Industry Report: Dairy Products in Thailand

SPEEDA Industry Report

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The report focus on below 3 key segments of the industry which assist users with understanding where to focus on for further deep-dive research.

Report Overview - Dairy Products in Thailand

Salient Nature/Key Features of the Industry

• • Thailand has a lower per capita consumption of dairy products driven by a larger lactose intolerant and rapidly ageing population.

  • Packaged milk and yoghurt were the top two commercial milk segments.

  • School milk programme was initiated by the government to encourage milk consumption.

  • Due to the country’s prominence in the ASEAN market as an exporter, the country imports skimmed/whole milk powder to produce dairy products to cater to the export demand. The import of milk powder is mainly a result of the insufficient domestic raw milk supply.

  • Elimination of import quotas of New Zealand and Australia expected to impact the Thai dairy industry.

Value Chain/Business Model

• • Industry is segmented into school milk segment and commercial segment, with almost 60% of the raw milk being distributed to commercial segment.

  • Government controlled milk cooperatives play a large role in the distribution of raw milk to dairy milk processors.

Thai Dairy Products Industry Value Chain

Others:

• • Insufficient domestic raw milk production resulted in a rise in import of milk powder mainly to cater to the export demand.

  • Import of other dairy products was on an uptrend driven by a recovery in the food service sector post-pandemic.

  • Commercial milk segment is dominated by domestic and foreign players. 

  • Dominance of FrieslandCampina and CP Meiji was mainly as a result of a strong brand presence and efficient distribution networks. 

  • Plant based milk alternatives and RTD milk with localised flavours are growing popular in Thailand.

Report Index

Industry Overview

• • Thailand; Lower Per Capita Consumption of Dairy Products Driven by a Larger Lactose Intolerant and Rapidly Ageing Population
  • School Milk Programme; Initiative by Government to Encourage Milk Consumption
  • Government Controlled Milk Cooperatives Play a Large Role in the Distribution of Raw Milk to Dairy Processors
  • Elimination of Australian and New Zealand’s Import Tariffs and Quotas by Thailand Likely to Impact the Thai Dairy Industry

Market Trends

• • Insufficient Domestic Raw Milk Production Led to a Rise in the Import of Milk Powder to Cater to the Packaged Milk Demand
  • Rise in Imports of Other Dairy Products Driven by Food Service Sector’s Pandemic Recovery

Competitive Trends

• • Commercial Milk Segment Dominated by Domestic and Foreign Players
  • FrieslandCampina, CP-Meiji Dominance Driven by Strong Brand Presence and Distribution Networks
  • Plant-Based Milk Alternatives, RTD Milk with Localised Flavours Growing Popular
  • FrieslandCampina Thai Subsidiary of Dutch Company; Leads Packaged Milk Segment
  • CP-Meiji a Packaged Milk and Yoghurt Heavyweight; Jointly Founded by Thai, Japanese Companies
  • Dutch Mill Largest Manufacturer and Yoghurt Product Distributor
    
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