Thailand Food Drink Report provides independent forecasts and competitive intelligence on Thailand's food and drink industry.
Political turbulence, a shell-shocked tourism sector, sagging global demand and subdued domestic consumer and business sentiment will conspire to bring down growth in Thailand in 2009. BMI has revised its real GDP forecast for 2009 down to 3.8% but that prognosis may be nudged lower still, particularly if the political situation descends into further chaos.
Despite political tensions and slower domestic consumption hanging over the Thai economy, both Thai Union Group (TUG) and Thai Union Frozen Products (TUF) reiterated plans during the quarter to meet financial year (FY) revenue targets. TUG stated that it was confident of achieving full-year revenue and net profit of THB69.9bn (US$2bn) and THB2bn (US$57.2mn) respectively, in spite of the prevailing economic conditions in many of the company's core export markets. TUF announced that it was confident of hitting its sales target of US$2bn by the end of 2008, with sales having reached US$1.54bn after the first nine months. Likewise green tea manufacturer Oishi Group confirmed that it expects to exceed its 20% annual revenue and net profit growth target in 2008, in spite of global economic weakness.
Indeed, the Thai food processing industry will welcome the announcement from the Federation of Thai Industries (FTI) during the quarter that concern about poor food production standards in China is expected to lead more Japanese investors to shift their production bases to Thailand in coming years. According to the FTI, Thai food exports to Japan next year are expected to increase to between 15% and 16% of total food shipments from an estimated 14% this year. Higher exports are expected next year for processed chicken, canned tuna and other fish, canned fruits and vegetables, spices, and food seasonings. However, the problems faced by Thai players looking to grow their business was reflected in the decision by ThaiBev in early December to shelve plans for a listing on the Stock Exchange following the strength of protest from the anti-alcohol lobby in the country. Although, the company is already listed on the Singaporean Stock Exchange, it had hoped that listing itself on the Thai stock exchange as well would enhance its brand awareness.
In summary, the prognosis for overall food consumption remains substantial, forecast to grow by 64.8% to reach US$50.1bn in 2013. However, should growth rates be lower than expected, consumer confidence is likely to take a hit, with spending on non-essential food and beverage products among the first things to be curtailed. Although a new Democrat-led government would remain business friendly, it is likely that the drawn-out political turbulence – especially the crippling blockade of the country's main airport – and the remote prospect of a real solution to Thailand's deep societal rifts may have left a serious dent in investor confidence.
Thailand Food and Drink Report Q1 2009 Sample
Source : http://www.researchandmarkets.com
Political turbulence, a shell-shocked tourism sector, sagging global demand and subdued domestic consumer and business sentiment will conspire to bring down growth in Thailand in 2009. BMI has revised its real GDP forecast for 2009 down to 3.8% but that prognosis may be nudged lower still, particularly if the political situation descends into further chaos.
Despite political tensions and slower domestic consumption hanging over the Thai economy, both Thai Union Group (TUG) and Thai Union Frozen Products (TUF) reiterated plans during the quarter to meet financial year (FY) revenue targets. TUG stated that it was confident of achieving full-year revenue and net profit of THB69.9bn (US$2bn) and THB2bn (US$57.2mn) respectively, in spite of the prevailing economic conditions in many of the company's core export markets. TUF announced that it was confident of hitting its sales target of US$2bn by the end of 2008, with sales having reached US$1.54bn after the first nine months. Likewise green tea manufacturer Oishi Group confirmed that it expects to exceed its 20% annual revenue and net profit growth target in 2008, in spite of global economic weakness.
Indeed, the Thai food processing industry will welcome the announcement from the Federation of Thai Industries (FTI) during the quarter that concern about poor food production standards in China is expected to lead more Japanese investors to shift their production bases to Thailand in coming years. According to the FTI, Thai food exports to Japan next year are expected to increase to between 15% and 16% of total food shipments from an estimated 14% this year. Higher exports are expected next year for processed chicken, canned tuna and other fish, canned fruits and vegetables, spices, and food seasonings. However, the problems faced by Thai players looking to grow their business was reflected in the decision by ThaiBev in early December to shelve plans for a listing on the Stock Exchange following the strength of protest from the anti-alcohol lobby in the country. Although, the company is already listed on the Singaporean Stock Exchange, it had hoped that listing itself on the Thai stock exchange as well would enhance its brand awareness.
In summary, the prognosis for overall food consumption remains substantial, forecast to grow by 64.8% to reach US$50.1bn in 2013. However, should growth rates be lower than expected, consumer confidence is likely to take a hit, with spending on non-essential food and beverage products among the first things to be curtailed. Although a new Democrat-led government would remain business friendly, it is likely that the drawn-out political turbulence – especially the crippling blockade of the country's main airport – and the remote prospect of a real solution to Thailand's deep societal rifts may have left a serious dent in investor confidence.
Thailand Food and Drink Report Q1 2009 Sample
Source : http://www.researchandmarkets.com
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