EXPORT MARKET
DEVELOPMENT REPORT:
PISTACHIOS IN THAILAND
Euromonitor International
January 2016
EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
LIST OF CONTENTS AND TABLES
Local Market Infrastructure ........................................................................................................... 1
Local Market Overview ............................................................................................................. 1
Table 1
Chart 1
Market Size and Potential 2011/2016/2021 .................................................. 1
Population by Age Segments 2011/2016/2021 ............................................ 2
Usage and Acceptance of Various Product Types in Thailand ................................................. 3
Table 2
Consumption and Expenditure on Food by Sector 2011/2014 ..................... 4
Pistachios: Production, Trade and Consumption in Thailand ................................................... 4
Table 3
Production, Imports, Exports and Domestic Consumption of
Pistachios 2009-2014................................................................................... 4
Customer Perception of Product Origin .................................................................................... 6
Table 4
Chart 2
Table 5
Table 6
Vegetable, Fruit and Nut Exporters to Thailand 2014 .................................. 6
Vegetable, Fruit and Nut Exporters to Thailand 2014 .................................. 7
Country Source: Pistachios to Thailand 2014 .............................................. 8
Imports of Pistachios from USA 2009-2014 ................................................. 8
Regulatory Environment in Thailand ......................................................................................... 8
Pistachios: Market Trends & Developments ................................................................................. 9
Pistachios: Market Size ............................................................................................................ 9
Table 7
Retail Market Size for Pistachios in Thailand 2012-2017 ........................... 10
Pistachios: Main Varieties and Typical Retail Prices .............................................................. 11
Summary 1
Summary of Main Varieties for Pistachios .................................................. 11
Supply Chain and Retail Environment ........................................................................................ 11
Supply Chain Overview .......................................................................................................... 11
Summary 2
Summary of Key Companies for Pistachios ............................................... 12
Sales Through Retail Distribution Channels for Pistachios ..................................................... 12
Table 8
Sales of Pistachios by Distribution Format 2011/2014/2017 ...................... 13
Retail Distribution Channels Overview.................................................................................... 14
Table 9
Retail Distribution Channel Trends, Sites/Outlets 2011/2014/2017 ............ 14
Key Retail Formats in Thailand ............................................................................................... 15
Table 10
Table 11
Leading Supermarket Chains in Thailand, Sites/Outlets 2012-2014 .......... 15
Leading Hypermarket Chains in Thailand, Sites/Outlets 2012-2014 .......... 16
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
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EXPORT MARKET DEVELOPMENT
REPORT: PISTACHIOS IN THAILAND
LOCAL MARKET INFRASTRUCTURE
Local Market Overview
Background on Thailand
Thailand, although the largest state in the Indo-Chinese peninsula, has access to the sea only
in the far south. With Myanmar accounting for almost all of its shoreline with the Bay of Bengal,
its access to that sea is limited to a long but narrow (150 km wide) isthmus to the south which
eventually links up with Malaysia. Its more extensive coastline is on the Gulf of Thailand, where
it borders Cambodia in the east. In the northeast it shares a border with Laos.
Agriculture and manufacturing dominate the country‟s economy
The agricultural sector employs 42.5% of the work force. Major exports include palm oil, rice,
fish products, sugar and natural rubber. Thailand is the world‟s largest producer of rice. It is also
the world‟s largest exporter of canned tuna and prawn products as well as a major exporter of
fish. Drought and water shortages will curb yield in 2015. In 2015, the state-owned Bank of
Agriculture and Agricultural Cooperatives approved loans for to one million farmers.
Manufacturing accounted for 32.4% of GDP and employs 13.1% of the work force. Thailand is
a regional manufacturing hub with a low-cost work force which offers manufacturers favorable
conditions. The auto and electronics industries are especially important although the former is
struggling at present. The real value of gross manufacturing yield fell by 0.8% in 2014 but
performance is expected to improve in 2015.
Growth in the service sector is strengthening after several years of feeble gains. The real
value of tourist receipts fell by 6.8% in 2014 and growth of 3.8% is expected in 2015. Chinese
visitors are becoming an increasingly important economic boon for Thailand.
Exports from Thailand decline, as a percentage of GDP
Thailand‟s export markets are well diversified. The most prominent are China, the US, the EU
and Japan. In 2014, these markets accounted for 11.0%, 10.5%, 10.2% and 9.6% of total
exports respectively. The tax privileges available to Thailand under EU‟s Generalized System of
Preferences (GSP) were terminated in 2014. In 2014, Thailand‟s major exports consisted of
machinery and transport equipment (41.0%) and basic manufactures (12.9%).
Exports represented 55.6% of GDP in 2014, down from 64.4% in 2008. In 2014, exports (in
dollars) fell by 0.1% owing to the slowdown in China. In 2015, exports are forecast to fall by
2.5%. Exporters are being hurt by an economic slowdown in the country‟s key trade partners –
particularly Japan and China – and a stronger baht.
