Thailand Food & Drink Report Q2 2013 - New Study Released

Despite the recently encouraging export signs, we expect the current year to remain challenging for the Thai economy, largely on account of the negative impact of structural problems in China that are expected to resurface. Moreover, we have repeatedly cautioned against the government's risky policy of subsidising rice production by promising to purchase rice from local producers at guaranteed prices. Nevertheless, we expect private consumption to grow at a relatively robust pace of 5.9% in 2013, before slowing towards 4.7% in 2014. However, we note that the risk of a sustained collapse in demand for manufacturing exports could potentially lead to widespread job losses in export-driven sectors.

Headline Industry Data (local currency)

* 2013 per capita food consumption value year-on-year (y-o-y) growth = +7.03%; compound annual growth rate (CAGR) forecast to 2017 = +5.99%
* 2013 soft drinks value sales y-o-y growth = +6.87%; CAGR forecast to 2017 = +7.50%
* 2013 alcoholic drinks value sales y-o-y growth = +6.32%; CAGR forecast to 2017 = +5.52%
* 2013 mass grocery retail sales y-o-y growth = +6.96%; CAGR forecast to 2017 = +6.63%

Full Report Details at
- http://www.fastmr.com/prod/589247_thailand_food_drink_report_q2_2013.aspx?afid=301

Key Industry Trends

Tesco To Make Thai Products Available Throughout Its Global Network: According to reports in November 2012, UK-based retailer Tesco's Thai subsidiary Tesco Lotus is to promote Thai fresh produce export trade by targeting exports of THB15bn (US$488.3mn) in 2013. The retailer reportedly also promised to promote Thai products to customers shopping at Tesco stores in the US, Europe and Asia.

PepsiCo Suffers Following Entry by Its Former Bottler: PepsiCo has suffered profit losses in Thailand following the market entry of Serm Suk, with its products 'pushed off the shelves of Thailand's retailers', since its previous bottling partner (of 59 years) launched its 'est' beverage in November 2012. The new drinks group, owned by a local billionaire, has already gained 19% of the country's cola sector since its introduction, generating an estimated US$1.8bn in sales. Risks to Forecasts

Elevated Political Risks: Thailand's political landscape is likely to be marked by occasional unrest over the coming years. We view growing tensions between the ruling government and anti-Thaksin groups seeking to topple Prime Minister Yingluck Shinawatra, as a major risk that could reignite widespread protests. In view of the escalating tensions, we would consider downgrading our short-term political risk ratings for Thailand should we see further evidence of political unrest over the coming months.

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Croatia Food & Drink Report Q2 2013
- Greece Food & Drink Report Q2 2013
- Italy Food & Drink Report Q2 2013
- Kuwait Food & Drink Report Q2 2013
- United Arab Emirates Food & Drink Report Q2 2013