Are you planning to do Food Business in Thailand or a Franchise Business in Thailand? We can suggest the best Food Franchise opportunities in Thailand! This article aims to provide you with detailed industry insights, food franchise opportunities, and lastly, procedural guidance on starting your venture in Thailand. Keep scrolling to discover the feasibility of setting up your food franchisee business in Thailand!
- Insights of the Food Industry in Thailand
- Why Start Food Business in Thailand?
- Benefits for Foreign Investors in the Food Franchise Business in Thailand
- Best Food Franchise Business Options in Thailand
Insights of the Food Industry in Thailand
- In 2023, the food market will generate US$70.70 billion in revenue. The market will expand by 5.23% yearly (CAGR 2023-2027).
- In 2023, the Thai Food Industry has a market volume of US$10.77 billion. Furthermore, bread and cereal products cover the largest market segment of the industry.
- In 2023, per-person revenue is US$1,007.00, based on population statistics.
- By 2023, 3.9% of the total revenue in the food business would come from online sales.
- By 2027, the volume of the food market will reach 25.81 billion kg with a 3.9% volume growth in 2024.
- The average volume sold in the food industry per person will be 323.10kg.
Why Start Food Business in Thailand?
Although the insights of the food industry shared above have clarified some of the reasons. Yet, you should know something more. The following points are sufficient to explain to you the valid reasons to start a food franchise business in Thailand:
- High Market Volume: The booming tourism sector of Thailand contributes a lot to the Food industry in Thailand. Tourists love to relish Thai food and sometimes they also search around for ethnic delicacies. Apart from that, being one of the leading Southeast Asian nations in agriculture, the food production options are wide open. This opens the road to retailing and franchising in various ways.
- Assured Return on Investment: An assured CAGR of 5.23% is there for any business in the food industry in Thailand. The food franchisee business is not an exception. Therefore, you will never have to worry about losing your investment.
- Increased Dependency on Digital Platforms: Ever since COVID, there is a significant boost in the digital economy of Thailand. Both Thai residents and foreign visitors are now opting for online food selling or aggregator applications to place their orders. All you need to do is to promote your food franchise offers online as soon as you incorporate your business in Thailand.
- Great Investment and Tax Benefits: The Board of Investment and Revenue Department of Thailand has some specific regulations that can make your franchise business in Thailand tax-free. You can also receive investment incentives. These regulations are particularly for foreign investors in Thailand who plan to invest in the food industry in Thailand, which includes food franchising as well.
A great market volume, assured RoI, and tax benefits – isn’t this enough to answer your question as to why you should start a food franchise business in Thailand?
Benefits for Investors in the Thai Food Franchise Business
The food industry in Thailand contributes to almost 23% of the kingdom’s GDP. Therefore, this domain is strong enough in terms of revenue generation and business assurance, be it a Thai or a foreign investor. However, there are several benefits specifically for foreign investors in the food franchise business in Thailand:
- Growing Economy: Thailand has a rapidly growing economy, which makes it an attractive destination for foreign investors. The country has a stable political environment, a skilled workforce, and a favorable business climate.
- High Demand for Food Franchises: The food franchise industry in Thailand is booming, with a high demand for international brands. The Thai population has a growing appetite for foreign cuisine, and many are willing to pay a premium for high-quality food.
- Low Labor Costs: Labor costs in Thailand are relatively low compared to other countries, which can make it easier for food franchise businesses to operate and generate profits.
- Support from the Thai Government: The Thai government is supportive of foreign investment and offers incentives for businesses to invest in the country. This includes tax incentives, streamlined registration procedures, and reduced regulations.
- Access to Southeast Asia: Thailand is strategically located in Southeast Asia and serves as a gateway to other countries in the region. This can provide foreign investors with access to a large and growing consumer market.
- Established Franchise Market: The food franchise industry in Thailand is well-established, with many successful franchises already operating in the country. This can make it easier for foreign investors to enter the market and benefit from the experience and expertise of local franchisees.
Best Food Franchise Business Options in Thailand
Thais enjoy dining out because the country is known for its unique food. As a result, there are more food franchise businesses in the nation, which is a trend that presents ideal prospects for them.
Most food franchises are concentrated in the nation’s larger cities, which attract a lot of tourists and residents. But, opening a restaurant franchise in a small town has advantages in terms of lower startup costs and cheaper labor. In addition, the competition is not as fierce there.
Whether starting your own food business or expanding an existing one appeals to you, review our list of the top 5 prospects in Thailand to find the ideal food franchise.
Apart from these 5 leading franchise opportunity providers, there are more than 500 companies that can help you with franchise opportunities. But the ones we have listed will offer you assured returns. However, to set up your franchise business, you have to complete various legal formalities. Some of them are:
- Register a Company in Thailand
- Check your eligibility for Board of Investment Privileges
- Setup a proper billing, accounting, and tax system
If you have your team for the same, it is fair enough, but if you want professional support on all of the above segments, contact Konrad Legal Company Limited! It has been more than a decade since we have been catering our expertise in registering businesses in Thailand for foreign and Thai investors. All you have to do is to email us at [email protected]. Our team will get back to you within a working day!
If you want a more economical franchise business concept in Thailand, you can surf through the list of top franchise providers in Thailand and get back to us.