The current account surplus was 4.2% of GDP in 2014. It will widen to 5.0% in 2015.
Table 1
Market Size and Potential 2011/2016/2021
Exchange rate (Bt per US$)
GDP (US$ billion)
GDP per capita (US$)
© Euromonitor International
2011
2016e
2021f
30.5
347.9
5,153.0
35.7
444.1
6,427.8
37.1
630.5
8,983.6
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
Private consumption per capita (US$)
Total population ('000)
No. of households ('000)
Occupants per household
Urban population (%)
Household penetration of refrigerators
(%)
Source:
Passport
1,84,019.7
67,505.5
20,831.7
3.2
34.4
84.8
2,26,371.9
69,090.5
22,869.6
3.0
36.7
84.8
Euromonitor International from IMF/national statistics
Slowdown in population growth will result in reduction of young workers
Thailand‟s population was 68.5 million in 2014, an increase of 21.4 million since 1980.
Population growth was rapid in recent decades but is decelerating. The slowdown means the
country‟s pool of young workers will shrink by up to 10.0% over the next decade.
Median age in 2014 was 35.8 years, up from 19.7 years in 1980. The steady rise is indicative
of an aging process. The number of elderly (those over 65 years) was just 3.7% of the total in
1980 but jumped to 9.9% by 2014. In 2020, the share of this group will account for 12.3% of the
total.
Chart 1
Source:
Population by Age Segments 2011/2016/2021
Euromonitor International from national statistics/UN
Gradual increase in growth of spending on food and non-alcoholic beverages
Spending on food and non-alcoholic beverages increased by 32.4% from 2008 through 2013
to reach US$58.0 billion. Thailand is well known for its foodie culture, and good food can be
found almost everywhere – in private homes, restaurants and at street stalls. As incomes
increased in recent years, Thais are spending more on food. Thais have a great love of
snacking, usually on foods sold on the street or at local markets including fresh fruits, banana
fritters, meatballs, savory dumplings, satay sticks, and fried chicken. In rural areas, people are
more likely to eat at home or with neighbors, as there is a strong tradition of sharing food and
eating communally, cooking with fresh ingredients bought from local markets. In towns and
cities, people are far more likely to eat out, for convenience and because it is often cheaper to
eat at street stalls and neighborhood restaurants than it is to buy ingredients separately and
cook at home.
© Euromonitor International
3,20,298.8
70,180.7
24,226.7
2.9
39.6
84.8
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
Evolving Westernized flavors
Bangkok, along with other cities and tourist resorts, is home to world-class fine dining
restaurants, with Italian and Japanese eateries particularly fashionable at the moment.
Western-style fast food chains such as McDonald‟s and Burger King are also very popular
with young Thais. KFC experienced sales growth of 10.0% in the first 10 months of 2013,
according to a report in the Bangkok Post. These fast food restaurants are also seen as trendy
hangouts by Thai youths – so much so that in late 2012 McDonald‟s gave its customers a onehour time limit, to stop customers loitering in the stores.
Some experts are warning that the growing fashion for Western foods in Thailand is having an
effect on the nation‟s health. Adherence to unhealthy eating habits – characterized by excessive
consumption of diets high in fat and calories, processed foods and sweets but a lower intake of
fruit and vegetables – is a factor that has made many people more susceptible to chronic
diseases.
Increasing number of people preferring eating on the go
In urban areas, and especially among the young, there appears to be a growing trend towards
eating cheap microwaveable meals and packaged foods in the ubiquitous 7-Elevens and other
conveniences stores.
This attitude appears to be increasingly common, with young Thais eating more processed,
ready-made snack foods from these stores. 7-Eleven stores in Thailand adapt to local flavors,
selling pizza slices meant to evoke the flavors of Tom Yum, the nation‟s famously spicy seafood
soup, and burgers served between discs of sticky rice instead of buns.
Usage and Acceptance of Various Product Types in Thailand
Tropical climate suits variety of fresh food production
Thailand is the largest supplier and exporter of various fresh foods, especially tropical fruits, in
Asia due to its geography and climate. Thailand produces fresh food and tropical fruits such as
coffee, tea, durian, rambutans, coconuts, lychee, mangoes, and many other types of fruit. Since
the country cannot produce fresh foods which require a cold climate, it relies on imports to
respond to consumer need for these types of produce.
The tropical climate in Thailand is suitable for planting various vegetables, fruits, and nuts for
domestic consumption. This fresh produce is not only used for domestic consumption but is also
exported to neighboring countries and across America and Europe. Domestic production and
consumption of fruits and vegetables are higher than nuts, which are considered snacks or
ingredients in desserts or meals in small quantities.
Thai consumers exhibit an increased preference for imported fruits and vegetables, as they
perceive them to be of superior quality. Thai consumers generally consume mall quantities of
fruits and vegetables; therefore, in order to boost consumption, the government has relaxed its
import policy on fresh fruits and vegetables. The government not only supports trade policies but
also establishes health programs to help Thai consumers become more health-conscious in the
forecast period.
