Appendix Other 1report-Cs First 20221220020411255

Packaged Food Industry in Thailand
Full Report
A custom report compiled by Euromonitor International for
KCG Corporation Company Limited

November 2022
www.euromonitor.com
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Page 1
1. DISCLAIMER
The information that appears in this Industry Overview has been prepared by
Euromonitor International Limited and reflects estimates of market conditions based on
publicly available sources and trade opinion surveys, and is prepared primarily as a
market research tool. References to Euromonitor International Limited should not be
considered as the opinion of Euromonitor International Limited as to the value of any
security or the advisability of investing in the Company. The information prepared by
Euromonitor International Limited and set out in this Industry Overview has not been
independently verified by the Group, the Sponsor, the Lead Manager, the Underwriters
or any other party involved in the Global Offering and neither they nor Euromonitor
International Limited give any representations as to its accuracy and the information
should not be relied upon in making, or refraining from making, any investment
decision.
Page 2
List of Contents and Tables
Contents
1. DISCLAIMER 2
1. RESEARCH BACKGROUND 4
1.1 Research Objective 4
1.2 Sources of Industry Information 4
1.3 Research Methodologies 4
1.4 Forecasting Bases and Assumptions 4
1.5 Definitions and Coverage 5
1.6 About Euromonitor 7
2. MACROECONOMIC OVERVIEW OF THAILAND 8
3. DAIRY MARKET IN THAILAND 12
3.1 Dairy Market Overview 12
3.1.1 Regulatory trends 15
3.1.2 Growth Drivers and Constraints for the dairy Market In Thailand 15
3.1.3 Dairy Market Outlook in Thailand 17
3.2 Competitive Landscape of Dairy Market In Thailand 19
3.3 Barriers to Entry to Dairy Market In Thailand 21
4. BAKING INGREDIENTS MARKET IN THAILAND 23
4.1 Baking Ingredients Market Overview 23
4.1.2 Growth Drivers and Constraints for the Baking Ingredients Market In Thailand 27
4.1.3 Baking Ingredients Market Outlook In Thailand 28
4.2 Competitive Landscape of Baking Ingredients Market In Thailand 29
4.3 Barriers to Entry to Baking Ingredients Market In Thailand 31
5. BISCUITS MARKET IN THAILAND 32
5.1 Biscuits Market Overview 32
5.1.2 Growth Drivers and Contraints for the Biscuits Market In Thailand 36
5.1.3 Biscuits Market Outlook In Thailand 37
5.2 Competitive Landscape of Biscuits Market In Thailand 38
5.3 Barriers to Entry to Biscuits Market In Thailand 40
6. ADDENDUM: KCG CORPORATION COMPANY LIMITED OVERVIEW 42
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1. RESEARCH BACKGROUND
1.1 RESEARCH OBJECTIVE
KCG Corporation Company Limited (the “Client”) is planning for an IPO listing on the Stock
Exchange of Thailand (the “Stock Exchange”) and requires an independent assessment of the
dairy, baking ingredients and biscuit market in Thailand in the form of an Industry Overview
report.
1.2 SOURCES OF INDUSTRY INFORMATION
This “Industry Overview” section contains information prepared by Euromonitor International

for the purposes of the prospectus. The report was last updated in November 2022 based on
data available at the time of publishing.
1.3 RESEARCH METHODOLOGIES
In compiling and preparing the Euromonitor report, Euromonitor International used the
following methodologies to collect multiple sources, validate the data and information collected,
and cross-check each respondent’s information and views against those of others:
• Secondary research involved the review of published sources and official sources such
as the Thailand Customs Department, USDA, TradeMap, specialist trade press, trade
associations, and company reports, including audited financial statements where
available and independent research reports.
• Primary research involved store audits in retail channels, interviews with a sample of
leading industry participants and experts for the latest data and insights into future
trends, supplemented by verification and cross-checking of data and research estimates
for consistency.
• Projected data was obtained from a historical data analysis plotted against
macroeconomic data with reference to specific industry-related drivers.
• Review and cross-checks of all sources and independent analysis to build final estimates,
including the size, shape, drivers, and future trends impacting the packaged food
industries across the countries under consideration and prepare the final report.
1.4 FORECASTING BASES AND ASSUMPTIONS
Euromonitor International based the Euromonitor report on the following assumptions:
• Thailand’s economy is expected to recover from the COVID-19 impact and maintain
steady growth over the forecast period.
• The social, economic, and political environments in Thailand are expected to remain
stable during the forecast period.
© Euromonitor International Ltd 2022. Applicable terms and conditions of use and the disclaimer at the front of this document apply.
Page 4
• Key market drivers, such as rising GDP, increasing popularity of bakery products,
recovery of the foodservice industry, are expected to boost demand for consumption of
packaged food products, including biscuits, dairy, and baking ingredients in Thailand.
The research results may be influenced by the accuracy of these assumptions and the choice of
these parameters. The market research was completed in November 2022 and all statistics in
the Euromonitor report are based on information available at the time of reporting.
Euromonitor’s forecast data is derived from an analysis of the historical development of the
market, the economic environment, and underlying market drivers, and is cross-checked
against established industry data and trade interviews with industry experts.
1.5 DEFINITIONS AND COVERAGE
Geographic Coverage
• Thailand
Product/Category Definitions
Dairy: For the purpose of this industry overview report, dairy is the aggregation of butter and
cheese products.
Butter: Edible yellow fat, salted or unsalted, including spreadable and low-fat butter. The
prime component of butter is butterfat - also known as milk fat - (80-82%) and water (16-
17%), with the remaining composition consisting of milk solids/curd and/or salt.
Cheese: This is the aggregation of processed and unprocessed cheese comprising spreadable
cheese, processed cheese, hard cheese, and soft cheese.
Baking Ingredients: For the purpose of this industry overview report, baking ingredients is the
aggregation of yeast and pancake and cake mixes.
Yeast: Yeast or baker's yeast is the common name for the strains of yeast commonly used in
baking bread and other bakery products, serving as a leavening agent which causes the bread
to rise.
Pancake and Cake Mixes: Refers to packaged pre-mixed flour and other ingredients such as
salt and flavoring used for the purpose of making pancakes and cakes.
Biscuits: For the purpose of this industry overview report, biscuits is the aggregation of savory
biscuits and sweet biscuits.
Savory Biscuits: Non-sweet biscuits and crackers often consumed with cheese and other
savory foods. Also includes cream crackers, apéritif or small size savory biscuits and savory
biscuits with cream filling. Dry savory biscuits used as bread substitutes are included here,
e.g. crisp breads, stick breads, etc. This also includes toasted bread (e.g. biscottes) and
tostados. Note: Also includes savory biscuits packaged alongside a savory spread (i.e.,
processed cheese). Examples include Handy Snacks. Leading global brands include Ritz
(Kraft Foods), Nabisco (Kraft Foods), Keebler (Kellogg Co), Cheez-It (Kellogg), Triscuit
© Euromonitor International Page 5

(Kraft), Wheat Thins (Kraft), TUC (Kraft), Lance (Lance Inc), Bimbo (Bimbo Grupo), Ryvita
(Associated British Foods).
Sweet Biscuits: This is the aggregation of plain biscuits, wafers and other sweet biscuits as
defined below.
Plain Biscuits: Plain sweet biscuits that are uncoated and/or unfilled but which could be
flavored (for example lemon, ginger, chocolate, etc.). Rusks, popular in South Africa, and
sushki, baranki, and sukhari - all popular in Eastern Europe - are also included here. Note
that boxed assortments of sweet biscuits are also included here. Leading global brands
include Nabisco (Mondelez International Inc), Keebler (Kellogg Co), Mulino Bianco (Barilla
G e R Flli SpA), Arnott’s (Campbell Soup Co), Britannia (Britannia Industries Ltd), Parle G
(Parle Products Pvt Ltd), Leibniz (Bahlsen GmbH & Co KG), Nilla (Mondelez International
Inc), Oro (Mondelez International Inc), Saint-Michel (Morina Patissier SA).
Wafers: Wafers includes all biscuits containing wafers regardless of the filling (plain,
cream-filled, nut-filled, fruit-filled, chocolate-filled, chocolate coated, uncoated). These
products should be placed in the biscuits section of retailers and be in competition with
biscuits. That is a key distinction from countlines/tablets. Filled wafers coated with
chocolate such as KitKat, which are positioned against chocolate confectionery are
excluded and classed under countlines in chocolate confectionery. Note: Ice cream wafers
are excluded.
Other Sweet Biscuits: Includes chocolate coated biscuits, cookies, and filled biscuits.
Market Size Definitions
Market size scope: Market size covers companies that produce, or import (for foreign
products), and distribute products in the country, including foreign brands’ local subsidiaries,
brand owners of local brands, first-tier distributors (including importers) of imported products,
and licensed local manufacturers for foreign brands.
Retail Selling Price (RSP): Retail Selling Price (RSP). Sales at end price to the consumer,
including retailer and wholesaler mark-ups, and sales tax, and excise taxes.
In this report, the market size and company shares for the biscuits category are calculated in
RSP terms as the sales mainly come from B2C channels, for which RSP sales is normally applied.
Company Sales Value: Refers to the sales value or invoice value of the companies, which
include the corporations that produce, or import (for foreign products) and distribute a brand’s
products in the country, including foreign brands’ local subsidiaries, brand owners of local
brands, first-tier distributors (including importers), and licensed local manufacturers for
foreign brands.
In this report the market size and the company share for dairy and baking ingredients are
calculated in company sales value terms (instead of RSP) as both B2C and B2B channels

contribute significant shares to these categories and RSP is not applicable to B2B channel. Using
company sales value allows a consistent market sizing approach across B2C and B2B channels.
Period Coverage
Market review for this report has been carried out for the period 2017-2026, unless otherwise
stated. Specifically, the 2017-2021 period will be termed the historic or review period, and
2022-2026 will be deemed the forecast period for the entire report.
Channel Coverage
Channel coverage of dairy and baking ingredients in the report include B2B (including
industrial, such as food and bakery manufacturers, and horeca, such as hotel, restaurants) and
B2C (i.e., retail channels, such as modern trade, traditional trade). Channel coverage for the
biscuits category only includes B2C, i.e., retail channels.
1.6 ABOUT EUROMONITOR
Established in 1972, Euromonitor International is the world leader in strategy research for both
consumer and industrial markets. Comprehensive international coverage and leading-edge
innovation make our products essential resources for companies large and small, national, and
global. With offices around the world and analysts in 80 countries, the company is a leading
provider of global market intelligence. Our products and services are held in high regard by the
international business community, and we have 5,000 active clients, including 90% of the
Fortune 500 companies.

