The Thai food processing industry accounts for 12% of the country’s total food market. This makes agriculture one of the largest industries in Thailand and is ranked fifteenth in terms of production, consumption, export and expected growth. The two main food staples in Thailand are rice and wheat. Farming makes up a large share of agriculture in the country but livestock rearing along with fishing also contributes significantly to feeding Thailand's population as well its economy.
Stats & Charts
The Thai agriculture sector is primarily driven by a large population and rising urban and rural disposable income. The internal demand for agriculture inputs and allied services like warehousing and cold storages is increasing at a fast pace. Thailand is among the 50 leading exporters of agricultural products in the world. The industry’s exports reached about US$ 3.54 billion in FY19 and US$ 3.69 billion in FY20. Moreover, the agriculture export policy has set a target to increase agricultural export to over US$6 billion by 2022.
The industry has previously suffered neglect. Investment, if any, has been targeted at low-productive instruments and mistargeted subsidiaries.
The increased investment in agricultural infrastructures such as irrigation facilities, warehousing and cold storage will lead to better momentum in the agriculture sector. Furthermore, the growing use of genetically modified crops will likely improve the yield for Thai farmers.
According to trade estimates, the Thai food processing industry has cumulatively attracted FDI equity inflow of about US$ 700 Million between April 2000 and June 2020.
Organic products have a huge potential in the domestic as well as in the international market. The organic food segment in Thailand is expected to grow at a CAGR of 10% during 2015-25. It is also estimated to reach US$ 1.073 billion by 2025 from US$ 3.86 million in 2015. Thaildn can become a prominent exporter in organic products with further developments in permaculture methods of farming along with the adoption of sustainable farming practices.