How Thai businesses can expand presence in food ingredients markets
Thailand’s Office of International Trade Promotion in New York has identified five key global trends in food ingredients, providing valuable insights for Thai businesses seeking to expand their markets.
Despite the challenges of 2023, sales of cooking ingredients increased slightly due to inflation and higher commodity prices. However, consumers have become more cautious about spending and are seeking cost-effective options, including ready-to-eat meals and private label products.
Surprisingly, premium products have gained popularity, particularly in the ready-to-eat and seasoning sauce categories. This trend highlights the growing divergence among consumers who desire quality products but are also mindful of their budgets.
Health-conscious consumers are increasingly demanding products that are low in sugar, high in fibre, high in protein, and lactose-free. The sauce and condiment category has seen a rise in demand for healthier options, although recovery in this segment has been slow.
Euromonitor has summarised the five key trends shaping the ingredients market:
- Plant-based products: Driven by increased consumer awareness and confidence in vegan labels, plant-based alternatives are gaining traction. Sauce and condiment products are leading the way in the adoption of vegetarian and plant-based options.
- Nutritious and healthy options: Despite the perceived higher cost, consumers are prioritising healthier choices. The demand for reduced sugar content in food has grown significantly worldwide.
- Premium products: Even in uncertain economic times, consumers continue to value high-quality products. The demand for premium ingredients has remained strong.
- Sustainable sourcing: Consumers are increasingly concerned about the environmental impact of their food choices. Organic products and those sourced sustainably are gaining popularity.
- Retail solutions: New retail approaches are enhancing convenience for consumers seeking ready-to-eat meals. While online sales surged during the pandemic, in-store shopping remains important for product evaluation.
Thai entrepreneurs are encouraged to stay abreast of evolving consumer trends and preferences. By adapting their marketing and production strategies, leveraging various sales channels, and gathering customer feedback, businesses can better meet the needs of the global market and ensure long-term success.