2. MACROECONOMIC OVERVIEW OF THAILAND

Middle class households set to expand supported by government initiatives aimed at reducing
poverty levels
Thailand ranks ninth in the Asia Pacific region by population and has progressed in social and
economic development over the last two decades. The economy has historically been driven by
the country’s agriculture, services, and manufacturing sectors as well as supported by its strong
export model and local consumption. According to the World Bank, Thailand achieved upper-
middle income economy status in less than a generation in 2011. Over the historic period 2017-
2021, Thailand’s population increased at a CAGR of 0.3% and is expected to record a marginal
increase over the forecast period by a CAGR of 0.1%. Structurally, the working-age population
(15 to 64) accounted for approximately 70% of the total Thai population in 2021.
Table 1 Population in Thailand (2017-2026E)
Unit 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E
Total
Population in ‘000 69,209.8 69,428.5 69,625.6 69,800.0 69,950.8 70,078.2 70,182.8 70,266.1 70,328.9 70,371.6
Thailand
Population
'000 49,260 49,292 49,273 49,202 49,080 48,915 48,713 48,478 48,215 47,926
Aged 15-64
Percentage of
Population % 71.2 71.0 70.8 70.5 70.2 69.8 69.4 69.0 68.6 68.1
Aged 15-64
Source: Euromonitor Passport Data (Economies and Consumers 2022 edition)
Thailand is on a path toward incremental economic recovery toward 2026
Thailand’s economy is the second largest in the ASEAN region ranked by nominal GDP,
historically driven by the services, manufacturing, and agriculture sectors. In 2021, the
country’s economy measured in nominal GDP was THB16,179.8 billion, marking 10.9% growth
from 2017, supported by increasing private consumption and investment. According to the
World Bank’s Thailand Economic Monitor report, consumer expenditure accounted for close to
40% of output growth during the period 2006-2020 and remains a major contributor to output
growth1.
Prior to the COVID-19 pandemic, Thailand had seen a gradual moderation in real GDP growth
up to 4.2% from 2017 to 2019. In 2020, real GDP contracted by 6.2% due to the shocks from the
COVID-19 pandemic, which resulted in a huge disruption to the services sector, particularly the
tourism industry, which accounts for about a fifth of GDP and employs 20% of the country’s
workforce2. The Thai government responded boldly to the pandemic, with the implementation
of a timely and robust fiscal mitigation plan thereby restoring confidence and setting the
country on a path to recovery. In 2021, despite the ongoing global pandemic and international
1 Thailand Economic Monitor (TEM) (2021) Living with COVID in a digital world World Bank Document
2 Five Things to Know About Thailand’s Economy and COVID-19 (imf.org)

travel restrictions, the country’s real GDP reached positive growth of 1.6% supported by
domestic demand. Nominal GDP is forecast to return to pre-pandemic levels by 2022, while real
GDP growth will maintain a healthy level between 2-5% over the forecast period.
Table 2 Nominal GDP, Real GDP Growth, Nominal GDP and Disposable Income per Capita in Thailand (2017-2026E)
Unit 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E
Nominal
Gross THB
15,488.7 16,373.3 16,892.4 15,653.9 16,179.8 17,356.7 18,483.4 19,485.0 20,375.5 21,247.9
Domestic billion
Product
Real GDP
% 4.2 4.2 2.2 -6.2 1.6 3.9 4.5 3.8 3.0 2.8
Growth
Nominal
GDP per THB 223,793 235,830 242,618 224,268 231,303 247,677 263,361 277,304 289,717 301,939
Capita
Disposable
Income per THB 117,997 123,870 129,544 127,512 128,936 138,474 145,644 152,686 159,228 165,893
Capita
Disposable
Income per
% - 5.0 4.6 -1.6 1.1 7.4 5.2 4.8 4.3 4.2
Capita
Growth
Household spending to see expansion underpinned by growth in active workers, the country’s
largest consumer group
Thailand’s demographic structure sets the economy on a trajectory of rising disposable income
and declining poverty rates. About 70% of Thailand’s demography (15 to 64) is of active
working age, and this age group is also recognized as the country’s largest consumer group. The
pandemic impacted the country’s average disposable income per capita, resulting in a slight
contraction of 1.6% in 2020 as travel restrictions and lockdown measures halted international
tourism; thereby impacting the earning capacity of low-income households which rely on the
economy built around tourism. On a positive note, the disposable income per capita has
gradually recovered with 1.1% growth in 2021 reaching THB128,936. It is forecast to expand by
a CAGR of 4. 6% during the period 2022-2026 hinged on expanding gainful employment
opportunities, increasing access to education as well as government initiatives aimed at
reducing poverty levels in the country3.
Gradual resumption of economic activities supported by exports, accelerated vaccination, and

border reopening brightened Thailand’s economic outlook
Economic activities in 2021 expanded at a faster pace than the preceding year which was
riddled with shocks linked to the COVID-19 health pandemic, global supply disruptions, and
drop in productivity. In 2021, Thailand’s exports increased by 18.8% and imports rose by
23.9%, showing the recovery trends in trading activities4. The momentum achieved in 2021
continued into 2022 boosted by exports, accelerated vaccination progress, return of foreign
3 Euromonitor Passport (Income and Expenditure 2021 edition)

4 Euromonitor Passport (Economy, Finance and Trade 2022 edition)

tourist, and fiscal stimulus. Travel tourism, a mainstay of the Thai economy, benefited from
Thailand border reopening programs such as the ‘Test & Go’ scheme and the Blue Zone Sandbox
scheme in early 2022. And starting from October 1, 2022, travelers are no longer be required to
present COVID-19 related documents to enter Thailand. As of 26 October 2022, Tourism
Authority Thailand announced that 7 million foreign tourists have arrived in Thailandand the
full year target for 2022 is 7-10 million visitor arrivals.5
In the medium to long term, Thailand’s trade activities are likely to benefit from the Regional
Comprehensive Economic Partnership (RCEP) which strengthens trading relationships between
member countries in Asia Pacific. Along with global relaxation on travel restrictions, a bright
outlook is set for economic development of Thailand.
Consumer expenditure on food will remain the most substantial spending category among Thais
Given the expanding profile of the middle class in Thailand and the consequent increase in
disposable income, discretionary spending is expected to experience some growth. Generally,
the distribution of consumer expenditure of food and non-alcoholic beverages in Thai
households has historically remained the largest spending category, maintaining a stable
proportion of 22-25% of total consumer expenditure. On a CAGR basis, growth of consumer
spending on food was registered at 3.3% for the period 2017-2019 before the pandemic, and
2.2% for the period 2017-2021.
Among expenditure on food, expenditure on bread and cereal contributed to around 21% of the
total food spending, while expenditure on milk, cheese and eggs accounted for over 8% and
sugar and confectionery made up 3% of the total food spending in 2021.
Over the forecast period, consumer expenditure on food is set to increase at a CAGR of 5.0%, on
a par with the country’s GDP growth. Historically, consumer expenditure on food in Thailand
has grown at a slightly faster pace than nominal GDP growth. As the economy grows in the
forecast period, consumers will enjoy higher income and will have more spending power to buy
food. Consumers’ grocery preferences are expected to shift towards products that are better
quality and non-essentials, which will increase the value of their grocery purchases. It is also
estimated that, demand for bread and cereal, milk, cheese and eggs, sugar and confectionery will
grow in line with increasing expenditure on food over the forecast period.
Table 3 Consumer Expenditure on Food in Thailand (2017-2026E)
Unit 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E
Consumer
Expenditure on Food THB 1,804.8 1,822.7 1,924.0 2,112.2 1,968.5 2,111.0 2,232.3 2,350.6 2,460.1 2,569.2
billion
Consumer
Expenditure on THB 386.1 394.1 413.2 452.0 418.2 446.8 471.7 496.5 519.8 543.3
Bread and Cereals billion
Consumer
Expenditure on Milk, THB 151.7 154.9 162.9 179.5 165.9 177.1 186.8 196.5 205.2 213.8
Cheese and Eggs billion
5 TAT News October 28 - Thailand welcomes over 7 million foreign tourists from 1 January to 26 October 2022

Consumer
Expenditure on
THB 55.0 55.6 58.4 63.9 59.4 63.5 66.9 70.4 73.5 76.6
Sugar and
billion
Confectionery
Food and drinks e-commerce accelerates during COVID-19 as consumers switch to online shopping
Food and drinks e-commerce sales in Thailand registered strong growth over the review period,
registering a CAGR of 16.2% between 2017 and 2021 to reach THB 16.7 billion in 2021. Growth
has been strong before COVID-19, with a CAGR of 11.4% between 2017 and 2019. Food and
drinks e-commerce sales surged in 2020 and recorded year-on-year growth of 28.0%, as
consumers switched to online shopping to observe lockdown restrictions. Online shopping of
food and drinks has become more appealing to consumers during the review period, as they
grapple with the inconveniences of shopping in-store, such as air pollution, heavy traffic and the
unavailability of plastic bags, with the introduction of a ban on single-use plastic bags at major
retail stores from January 2020. In addition, major online shopping and delivery platforms
entered the online grocery market in 2020, giving consumers more options for buying food and
drinks online. Grab and Lazada launched their own grocery shopping services, GrabFresh and
LazMart, respectively, while Line partnered with the existing online grocery platform
HappyFresh to offer online grocery shopping on the Line Man mobile app, which has a large
base of customers in Thailand. COVID-19 has significantly changed consumers’ behaviours for
grocery shopping with a shift towards online shopping. Hence, the food and drinks e-commerce
market is expected to maintain strong growth in the forecast period, with a projected CAGR of
15.3% between 2022 and 2026 to reach THB33.8 billion in 2026.
Table 1 Food and Drinks E-Commerce in Thailand, Retail Value (2017-2026E)
50.0%
40 28.0%
14.5% 14.5% 14.4% 15.3% 17.7% 13.8%
RSP value (THB billion)
11.4% 11.4% 20.0%

30
-10.0%
20
33.8 -40.0%
29.7
25.3
10 21.9
16.7 19.2 -70.0%
14.6
9.2 10.2 11.4
0 -100.0%
2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E
RSP Market Value Size y-o-y growth %
Source: Euromonitor Passport Data (Retailing 2022 edition)

3. DAIRY MARKET IN THAILAND
3.1 DAIRY MARKET OVERVIEW
Cheese and butter consumption grow in Thailand as Western food gains popularity
The markets for cheese and butter remain small in Thailand, with a combined market value size
of around THB6.9 billion in 2021. Cheese and butter are not typical ingredients in traditional
Thai cuisine; however, there is a lot of potential for their consumption to grow in Thailand. This
is reflected in the increasing popularity of, cheese and butter products over the review period,
thanks to the growing acceptance of Western cuisines among Thai consumers.
In Thailand, cheese is not just consumed by consumers; it is also used by institutional customers
(e.g., food and bakery manufacturers) and horeca customers (i.e., hotel and foodservice
industries) in food processing and preparation. Due to the extensive use of cheese in pizza and
some Western foodservice businesses, B2B sales account for over 60% of the cheese market in
Thailand6. In particular, pizza restaurants (such as The Pizza Company, Pizza Hut, Domino’s
Pizza) and pizza manufacturers (e.g., factories which produce frozen pizzas) are the largest
customers for cheese. In the retail channel, modern retail formats (supermarkets, convenience
stores, specialty grocery stores) account for the majority of cheese sales to consumers.
Supermarkets and convenience stores tend to sell only packaged cheese because these offer
good value and convenience which cater to the majority of consumers. Specialty grocery stores
offer a wider selection of gourmet cheese, catering to consumers who have more knowledge
about the different types of cheese and are willing to pay more for variety and better quality.
The main products in the butter market are salted butter and unsalted butter. Unsalted butter is
the major product in the butter category because unsalted butter is used by most bakeries.
Salted butter contains a small quantity of salt. In addition to giving a saltier taste, the salt acts as
a preservative and prolongs the shelf life of the butter. Salted butter is frequently used as a
spread on bread or to cook with.
Cheese registers strong growth before COVID-19, with pizza foodservice being the most important
channel for cheese sales
The cheese market registered moderate growth between 2017 and 2021 with a CAGR of 2.6%,
reaching around THB4.3 billion in 2021. The market grew strongly between 2017 and 2019
with a CAGR of 7.0%; however, this was followed by a significant decline of 9.4% in 2020 due to
the impact of COVID-19, which reduced the overall CAGR for the review period.
The key drivers for the cheese market include the growing penetration of Western food and
Western dishes which use cheese as an ingredient, and the increasing consumption of cheese
6 Source: Euromonitor’s estimation from desk research and trade interviews with industry stakeholders
in Thailand

