USDA 2024 Food Processing Ingredients Report highlights Thailand’s growing role in global food industry

By Kraipob Pangsapa, SSGA Southeast Asia international representative

According to the 2024 Food Processing Ingredients Annual report for Bangkok, Thailand, the food and beverage industry plays a crucial role in the country’s economy, with significant contributions from soybeans and grains. Aiming to be one of the world’s top-10 processed food exporters by 2027, Thailand is also positioning itself as a key player in the “Future Food” market. In 2023, the country imported substantial quantities of cereals for health foods and oilseed meal for feed, highlighting the importance of these commodities. The U.S. was a notable supplier, providing $331 million worth of processed foods, including soybeans and grains. The robust food processing sector in Thailand, which exported $26.5 billion in processed food products, relies heavily on these imports. The food retail industry, which saw sales of $5.1 billion in 2022, is expected to grow by 3% in 2024, driven by urbanization and a growing demand for eco-friendly products.

To penetrate the Thai market, U.S. exporters should establish strong relationships with local importers and distributors, leveraging opportunities at trade shows like Food Pack Asia and Thaifex Anuga. The competitive landscape is dominated by China, Vietnam and India, with the U.S. ranking as the fourth-largest supplier of food ingredients. Thailand’s market trends indicate a growing preference for healthy, functional and plant-based products, with the food e-commerce sector projected to expand significantly. Despite challenges such as trade barriers and higher tariffs on U.S. products, the demand for high-quality soy-based alternatives and other innovative food products continues to rise, presenting lucrative opportunities for exporters.

View the report here.