Thai economy affected businesses expansion and growth rate in general
The Thai economy increased 7.0% in 2014 from the previous year due to limitations both
within and outside the country. During the first half of 2014, the Thai economy did not grow
because of political instability that finally affected governmental operational processes,
consumer confidence, and tourism; in addition, high levels of household debt made consumers
more cautious of spending. Export businesses recovered slowly with growing foreign demand,
which in itself recovered from the global economic situation. Thailand also suffered from
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
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technological limitations which resulted in low production rates and new investments in various
businesses including fresh food, processed food, fruits, vegetables, and many other
commodities.
During the second half of 2014, the Thai economy started to recover, which led to strong
growth of domestic spending and travel expenditures. There were further investments in
telecommunication, retail, and agriculture in response to consumer demand. The basic inflation
rate increased due to higher fresh food prices including fruits and vegetables, and higher fuel
prices. Prices of basic commodities such as apples are expected to increase by 1.0% to 2.0%
through the forecast period of 2015-2017. This slight increase is due to higher costs for fuel,
logistics, labor and production, and inflation rates that continue to increase each year. Laborers
in high demand are paid from US$9 to US$10 per day but the government tries to maintain
stable labor costs. The government also decreased the interest rate from 2.55% to 2.0% per
year to stimulate business expansion related to higher local production and consumption in the
future.
Table 2
Consumption and Expenditure on Food by Sector 2011/2014
Per capita consumption (Kg)
Vegetables
Fruits
Nuts
Total consumer expenditure ($US million)
Vegetables
Fruits
Total Food
Source:
Note:
Note:
2011
2014
% change
2011-2014
54.0
96.0
10.7
55.2
102.0
12.8
2.3
6.3
19.3
2011
2014
10,950.9
4,116.4
46,576.8
11,544.4
4,916.6
51,276.9
% change
2011-2014
5.4
19.4
10.1
Euromonitor International from trade sources
Industrial usage is not included
Total expenditure on food includes:
bread & cereal, meat, fish & seafood, dairy, oils, sugar, fruits
& vegetables, and other food
Pistachios: Production, Trade and Consumption in Thailand
Pistachios are popular as a flavorful snack item
Thailand„s climate limits any possibilities of producing pistachios domestically; therefore,
pistachios in the local market consisted entirely of imports over the review period of 2009-2014.
In 2014, imports of pistachios increased by 12.8% from 2013, rising from 709 tonnes to 800.
Imports showed a CAGR of 17.3% for the entire review period. Increased import volume is
attributed to higher demand for healthy foods such as pistachios, which help protect against
cardiovascular disease and diabetes. As a consequence, domestic consumption of pistachios
gradually increased at a CAGR of 16.6% during the review period and reached 670 tonnes in
2014.
Pistachio exports consist of re-exports to neighboring countries such as Malaysia and
Indonesia. In 2014, Thailand re-exported 130 tonnes, which accounted for 16.2% of imports.
Table 3
Production, Imports, Exports and Domestic Consumption of Pistachios 20092014
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
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In tonnes „000
Local production
Imports
Exports
Total consumption
Source:
2009
2010
2011
2012
2013
2014
0.36
0.05
0.31
0.47
0.06
0.41
0.60
0.11
0.49
0.65
0.12
0.53
0.71
0.12
0.59
0.80
0.13
0.67
Euromonitor International from trade sources
Unsuitable climate for local production
Thailand‟s climate is not suitable for production of pistachios which require an arid climate,
characterized by low humidity, and cool but not frozen winters. Typically, pistachios grow
perfectly in the Middle East and central Asian countries such as Iran, Syria, and Turkey, as well
as the US and China. All pistachios in the Thai market over the review period were imported, so
pistachios are not a part of the local agricultural economy.
Thailand is a net importer of pistachios
Thailand relies on imports of pistachios mainly from the US and some Middle Eastern
countries. Imports increased at a CAGR of 17.3% during the review period. While a small
percentage of import volume is re-exported to neighboring countries such as Malaysia and
Indonesia, domestic consumption was entirely met by imports. In 2014, Thailand re-exported
130 tonnes, which accounted for 16.2% of imports. High demand for pistachios is driven by
consumer interest in healthy snacks and awareness of the health benefits of nuts such as
almond and pistachios. Nut processors in Thailand such as Heritage Snacks and Foods provide
various pistachio snacks such as roasted and salted pistachios.
Retail sector is main driver of pistachio consumption
The retail sector represented 80.0% of domestic pistachio consumption in 2014, while 20.0%
went through foodservice. Pistachios were not used by food processors to manufacture foods
such as ice cream, cookies or cereals as in other countries. This breakdown is expected to
remain consistent over the forecast period of 2015-2017.
