The term “Thailand dairy products” refers to a broad variety of foods and drinks made and eaten in Thailand that contain milk. These consist of yogurt, cheese, butter, condensed milk, fresh milk, and flavored milk beverages. Urbanization, growing health consciousness, and government backing for domestic dairy production have all contributed to Thailand’s dairy industry’s steady growth. Small and medium-sized dairy farms are the main drivers of domestic production, however imports can help meet demand for some goods, such as specialty cheeses. Dairy products are easily accessible in supermarkets and convenience stores throughout Thailand and are popular with both adults and children. They are also essential to the country’s food and beverage industry.

According to SPER market research, Thailand Dairy Products Market Size- By Product Type, By Distribution Channel- Regional Outlook, Competitive Strategies and Segment Forecast to 2033’ state that the Thailand Dairy Products Market is estimated to reach USD XX billion by 2033 with a CAGR of 7.2%.

Drivers:

The market for dairy products in Thailand is expanding steadily as a result of consumers’ growing health consciousness and need for diets high in protein. Convenient, ready-to-eat dairy products like flavored milk and yogurt are becoming more and more popular due to urbanization and the expansion of the middle class. The market is expanding as a result of government programs to boost regional dairy farming and increase the productivity of milk production. Additionally, the demand for a variety of dairy products, such as cheese and butter, is increasing due to the growing impact of Western eating patterns and increased tourism. New product varieties and packaging innovations are also assisting producers in drawing in new clientele.

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Restraints:

The market for dairy products in Thailand confronts a number of obstacles despite potential for expansion. The restricted capacity for domestic milk production is one significant barrier, which impacts product supply and heightens reliance on imports. Local producers’ profit margins may be strained by high operating expenses and volatile raw milk prices. Additionally, the market for conventional dairy products is limited because lactose intolerance is rather common among Asian populations, particularly Thailand. Plant-based substitutes, which are becoming more and more well-liked by vegan and health-conscious consumers, are another threat to the business. Dairy product distribution and shelf life may also be impacted by rural areas’ inadequate cold chain infrastructure. Asia dominates the Thailand dairy products market due to strong domestic demand and regional trade within Southeast Asia. Some significant market players are Betagro PCL, CP Group, Dutch Mill Group Public Company Limited (DMG), FrieslandCampina PLC, Thailand President Foods PCL. and others.

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Thailand Dairy Products Market Share

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Dairy products encompass a wide range of foods derived from milk, which is produced by mammals such as cows, goats, and sheep. These products are integral to human diets globally and provide essential nutrients like calcium, protein, vitamins, and minerals. Common dairy products include milk, which is consumed fresh or processed into various forms such as pasteurized, homogenized, or fortified milk. Cheese is another prominent dairy product, made by coagulating milk proteins and separating the curds and whey. It comes in diverse varieties, ranging from soft and creamy to hard and aged, each with distinct flavors and textures. Yogurt is fermented milk produced by adding bacterial cultures to milk, creating a thickened consistency and tangy flavor, often enriched with probiotics beneficial for gut health. Butter, derived from churning cream, is a solid fat used in cooking and baking, valued for its rich flavor.

According to SPER Market Research, ‘Thailand Dairy Products Market Size- By Product Type, By Distribution Channel- Regional Outlook, Competitive Strategies and Segment Forecast to 2033’ states that the Thailand Dairy Products Market is estimated to reach USD XX billion by 2033 with a CAGR of 7.2%.

Increasing urbanization and rising disposable incomes are expanding the consumer base for dairy products, particularly in urban areas where convenience and health-conscious choices drive demand. Changing dietary habits, influenced by global food trends and a shift towards Western-style diets, further propel the consumption of milk, yogurt, cheese, and other dairy products. Government initiatives supporting dairy farming, such as subsidies, technical assistance, and infrastructure development, encourage local production and enhance supply chain efficiency. Thailand’s strategic location in Southeast Asia facilitates trade and export opportunities for dairy products, fostering international competitiveness and market expansion. Technological advancements in dairy farming and processing contribute to improved productivity and product quality, meeting the growing demand for safe and nutritious dairy products.

The dairy products market in Thailand faces several challenges that impact its growth and development. These include the country’s tropical climate, which poses challenges for dairy farming as it affects feed quality, animal health, and milk production. Additionally, Thailand’s dependency on imported dairy ingredients, such as milk powder and cheese, exposes the industry to fluctuations in global prices and exchange rates, impacting production costs and profitability for local dairy processors. Moreover, despite government initiatives to support dairy farming, including subsidies and technical assistance, there are constraints in terms of land availability and infrastructure development in rural areas, which limits the expansion and modernization of dairy farms.

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The Coronavirus pandemic affects Thailand’s dairy merchandise business. Before the viral pestilence, the economy of the country was at that point contracting, and this has exacerbated things in Thailand. Besides, transportation constraints have lost supply chains and decreased the interest for dairy items all through the country. Supply chain disruptions, both domestically and globally, also affected the dairy industry in Thailand. These disruptions included logistics challenges, labor shortages, and fluctuating prices of raw materials and packaging materials, impacting production and distribution capabilities.

The largest market share for Thailand Dairy Products Market is held by Bangkok due to its dense population and greater access to supermarkets, hypermarkets, convenience stores, and foodservice establishments that offer a wide range of dairy options. Betagro PCL, CP Group, Dutch Mill Group Public Company Limited (DMG), FrieslandCampina PLC, Thailand President Foods PCL are few of the major names in the market.

For More Information, refer to below link:-

Thailand Dairy Products Market Demand

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Sara Lopes, Business Consultant – U.S.A.

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+1-347-460-2899