Note: This report includes forecasting data that is based on baseline historical data.
Executive summary
Thailand is a net exporter of agri-food and seafood. In 2021, the country's agri-food and seafood trade surplus was Can$24.7 billion. In 2021, Thailand had an agri-food and seafood trade surplus of Can$498 million with Canada.
Online packaged food and drink purchases are negligible to total retailing of packaged food in Thailand but is the fastest growing distribution channel, growing 13.0% annually since 2016
From 2017 to 2021, all packaged food categories experienced faster sales growth through Ecommerce than in store. On an annualized basis, sales of edible oils, sweet spreads, dairy, and snacks grew fastest through ecommerce, from 28.6% to 17.2% annually.
Thais turned more frequently to their mobile devices during the Covid-19 pandemic to maintain their connections with the outside world. As a result, mobile Ecommerce recorded some of the strongest retail value growth in retailing in 2021 and represented a significant proportion of all online sales, which is set to grow strongly over 2022-2026. The trend is supported by the high penetration of smartphones in the country and the roll out of 5G infrastructure.
Ecommerce marketplaces Lazada and Shopee are partnering with store based retailers in the development of more cross-channel platforms for food and drink Ecommerce.
Thailand is expected to be a fast growing ecommerce market in the future as Thailand's 5G rollout and transition to digital payments will drive Thais to increasingly embrace this new normal of shopping online for food and drink products as the use of mobile Ecommerce is expected to expand across the country. This is also expected to be supported by consumers working from home, which is set to outlast the pandemic.
Socio-economic profile
Economy
Thailand, the second largest economy in ASEAN after Indonesia, is an upper middle-income country with a gross domestic product (GDP) of US$546 billion, and 1.6% GDP growth in 2021. Thailand ranks fourth in Southeast Asian per capita GDP, afterSingapore, Brunei, and Malaysia. Thailand's has an export dependant economy with exports accounting for about two thirds of GDP.
With one of the most advanced food processing industry in Southeast Asia, the food and beverage industry is the country's third largest industry, contributing 21% to GDP. Thai processed food exports were valued at US$19.4 billion in 2020. There are many medium-to-large food processors that produce higher-value products for domestic and export markets. Major food exports include rice, canned tuna, sugar, meat, cassava products, and canned pineapple.
Demographics
Thailand has a population of 66 million. Bangkok (10.9 million), Chon Buri (1.4 million), Samut Prakan (1.2 million), and Chang Mai (1.2 million) are Thailand's largest cities. Roughly half of Thailand's population are urbanites living mainly in and around Bangkok. Bangkok is Thailand's largest consumer market and has traditionally been Thailand's trade, culture, and commercial centre.
Consumer income and expenditures
Food and beverages is the largest spending category in Thailand. Social and economic development and manufacturing capacities have made average gross income in Thailand (US$ 4,367) above the Asia Pacific regional average and has led Thailand to move from a low-income to an upper-middle income country in a decade. Gross income growth is expected to return to pre-pandemic levels in 2022. Consumers aged 35-39 are the country's highest earners per capita, making up most of the country's young, tech-savvy and career-orientated consumers. As a result, retail channels are shifting to Ecommerce and digital platforms.
Consumer expenditure concentrated in the southern territories, such as Pattaya-Chonburi and Phuket, together with Bangkok, account for roughly half of Thailand's total consumer market. The Phuket region is expected to have the fastest growth of consumer expenditure, with an expected growth in tourism, leading to rising demand for accommodation, dining options and leisure activities. Due to multiple government initiatives, including the provision of rural internet access, central Thailand is also set on economic growth, expanding the market potential for discretionary goods and services outside the capital and the South.
Thailand's food and beverage trade with the world
Thailand is a net exporter of agri-food and seafood. In 2021, the country's agri-food and seafood trade surplus was Can$24.7 billion, with imports valued at Can$24.3 billion and Can$49.0 billion in exports. Thailand's agri-food and seafood imports increased at a CAGR of 6.0% from 2017 to 2021. In 2021, Thailand had an agri-food and seafood trade surplus of Can$498 million with Canada (exports to Canada were valued at Can$683 million and imports from Canada at Can$185 million).