among Thai consumers who are becoming more affluent and sophisticated. In the last few years,
there is growing interest in cheese due to the increasing awareness of Western culture and
cuisines. For example, more people are buying cheese as a snack or incorporating cheese into
home cooking, such as pasta dishes. In consumer foodservice, Western dishes which use cheese
as an ingredient, such as pasta, pizza, and burgers with cheese slices, have gained popularity
alongside the rise of Western foodservice chains. Rising income also contributed to the growth
of cheese, as higher disposable income allowed consumers to consider discretionary grocery
products such as cheese. On the other hand, the market for cheese remains small compared to
other grocery products, because the consumption of cheese is still largely limited to the middle-
and high-income population due to its high price points, and the awareness of cheese is also
largely confined to the urban population since it is not a typical ingredient in Thai cuisine.
Despite the large decline in 2020 due to the impact of COVID-19, the cheese market started to
recover in 2021, posting year-on-year growth of 6.7%, and this is in line with the recovery of the
employment market and consumer sentiment generally. The consumption of cheese at home is
expected to increase as more consumers learned to cook during COVID-19, and there has been
an expansion of cheese products for packaged foods, such as instant noodles with cheese,
cheese topping for hotpot, and cheese dip, to cater to the home cooking demand.
Table 2 Sales Value of Cheese Market in Thailand, including B2B and B2C Channels (2017-2026E)
7,000
7.2% 6.7% 6.7% 7.5% 7.6% 7.5% 7.4% 7.2%
6,000 0.1
Value (THB million)
5,000
-9.4%
4,000
3,000 6,091.1 -0.2

5,292.0 5,684.6
4,574.8 4,924.1
2,000 4,124.7 4,403.2 4,256.5
3,847.7 3,988.0
1,000
0 -0.5
2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E
Market Value Size y-o-y growth %
Source: Euromonitor’s estimation from desk research and trade interviews with industry stakeholders in Thailand
Butter registers moderate compound annual growth in review period due to COVID-19’s impact in
2020 and yet has quick recovery in 2021
The butter market in Thailand registered moderate growth over the review period, recording a
CAGR of 1.4% between 2017 and 2021. In 2021, the market reached THB2,693.3 million. Before

COVID-19, the butter market registered a CAGR of 5.5% between 2017 and 2019. The growth
has been driven primarily by an expansion of bakery consumer foodservice and the
introduction of a new regulation in 20197 which prohibits the production, import, and sale of
food and drinks containing artificial trans fats, such as margarine and shortening. For the
Thailand market, consumer foodservice is a more important distribution channel for butter
than the retail channel. Before bakery businesses were impacted by COVID-19, consumption of
butter has been driven by high-end bakeries promoting the use of butter in their products; and
demand from consumers looking for tasty, high-quality bakery products.
The regulations which restrict the production and sales of products containing trans fats have
increased demand for butter over other spreads since 2019. Margarine has traditionally had a
wider consumer base than butter due to its affordable price. However, sales of margarine have
been hit by increased awareness of trans fats, spurred by government regulations, which came
into force in 2019. As a result, butter enjoyed a growing consumer base, as consumers switched
from margarine to butter.
In 2020, the butter market fell by 12.0% due to COVID-19’s impact on foodservice businesses
and consumer expenditure. In 2021, the market grew by 8.0% as consumer spending and retail
product sales began to recover. The butter market is projected to reach THB3,864.9 million in
2026, which represents a forecast CAGR of 7.0% between 2022 and 2026.
Table 3 Sales Value of Butter Market in Thailand, including B2B and B2C Channels (2017-2026E)
5,000 8.0% 9.5% 8.5% 7.5%

5.0% 6.0% 6.5% 5.5% 10.0%
4,000
Value (THB million)
-12.0%
3,000
-20.0%
2,000
3,663.4 3,864.9
2,949.1 3,199.8 3,439.8
2,546.1 2,673.4 2,833.8 2,493.8 2,693.3
1,000
0 -50.0%
2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E
7 GAIN Report Number:TH8103 Thailand Bans the Use of Partially Hydrogenated Oils in Foods

3.1.1 REGULATORY TRENDS
Thai government introduces a ban on artificial trans fats in early 2019
In July 2018, the Public Health Ministry announced a ban on the production, import, and sale of
food and drinks containing artificial trans fats. The new regulation took effect on January 9,
20198. The ban covers artificial trans fats, the by-product of a process called hydrogenation in
which hydrogen is added to vegetable oil to alter its state. Artificial trans fats have been linked
to higher risks of developing health problems, such as heart disease, strokes, and type-2
diabetes, and the ban was aimed primarily at reducing such risks caused by consumption of
trans fats in food. Trans fats can be found in crispy snacks, French fries, cookies, shortening,
margarine, non-dairy creamers, and dry fast foods. The trans fats ban has boosted the use of
butter as consumers switch from spreads containing trans fats to healthier alternatives such as
butter.
New Zealand and Australia account for around half of cheese imports into Thailand and benefit from
favorable tariffs
Most of the cheese consumed in Thailand is imported. According to the Un Comtrade Database,
the top three leading exporters of cheese to Thailand are Australia (33.6% of import values),
New Zealand (28.7%), and the US (8.3%) in 2020. New Zealand and Australia together make up
about 60% of Thailand's cheese imports and have free trade agreements (FTAs) with Thailand.
The Thailand Australia Free Trade Agreement (TAFTA) came into effect on January 1, 2005,
while the Thailand New Zealand Closer Economic Partnership (TNZCEP) became effective on
July 1, 2005. These FTAs supported significant quantities of duty-free dairy product access to
Thailand. Import tariffs and import quotas under Special Safeguard measures (SSG) for
Australian and New Zealand dairy products, including cheese and butter, were eliminated under
TAFTA and TNZCEP on January 1, 20219.
3.1.2 GROWTH DRIVERS AND CONSTRAINTS FOR THE DAIRY MARKET IN THAILAND
Growing popularity of Western dishes such as pasta and pizza is the key driver for cheese
consumption by foodservice and manufacturing businesses
The demand for cheese has been driven by all the key distribution channels, including the retail
channel, the food processing channel, and the consumer foodservice channel. In the retail
https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Thailand%20B
ans%20the%20Use%20of%20Partially%20Hydrogenated%20Oils%20in%20Foods_Bangkok_Thailand_
8-2-2018.pdf
9 https://www.austrade.gov.au/news/insights/dawe-tariff-reductions-assisting-australian-agricultural-
exports-to-thailand

channel, the growth is mainly driven by changes in consumer preferences, particularly growing
acceptance of cheese among younger consumers. This is because cheese is commonly used in
popular Western food and desserts such as pasta, pizza, salads, and cheesecake, and younger
consumers have considerable exposure to these types of food through their frequent visits to
popular Western foodservice chains such as Pizza Hut and The Pizza Company. In the food
processing and consumer foodservice channels, food manufacturers and foodservice operators
have incorporated cheese into their product lines or menu offerings, in response to the
increasing awareness and acceptance of Western goods. Examples of products and menu items
where cheese is used include cheese instant noodles, cheese snacks, cheese dipping sauces for
French fries, grilled cheese sandwiches, etc. This has led to increased demand for cheese from
food manufacturers and foodservice businesses, and it also helped consumers enhance their
knowledge about the application of cheese as an ingredient for the dishes they make at home.
Increasing consumer demand for baked goods drove demand for butter as an baking ingredient in
the foodservice channel
Butter is primarily used in baking and making Western dishes which call for the use of butter in
the recipes. Some bakery products, such as croissants and donuts, have become hugely popular
among Thai consumers, which in turn drove the increasing demand for butter in the foodservice
channel, where it is used as a key ingredient in baking. The growth of coffee shops and cafés in
urban Thailand has contributed to greater demand for butter sales from consumer foodservice
operators. For example, several premium bakery chains have opened in Thailand in the review
period, such as Paul, Eric Kayser, Gontran Cherrier, and new Bakery Mart stores by S&P
Syndicate Plc, a local bakery and restaurant operator. In addition, many independent bakers
have emerged in Bangkok and around the country including in Chiang Mai, Phuket, Nakhon
Ratchasima, and Khon Kaen10. When using butter as an ingredient in bakery products, bakeries
tend to choose more affordable brands to keep costs low; hence, local brands which offer a
combination of high quality and reasonable prices, such as Allowrie, Imperial, and Orchid, are in
greater demand than imported brands in the consumer foodservice channel.
Although the retail channel is quite small at the moment, it continues to grow with more
consumers buying butter due to the perception of butter as a healthier spread than margarine,
and the increasing use of butter as an ingredient in home cooking and baking. Western food has
continued to gain popularity among Thai consumers, particularly the younger generation. For
example, more consumers are consuming bread due to its convenience and this has boosted
demand for butter which is used as a spread on toast. As COVID-19 lockdowns have inspired
interest in home cooking, consumers are increasingly making a wider variety of dishes at home
or experimenting with home baking as a leisure activity, which requires the use of butter as a
key ingredient.
10 https://www.thaipbsworld.com/crazy-about-croissants/

Lack of consumer awareness and COVID-19-related supply chain disruptions are some of the
constraints for cheese
Lack of awareness and the current limited level of consumer acceptance are the main growth
constraints for cheese. The consumption of cheese is still limited to the more affluent consumers
or younger consumers who have some exposure to cheese through Western foodservice outlets.
However, as cheese is not a typical ingredient in Thai cuisine, there are still many consumers
who are not aware of the applications of cheese or do not appreciate the flavor of cheese.
Similar to butter, price is a constraint to the wider consumption of cheese because most cheese
products, including cheese snacks, tend to be relatively expensive for the majority of consumers.
During COVID-19, cheese growth was impacted by disruptions to the supply chain. As the
majority of cheese in Thailand is imported, the supply of cheese was significantly impacted by
manpower shortages and disruptions in the global supply chain. Furthermore, restrictions on
transportation and delivery activities during the lockdowns also impacted delivery to
customers. As a result, the cheese market experienced a temporary shortage of supply in 2020
which was a constraint to growth.
High price of butter is a deterrent for its use by businesses and consumers
Due to its higher price point compared to other types of spread such as margarine, a typical
butter consumer in Thailand is a more affluent consumer who prioritizes product quality over
price and who may also be a food enthusiast. Rising prices have been a growth constraint for
butter. As the prices of raw materials such as butter skyrocketed in recent years, many bakeries
had to limit the usage of butter or substitute butter with more cost-effective alternatives.
Imported butter products have been hit by higher prices due to supply chain disruptions and
rising costs, such as higher costs of raw materials, fuels, and transportation. The increase in
prices has been a deterrent for consumers to buy butter or bakery products. Butter blends are
emerging to cater to more price-conscious consumers. In order to target a wider range of
consumers with differing products, products incorporating butter with other fats, while
observing the trans fats ban, have emerged in the market.
3.1.3 DAIRY MARKET OUTLOOK IN THAILAND
Butter is expected to perform strongly over the forecast period driven by continued high interest in
baked goods
The butter market is expected to perform strongly over the forecast period, with a projected
CAGR of 7.0% between 2022 and 2026, partially due to the further recovery of the industry
from the COVID-19 impact. It is expected to reach a market size of THB3.9 billion in 2026, up
from THB2.9 billion in 2022. A key growth driver for the review period, consumers’ interest in
freshly-baked goods, such as croissants and pastries sold in bakeries, is expected to remain