Retail sales increased from 521 tonnes in 2012 to 535 tonnes in 2014, achieving total retail
value sales of US$11.50 million. This performance is driven by increased consumer interest in
healthy snacks including nuts and dried fruits, as pistachios are good source of vitamins,
minerals, healthy fats, fiber and protein. To meet this demand, nut processors in Thailand
provide consumers with various ready-to-eat options including roasted, salted and mixed nuts,
distributed to retail stores throughout the country. Some premium supermarkets and
hypermarkets have a specific section for dried fruits and nuts including pistachios in roasted and
salted format, in-shell and shelled. Loose pistachios are typically sold in grams rather than
kilograms because they are expensive. Packaged pistachios are available in 45-55 g package,
roasted or salted, in plastic bags or metal cans.
In foodservice, represented by hotel chains, airport lounges, airlines, and restaurants,
pistachios are used for the preparation of snack platters, desserts and salads. These companies
buy pistachios in 1 kg plastic bags. Many people enjoy pistachios with cocktails, mineral water
or soda. As they are expensive, pistachios are usually purchased only by people of higher
income.
Both shelled and in-shell pistachios need to be processed into roasted and salted products
before they reach retail channels and foodservice businesses, as there is not a market for raw
pistachios in Thailand as there is in the US. Therefore, most pistachio imports are processed by
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
local processors under local brands before they are sold to consumers. Thailand‟s food
processing industry does not use pistachios as a raw material as they are too expensive.
Customer Perception of Product Origin
Healthy products of higher quality are in demand
Healthy lifestyles are a new trend among urban people. Consumers have tight schedules
during the week but have a bit more time over the weekend. Therefore, they do not have time to
prepare quality food during the week, but try to buy quality products in supermarkets and
convenience stores closer to homes or nearby their workplaces. Thai consumers base their
perceptions of fresh fruits and vegetables depending on country of origin, and they associate
imported foods with high quality having original flavors. For instance, apples from New Zealand
and the US with their crisp texture and appealing fragrance are popular for their quality. Honey
queen oranges from Thailand are smaller and less sweet than oranges from the US.
Consumers are also aware that locally grown produce is less expensive than imports, but
their choices depend on their preferences and purposes of consumption. Prices of imported
produce from the US, Chile, New Zealand, Australia, and even China are much higher than
locally grown produce. In addition, consumers perceive imported produce as higher quality.
Price is another significant factor that determines consumer behavior due to the economic crisis
which made Thai consumers wary of spending. Both retail consumers and foodservice
operators prefer locally grown produce instead of imports for issues of cost, except for fruits and
vegetables that are not produced locally such as apples, blueberries, cranberries, and peaches.
Foodservice providers and food processors usually purchase directly from farms in order to
receive large amounts of fresh, high-quality produce at low prices.
China is key trade partner for import and export food businesses of Thailand
According to the Food and Agriculture Organization of United Nations, China is the biggest
exporter of agricultural products in Asia. Thailand follows in second place, since these two
countries have similar developments of agricultural products, conservative production
processes, technology levels, and market structures. Agriculture production in Thailand and
China is similar, especially in regards to fruits. Agriculture products with significant export
business generate income for each country but also require a strong labor force. Both Thailand
and China expect to dominate agriculture markets in other countries as well. The differences in
climate of both countries create differences in advantages between the two. Thailand is in a
tropical area where there are storms in some periods of the year, while China has four seasons
which can grow fruits, nuts, and vegetables that vary by each season. Canton is the main area
that imports Thai fruits especially Nan Hai market which is the biggest market for agriculture
imports in China.
Thailand also imports many type of fresh produce from the US which has a reputation for high
quality but is more expensive due to import taxes and logistics costs. Fresh fruits imported from
the US include apples, blueberries, cranberries, strawberries, grapes, lemon, and oranges.
Thailand imported fresh fruits from the US less frequently than China, but imported many
different kinds of vegetables, legumes, dried fruits and nuts from the US such as peas,
pistachios, almonds, walnuts, lentils, potatoes, and raisins. These commodities imported from
the US are mostly available year-round. Consumers perceive imported products from the US as
high quality and understand that US farmers use advanced technology starting from product
selection through hygienic packaging.
Table 4
Vegetable, Fruit and Nut Exporters to Thailand 2014
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
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Partner
China
Cambodia
Lao PDR
Indonesia
Myanmar
Others
World
Source:
Chart 2
Source:
„000 tonnes
% share
718.3
557.2
147.7
94.0
49.6
207.6
1,774.5
40.5
31.4
8.3
5.3
2.8
11.7
100.0
Euromonitor International from United Nations Commodity Trade Statistics
Vegetable, Fruit and Nut Exporters to Thailand 2014
Euromonitor International from United Nations Commodity Trade Statistics
Pistachio perception is driven by packaging brand
Pistachios in Thailand were mainly imported from the US, Iran and China. Worldwide, Iran is
the major producer of pistachios, so many other countries re-export Iranian pistachios. In
Thailand, US pistachios dominate the market with a significant 86.8%, with Iran coming at a
distant second with 9.4%. Due to consistent quality and reasonable prices, US pistachios have
gained ground in Thailand.
