets by year-end or early next year.