strong over the forecast period. Meanwhile, new bakeries and cafés are expected to continue to
spring up in Thailand, as part of the country’s urbanization and shift toward a diverse consumer
foodservice landscape. As a result, retail sales of butter are also expected to grow strongly. In
addition, changes in consumer lifestyles, with an increasing preference for convenience, will be
expected to boost butter consumption at home, with more consumers having bread as a
breakfast or snack option.
Cheese is also projected to achieve strong growth with the continued shift toward Western cuisines
The cheese market is expected to register strong growth over the forecast period, with a
projected CAGR of 7.4% between 2022 and 2026, to reach THB6.1 billion in 2026. Growth will
be driven by changes in consumer preferences, specifically the growing interest in Western
dishes such as pasta and pizza, which appeal to younger consumers as well as parents due to
their convenience and ease of preparation. The continued expansion of Western foodservice
outlets in Thailand, with the wider trend of urbanization, will also drive the growing demand for
cheese in the foodservice channel. In the short term, inflation and rising costs, such as the costs
of production and transportation, may be a constraint for future growth, as manufacturers may
have to raise prices to account for rising costs, and higher prices may deter consumers from
buying cheese, instead opting for more affordable food.
Rising health awareness among consumers supports the demand for dairy
An increasing focus on health and wellness, which has been intensified by COVID-19, is expected
to boost consumption of cheese and butter in Thailand. Cheese is viewed as a high-protein food
and good alternative to meat, and it will appeal to a growing population of consumers who are
trying to increase protein intake and vegetarian population. Butter is generally perceived to be a
healthier alternative to margarine due to the government’s ban of food containing artificial
trans fats, and such perception will continue to play out in the forecast period as consumers
become more health conscious. Dairy products will also evolve to leverage on latest diet trends
and preferences. For example, KCG Corporation launched keto-friendly Allowrie MCT Butter in
2022 to tap into the growing interest in the keto diet, a low carb, high fat diet. The new butter
product contains 12% coconut oil and is free from milk powder.
Strong recovery of inbound tourists underpins the demand growth of dairy products in B2B channels
As the global tourism is recovering from the pandemic, Tourism Authority of Thailand further
relaxed requirements on inbound traveller in 2022. Starting from July 2022, inbound travellers
to Thailand are only required to have either certificate of COVID-19 Vaccination or negative RT-
PCR test result to enter and travel around the country. According to Tourism Authority of
Thailand, the inbound tourists reached over 3 million from 1st January to 23rd July in 2022,
comparing to less than 60 thousand in the same period in 2021. Furthermore, the entry
requirements for international travellers was fully lifted from 1st October 2022 after Thailand
formally reclassifies COVID-19 from “a dangerous communicable disease” to “a communicable
disease under surveillance”. The recovery of tourism boosts the foodservices and hospitality

industries in Thailand. According to Euromonitor, consumer foodservice is projected to grow at

a 9.9% CAGR between 2022 to 2026. It’s expected that demand for including butter and cheese,
which is often used as cooking ingredients, will see a robust growth especially in foodservices
and hospitality sectors in the forecast period.
3.2 COMPETITIVE LANDSCAPE OF DAIRY MARKET IN THAILAND
Leading players account for some 90% of butter sales, indicating high concentration in the butter
market
The butter market in Thailand is concentrated with a few leading brands. It is estimated that the
top five players accounted for around 90% of the total market size of butter in 2021. The
majority of butter sales in Thailand come from local brands due to their competitive prices and
the ease of keeping the butter fresh.
However, as butter gains wider acceptance in Thailand, consumers’ preferences for butter have
become more diverse. This includes emerging demand for premium high-quality butter.
Premium butter brands, such as Elle & Vire, are typically priced between 15% and 50% more
than regular butter. Imperial also has a premium butter range. The manufacturers of premium
butter brands usually differentiate their brands through the use of high-quality ingredients,
special packaging, and a range of unique flavors. New entrants in the premium butter space
include the online butter shop Burro Buttery and premium French brand Bordier11.
KCG Corporation leads butter market with Allowries and Imperial brands
Among the leading brands, Allowries, Australian butter and cheese brand, is locally produced
and distributed by KCG Corporation Co., Ltd (KCG Corporation). KCG Corporation also
manufactures and distributes local butter brands, Imperial and Dairygold. In addition to its own
brands, KCG Corporation also imported and distributed foreign brands, such as Elle & Vire
(France), Westgold (New Zealand), Le Gall (France), etc. As the local leading butter brand
manufacturer and distributor of several foreign brands, KCG Corporation leads in Thailand’s
butter market with a 55% market share.
Orchid, another leading brand in the butter market, is owned by Thai Dairy Industry, a local
dairy food processing company known for the Mali brand of sweetened condensed milk. Mali
Group is expanding its Mali evaporated and condensed milk and Orchid butter product lines. To
further broaden its offerings, the fully Thai-owned and family business is collaborating with
Japanese dairy companies to develop new products and milk applications. By combining both
11https://www.thebigchilli.com/promotions/bordier-selection-opens-second-store-in-bangkok-at-
iconsiam-the-new-store-will-sell-a-selection-of-bordier-butters-and-cheeses

Mali condensed milk brands and Orchid butter as the key ingredients in various desserts, Mali
Group has raised awareness of the Orchid butter brand.
Table 4 Competitive Landscape of Butter Market in Thailand (Company Sales Value, B2B and B2C Channels) (2021)
Ranking Leading Companies Market Share

1 KCG Corporation Co., Ltd 55.0%
2 Company 2 24.8%
3 Company 3 6.0%
4 Company 4 1.5%
5 Company 5 1.0%
Cheese market, with a large number of imported brands, is more fragmented compared to butter
In the cheese market, the top five players have achieved a combined majority market share of
65.8 % in 2021. Despite the dominance of several well-known imported brands, smaller players
captured close to one third of the cheese market in 2021, a reflection of the diversity of different
cheese types and the large number of imported brands in the market. As cheese continues to
gain popularity in Thailand, there is space for more brands to enter the market and cater to
different consumer preferences, budgets, and needs. Hence, the market is expected to become
more fragmented over the forecast period.
KCG Corporation leads cheese sales with Allowrie and Imperial brands
KCG Corporation is the leading player, accounting for 31.6% of the cheese market in 2021. The
company distributes Allowrie and Imperial, two leading cheese brands in Thailand. Allowrie
and Imperial products are widely distributed, such as through a large number of convenience
stores in addition to supermarkets and hypermarkets. Besides Allowrie and Imperial, the other
major brands in the cheese market include Bega (Australia), Anchor (New Zealand), Zott
(Germany), Emborg (Denmark), etc. The key players in the cheese market are mostly
multinationals (e.g., Fonterra Brands (Thailand) Co Ltd, Heinz Thailand Ltd) or large
importers/distributors (e.g. Eurosia Foods Trading & Agencies Co., Ltd). Eurosia Foods Trading
& Agencies imports and distributes several well-known brands, including Emborg from
Denmark, The Laughing Cow from France, and Prochiz Chedda Cheese from Indonesia.
The leading cheese brands include both foreign and local brands, however, local cheese brands
have become more common in the market over the review period. For example, Caroline is
manufactured and distributed by Bangkok Fine Foods, a leading local manufacturer and
importer of food products.

Table 5 Competitive Landscape of Cheese Market in Thailand (Company Sales Value, B2B and B2C Channels) (2021)

2 Company 2 13.1%
3 Company 3 9.5%
4 Company 4 6.4%
5 Company 5 5.3%
KCG Corporation’s brands positioned across different price bands in dairy category
In the butter category, KCG Corporation has two market leading brands. Allowrie and Imperial,
pricing at medium to high end among the market. Other brands compete within the same price
band include Anchor and Orchid. KCG Corporation also imports and distributes premium butter
brands from France, such as Elle & Vire and Le Gall, retail price of which are 60-80% higher
than Allowrie and Imperial.
In terms of cheese, KCG Corporation’s own brands and trading brands sit across various price
bands. Allowrie and Imperial are with affordable price and compete with other cheese brands,
such as Kraft and Philadelphia. Arla, Le Gall, Emmi are other imported premium cheese brands
that KCG Corporation distributed in Thailand. Other premium cheese brands in Thailand include
The Laughing Cow, Emborg etc.
3.3 BARRIERS TO ENTRY TO DAIRY MARKET IN THAILAND
Import duties and branding on country of origin are key barriers to entry
The main barriers to entry to the dairy market in Thailand include import duties and
consumers’ preferences for products from certain countries of origin. Dairy products from
Australia and New Zealand have benefited from reduced import duties as a result of the
countries’ FTAs with Thailand. Furthermore, import tariffs and import quotas on certain
Australian and New Zealand dairy products, including cheese and butter, were eliminated under
TAFTA and TNZCEP on January 1, 202112. The removal of import tariffs and quotas on dairy
products from Australia and New Zealand will affect the competitiveness of other countries’
dairy products seeking to enter the Thai market.
When it comes to dairy products, products from European countries, Australia and New Zealand
are popular among Thai consumers, as these countries have a strong reputation for dairy
products, and imported cheese is perceived to have better quality than locally-produced cheese.
On the other hand, new entrants from other countries (including locally-produced dairy
12https://www.austrade.gov.au/news/insights/dawe-tariff-reductions-assisting-australian-agricultural-
exports-to-thailand

products) may find it difficult to gain market share because they are not yet well recognized as
high-quality cheese or butter brands among Thai consumers.

4. BAKING INGREDIENTS MARKET IN THAILAND
4.1 BAKING INGREDIENTS MARKET OVERVIEW
Increasing consumption of baked goods and home cooking trend are key drivers for baking
ingredients market
Baking ingredients are mainly consumed by food manufacturers and foodservice businesses in
Thailand, while a small portion of consumption comes from individual consumers due to the
home cooking trend. Consumption of bakery products has been growing in Thailand due to
changing consumer behaviors, which are reflected in growing interest in Western food such as
bread and baked goods, and preferences for food that can be consumed on the go.
The pandemic has impacted baking ingredients sales to hotels and foodservice businesses
which are the main consumers of baking ingredients, due to closure of businesses during
lockdowns, but it has also created new demand, such as that from emerging food businesses and
consumers. Ghost kitchens and mobile kitchens have grown significantly in Thailand since the
COVID-19-related lockdowns in 2020. The expansion of businesses to the online channel, as
well as the growing trend of food delivery, has stimulated demand for bakery products, dairy
products, and other food ingredients. Moreover, baking has become a popular activity during
the lockdown periods, as consumers who had to stay home turned to cooking and baking as a
leisure activity and as an alternative to dining out. The new business models and new demand
from B2B and B2C channels have helped to mitigate the impact of the lockdowns and business
closures during lockdowns, but their contribution was just emerging and was not sufficient to
reverse the decline in the baking ingredients market in 2020.
Some of the recent food trends in Thailand, such as the home baking trend during COVID-19 and
the croissant craze in 2021, played a significant part in the growth of baking ingredients. During
the height of croissant mania in January 2021, Thai consumers could be seen standing in line at
bakeries and waiting for hours for freshly baked croissants. Social media merely intensified the
craze. As people began sharing their favorite bakeries on social media, the interest in croissants
spread further. COVID-19 lockdowns also made people crave delicious food and croissants were
one of most sought-after items. With so many people in search of the perfect croissants, new
bakery stores have emerged, including small businesses and home bakeries which sell through
online channels like Facebook marketplace, Line Shopping (an online shopping platform of the
Line app), and Instagram13.
B2B channels account for the majority of yeast sales in Thailand
Yeast is most commonly used in Thailand in baking bread and other bakery products, serving as
a leavening agent which causes the bread to rise. The yeast products sold in Thailand fall under
13 https://www.thaipbsworld.com/crazy-about-croissants/