Thai consumers care more about price and flavor than origin. However US Kerman pistachios
are widely popular thanks to their high quality and abundant supply.
US pistachios dominate sales
In 2014, imports of pistachios from the US measured 695 tonnes, increasing at a CAGR of
21.0% during the review period and holding the lead in pistachio imports. Due to high production
in the US, pistachios from the US are available at lower prices, which allow them to be
competitive. US production of pistachios increased due to excellent growing conditions and
larger production area, while domestic consumption in the US remained stable, leaving a
greater volume for export. Competitors such as Iran saw reductions in production area and
export their pistachios to several regional trade partners including Iraq and the UAE. Other
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
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suppliers such as China decreased their exports due to increasing local demand from the
Chinese middle class.
The Russian ban has no effect on trade of this commodity in this country.
Increasing demand for pistachios among Thai consumers is attributed to health trends and
the significant health benefits of pistachios. US producers should be able to maintain the lead
position in this market as long as they continue providing competitive prices. In addition, with the
signing of the Trans-Pacific Partnership (TPP), which Thailand is expected to join in the forecast
period, pistachio imports from the US are expected to increase in the forecast period.
Table 5
Country Source: Pistachios to Thailand 2014
Partner
„000 tonnes
% share
0.69
0.07
0.02
0.01
0.01
0.00
0.00
0.80
86.8
9.4
2.5
0.5
0.5
0.2
0.1
100.0
USA
Iran
China
Malaysia
Turkey
Germany
UAE
Others
World
Source:
Euromonitor International from UN/national trade statistics
Table 6
Imports of Pistachios from USA 2009-2014
tonnes „000
Imported pistachios total
Imported pistachios (USA)
USA % share of imports
Source:
2009
2010
2011
2012
2013
2014
0.4
0.3
74.4
0.5
0.4
85.6
0.6
0.5
83.0
0.7
0.6
85.4
0.7
0.7
95.4
0.8
0.7
86.8
Euromonitor International from UN/national trade statistics
Regulatory Environment in Thailand
Regulations introduced to prevent chemical residues
The Bureau of Information, Ministry of Public Health released information on measurements
to address hygienic and safety issues with fruits and vegetables to prevent contamination and
chemical residue. The Ministry of Public Health issued four measurements to control quality
before imported produce can be released to the market, set up a health risk assessment center
and a operation center to inspect fruits and vegetables before they enter the country, and
cooperates with other related Ministries to control chemical substances on fruits, vegetables and
nuts.
VAT and tariffs
The Thai Customs Tariff is based on the Harmonized Commodity Description and Coding
System (HS) governed by the Customs Tariff Decree B.E. 2530 (A.D. 1987) of Thailand.
Thailand has bound all tariffs on agricultural products in the World Trade Organization (WTO).
Agricultural tariffs are set at an average of 39.9% ad valorem, compared with the average
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applied MFN tariff on agricultural products of 22.0%. Tariffs on fresh fruits (including citrus fruits
and table grapes) and vegetables, fresh cheese, and pulses (dried peas, lentils, and chickpeas)
are similarly high.
Pistachio imports to Thailand are levied at an ad valorem rate of 10% or 8.50 Baht (US$0.24)
per kg, whichever is higher; 33.50 Baht (US$0.93) per kg but not more than 40.0%. Additionally,
a value-added tax (VAT) of 7.0% is also levied. Pistachio imports from countries with free trade
agreements with Thailand are exempt from tariffs and are only levied a 7.0% VAT, which has
been in place in Thailand since 1992 replacing the business tax (BT). A pistachio import tariff
exemption is granted for ASEAN countries, Australia, New Zealand, and Peru.
FTA opened up more trade
A free trade agreement was established by China in January 2005 with ten Asian countries
allowing free trade without charging import tax. Fruits, nuts, and vegetables were categorized as
Highly Sensitive, which decreased taxes by 40.0% through 2014 and will be decreased by
50.0% in 2015, finally dropping to 0.0-5.0% by 2018. Some imports and exports of fresh
produce received tax free status. This FTA among Asian countries allows taxes to be decreased
no more than 10.0%. The purpose is to create more free trade by reducing quantity, terms and
conditions, and tax reduction of products on the Highly Sensitive list.
Standards of food labeling in Thailand
The Ministry of Public Health is an organization that oversees food label regulations in
Thailand on all kinds of food products including local and imported fruits, vegetables, and nuts.
Food label regulations in Thailand are issued for consumers to be fully informed about the food
they purchase. Information required on food labels includes: product type; brand or trademark of
manufacturers registered in and distributed in Thailand; brand or trademark of distributors or
importers registered and distributed in Thailand; location of manufacturers, distributors, or
importers for sale; identify measurement, dimension, quantity, volume, and weight of products
which can be used in full, abbreviation, or symbol; identify how to use the product for consumers
to be aware of what is for; suggestion to use the product correctly; warning (if any);
manufacturing and expiration date or best before in order to understand benefits of the products;
price in Baht or other currency rate.