Thailand imported a total of $14.3 billion in food and beverage products in 2021. The top four imported products were fish and seafood, fruit and nuts, vegetables, and dairy products. Key supplying countries included India, China, Vietnam, Indonesia, and Norway.
In the past five years from 2017 to 2021, the average annual growth rate of imported food and beverages in Thailand is 5.4%. Canada is Thailand's 39th largest supplier of food and beverages.
| Country | 2021 (Can$) | Market share (%) |
|---|---|---|
| China | 1,619,813,095 | 11.3 |
| Brazil | 1,557,575,651 | 10.9 |
| European Union | 1,468,064,622 | 10.3 |
| United States | 1,129,509,159 | 7.9 |
| India | 833,023,632 | 5.8 |
| Vietnam | 692,373,626 | 4.8 |
| Indonesia | 684,731,494 | 4.8 |
| New Zealand | 635,119,040 | 4.4 |
| Malaysia | 621,182,874 | 4.3 |
| Singapore | 617,765,760 | 4.3 |
| ROW | 4,480,783,434 | 31.3 |
| Total | 14,311,719,376 | 100.0 |
| Source: Global Trade Tracker | ||
| Food category | 2021 (Can$) | Market share (%) |
|---|---|---|
| Fish and seafood | 4,265,987,065 | 17.5 |
| Edible fruit and nuts | 1,584,142,405 | 6.5 |
| Edible vegetables | 1,284,034,519 | 5.3 |
| Dairy products | 1,064,107,497 | 4.4 |
| Coffee, tea, maté and spices | 560,325,547 | 2.3 |
| Sugars and sugar confectionery | 477,774,135 | 2.0 |
| Beverages, spirits and vinegar | 386,485,016 | 1.6 |
| Tobacco and substitutes | 367,117,771 | 1.5 |
| prepared meat, fish, and seafood | 345,237,351 | 1.4 |
| Meat and edible offal | 253,750,792 | 1.0 |
| Source: Global Trade Tracker | ||
| Food category | Top 3 supplier countries | Share of total market supply (%) |
|---|---|---|
| Fish and seafood | India, Norway, China. | 23.5 |
| Edible fruit and nuts | China, Vietnam, Indonesia | 73.9 |
| Edible vegetables | China, Cambodia, Laos | 82.5 |
| Dairy products | New Zealand, Australia, U.S. | 63.5 |
| Coffee, tea, maté and spices | India, Vietnam, China | 75.8 |
| Sugars and sugar confectionery | India, China, Indonesia | 64.6 |
| Source: Global Trade Tracker | ||
Thailand's packaged food market overview
The Thai packaged food market grew 3.6% between 2017 and 2021. An increase in home cooking over the pandemic boosted demand for products such as rice, edible oils and local cooking sauces and dressings, and convenient products requiring little or no preparation, such as cereals, and biscuits, with ready meal also witnessing a notable increase in demand.
The pandemic also focused consumers' reduced spending power on essential items, undermining demand in product areas deemed to be non-essential, such as snacks, dairy products and some Western ingredients. The Westernisation of diets is expected to be temporarily slowed by both economic pressures and consumers turning to traditional foods. However, the return to increasingly hectic lifestyles will increase consumption of western food products, as consumers have less time for cooking and eating full meals and adopt less formal eating patterns.
Health and wellness remains a key trend, with consumer health-consciousness and awareness of the role of nutrition in maintaining physical and mental health having been bolstered by the pandemic. Consequently, health and wellness will be a major focus of manufacturer innovation across packaged food categories and, as economic conditions improve, will be a primary attractor of an upmarket shift in demand.