two main categories, instant dry yeast and compressed block yeast. Instant dry yeast is more
commonly found in retail channels, such as supermarkets, because of its longer shelf life.
Compressed block yeast is usually used for large-scale production by factories or bakery chains.
Compressed block yeast is cheaper, has the ability to quickly become active, and adds flavor to
bakery products14. However, it needs to be kept in chilled storage and has significantly lower
shelf life than instant dry yeast (e.g., six weeks compared to two years for instant dry yeast).
B2B channels account for over 70%15 of yeast sales in Thailand, as there is a large number of
businesses which use yeast as an ingredient in baking, including bakeries (including in-store
bakeries in the grocery retail channel), and food manufacturers that produce packaged bread.
Yeast is also purchased directly by consumers for home baking, and modern trade channels
account for the majority of yeast sales in the B2C channel.
Demand for yeast has received a boost from food trends such as Thailand’s croissant craze
The yeast market registered strong growth between 2017 and 2021 with a CAGR of 5.0%,
reaching THB835.6 million in 2021. The market grew strongly between 2017 and 2019, posting
a CAGR of 9.3%; however, growth slowed to 4.8% in 2020, followed by a 3.0% decline in 2021.
Before COVID-19, growth was mainly driven by strong demand from industrial and foodservice
customers. This is related to Thai consumers’ increasing acceptance of Western food, such as
bread and pastries. As the consumption of baked goods and Western snacks grew,
manufacturers and bakeries were producing more to meet the growing demand and required
more yeast as an ingredient in production.
The yeast market slowed down in 2020 as lockdowns resulted in temporary closure of many
foodservice businesses, including bakeries and cafés. On the other hand, the impact of COVID-19
has been mitigated by the rise of food delivery platforms and new business models, such as
cloud kitchens (centralized commercial kitchens that provide food businesses the facilities
needed to prepare menu items for delivery and takeout), food trucks, and kiosks. In addition,
strong consumer demand for bakery products, driven by latest food trends (e.g., a surge in
donut sales and croissant sales in the last two years), also helped the yeast market recover from
the impact of COVID-19 on the foodservice industry. For example, in October 2020, the Thai
operation of Dunkin' Donuts announced plans to ramp up its expansion in 2021, planning to
spend THB60 million to open 40-60 new branches, up from 30 new branches in 202016. The B2C
channel remained resilient during COVID-19. Many consumers turned to cooking and baking as
a pastime when outdoor activities were restricted. Similarly, in the B2B channel, the impact of
COVID-19 has been mitigated by the resilience of large B2B customers. Some of the major baked
goods manufacturers and bakery operators, such as NSL Foods, S&P Syndicate and CPRAM, have
14 https://www.linkedin.com/pulse/differences-between-dry-yeast-compressed-bakery-products-akshit-
gupta/
15 Euromonitor’s estimation based on trade interviews with industry stakeholders in Thailand
16 https://thaiembdc.org/2020/10/22/dunkin-donuts-expanding-in-
thailand/#:~:text=Iconic%20American%20brand%20Dunkin'%20Donuts,craze%20continues%20amon
g%20Thai%20consumers

weathered the downturn through a variety of measures in cost management, efficiency

improvement and new business areas etc, and helped sustain demand in the B2B channel.
For 2021, the yeast market registered a decline of 3.0%. The decrease was mainly due to supply
shortages caused by slower imports. According to Thai Customs data, volumes of yeast
imported from Vietnam, the largest baking yeast supply country to Thailand, dropped by almost
20% due to COVID-19 cases spiking in 2021.
Table 6 Sales Value of Yeast Market in Thailand, including B2B and B2C Channels (2017-2026E)
2,000
50.0%
1,500 9.8% 8.8% 8.1% 7.3% 6.7% 6.1% 5.5% 20.0%

4.8%
Value (THB million)
-3.0%
-10.0%
1,000
-40.0%
1,156.8
500 969.0 1,033.5 1,096.0
822.0 861.8 835.6 903.3
688.2 755.6 -70.0%
0 -100.0%
2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E
Pancake and cake mixes market has been mainly driven by home baking trend, specifically with
regard to the recent rise of Korean and Japanese pancakes
Pancake and cake mixes are distributed through both B2B and B2C channels in Thailand. While
B2B sales contributed the majority of sales of cake mixes, demand for pancake mixes mainly
comes from end-consumers. In the B2B channel, the main customers of pancake and cake mixes
are foodservice businesses, such as bakeries and cafés. Using premix products allows the
foodservice operators to diversify their menu offerings in a more convenient way and maintain
a more consistent quality in their final products.
The pancake and cake mixes market registered moderate growth between 2017 and 2019 with
a CAGR of 3.8%. However, the market was impacted by COVID-19, particularly due to the
closure of hotels and foodservice businesses during lockdowns, resulting in a decline in pancake
and cake mixes sales in 2020 of 3.7%. For the period of 2017 to 2021, pancake and cake mixes
recorded a CAGR of 1.1%, reaching a market size of THB454.8 million in 2021. Before COVID-19,
growth in the pancake and cake mixes market was driven by demand from cafés and bakery

chains. B2B sales have grown as more foodservice businesses switched from in-house mixes to
premixes due to the latter’s more stable quality. However, the use of premixes slowed down in
recent years as companies faced increasing cost pressures.
B2C sales have grown steadily over the review period, thanks to the influence of cooking shows
and social media, as well as the entrance of pancake cafés selling Korean and Japanese desserts
in major cities such as Bangkok, which inspired consumers to make their own pancakes and
cakes at home. Since COVID-19, the home baking trend and work-from-home trend have
provided support for the pancake and cake mixes market even though sales in the B2B channel
declined.
Table 7 Sales Value of Pancake and Cake Mixes Market in Thailand, including B2B and B2C Channels (2017-2026E)
1,000
50.0%
4.1% 4.6% 20.0%

3.5% 3.0% 2.5% 2.2% 1.9%
value (THB million)
0.8%
-3.7%
-10.0%
500
-40.0%
468.8 475.8 490.1 502.3 513.4 523.1

435.0 450.1 451.2 454.8
-70.0%
0 -100.0%
2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E
There was no significant regulation changes specific for yeast and pancake and cake mix industry in
the review period

4.1.2 GROWTH DRIVERS AND CONSTRAINTS FOR THE BAKING INGREDIENTS MARKET IN
THAILAND
Growing consumer demand for baked food and desserts is the key driver for baking ingredients
For both yeast and pancake and cake mixes, the key growth driver over the review period is the
growing consumer demand for baked food and desserts, such as bread, pastries, pancakes, and
cakes. The shift in consumer preferences has been driven by a combination of the increasing
penetration and acceptance of Western culture, demand for convenience (e.g., bread and
pastries which can be consumed on the go), and consumers’ desire for novelty food, with the
rise of croissants and donuts being most relevant to the baking ingredients market. The rise in
disposable incomes is also a driver for baking ingredients, as it gives consumers more
purchasing power to buy baked goods from bakeries and expand their grocery shopping to
include baking ingredients.
For the yeast market, the B2B channel, which is the key consumption segment, has performed
well before COVID-19, as food manufacturers and foodservice businesses purchase baking
ingredients in large quantities and use them in food production to cater to strong consumer
demand for baked goods. The B2C channel has also performed well, because more consumers
are experimenting with baking at home, mainly as a hobby or a leisure activity.
For the pancake and cake mixes market, the home baking trend has been a key driver for the
B2C channel which accounts for the majority of pancake and cake mixes sales. Cooking and
baking shows on TV, such as Arjan Yingsak and Chef Pol, and people posting their baking
experiences on social media have created considerable interest in baking and driven demand
for home baking. Ready-to-use pancake and cake mixes make it easier for people to bake at
home as they do not need to prepare the cake mixes from scratch. The rise of Japanese and
Korean desserts and specialty pancake shops (e.g., Gram Pancakes Thailand, LeTAO Café, and
Souffle & Souffle Pancakes Café) in the foodservice sector has also inspired consumers to try to
make the desserts at home. For example, Gram Pancakes, a pancake chain which originates in
Japan, opened in Bangkok in 2019. The café originates from Osaka and is known for its fluffy
pancakes. The best seller is the premium pancake which is 4cm thick and comes in stacks of
three accompanied with “Nama Cream” (maple syrup, butter, and whipped cream)17.
Constraints for the baking ingredients market include COVID-19-related slowdowns and cost
pressures on businesses
COVID-19 and subsequent lockdowns have impacted businesses in the leisure and foodservice
industries due to reduced customer numbers and lower consumer spending on hotel stays and
dining out. As a result, B2B demand for baking ingredients has been impacted in the past two
years. This is reflected in slower growth of Thailand’s yeast imports since 2020. According to
17 https://aroimakmak.com/gram-cafe-pancakes-bangkok/

Thailand Customs data, import volumes of yeast grew by over 6% year on year over 2017-2019;
but slowed down to 3-4% in 2020 and declined by 4% in 2021 due to COVID-1918.
For the pancake and cake mixes market, the main constraint for the B2B channel has been
competition from in-house premixes which can be customized to businesses’ specific recipes.
Industrial manufacturers generally prefer to develop their own premixes in-house, as this gives
them more control over the quality and composition of the premixes and allows them to reduce
costs. In the B2C channel, the key constraint is the relatively small target market which is
currently limited to high-income consumers in urban areas due to the high price of pancake and
cake mixes and the costs associated with baking at home (e.g., having the right kitchen
equipment and higher energy costs). Since COVID-19, rising prices have increasingly become a
constraint for pancake and cake mixes. Faced with cost pressures, some businesses have turned
to in-house mixes which are cheaper than commercial premixes. Consumers are also feeling the
pressure of inflation and have started cutting back non-essential groceries, including pancake
and cake mixes. According to the University of the Thai Chamber of Commerce, Thailand’s
Consumer Confidence Index fell for the fourth straight month in April 2022, as consumers
remained concerned about rising costs of living and high energy prices19.
4.1.3 BAKING INGREDIENTS MARKET OUTLOOK IN THAILAND
Yeast market will continue to benefit from the shift to Western bread and baked goods
The yeast market is expected to register strong growth over the forecast period, with a
projected CAGR of 6.4% between 2022 and 2026 to reach THB1,156.8 million in 2026. The
market will be mainly driven by strong demand for baked goods which results from the
continued shift in consumers’ lifestyles toward Western diets and an increase in consumption,
such as more frequent visits to bakeries and cafés. Growth is likely to be slower than pre-
COVID-19 times, as the high level of inflation may have some impact on consumer sentiment,
including the consumption of baked goods.
Pancake and cake mixes will mainly be driven by B2C sales, while B2B sales face challenge due to the
continuing trend of businesses using in-house mixes
The pancake and cake mixes market is expected to register a more moderate CAGR of 2.4%
between 2022 and 2026 to reach THB523.1 million in 2026. Its growth in 2022 will be largely
driven by the market’s recovery from the pandemic as foodservice businesses reopen and
tourism activities resume. However, the growth is expected to slow down in the following years,
as some bakery customers are expected to develop their own in-house premixes to save costs or
to have more control over their recipes. The emergence of more product choices, new formulas
http://www.customs.go.th/statistic_report.php?tab=by_statistic_code&s=xnpSKgBItTYnSWhF
18
https://thepattayanews.com/2022/05/10/thailands-consumer-confidence-index-hits-lowest-in-eight-
19
months-due-to-rising-cost-of-living-and-fuel-prices/

and, innovations may create sufficient differentiation for industrial customers and bakeries to
choose commercial premixes over in-house cake mixes.
The B2C channel is expected to grow faster than the B2B channel and therefore will become a
more important channel for pancake and cake mixes. There is potential for the home baking
trend, which gained momentum during COVID-19, to continue post-pandemic, as consumers
developed an interest in baking during the lockdowns, and with the experience and equipment
at hand, will be expected to continue baking as a hobby or a leisure activity.
The emergence of new products in pancake and cake mixes could be another growth driver for
the B2C channel by stimulating consumers’ interest in baking. As consumers become more
savvy and sophisticated through exposure to new recipes and flavors in restaurants, cafés, and
bakeries, they will have higher expectations for home-made cakes and desserts, and will be
looking out for high-quality ingredients for home baking.
4.2 COMPETITIVE LANDSCAPE OF BAKING INGREDIENTS MARKET IN