Product labels must include a message, picture, and other information as required to avoid
misunderstanding of product content, and inclusion of Thai language as well as original
international labels. Manufacturers, distributors, and importers shall complete the labeling
process within 60 days according to Food Labeling Act 30 and 31, which started in 1979 and
was revised in 2013.
Ministry of Public Health also plans to issue rules and regulations in 2016 to upgrade premium
fresh fruits and vegetables, guarantee quality manufacturing processes, and add value to the
economy, entrepreneurs, and delivering quality products to consumers by publishing “Premium”
on product labels. This shall be made for outstanding and more-than-special products under the
same category. All fresh fruits and vegetables of premium quality must pass FDA approval on
standards of food contamination and chemical residue. The FDA also has manufacturing
certification systems according to standards of agriculture products. Food processing systems
shall require certification of Primary gP, gP, HACCP, BRC, or others at the same levels.
PISTACHIOS: MARKET TRENDS & DEVELOPMENTS
Pistachios: Market Size
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Popularity of pistachios as a snack item continues to drive retail sales
Thai consumers have become more familiar with pistachios as a result of greater availability
in independent food stores, supermarkets, hypermarkets, and chained convenience stores
throughout the country. Local manufacturers supply ready-to-eat pistachios in small inexpensive
packages of 35 g, priced from US$0.71 to US$1.23 per bag. This price is affordable to most
consumers, but consumption is only regular among people of moderate to high income. Retail
sales of pistachios gradually increased over 2012-2014 at a CAGR of 1.3%, and reached
US$12.9 million in 2014.
In addition to consistent availability and low prices, consumer health awareness is also driving
pistachio consumption. Having more concern about their physical well-being, Thai consumers
are increasingly interested in health foods including snacks. Pistachios are popular for their
content of good fat, protein and high fiber, and are said to help lower cholesterol.
Even although there were some concerns regarding high levels of aflatoxins in certain food
commodities, including pistachios (which is why they were banned in the EU) Thailand
continued to import pistachios due to strong demand. In addition, Thai consumers do not seem
to be particularly aware of the issue of aflatoxin in nuts, and the government does not track and
control this issue as closely as it should.
Pistachios available in packages without labels were more than likely rejected from other
countries. Even although pistachios have a high price per kg, they are available in small
packages of 45 – 55 g, making the unit price affordable to a wide range of people. Consumption
of pistachios is expected to increase in the forecast period due to consumer familiarity with the
flavor and affordable small packages. Pistachios are typically consumed as a snack with
beverages.
Shelled roasted and salted are in demand
Pistachio consumption increased in Thailand during the review period, even although the
market is not as large as peanuts or cashews. Pistachios are available in loose and packaged
format, both in-shell and shelled. For loose format, consumers can measure out the amount
they want and pay by weight. Packaged pistachios come in a range of sizes. Shelled roasted
and salted pistachios are the most popular in both packaged and loose format. Packages of
ready-to-eat pistachios of 30 g -180 g in plastic bags and metal cans as snacks are commonly
found in supermarkets, hypermarkets, independent food stores, and convenience stores. In
general, small single-serving packages of pistachios are standard in convenience stores such
as 7-Eleven, Family Mart, and Tesco Lotus Express. Tong Garden, which is a popular producer
and distributor of various nuts in the region, is a highly visible brand in these stores. Pistachios
are quite popular as an appetizer in various foodservice locations including restaurants, hotels
and airport lounges, and are available at an affordable price.
Table 7
Retail Market Size for Pistachios in Thailand 2012-2017
Pistachios
Market size in US$
million
Market size in LC million
Market size in tonnes
(„000)
Source:
2012
2013
2014
2015e
2016f
2017f
12.6
13.4
12.9
16.0
16.4
17.2
409.1
0.5
434.4
0.6
418.5
0.6
518.9
0.7
534.6
0.7
557.9
0.7
Euromonitor International from trade sources
© Euromonitor International
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
Passport
Pistachios: Main Varieties and Typical Retail Prices
Brands, and not varieties, influences purchase of pistachios
Varieties of pistachios are not displayed and not relevant to consumers, as their purchasing
decisions are influenced by their favorite brand such as Nut Walker, Tong Garden, Camel and
Koh-Kae Plus. Other influences on consumer purchasing decisions include product packaging
and sizes. Pistachios are available year-round in the retail stores that sell them. As Thailand
imports pistachios mainly from the US, the most common variety is Kerman, which is the main
variety produced in the US.
Health trends are boosting retail consumption, as pistachios help lower cholesterol, are good
for the heart, and are high in fiber. Pistachios are considered a healthy snack and are consumed
by people of moderate to high income.
Small packages make pistachios affordable
Pistachios are primarily imported from the US, Iran and China; pistachios are expensive in
comparison to locally grown nuts such as peanuts and cashews. In order to offer pistachios at a
more affordable price, distributors and retailers provide small packages of 30 g in chain stores
such as 7-Eleven ranging in price from US$0.71 to US$0.86 per package.