| Category | 2017 | 2021 | 2017-21 *CAGR % | 2022 | 2026 | 2022-26 *CAGR % |
|---|---|---|---|---|---|---|
| Dairy | 3,323.6 | 3,493.0 | 1.3 | 3,703.3 | 4,737.2 | 6.3 |
| Snacks | 2,973.6 | 3,189.9 | 1.8 | 3,400.6 | 4,425.2 | 6.8 |
| Rice, Pasta and Noodles | 1,850.4 | 2,384.5 | 6.5 | 2,468.5 | 2,970.3 | 4.7 |
| Sauces, Dressings and Condiments | 1,369.1 | 1,598.4 | 3.9 | 1,674.1 | 2,125.3 | 6.1 |
| Baked Goods | 971.6 | 1,260.4 | 6.7 | 1,339.1 | 1,774.1 | 7.3 |
| Edible Oils | 672.0 | 1,000.7 | 10.5 | 1,039.1 | 1,278.3 | 5.3 |
| Processed Meat, Seafood and alternatives | 611.8 | 789.3 | 6.6 | 845.3 | 1,231.8 | 9.9 |
| Ready Meals | 522.0 | 682.3 | 6.9 | 749.4 | 1,159.2 | 11.5 |
| Baby Food | 1,054.5 | 999.4 | −1.3 | 999.7 | 1,039.4 | 1.0 |
| Sweet Spreads | 80.5 | 88.5 | 2.4 | 92.8 | 114.6 | 5.4 |
| Breakfast Cereals | 76.9 | 90.7 | 4.2 | 94.3 | 114.3 | 4.9 |
| Processed Fruit and Vegetables | 68.2 | 75.5 | 2.6 | 77.5 | 88.8 | 3.5 |
| Soup | 12.2 | 12.5 | 0.6 | 13.1 | 15.6 | 4.5 |
| Total | 13,586.4 | 15,665.1 | 3.6 | 16,496.8 | 21,074.1 | 6.3 |
|
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate |
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Ecommerce market overview
Store based grocery retailers, represent over 99% of packaged food sales. Out of all retailers, food and drink Ecommerce sales grew fastest by 13.0% over 2017-2021 and are expected to grow 15.3% over 2022-2026.
Ecommerce is in a relatively early state in Thailand compared to many other developed countries. Increasing numbers of consumers have begun to use the internet to purchase and pay for goods and services, driven primarily by improvements in infrastructure and internet security. In a country where cash payments are heavily dominant in all retail channels, the uptake of Ecommerce has also been stimulated by the danger of COVID-19 transmission through cash transactions, as well as by rewards and promotions encouraging consumers to use digital wallets to pay for products and services.
Despite store based grocery retailers being open during lockdown periods, many consumers used Ecommerce out of concern of exposure to COVID-19. Some consumers have also been using Ecommerce as a means of supporting local farmers since the onset of the pandemic, which has enabled them to buy food at lower prices. The closure of consumer foodservice outlets reinforced the concept of having food and drink delivered. With retailers and consumer foodservice operators developing their online operations, the pandemic has helped to make food and drink Ecommerce more diverse and efficient, as well as encourage consumers to embrace purchasing food and drink online.
| Outlet type | 2017 | 2021 | 2017-21 *CAGR % | 2022 | 2026 | 2022-26 *CAGR % |
|---|---|---|---|---|---|---|
| Store retailer | 97,477.8 | 79,156.7 | −5.6 | 80,019.9 | 109,537.0 | 8.2 |
| E-Commerce | 273.7 | 498.1 | 13.0 | 570.4 | 1,007.4 | 15.3 |
|
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate |
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Ecommerce by Food Sector
| Category | 2017 | 2018 | 2019 | 2020 | 2021 | 2017-21 *CAGR % |
|---|---|---|---|---|---|---|
| Baby Food | 61 | 60 | 61.7 | 81.9 | 81.7 | 7.6 |
