Clmv Essay

Market Opportunity for Thai Condiments in CLMV

by Export - Import Bank of Thailand (EXIM Bank)

Thailand is the largest manufacturer and export of condiments in Southeast Asia, and ranks sixth in the global market following countries like the US, the Netherlands, Germany, China and Italy. Notably, Thailand’s export markets include the US, Japan, the Philippines, Austria and the UK. These countries have high demand for Thai relish such as fish sauce, seasoning sauce, MSG, curry spices, and seasoning powder. The recently diversifying global food trend along with the increasing popularity of Thai food in international markets make room for Thai condiments market share to grow continuously. In CLMV markets (Cambodia, Laos, Myanmar, and Vietnam) Thai condiment export also grows significantly, as consumers in CLMV countries prefer similar taste of food compare to Thais, and many are familiar and confident in Thai brands. Hence, the circumstance presents as a great opportunity for Thai condiment exporters to expand their market share in CLMV.

Overview of Exports of Thai Condiments
Export Value of Thailand’s food product and condiments
Unit : Million THB

Source: Department of Research and Intelligence, National Food Institute, 
Thailand’s Ministry

It is forecasted that export of Thai condiments to Cambodian market will expand in the near future, due to the urbanisation process that is taking place in many Cambodian cities, which drives growing number of middle class population. These emerging potential customers concern about the quality of the condiments, which should favour Thai goods that offers better quality products than the Vietnamese. Moreover, retail space in Phnom Penh will be increased to 450,000 square meter in 2017 (from 100,000 square meter in 2012), which should offer wider opportunity for various goods, including