In the realm of global business, players frequently overlook Thailand’s burgeoning food and beverage sector, opting instead for established English-speaking markets such as Australia and Singapore. However, it is an unmissable market opportunity for investors and entrepreneurs to tap into the vibrant culinary landscape and start a food and beverage company in Thailand.
Nestled in the vibrant heart of Southeast Asia, Thailand stands as the second-largest economic powerhouse in the ASEAN region. With the government’s generous support and affordable and abundant agricultural resources, establishing a manufacturing base or regional headquarters in Thailand is very simple. Thai consumers exhibit a strong propensity to spend on food, often exceeding their income, while the influx of tourists contributes significantly to Thailand’s status as one of the most visited countries worldwide.
Surprisingly, many companies that are actively exploring the Thai market overlook a tremendous opportunity the country presents. This unique opportunity allows businesses to gain unmatched access to the Thai market, significantly accelerating the growth of their F&B brand and product to rival Coca-Cola’s level of recognition in a fraction of the time compared to traditional market penetration strategies.
Food & Beverage Industry in Thailand: A Pool of Opportunities
Thailand, often overlooked, offers an outstanding market for international food and beverage companies. Its rapidly expanding middle class has disposable income and an unquenchable thirst for diverse culinary experiences. Tourism, a significant contributor to Thailand’s GDP, attracts a diverse audience with varied food preferences. From budget-conscious consumers to luxury seekers, there’s a customer base for every type of product in Thailand’s F&B market.
The rapidly evolving Thai Food and Beverage industry presents a landscape of emerging purchase points. Convenience stores, boasting an extensive network of over 20,000 outlets across the country, serve as strategic locations to reach a diverse range of consumers. Additionally, Thailand’s world-class shopping malls provide a steady flow of foot traffic, making them ideal locations for QSRs to establish a strong presence.
Info Tip!
The Thai market has not been monopolized in sectors beyond the spirits industry. Unlike saturated and competitive markets such as Japan, gaining access to retail channels and reaching consumers in Thailand is comparatively less challenging.
The ease of doing business in Thailand complements the favorable business environment. This makes it an attractive destination for F&B companies seeking a foothold in the APAC region. English proficiency in Thailand is relatively high, and comprehensive business support mechanisms. Such businesses can easily attract government subsidies and dedicated support teams to enhance their appeal. Furthermore, these factors create a conducive environment for establishing a robust presence in the region.
Entering the Food and Beverage Industry in Thailand: Check your Potential!
To enter the Thai market, you can utilize one of three main strategies, each offering distinct advantages and considerations.
Start with Complete Control
To operate in Thailand, one may choose to establish their own manufacturing facility, distribution network, marketing, and sales force. Although this approach demands considerable financial investment, it grants complete control over all aspects of the business. Additionally, it allows tailored decision-making and efficient operations.
Traditional Partnership Approach
Initiating market penetration in Thailand requires collaboration with a local importer or distributor. This established approach requires time to identify suitable partners and educate the market about your product, often spanning several years.
Strategic Business Partnership
Entrepreneurs with distinctive brands or cutting-edge technology will benefit from this chance. By collaborating with a prominent Thai food and beverage manufacturer, you can access their local resources to quickly launch your product. Working with a partner with extensive local networks allows your product to reach customers more quickly, but it also means sharing a larger portion of your revenue.
Process to Start a Food & Beverage Company in Thailand
A food and beverage company in Thailand can specialize in various sectors like restaurants, food trucks, food manufacturers, or distributors. There is a wide scope of opportunities in Thailand to monetize!
However, to start any type of food and beverage business in Thailand, the basic process is the same. It is as follows:
Henceforth, depending on the type of food and beverage company you want to start in Thailand, you will need some additional licenses and permits. Some of such permissions are as follows:
- To Start a Food and Beverage Manufacturing Company you must obtain a Factory License in Thailand
- Starting a Brewery mandates you to Apply for a Brewery License in Thailand
Additionally, your business may be eligible for Industrial Estate Authority of Thailand (IEAT) or Board of Investment (BOI) promotions as well.
- If you are planning to set up a food and beverage manufacturing company in Thailand in the FTZs or SEZs of Thailand, you can apply for IEAT promotions.
- If your food business relates to food processing at par with the target BOI activities, you can also apply for BOI Thailand promotions.
Groundwork to Start a Food & Beverage Company in Thailand
To effectively form a strategic partnership in Thailand, meticulous preparation and relationship-building are essential. We suggest these steps as a fundamental guide:
Do Thorough Industry Research in Thailand
To succeed in Thailand’s F&B industry, it’s crucial to grasp the local culture, and business environment, and foster face-to-face connections. The Thai government actively supports companies in this sector. The Thailand Board of Investment (BOI) offers online resources, financial subsidies, and benefits to start a business in Thailand.
Explore Partnership Options
In Thailand, fostering amicable business relationships is essential, as they significantly influence the success or failure of business transactions.
Understand the Thai Passion for Food
Similar to Italy and Japan, Thailand’s affinity for food runs deep. Infuse this passion into your product and business strategies to create a truly immersive experience for customers.
Consult with Experts
Forging strategic alliances is an intricate skill. While trial and error is a viable learning method, it incurs opportunity costs. Seeking the guidance of experienced individuals increases the likelihood of successful initial implementation.
All you need to do is email us your plan at [email protected] and we get you covered throughout. As a leading corporate law firm in Thailand, we guide Thai and foreign investors to start their food and beverage companies in Thailand successfully!