| Dairy | 25.6 | 36.3 | 41.8 | 57.8 | 67.1 | 27.2 |
| Rice, Pasta and Noodles | 27.2 | 28.4 | 31.8 | 38.7 | 46.4 | 14.3 |
| Edible Oils | 13.8 | 15.2 | 17.9 | 31.9 | 37.8 | 28.6 |
| Sauces, Dressings and Condiments | 21.9 | 23.2 | 24.3 | 29.4 | 30.8 | 8.9 |
| Ready Meals | 9.9 | 10.9 | 12.1 | 13.7 | 14.8 | 10.6 |
| Processed Meat and Seafood | 6.7 | 7.7 | 8.7 | 10 | 11.7 | 15.0 |
| Baked Goods | 4.8 | 5.3 | 6.2 | 7.4 | 8.5 | 15.4 |
| Sweet Spreads | 0.6 | 0.6 | 0.7 | 1.5 | 1.6 | 27.8 |
| Processed Fruit and Vegetables | 1.1 | 1.1 | 1.2 | 1.4 | 1.6 | 9.8 |
| Breakfast Cereals | 1 | 1.1 | 1.2 | 1.3 | 1.4 | 8.8 |
| Soup | ||||||
| Total | 173.6 | 189.8 | 207.6 | 275 | 303.4 | 15.0 |
|
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate |
||||||
| Category | Outlet type | 2017 | 2018 | 2019 | 2020 | 2021 | 2017-21 *CAGR % |
|---|---|---|---|---|---|---|---|
| Edible Oils | Store-retailer | 658.2 | 606.7 | 701.5 | 843.0 | 962.9 | 10.0 |
| E-Commerce | 13.8 | 15.2 | 17.9 | 31.9 | 37.8 | 28.6 | |
| Ready Meals | Store-retailer | 512.1 | 559.2 | 618.8 | 619.1 | 667.5 | 6.8 |
| E-Commerce | 9.9 | 10.9 | 12.1 | 13.7 | 14.8 | 10.6 | |
| Sauces, Dressings and Condiments | Store-retailer | 1,347.2 | 1,398.8 | 1,461.0 | 1,521.9 | 1,567.6 | 3.9 |
| E-Commerce | 21.9 | 23.2 | 24.3 | 29.4 | 30.8 | 8.9 | |
| Soup | Store-retailer | 12.2 | 12.4 | 12.7 | 12.2 | 12.5 | 0.6 |
| E-Commerce | |||||||
| Sweet Spreads | Store-retailer | 80.0 | 81.8 | 84.3 | 83.8 | 86.9 | 2.1 |
| E-Commerce | 0.6 | 0.6 | 0.7 | 1.5 | 1.6 | 27.8 | |
| Baby Food | Store-retailer | 993.5 | 947.0 | 942.0 | 939.1 | 917.8 | −2.0 |
| E-Commerce | 61.0 | 60.0 | 61.7 | 81.9 | 81.7 | 7.6 | |
| Dairy | Store-retailer | 3,054.3 | 3,185.2 | 3,277.0 | 3,017.1 | 3,176.6 | 1.0 |
| E-Commerce | 25.6 | 36.3 | 41.8 | 57.8 | 67.1 | 27.2 | |
| Snacks | Store-retailer | 2,933.0 | 3,070.6 | 3,188.6 | 2,956.4 | 3,113.2 | 1.5 |
| E-Commerce | 39.5 | 51.1 | 58.9 | 65.2 | 74.6 | 17.2 | |
| Baked Goods | Store-retailer | 964.8 | 1,028.6 | 1,099.2 | 1,178.7 | 1,249.9 | 6.7 |
| E-Commerce | 4.8 | 5.3 | 6.2 | 7.4 | 8.5 | 15.4 | |
| Breakfast Cereals | Store-retailer | 75.9 | 78.9 | 82.6 | 86.0 | 89.2 | 4.1 |
| E-Commerce | 1.0 | 1.1 | 1.2 | 1.3 | 1.4 | 8.8 | |
| Processed Fruit and Vegetables | Store-retailer | 67.0 | 68.7 | 71.0 | 72.5 | 74.0 | 2.5 |
| E-Commerce | 1.1 | 1.1 | 1.2 | 1.4 | 1.6 | 9.8 | |
| Processed Meat Seafood and Alternatives to Meat | Store-retailer | 605.1 | 627.7 | 663.6 | 722.1 | 777.6 | 6.5 |
| E-Commerce | 6.7 | 7.7 | 8.7 | 10.0 | 11.7 | 15.0 | |
| Rice, Pasta and Noodles | Store-retailer | 1,823.3 | 1,888.5 | 1,962.6 | 2,209.5 | 2,338.1 | 6.4 |
| E-Commerce | 27.2 | 28.4 | 31.8 | 38.7 | 46.4 | 14.3 | |
|
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate |
|||||||
Key players
Traditional retailers are by far the most common grocery retailer in Thailand, based on sales, followed by convenience stores and supermarkets. With demand for online food and drink shopping rising significantly during the pandemic, many grocery retailers and packaged food manufacturers partnered with leading third party Ecommerce marketplaces Lazada and Shopee to sell products online.
