Are you planning to start some business in Thailand? We recommend you to start a Food Production Plant in Thailand. With a great leap in the Foreign Direct Investment indices, Thailand homes one of the agriculturally richest facilities in the world. Moreover, you will never face any significant crisis of resources or skilled manpower in the kingdom. This article intends to inform you about the ongoing trends in the food industry of Thailand. Additionally, it will also educate you with the process to set up a food production plant in Thailand. We can also guide you in the process of Company Registration in Thailand.
Current Thai Food Industry Status that you must know!
As Thailand is rapidly coming out of the COVID crisis situation, a major portion of the business indices are witnessing growth. Similar is the growth for the Manufacturing Production Index (MPI) of food products. As per Statista, compared to 2021, there is approximately 38% growth in the MPI in 2022. Isn’t this a good sign that the industry is in a growing stage?
Other indices that will surely instigate you to think about this business in Thailand are as follows:
- In 2022, the Thai food market will generate US$65.31 billion in revenue. The market is anticipated to grow by 5.83% yearly (CAGR 2022-2027).
- With a market volume of US$9.31 billion in 2022, the segment of bread and cereal products is the market’s largest segment.
- In 2022, per-person revenues of US$931.90 are produced based on population statistics.
- By 2022, 3.0% of the total revenue in the food market will come from online sales.
- By 2027, 25,807.4 mkg in volume is anticipated in the food market. In 2023, a volume growth of 5.5% is predicted for the food market.
- In 2022, it is anticipated that the average volume sold per person in the Thai food industry will be 306.70kg.
We think that the above data has been able to explain to you the readiness of the Thai Food Industry to accept new investment and ventures. Now let us have a quick look at the legal regulations you need to know before you start a food production plant in Thailand.
Regulation to know to Start a Food Production Plant in Thailand
According to the Food Act of 1979, no one can set up a food production facility in Thailand unless they have a license from the relevant authorities. There are two main steps in the licensing process:
(1) the preparation and submission of the application, and
(2) the preparation of the food production site.
Either the Thai Food and Drug Administration or the Thai Consumer Protection Board must receive the application. The application consists of the application form, the company operating the plant’s identification documents, and the master plan of the food production site, which must include information about the sewage system. In regards to the production site, it must conform to Thai governmental regulations in the following areas:
- Location of the site
- Quality of the factory building
- Layout of the production site
- Handling of the fuel used in the production process
- Arrangement of water pipes
- Disposal of waste water and waste material
- Water used in the production process
- Washrooms
- Factory engine and tools
Requirements to Setup a Food Production Plant in Thailand
Although the regulations contain a lot of specifics, the following is a summary of the first few requirements:
- The location of the food production site must not be near anything that could contaminate the food. Therefore, avoid areas like a stockyard, animals farm or husbandry, a factory that emits pollution, or an area with decomposing trash.
- The factory structure itself must exclusively support the production of food. It must be a facility with well-ventilation, well-illumination, and made of high-quality materials.
- Each stage of the production process needs to have its own space, so there should be separate areas for storing raw materials, preparing the materials, mixing the materials, and storing the finished product.
- A separate structure must house bathrooms and dorm rooms.
- The fuel you need in the manufacturing process needs must not generate fumes that can contaminate the food.
The Bottomline
Now you know about the Thai Food Market and also the process to start a Food Production Plant in Thailand. But this will never be enough for you to accomplish the deed. You will always need local Thai support in terms of legal and accounting aspects. Especially if you are a foreigner and seeking to invest in Thailand.
Get in touch with our team of company registration and corporate law experts by leaving a message or your enquiry. You may also email us at [email protected] mentioning your requirements in detail. We will be more than happy to guide and assist you in your venture to set up a food production plant in Thailand.