THAILAND
Yeast market is concentrated and dominated by imported brands and large distributors
The yeast market is concentrated, as the market is dominated by a few large distributors which
import and distribute global brands such as LeSaffre Saf-Instant, Angel Yeast, and Bruggeman.
The top five players accounted for more than 75.0% of yeast sales value in 2021. The market
has become more fragmented over the review period, due to the entrance of new brands to the
Thai market, such as Fermipan and Mauripan.
KCG Corporation among one of the top five players in yeast market through its distribution of the
Belgian brand Bruggeman
Almost all of the commercial yeast in the Thai market is imported. The main import countries
are France, Vietnam, China, and Belgium. KCG Corporation is the third largest player in the yeast
market, through its distribution of the Belgian brand Bruggeman.
Other leading yeast brands include Saf-Instant yeast (owned by the global leading yeast
manufacturer LeSaffre Yeast Corporation and imported from France and Vietnam by Siamex Co
Ltd), Fermipan (imported from Vietnam) and Mauripan (imported from Vietnam), Angle
(imported from China), Eagle (imported from China), Anchor, Pakmaya, and Numaya. Different
brands have carved out market shares in specific sub-segments of the yeast market. For
example, Angel and Mauripan yeast are mainly used by bakeries and institutional customers;
Fermipan is used by hotels and foodservice customers, and Bruggeman is strong across all the
B2B segments.

Table 8 Competitive Landscape of Yeast Market in Thailand (Company Sales Value, B2B and B2C Channels) (2021)

1 Company 1 43.0%
2 Company 2 11.6%
4 Company 4 6.5%
5 Company 5 5.7%
Pancake and cake mixes is more fragmented than yeast with a large number of imported and
domestic brands
The pancake and cake mixes market is fragmented with a large number of players. The top five
players accounted for 58.0% of the market size in 2021. Some of the leading players such as
Thai Nisshin Technomic and Nippon Flour Mills produce pancake and cake mixes for both
export overseas and local distribution, while some are imported brands such as Dr. Oetker,
Morinaga, McGarrett, and Orgran. Examples of local brands include Imperial, Tasuko, and Vista.
The competitive landscape has been quite stable over the review period, with the leading
players maintaining their market share.
KCG Corporation is the second largest player in pancake and cake mixes through its Imperial brand
KCG Corporation is the second largest player in pancake and cake mixes with a value share of
14.2%. It is a leading player in both the B2B and B2C channels through the Imperial brand,
which offers high-quality products at very competitive prices and has a strong presence in
modern retail formats.
Other players in the market include both local companies as well as foreign companies, which
established a manufacturing presence in Thailand to produce various premixes to sell locally
and for export.
Table 9 Competitive Landscape of Pancake and Cake Mixes Market in Thailand (Company Sales Value, B2B and B2C
Channels) (2021)

1 Company 1 16.3%
3 Company 3 10.2%
4 Company 4 9.2%
5 Company 5 8.1%

KCG Corporation’s main product offerings for baking ingredients are positioned in the premium
segment
KCG Corporation’s Imperial pancake mix products are positioned in the premium segment of
the pancake market. Its price is more competitive than the majority of other premium brands,
such as Betty Crocker, Bisquick, Kenton and Organ. Among the premium brands, Vista appears
to be significantly more expensive than the rest. The main mass brands in the Thai market
include DR Oetker and Morinaga, and their prices are more affordable than premium brands.
In the yeast market, KCG Corporation has sole distributorship for the premium brand
Bruggeman from Belgium. Its pricing is comparable to Saf-Instant Yeast another leading
premium brand which originates from France. Perfect is a brand in the premium segment which
retails at significantly higher price than Bruggeman and Saf-Instant Yeast. Examples of popular
mass brands include Pakmaya from Turkey and Angel from China.
4.3 BARRIERS TO ENTRY TO BAKING INGREDIENTS MARKET IN THAILAND
Competition from incumbent brands is the key barrier to entry
The yeast market is relatively stable as the market is dominated by a few incumbent
international brands. The well-established partnership between existing yeast brands and their
B2B customers may be a barrier to entry for new brands, because industrial customers and
bakery chains may prefer to continue with the brands that they are already using or familiar
with to ensure stability in the quality of ingredients and to avoid the cost of adjusting to a new
brand. In the pancake and cake mixes market, the key barrier to entry may exist in competition
from current brands as well as in-house premixes which some cafés and restaurants have
developed as part of their own recipes. For pancake and cake mixes targeting the B2C segment,
the market is fairly crowded with many consumer brands; hence new entrants will need to
demonstrate product differentiation, such as new flavors or other areas of innovation, to take
share from current brands.

5. BISCUITS MARKET IN THAILAND
5.1 BISCUITS MARKET OVERVIEW
Biscuits consumption has been growing in Thailand as consumers increasingly take to Western
snacks
Biscuits in Thailand is a large market worth tens of billions of baht, thanks to the country’s large
population and strong snacking culture. Thai consumers love to snack, and they consume a wide
range of snacks, from street food to sweets and biscuits. Traditionally, popular snacks consist of
street food such as spring rolls, chicken or beef satay, raw vegetables with spicy dip, soups,
salads, and sweets, but packaged snacks such as biscuits and cookies have become more
popular due to the convenience they offer and consumers’ increasing acceptance of Western
food.
The majority of the biscuits sold in Thailand are sweet biscuits due to their convenience and
affordability. Premium sweet biscuits are also popular gift choices for special occasions. The
consumption of savory biscuits is still quite low, as they are often consumed as part of a
Western meal, for example, together with salad; hence the market for savory biscuits is largely
limited to urban areas and among middle- and high-income consumers who have more
exposure to Western food.
Biscuits registered strong growth pre-COVID-19, driven by rising income and demand for
convenience
The biscuits market registered strong growth between 2017 and 2021 with a CAGR of 2.0%,
reaching THB15.4 billion in 2021. The market grew more strongly between 2017 and 2019,
posting a CAGR of 5.2%; however, it declined by 4.7% in 2020, followed by a recovery of 2.7% in
2021. Rising incomes and a growing acceptance of Western food, including Western snacks such
as biscuits, cookies, and crackers, are the key drivers for the growth of biscuits over the review
period. Biscuits also serve as convenient and affordable snack options which appeal to
consumers who live a busy lifestyle and would prefer snacks that require no preparation.
COVID-19 had impacted the behavior of consumers in multiple ways, such as people socialising
less, staying at home more, spending more cautiously, and becoming more aware of their diet
and food choices. Snacks, including biscuits, which are considered to be non-essential, are
among the grocery categories which consumers cut back during the pandemic. Some consumers
also become mindful for their food choices for health reasons. However, the impact of the
pandemic on biscuits consumption has been mitigated by the stay-at-home trend, as consumers
stocked up on food for home consumption, particularly those products with a long shelf life.

Product innovation and health-oriented biscuits are some of the key trends in the biscuits market
Biscuits in Thailand is a vibrant market with continuous product innovation which also
contributed to growing consumer interest in biscuits. Leading international and domestic
players have led the efforts in product innovation as they have the resources to develop new
flavors and experiment with new products in local markets. For example, KCG Corporation, the
brand owner of Imperial biscuits and a distributor of Sunquick concentrated flavored drinks in
Thailand, launched Imperial Sunquick Sandwich Cookies in June 2021. The sandwich cookies
come with the Sunquick Mandarin flavor, which was a unique addition to the sandwich cookies
market in Thailand20. KCG Corporation also launched Imperial Cheese Dip Wholewheat Crackers
in the Thai market in June 2021. This product offers a combination of cheese and crackers, and
it is expected to appeal to consumers who are looking for nutritious and tasty savory biscuits.
Other examples of new launches over the review period include the introduction of new flavors
under Thai Lotte’s Koala’s March cookies brand, which helped increase the sales of Koala's
March despite COVID-19.
Health-oriented biscuits is also an emerging trend in the biscuits market. As consumers become
more health conscious, particularly due to the pandemic, Thai consumers are displaying much
stronger demand for health and wellness products. The trend has created new opportunities for
healthier products in biscuits, such as those made with less sugar or natural ingredients. For
example, in July 2021, Thai snack brand Grainey launched a new mini almond cookies product
with multigrain chocolate chip flavor.
20https://www.minimeinsights.com/2021/06/26/imperial-cookies-x-sunquick-collab-throws-a-flavor-
challenge-to-sandwich-cookies-
segment/#:~:text=Imperial%2C%20the%20KCG%20Corp%20brand,cookie%20segment%20dominated
%20by%20OREO.

Table 10 Retail Sales Value of Savory Biscuits Market in Thailand (2017-2026E)
3,500
50.0%
3,000
20.0%
RSP value (THB million)
2,500 4.5% 3.8% 3.9% 4.2% 4.5% 4.8% 5.1%

-1.9% 1.1%
2,000 -10.0%
1,500
-40.0%
2,402.7
2,085.9 2,180.3 2,285.7
1,000 1,942.8 1,905.3 1,925.9 2,001.5
1,790.2 1,871.4
-70.0%
500
0 -100.0%
2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E
Source: Euromonitor Passport Database (Packaged Food 2022 edition); Euromonitor’s estimation from desk research and trade
interviews with industry stakeholders in Thailand
Table 11 Retail Sales Value of Sweet Biscuits Market in Thailand (2017-2026E)
24,000
50.0%
18,000 20.0%
5.7%
5.0% 3.0% 4.7% 4.2% 4.0% 3.9% 3.8%

-5.1%
-10.0%
12,000
-40.0%
15,893.8 16,491.6
13,797.0 14,112.7 14,704.2 15,295.4
13,485.2
6,000 12,424.4 13,138.1 13,098.6
-70.0%
0 -100.0%
2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E