Lazada, owned by Alibaba, is widely considered the largest Ecommerce platform in Southeast Asia with 343 million monthly visitors. Before the pandemic, Lazada was already strengthening its food and drink offer and opened LazMart, selling supermarket products, including processed and fresh food. The new service started with processed food and targeted mothers and working women, who regularly purchase groceries but who are leading increasingly busy lives. Around 80% LazMart's products are Thai brands with the platform offering a nationwide home delivery service.
Lazada has its own digital wallet for making payment on the platform, which is convenient for consumers who do not own credit cards and can also be used for mobile top-ups and bill payment. The company has also added third party True Money and LINE Pay digital wallets to its platform. Features like Lazlive, which allows sellers to use live streaming to sell their products on the platform, and LazTalent, which buyers can live stream reviews, increases its appeal with tech-savvy consumers.
Shopee, owned by Sea Ltd, localises its site layout, marketing campaigns and product ranges for the Thai market to better appeal to and suit the needs of Thai consumers. Shopee mobile application was designed in response to consumers' mobile-first approach to Ecommerce and Southeast Asia's high mobile penetration rate to be intuitive and simple to use for buyers and sellers, delivering a smooth experience.
Shopee drives consumer retention and loyalty through its own virtual currency called "Shopee coins". Customers earn coins from making purchases, daily coin rewards, Shopee games, and making product reviews and user referrals. Shopee also facilitates seller-buyer communication via its online chat function, encouraging loyalty to sellers/buyers and Shopee. These initiatives are meant to encourage further consumer spending on Shopee, creating a self-propagating Ecommerce ecosystem and driving regional growth of the Shopee user base.
To address challenges of shipping and last mile delivery and to simplify the process for its sellers, Shopee integrates local logistics providers (eg Thai Post) into its platforms. Sellers prepare their parcels for drop off/collection by the logistics provider, which handles the remaining steps for local order fulfilment. Shopee also handles shipment processing for cross-border Ecommerce and offers integrated tracking capabilities for both sellers and buyers through its platforms, providing visibility of a parcel's whereabouts during shipment. This approach contrasts with its competitor Lazada, which has developed its own logistics arm (Lazada E-Logistics) with dedicated warehousing and local delivery capabilities to handle the fulfilment process in-house.
| Category | Retailer | 2017 | 2018 | 2019 | 2020 | 2021 | 2017-21 *CAGR % |
|---|---|---|---|---|---|---|---|
| Traditional Grocery Retailers | Others | 31,799.3 | 31,873.1 | 32,324.4 | 30,060.8 | 24,048.0 | −6.7 |
| Convenience Stores | 7-Eleven (Seven & I Holdings Co Ltd) | 8,578.0 | 8,887.1 | 9,375.9 | 8,438.3 | 8,022.0 | −1.7 |
| Supermarkets | Others | 3,274.8 | 3,774.7 | 4,274.4 | 3,925.6 | 3,856.7 | 4.2 |
| Hypermarkets | Lotus's | 2,402.4 | |||||
| Hypermarkets | Big C | 2,319.0 | 2,349.5 | 2,259.3 | 1,852.6 | 1,482.1 | −10.6 |
| Convenience Stores | Lotus's (Charoen Pokphand Group) | 1,200.7 | |||||
| Forecourt Retailers | 7-Eleven (Seven & I Holdings Co Ltd) | 1,060.2 | 1,248.0 | 1,383.3 | 1,106.6 | 885.3 | −4.4 |
| Supermarkets | Tops Market (Central Retail Corp) | 800.8 | 871.3 | 888.8 | 835.4 | 710.1 | −3.0 |
| Convenience Stores | Others | 369.5 | 426.4 | 488.4 | 774.1 | 632.6 | 14.4 |
| Supermarkets | Lotus's (Charoen Pokphand Group) | 540.0 | |||||