As all pistachios available in the retail market are imported and then processed into roasted
form, brand is the most significant influence on price. Typically, in loose format, pistachios are
available in small plastic bags of 100 g, priced at US$2.50 to US$3.50.
On the Big C Supermarket online shopping website, the price of 35 g pistachios under the
Koh-Kae Plus brand were sold at US$0.68 per package, followed by Nut Walker at US$0.89 per
package, Tong Garden at US$0.92 per package and Camel at US$1.08 per package. The KohKae Plus brand website indicated that they imported nuts including pistachios directly from
China and India, while Nut Walker and Tong Garden state that their pistachios are imported
from California. The country of origin affects price, with US pistachios being more expensive
than Chinese nuts, due to higher labor and production costs, and the high quality of US nuts.
Summary 1
Variety
Summary of Main Varieties for Pistachios
Country of origin
Availability
Price range (US$/Kg)
Roasted/Salted
Kerman
USA
Year-round
25.30 – 34.82
Raw Kerman
USA
Year-round
21.34 – 33.58
Source:
Euromonitor International from trade sources
SUPPLY CHAIN AND RETAIL ENVIRONMENT
Supply Chain Overview
Importers play a key role
Pistachios are imported to Thailand mainly from the US, Iran and China. Therefore, the supply
chain is dominated by importers and distributors such as Ek-Chai Distribution System and CP
All PCL. They are involved in the negotiation of prices with overseas dealers and determining
the quality and quantity of imports. Due to their strong influence on the pistachio supply chain,
pistachio prices are generally set by importers. The main volume of imported pistachios is
© Euromonitor International
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
Passport
normally passed to central distribution centers, for further distribution to retail channels,
foodservice businesses and roasters that transform raw pistachios into roasted nuts.
Domestic food processors also act as distributors
Pistachios are imported to Thailand and not domestically produced, so there are no trade
associations for pistachios in the country. Key players are importer/processors that contact
pistachio exporters, handle all internal and domestic logistics, roast and salt the pistachios, and
distribute them to local wholesalers and retailers.
Domestic food processors in Thailand play dual roles as both importers and distributors.
Having bypassed intermediaries, local nut processors are able to contact farmers directly and
negotiate lower prices. Large companies such as Mae-Ruay Snack Food Factory import
pistachios directly from nut growers in China and India, while Heritage Snacks & Food, Nut
Walker and Tong Garden import pistachios from California. Most of these companies have
presence in Bangkok and in surrounding areas. The Mall Group, Central Food Retail, Villa
Market JP and Ek-Chai Distribution System have their own supply chain and distribution
channels for sales through their stores. Locally, Fareeda Dried Fruits is known for selling loose
pistachios, nuts, and dried fruits in Tops Supermarket, Central Food Hall, and Gourmet Market.
Summary 2
Summary of Key Companies for Pistachios
Company name
Type
Location(s)
Website
The Mall Group Co
Ltd
Importer/Retailer
Bangkok
www.gourmetmarkett
hailand.com
Central Food Retail
Co Ltd
Importer/Retailer
Bangkok
www.tops.co.th
Villa Market JP Co
Ltd
Importer/Retailer
Bangkok
www.villamarket.com
Thong Garden Co Ltd
Importer/Retailer
Nonthaburi
www.tonggarden.co.t
h
Heritage Snacks &
Food Co
Importer/Retailer
Bangkok
www.heritagethailand
.com
CP All PCL
Retailer
Bangkok
www.cpall.co.th
Fareeda Dried Fruits
Importer/Retailer
Bangkok
www.fareedadriedfruit
s.com
Mae-Ruay Snack
Food
Factory Co Ltd
Importer/Distributor
Bangkok
www.goldcupfoods.co
m
Ek-Chai Distribution
System Co Ltd
Retailer
Source:
Euromonitor International from trade sources
Sales Through Retail Distribution Channels for Pistachios
Pistachio‟ distribution was dominated by independent food stores
Independent food stores dominated retail distribution of pistachios in 2014, and represented
85.3% of all retail sales of pistachios, but their share is falling due to the growing popularity of
supermarkets and hypermarkets. Supermarkets and hypermarkets claimed 12.2% of retail sales
of pistachios in Thailand in 2014, which is expected to increase considerably in the forecast
© Euromonitor International
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
Passport
period. Sales are rising in convenience stores and are stagnant in open markets. Pistachios are
available year-round in all retail channels.