Wafer rebounced faster than other type of sweet biscuits due to innovations
In 2021, wafer contributed to 26% of total sweet biscuits retail sales value in Thailand. During
pandemic in 2020, demand for wafer had a slight decline as consumers cutting down the
spending on snacks as well as the impact from lockdown policies. However, wafer’s retail sales
in 2021 grew by 6.3%, reaching THB3.5 billion, and surpassed the pre-Covid level. It was largely
due to the new product development by the key players in wafer category, such as URC
(Thailand) Co. Ltd. and Thai President Foods Public Co. Ltd. The former launched new product
variants including Orange & Custard, Coconut & Pandan flavor under its Lausanne brand, and
introduced Jack 'n' Jill Tivoli x Ovaltine with the strategic partnership with Ovaltine.
Plain biscuits were impacted the most by COVID-19, but expected to recover to pre-Covid
performance by 2022
Plain biscuits consist of butter cookies, Danish cookies as well as boxed assortment of sweet
biscuits. Representative brands in Thailand include Imperial, Arsenal, Denisa and etc. As this
type of biscuits are often consumed in gatherings and parties or given as gifts while visiting
friends and family, the sales of plain cookies saw a deeper decline in 2020 among the different
sweet biscuit types. Yet, as Thai consumers resumed the social activities, demand for plain
biscuits also recovered. It’s expected that, retail sales for plain biscuits would be fully recovered
to pre-Covid level by 2022.
Table 12 Retail Sales Value of Sweet Biscuits Market by Type in Thailand (2017-2026E)
20,000
15,000 3,083.8
2,992.1
2,894.8
2,790.2
2,620.0 2,676.3
2,500.0 2,511.7 2,558.0
2,356.5 4,017.1
4,205.5
3,843.6
10,000 3,544.0 3,687.1
3,364.0 3,462.1
3,234.3 3,256.0
3,059.6
6,788.6 6,994.6
5,000 5,858.4 6,326.4 6,563.3
5,590.9 5,668.3 5,806.8 6,077.2
5,285.4
1,723.0 1,813.0 1,954.5 1,662.6 1,658.3 1,815.2 1,900.4 1,993.7 2,096.1 2,207.8
0
2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E
Plain Biscuits Filled Biscuits Wafers Other Sweet Biscuits

Packaged food labeling is governed by relevant government regulations
In Thailand, the general law governing food quality and integrity is the Food Act BE 2522 (AD
1979) ("Food Act"). The Food Act is applicable to the manufacturing and import of food for sale
in Thailand. Manufacturers and importers are required to obtain licenses prior to
manufacturing and/or importing food into Thailand. The use of additives, processing aids,
vitamins, minerals, novel foods, nutritive substances, and other substances are subject to the
Food Act. Such substances may be used in accordance with the limits set out by the Food Act21.
Labeling is required on all processed food, healthcare, and cosmetic products, imported or
locally produced. For imported foods, a Thai label must be applied where needed prior to entry
and be affixed to every single item of the food product prior to marketing. For most foods (other
than specifically controlled foods), the food manufacturers or food importers are responsible for
preparing a product label that complies with the Ministerial Notification No. 367 B.E. 2557 Re:
Food Labelling of Pre-packaged Food, Ministerial Notification No. 383 B.E. 2560 (2017), Re: The
Labelling of Pre-packaged Foods (No.2), and Ministerial Notification No. 401 B.E. 2562 (2019)
Re: The Labelling of Pre-packaged Foods (No. 3). In general, food labeling shall be in Thai
language and should contain the following information as a minimum:
• Name of food
• Food serial number
• Name and address of manufacturers, packers or importers
• Contents of food
• Percentage by weight of main ingredients
• Information regarding food allergy or hypersensitivity
• Declaration of functional class of food additives according to International Numbering
System (INS) for Food Additives
• Declaration of addition of food additives
• Shelf life
• Any warning statement, instruction for storage, cooking and use
5.1.2 GROWTH DRIVERS AND CONTRAINTS FOR THE BISCUITS MARKET IN THAILAND
Rising income, acceptance of Western food, product innovation and health trends are key drivers for
biscuits
The key growth drivers for the biscuits market during the review period are rising income and
changes in consumer preferences. As a non-essential product, the consumption of biscuits is
significantly related to income levels and consumers’ appetite to spend on discretionary
21 https://www.trade.gov/country-commercial-guides/thailand-labelingmarking-requirements

products. As disposable incomes continued to rise during the historical period, consumers
expanded their grocery choices, and the biscuits market has benefited from this trend.
Consumers are not only buying more biscuits, but there is a growing trend where middle- and
high-income consumers are buying branded and premium biscuits for the superior quality and
taste.
In terms of consumer preferences, biscuits have grown in line with the increasing acceptance of
Western culture and food. Although Thai consumers traditionally snack on street food, more
and more consumers have taken to biscuits due to their convenience and long shelf life. New
product launches which are aligned with the changing preferences of consumers, such as new
flavors and those offering a healthy value proposition, have also helped to stimulate consumers’
interest in biscuits. Thailand’s continued urbanisation also helped new products reach a large
consumer base, as populations in the major cities and towns have many opportunities to be
exposed to product launches through billboard advertising, media broadcasts, digital
advertising, and in-store promotions.
Price inflation and consumers’ perception of biscuits as high-sugar food are main constraints
As prices of biscuits continue to rise in 2022 following the increase in the prices of raw
materials and the costs of production, biscuits could become less affordable for some families.
The costs of key ingredients used in making biscuits, such as flour, sugar, and fats (e.g. butter,
vegetable fats), have risen significantly since the middle of 2021. Production costs and
transportation costs have also increased due to the increase in fuel prices. Furthermore, the
general trend of rapid food inflation is impacting consumer sentiment and some consumers are
expected to cut back on non-essentials including biscuits.
Growing health awareness is also a potential constraint for biscuits. Since the pandemic,
consumers have become even more conscious of the food they consume and the impact on their
health. As some consumers become concerned about the sugar level or the use of trans fats in
biscuits, they may reduce the consumption of biscuits or switch to healthier snacks, which will
likely impact biscuit sales. However, those biscuit brands known to use healthy ingredients or
with healthy image might gain more attraction in future.
5.1.3 BISCUITS MARKET OUTLOOK IN THAILAND
Biscuits is expected to return to normal growth with the recovery of the tourism sector and the
overall economy
The Thai biscuits market is expected to grow moderately over the forecast period, driven by the
country’s economic recovery from COVID-19. With the easing of lockdown restrictions,

consumers have started to travel and socialise more. This is expected to generate more demand
for biscuits which is a popular snack consumed when people are on the go. The anticipated
recovery of the tourism industry may also contribute to the growth of the biscuits market. As
the number of domestic and international visitors recovers, demand for biscuits from
hospitality and foodservice venues is expected to increase, given that biscuits are often
provided as part of a hotel stay or consumed as part of a Western meal. In the short term, the
recovery of biscuits may be hindered by rising food prices which may force some consumers to
cut back on non-essentials including biscuits.
5.2 COMPETITIVE LANDSCAPE OF BISCUITS MARKET IN THAILAND
Highly fragmented biscuits market reflects the strong competition among a large number of brands
The biscuits market in Thailand is very fragmented. There are many international brands as
well as a large number of domestic brands due to the diverse range of products and biscuit
types in the market. KCG Corporation is a leading player in the biscuits market. It offers the
premium brand Imperial (high-quality products at reasonable prices), as well as a number of
mass-market brands with very affordable prices, such as Violet and Rosy, catering to different
target consumer segments.
Due to strong competition in the biscuits market, product innovation and marketing have
become important in helping biscuits brands capture consumer interest and compete with other
players. For example, KCG Corporation the brand owner of Imperial biscuits, launched Imperial
Sunquick Sandwich Cookies and Imperial Cheese Dip Wholewheat Crackers in June 2021,
adding new flavors and new ingredients to its Imperial line of biscuits. Thai Lotte Co., Ltd., the
brand owner of Koala's March cookie snacks, has been active with marketing activities which
engage with younger consumers and raise awareness of the products, such as school visits
where it gives out products and prizes, and a marketing campaign which allows consumers to
design their own Koala’s March gift box.
New biscuits brands have entered the Thai market over the review period, many of which focus
on organic or premium ingredients, targeting niche consumer segments.
Leading players account for more than 80% of the savory biscuits market
There are many brands of savory biscuits in the Thai market, but the leading players have
captured the majority of the market. In 2021, the top five players accounted for 83.9% of savory
biscuits sales in Thailand. KCG Corporation is one of the major players in savory biscuits, with
more than 10% of market share in 2021. It offers several brands in this space, including
Imperial, Rosy, and Violet. Rosy and Violet are mass-market brands with affordable prices, while

Imperial is positioned as a premium brand. Other major players in savory biscuits include Thai
President Foods Public Co Ltd, Mondelez International (Thailand) Co Ltd, and Thai Glico Co Ltd.,
etc.
Table 13 Competitive Landscape of Savory Biscuits Market in Thailand (RSP Sales, B2C Retail Channels) (2021)

1 Company 1 31.0%
2 Company 2 25.1%
3 Company 3 14.1%
5 Company 5 3.3%
Leading players in sweet biscuits tend to multiple brands and present in different subcategories
Sweet biscuits market is more fragmented than savory biscuits, as it is a large market with
significant competition and many brands offering different types of sweet biscuits. The leading
players include both international and domestic players, and they all have established well-
known brands in the Thai market. KCG Corporation is one of the leading players in sweet
biscuits. It offers several brands in its product portfolio, including Okies, Sweet Time, Cookie
Choice, and Imperial Cookies. Through its premium brand Imperial, KCG Corporation has
established strong presence in a wide variety of sweet biscuits (e.g., cookies and wafers).
The other major players in sweet biscuits include URC (Thailand) Co., Ltd, Thai Glico Co Ltd,
Mondelez International (Thailand) Co Ltd, etc. URC (Thailand) Co., Ltd has a strong presence in
the wafers segment with several brands, including Tivoli coated wafer, Lausanne plain wafer,
and Jack’n Jill Jumbo, a plain wafer filled with cream in jumbo size. The company is also a major
player in the cookies segment through the Fun-O brand. Thai Glico Co Ltd is known for Pocky
biscuit sticks, while Mondelez International (Thailand) Co Ltd is the owner of several well-
known brands such as Oreo cookies, Chips Ahoy cookies, and Ritz crackers.
Table 14 Competitive Landscape of Sweet Biscuits Market in Thailand (RSP Sales, B2C Retail Channels) (2021)

1 Company 1 29.6%
2 Company 2 17.0%

3 Company 3 9.2%
4 Company 4 7.1%
Table 15 Competitive Landscape of Plain Biscuits Market in Thailand (RSP Sales, B2C Retail Channels) (2021)

1 Company 1 26.7%
3 Company 3 20.3%
4 Company 4 8.8%
5 Company 5 3.6%
KCG Corporation has brands with premium as well as mass positioning in biscuits
KCG Corporation’s Imperial biscuits are positioned in the premium segment of the biscuits
market. Most of the premium brands are international brands, such as Chip ahoy and Walkers,
and the prices of Imperial biscuits appear to be more competitive than the international brands.
In the mass segment, there are both local and international brands, but local brands appear to
be more prevalent. KCG Corporation offers Rosy and Violet brands for the mass segment and
their pricing are comparable to the other mass brands. The international brands in the mass
segment, such as Oreo and Ritz, have similar prices to local brands like Bissin, Fun-O and Hwa
Tai. Pocky biscuit sticks, a Japanese brand, appears to be more expensive than most of the mass
brands in terms of price per kg.
5.3 BARRIERS TO ENTRY TO BISCUITS MARKET IN THAILAND
Significant marketing investments and resources for product innovation are key barriers to entry
Due to the highly competitive nature of the biscuits market, new entrants face significant
barriers to entry in the Thai market. New entrants will need significant investments in branding
and marketing efforts to gain acceptance and compete successfully with established players.
The lack of an extensive distribution network is also a potential barrier to entry. As the majority

of biscuits sold in Thailand are sold through the retail channel, it is important for new entrants
to establish an extensive distribution network in both traditional and modern retail channels in
order to reach a wide customer base.
The need for continuous product innovation is also a barrier to entry to smaller players and
budget brands who do not have the resources for product development. Due to consumers’
demand for novelty in biscuits products, companies need to adapt their products to consumer
tastes and changing preferences. This creates new opportunities for offering new products that
stay on top of consumer trends, but also presents challenges for new entrants who may not have
as much knowledge of Thai consumers’ preferences as incumbents or may not have the
resources (e.g. spending for product development and marketing) to experiment with new
product offerings.