| Source: Euromonitor International 2022 | |||||||
| Companies | 2017 | 2018 | 2019 | 2020 | 2021 | 2017-21 *CAGR % |
|---|---|---|---|---|---|---|
| 3rd Party Merchants (Alibaba) | 334.5 | 401.3 | 461.5 | 581.3 | 668.5 | 18.9 |
| 3rd Party Merchants (Sea Ltd) | 12.5 | 147.2 | 251.7 | 503.3 | 578.8 | 160.9 |
| Lazada (Alibaba) | 120.9 | 229.7 | 252.7 | 475.6 | 523.2 | 44.2 |
| Office Mate (Central Retail Corp) | 161.1 | |||||
| 3rd Party Merchants (Amazon) | 86.1 | 90.4 | 97.6 | 112.3 | 157.2 | 16.2 |
| Apple.com (Apple Inc) | 67.6 | 66.9 | 69 | 89.7 | 98.6 | 9.9 |
| Amazon | 55.4 | 58.1 | 64 | 83.1 | 91.4 | 13.3 |
| Central Online (Central Retail Corp) | 31.5 | 44.1 | 53.1 | 58.4 | 81.8 | 26.9 |
| 3rd Party Merchants (Central Retail Corp) | 1.3 | 14.2 | 40 | 47.8 | 67 | 167.9 |
| 3rd Party Merchants (eBay Inc) | 36.5 | 37.2 | 41 | 47.1 | 66 | 16.0 |
|
Source: Euromonitor International 2022 *CAGR: Compound annual growth rate |
||||||
Device distribution
The number of home internet users in Thailand jumped 20% between 2017 and 2021 and is forecast to expand from 12% to 84.6% by 2026. Internet demand has expanded significantly during the pandemic as many consumers switched to working from home. As such, there was a large increase in the number of fixed internet subscribers in 2020 with consumers requiring robust internet access to work and entertain themselves online.
The number of consumers using a mobile device to access the internet and the percentage of the population in possession of a smartphone have both increased thanks to the strong mobile internet coverage in the country and the gradual democratisation of internet access and smartphone ownership in Thailand. Broadband and mobile internet connections have become more affordable and prices for PCs and smartphones have also fallen.
The growing use of mobile internet in Thailand suggests that consumers feel comfortable using it on a daily basis for Ecommerce. It has become increasingly easy for consumers in Thailand to top up their data allowance through mobile banking, using their digital wallets, or at convenience stores and vending machines.
Thailand's digital telecommunications infrastructure remains underdeveloped in comparison with many other Asian countries. Further growth in internet usage will be driven by 5G technologies providing fixed access in remote areas. The Thai government plans to develop 5G in selected Thai cities, such as the major cities Bangkok, Chiang Mai, Phuket, Songkhla, Korat and Kon Kaen. The deployment plan is expected to take effect between 2023-2027.
| Category (unit) | 2017 | 2021 | CAGR* (%) 2017-2021 | 2022 | 2026 | CAGR* (%) 2022-2026 |
|---|---|---|---|---|---|---|
| Internet users ('000) | 34,628.0 | 48,332.6 | 8.7 | 50,305.5 | 56,756.6 | 3.1 |
| Population using the internet from home (%) | 52.9 | 72.8 | 8.3 | 75.5 | 84.6 | 2.9 |
|
Source: Euromonitor International 2022 *CAGR: Compound Annual Growth Rate |
||||||
| Leading social media site | 2016 | 2020 | CAGR* (%) 2016-2020 |
|---|---|---|---|
| 35,800.0 | 47,221.0 | 7.2 | |
| Google+ | 6,259.0 | ||
| YouTube | 28,683.0 | 48,595.3 | 14.1 |
| LINE | 38,380.0 | 45,332.3 | 4.2 |
|
Source: Euromonitor International 2022 *CAGR: Compound Annual Growth Rate |
|||
| Leading social messaging apps | 2016 | 2020 | CAGR* (%) 2016-2020 |
|---|---|---|---|
| LINE | 38,380.0 | 45,332.3 | 4.2 |
| Facebook Messenger | 23,834.0 | 42,511.2 | 15.6 |
| Skype | 1,953.8 | 9,321.1 | 47.8 |
| 2,792.8 | 3,126.8 | 2.9 | |
|
Source: Euromonitor International 2022 *CAGR: Compound Annual Growth Rate |
|||
| Device possession | 2017 | 2018 | 2019 | 2020 | 2021 | 2026 |
|---|---|---|---|---|---|---|
| Mobile telephone | 96.1 | 95.9 | 96.5 | 97.0 | 97.5 | 99.0 |
