Thailand Board of Investment (BOI) has recently reported that from January 2019 to June 2020, international and local investors have filed 116 investment promotion applications for food and drinks manufacturing projects in Thailand, representing a total value of Bt 18.8 billion (US$594 million).
In the first half of 2020 alone, roughly Bt 5.84 billion (US$185 million) worth of investment applications were filed for the sector, despite the impact of COVID-19 on business.
This shows that domestic and foreign players still have strong confidence in Thailand economy and its food sector.
These new investments include the manufacturing of products like seasonings, plant-based proteins, semi and RTE food, frozen meats and fruits, processed salmon, cricket powder, healthy drinks, UHT yogurt etc.
Due to the country’s effective management of the COVID-19 crisis, the country’s food factories remain open and food supply chains intact. During this crisis, international demand for many Thai food products actually increased.
Foreign MNCs with major investments in Thailand include Ajinomoto, Nestle, Cargill, Kellogg’s and McCormick amongst others.
Thailand’s so-called 10,000 food processing companies stand out as reliable suppliers of safe and plentiful food. Thailand is the world’s number 1 exporter of canned tuna, canned pineapple, sweet corn, coconut milk, cassava, and durian. Thai exports rank 2nd in the world in rice and sugar and among the top 5 in chicken and shrimp. Although not a predominantly Muslim nation, it is also the 9th largest exporter of Halal products. It is also the 11th biggest supplier of ready-to-eat meals.
Food industry revenues accounted for more than 20% of Thailand’s GDP. In 2019, value of food exports reached US$33 billion.
Growing investments in Thailand’s Food Sector despite COVID-19
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