6. ADDENDUM: KCG CORPORATION COMPANY LIMITED

OVERVIEW
The intent of this section is to facilitate content for the Client’s Business Overview section
of the prospectus and is NOT be included as part of the Industry Market Report and the
Industry Overview section of the prospectus. (i.e., Euromonitor’s Letter of Authorization
thus excludes content composed for this section as its purpose it to assist in the
generation of content to be used by the Client to describe its own operations based on
information obtained from the Client and relevant stakeholders)
KCG Corporation Company Limited is a leading manufacturer and distributor of dairy, biscuits, and
baking ingredients products
Founded in Thailand in 1958, KCG Corporation Company Limited (“KCG Corporation”) is a

leading manufacturer and distributor of products in various categories in dairy, biscuits, foods,
and baking ingredients, etc. The company operates a multi-brand business model, which
includes its own locally manufactured brands (e.g. Imperial, Allowrie, Violet, Rosy, Cookie
Time), and imported brands (e.g. Arla, Elle & Vire, Tasuko, Bruggeman)
Competitive strengths 1: Strong portfolio of products and brands
With more than 60 years of history in Thailand, KCG Corporation is established as a leading
player in food and baking ingredients. For example, it is the leading player with more than 60%
market share in butter through Allowrie, Imperial, and other brands. It is also the largest player
in cheese with around 31% market share through the Allowrie, Imperial and Arla brands. In
pancake and cake mixes, it is the second largest player with close to 14% market share, through
the Imperial brand. It is also one of the top five players in sweet biscuits and savory biscuits
through the Imperial, Rosy and Violet brands.
The company has a diversified portfolio of dairy and food products, where it has full coverage
through its own brands and imported brands. Among its own brands, KCG Corporation offers
the premium brands Allowrie and Imperial, which are its core brands for high-quality dairy and
biscuit products. It also offers a wide range of mass-market brands, such as Rosy, Violet, and
Dairy Gold, which target the mass market with very affordable prices. In 2021, premium brands
account for approximate 60% of sales from KCG Corporation’s owned brands, while mass-
market brands account for the remaining 40%.
In addition to its own brands, KCG Corporation also offers a diverse portfolio of imported
products which cater to a wide range of consumer preferences. For example, for its dairy
product portfolio, it offers Arla, one of the largest dairy manufacturers in Denmark, as well as
Emmie, a leading manufacturer of high-quality dairy products from Switzerland as alternative
product choices.

Competitive strengths 2: Long-standing relationship with suppliers and imported brand principals
KCG Corporation has established and maintained strong relationship with its major suppliers
and business customers (e.g. imported brand principals), having worked with many of them for
over 10 years. KCG Corporation has built up an extensive sourcing network of both domestic
and international suppliers, such that it does not rely on a sole supplier for any of its raw
materials. The extensive supplier network and strong relationship with suppliers provide KCG
Corporation with reliable access to high-quality ingredients, such as vegetable oil, sugar, and
wheat, which are important ingredients for the production process, which translates into high-
quality products for end-customers.
KCG Corporation has also developed good relationships with imported brand principals, some
for over 20 years. Building on its reputation as a leading distributor of food products in
Thailand, KCG Corporation is the preferred partner for brand principals who are looking to
enter the Thailand market. This is reflected in the sole distributorship KCG Corporation has
established with many well-known brands such as Bruggeman (yeast), Corman (butter), Le Gall
(butter), Westgold (butter), Emmi (cheese), and Frico (cheese).
Through the long-standing relationship with suppliers and brand principals, KCG Corporation
has developed deep expertise about industry trends and consumer demands, which allows KCG
Corporation to continuously develop and launch new products into the market.
Competitive strengths 3: Diversified distribution channels and effective logistics network
KCG Corporation utilizes an integrated distribution channel with strong network serving both
B2B and B2C customers. Its distribution channels in the B2C segment include a large network of
modern trade stores (e.g., supermarket chains such as Makro, Tops, BigC, and Lotus and
convenience stores such as 7-Eleven and FamilyMart), and traditional trade stores. Its
distribution channels in the B2B segment include industrial businesses (e.g., food and bakery
manufacturers) and horeca customers (i.e., hotels, restaurants, and catering businesses).
With the rise of online shopping, KCG Corporation has expanded its product distribution to the
online channels, which include online marketplaces such as Shopee, Lazada, and LINE shopping.
KCG Corporation is also planning to launch an online marketplace which will focus on offering
products for foodservice businesses. In 2021, KCG Corporation sales through online channels in
Thailand reached THB23.2 million, recording a robust CAGR of 176.1% between 2019 to 2021.
KCG Corporation’s expansion of online distribution channels will help the company capture the
strong demand and high growth potential of the e-commerce market.
KCG Corporation’s presence in both B2B and B2C channels serves as a strategy of diversification
and reducing business risk. It allows the company to adjust its focus between the two channels
to orient toward the higher growth channel. In addition, it reduces the risk of investing in a
single channel. For example, during COVID-19, KCG Corporation’s B2B sales were significantly
impacted due to the closure of hotels and restaurants. This was however mitigated by an

increase in B2C sales. In 2021, B2B and B2C contributed to 37% and 63%, respectively, of total
sales.
The efficiency and reliability of logistics operations are important for KCG Corporation to
ensure its products reach customers quickly and maintain a high standard of quality and
freshness. KCG Corporation has an extensive supply chain network, which includes efficient
logistics systems and modern cold chain management facilities. As of February 2022, KCG
Corporation has warehouses at all three factories in Bangplee, Bangna, and Theparak, and three
distribution centers located in Chiangmai, Khon Kaen, and Surathani serving customers across
77 provinces in Thailand with 113 trucks for distributing products to customers nationwide. All
delivery trucks are installed with the data logger system for temperature control. The trucks are
equipped with real-time GPS systems to plan and track product transportation, ensuring that
customers will receive their goods on time.
Competitive strengths 4: Innovation and solutions provider
In addition to its food distribution and manufacturing operations, KCG Corporation also has a
strong focus on innovation. It provides a one-stop solution for products and value-added
services to quickly respond to customers’ needs and changing consumer trends. This is
important in helping KCG Corporation secure new clients in a competitive market. For example,
KCG Corporation set up the Imperial Bakery and Food Culinary School (IBAF) in 2018, offering
training in culinary techniques and skills to customers to support their businesses, and serving
as a platform to foster innovation and new initiatives.
KCG Corporation collaborates closely with B2B customers such as bakery chains and food
manufacturers to develop and launch new products under initiatives such as Menu Creation
with Customer and KCG Creative Center. In the KCG Creative Center, KCG Corporation’s own
full-time ambassador chefs work with contracted top celebrity chefs and 41 R&D personnel to
create new products and proactively approach B2B customers to promote new products.
KCG Corporation has established an Excellence Center to research and develop new products
through collaboration with suppliers. The Excellence Center leverages the expertise and know-
how of imported brand principals who are engaged as consultants. It has created new products
in response to latest consumer trends, such as products aligned to healthy lifestyles (e.g. rice
bran and canola spread) and the convenience trend (e.g. Cheese Squeeze and Pancake Shake).
Innovation and product portfolio diversification are two main strategies for future growth
Innovation and portfolio diversification/expansion are two key growth strategies for KCG
Corporation. It aims to adapt its strategies and product portfolios based on changing consumer
preferences and market trends, in order to capture the opportunities in potential high-growth
areas. For example, the company has plans to introduce innovative new products, including
hemp-based products, ketogenic diet foods, plant-based foods, and dairy snacks to cater the
needs of health-conscious consumers.

As part of the company's strategic move to diversify its business in the long term, KCG
Corporation has plans for domestic and international expansion through joint ventures or
M&As. In Mar 2022, KCG Corporation acquired Indoguna (Thailand) Co, an importer and
distributor of fresh food and frozen meat and seafood products. The acquisition will allow KCG
Corporation to expand its portfolio by taking on Indoguna (Thailand) Co’s extensive product
lines, covering hundreds of dairy products and fresh food products. The acquisition was aimed
at expanding KCG Corporation into fresh food, meat and seafood supply, especially for horeca
customers.

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Packaged Food Industry in Thailand

A custom report compiled by Euromonitor International for

KCG Corporation Company Limited

applicable terms and conditions with Euromonitor.

List of Contents and Tables

1.1 RESEARCH OBJECTIVE

1.2 SOURCES OF INDUSTRY INFORMATION

This “Industry Overview” section contains information prepared by Euromonitor International

1.3 RESEARCH METHODOLOGIES

1.4 FORECASTING BASES AND ASSUMPTIONS

Euromonitor International based the Euromonitor report on the following assumptions:

1.5 DEFINITIONS AND COVERAGE

© Euromonitor International Page 5

Market Size Definitions

© Euromonitor International Page 6

1.6 ABOUT EUROMONITOR

© Euromonitor International Page 7

2. MACROECONOMIC OVERVIEW OF THAILAND

Table 1 Population in Thailand (2017-2026E)

Source: Euromonitor Passport Data (Economies and Consumers 2022 edition)

Thailand is on a path toward incremental economic recovery toward 2026

© Euromonitor International Page 8

Gradual resumption of economic activities supported by exports, accelerated vaccination, and

3 Euromonitor Passport (Income and Expenditure 2021 edition)

© Euromonitor International Page 9

Table 3 Consumer Expenditure on Food in Thailand (2017-2026E)

© Euromonitor International Page 10

Source: Euromonitor Passport Data (Economies and Consumers 2022 edition)

Table 1 Food and Drinks E-Commerce in Thailand, Retail Value (2017-2026E)

11.4% 11.4% 20.0%

Source: Euromonitor Passport Data (Retailing 2022 edition)

© Euromonitor International Page 11

3. DAIRY MARKET IN THAILAND

3.1 DAIRY MARKET OVERVIEW

© Euromonitor International Page 12

3,000 6,091.1 -0.2

Market Value Size y-o-y growth %

© Euromonitor International Page 13

5,000 8.0% 9.5% 8.5% 7.5%

Market Value Size y-o-y growth %

© Euromonitor International Page 14

3.1.1 REGULATORY TRENDS

Thai government introduces a ban on artificial trans fats in early 2019

© Euromonitor International Page 15

© Euromonitor International Page 16

3.1.3 DAIRY MARKET OUTLOOK IN THAILAND

© Euromonitor International Page 17

© Euromonitor International Page 18

industries in Thailand. According to Euromonitor, consumer foodservice is projected to grow at

3.2 COMPETITIVE LANDSCAPE OF DAIRY MARKET IN THAILAND

© Euromonitor International Page 19

Ranking Leading Companies Market Share

© Euromonitor International Page 20

Ranking Leading Companies Market Share

3.3 BARRIERS TO ENTRY TO DAIRY MARKET IN THAILAND

© Euromonitor International Page 21

© Euromonitor International Page 22

4. BAKING INGREDIENTS MARKET IN THAILAND

4.1 BAKING INGREDIENTS MARKET OVERVIEW