| Personal computer | 24.8 | 20.9 | 22.3 | 23.7 | 25.1 | 32.6 |
| Laptop | 12.4 | 13.5 | 15.0 | 16.6 | 18.4 | 28.8 |
| Smartphone | 56.1 | 62.0 | 67.5 | 72.5 | 76.9 | 90.5 |
| Tablet | 6.6 | 8.0 | 9.8 | 11.9 | 14.1 | 26.0 |
| Source: Euromonitor, 2022 | ||||||
| Device | 2017 | 2021 | CAGR* % 2017-2021 | 2022 | 2026 | CAGR* % 2022-2025 |
|---|---|---|---|---|---|---|
| Mobile E-Commerce | 17,496.4 | 43,434.9 | 25.5 | 50,585.5 | 76,351.7 | 14.7 |
| PC E-Commerce | 17,434.5 | 27,865.4 | 12.4 | 30,725.8 | 42,453.3 | 11.4 |
| Tablet E-Commerce | 2,968.7 | 4,505.3 | 11.0 | 5,039.0 | 5,788.2 | 4.7 |
|
Source: Euromonitor, 2022 *CAGR: Compound annual growth rate |
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Conclusion
Food and drink Ecommerce retail sales are expected to continue double-digit growth over 2022-26 to almost double in size. This is supported by Thai consumers' greater comfort with shopping for food and drink online and its convenience, competitive pricing and wide product offer, while internet infrastructure continues to mature. The rollout of 5G mobile networks will make food and drink Ecommerce faster and more accessible than ever.
Demand for food and drink Ecommerce is also expected to be supported by consumers working from home, which is set to outlast the pandemic. Hybrid working (where employees regularly work one or more days a week at home) will become increasingly normal for Thai office workers. Those who work from home are likely to do their grocery shopping online.
Lazada and Shopee are greatly contributing to the shift to Ecommerce in rural and urban Thailand. Development of more cross-channel platforms for food and drink Ecommerce is expected by super and hypermarkets in order to increase revenues. Manufacturers and retailers of dried grocery products, which are particularly compatible with online sales because of their long shelf lives, are also expected to join online marketplaces and social media platforms in growing numbers in order to boost sales.
Amid fierce competition among courier companies, the delivery of online food and drink is becoming faster and increasingly possible to order chilled and frozen packaged food - at least in the country's largest cities. Some hypermarket chains now provide drive-thru areas for customers who ordered groceries online to pick them up at stores. On the other hand, demand growth for food and drink Ecommerce will be hit by the easing of COVID-19 restrictions and the normalisation of daily life as Thais are likely to eat out more frequently.
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Resources
- Euromonitor International:
- Country report, February 2022. Hypermarkets in Thailand.
- Country report, October 2021. Consumer Lifestyles in Thailand.
- Country report, 2021. Digital Consumer in Thailand.
- Country report, February 2022. Food and Drink E-Commerce in Thailand.
- Country report, December 2020. Packaged Food in Thailand.
- Country report, February 2022. Organic Packaged Food in Thailand.
- Country report, February 2022. Supermarkets in Thailand.
- Country report, February 2022. Retailing in Thailand.
- Country report, February 2022. Traditional Grocery Retailers in Thailand.
- Country report, April 2021. PEST Analysis Thailand.
- Country report, October 2021. Income and Expenditure: Thailand.
- Country report, March 2022. Economy, Finance and Trade: Thailand.
- Company Profile, January 2021. Shopee Singapore Private Limited.
- NIKKEI Asia: Thai economy grew 1.6% in 2021 despite COVID-19 headwind
- Bangkok Post: Population
- Global Trade Tracker, 2021.
Sector Trend Analysis – Ecommerce trends in Thailand
Global Analysis Report
Prepared by: Kris Clipsham, Market Analyst
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