Table 8
Sales of Pistachios by Distribution Format 2011/2014/2017
% retail volume
Supermarkets/hypermarkets
Independent food stores
Convenience stores
Discounters
Open markets
Others
Total
Source:
2011
2014
2017f
11.8
86.4
1.3
0.5
100.0
12.2
85.3
2.1
0.5
100.0
12.5
83.9
3.1
0.5
100.0
Official statistics, trade associations, trade press, company research, store checks, trade interviews,
Euromonitor International estimates
Supermarkets/hypermarkets drives discretionary spending on pistachios
Supermarkets and hypermarkets represented 12.2% of retail sales of pistachios in 2014, and
this share is expected to increase to 12.5% by 2017 thanks to the rapid expansion of this retail
format. Supermarkets and hypermarkets sold both imported and local brands of pistachios at
different prices. Prices of pistachios ranged from US$22.32 to US$39.06 per kg, and are
available throughout the year. Pistachios are typically bought with discretionary income, and
consumers shopping at these stores for non-staple foods will be one of the key driving factors
for higher sales in this channel. Most pistachios are sold in small packages of 35 – 55 g and
reseal able packages of 150 – 180 g, while loose format is available in increments of 100 g.
Independent food stores are main distribution channel for pistachios
Independent food stores represented 85.3% of retail sales of pistachios in 2014, and this
share is expected to decrease to 83.9% by 2017 due to expansion of supermarkets and
hypermarkets with more room to carry a variety of products such as pistachios. Independent
food stores typically sell nuts and dried fruits in loose format in bulk bins, encouraging
consumers to pick their own mix. Pistachio prices are lower in independent food stores than
other channels, as store owners provide customers with discounts, and often stock lesserknown brands. The average price of roasted and salted Kerman pistachios in independent food
stores was US$23.10 per kg, sold loose and in plastic bags and metal cans of 30-180 g.
Ready-to-eat packaged pistachios are available in convenience stores
Convenience stores represented 2.1% of retail sales of pistachios in 2014, and this share is
expected to increase to 3.1% by 2017 due to retail expansion. Small branded packages of
pistachios are sold in convenience stores with original and roasted salted flavors. Pistachios
distributed in this sales channel are mainly packaged by local processors, with package sizes
ranging from 30-180 g based on the convenience store concept of selling snack products in
small sizes as impulse buys with a beverage. Well-known convenience stores in Thailand
include 7 Eleven, Lawson, Lotus Express, Big C Extra, and Family Mart. The average price of
salted pistachios sold in these channels is US$25.75 per kg.
No discounters in Thailand
Discounters are not present in Thailand.
© Euromonitor International
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
Open markets had a small but steady share of pistachio sales
Open markets represented 0.5% of retail sales of pistachios in 2014, and this share is
expected to remain unchanged throughout the forecast period.
Pistachios are perceived as premium products and do not generate much interest from
customers who typically shop only in open markets. Pistachios in this sales channel are
irregularly available throughout the year in both branded and unbranded packaging such as
salted and roasted Kerman pistachios in plastic bags and metal cans. Loose format is seldom
found. The average price is US$28.67 per kg.
Other channels did not sell pistachios
Pistachios were not sold in any other channel in Thailand.
Retail Distribution Channels Overview
Mergers and acquisitions continue
The trends in grocery retailers in 2014 were similar to those in the previous year. Mergers and
acquisitions continued in convenience stores, driven by Japanese brand partnerships, such as
Family Mart‟s partnership with Central Retail or Lawson with Saha Pathanapibul. Two brands,
Big C and Tesco Lotus, drive hypermarkets while supermarkets continued on a strong growth
path in terms of outlets, retail space expansion and value sales. Traditional grocery retailers
remained fragmented characterized by a majority of small independent players.
Convenience stores increase in numbers
Growing numbers of convenience stores throughout the nation made Thai people appreciate
the benefits of this retail format especially given their increasingly hectic lifestyles. Long opening
hours, often 24/7, enable consumers to buy grocery products, fresh pastries, drinks,
newspapers, ready -meal products and even pay bills, air or bus tickets, insurance and top up
mobile phones at any time. Convenience stores are a good solution for urban dwellers and
single people who are pressed for time. Convenience stores are often located in or near
residential neighborhoods and enable them to buy all their grocery products, saving time
compared to traveling to supermarkets and hypermarkets to shop there.
Traditional grocery retailers dominate
Traditional grocery retailers remained the most prevalent in Thailand in 2014. Traditional
grocery retailers continued to dominate with a 98.0% share of outlets as well as a 55.0% value
share in 2014. Food/drink/tobacco is the most popular format and recorded the strongest value
sales. There are several varieties of food and drink stores in Thailand, which are mostly
controlled by independent family owners.
Luxury products trending quite rapidly
Compared with the budget constraints faced by many consumers, affluent consumers were
not affected by any economic circumstances over the review period. Consequently, affluent
customers are among the top priorities of retail players. High-end department stores such as
Siam Paragon entered into cooperative strategies with credit card companies such as SCB to
promote weekend shopping exclusives limited to platinum and beyond platinum cardholders,
with discounts of up to 80.0% from early morning to noon. New department stores in Bangkok
are moving towards high-end, luxury-style shopping such as the upcoming projects of Central
Embassy and The Emquartier, which are expecting to open within the forecast period.
Table 9
Retail Distribution Channel Trends, Sites/Outlets 2011/2014/2017
© Euromonitor International
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
Passport
Sites/Outlets
Supermarkets/hypermarkets
Independent food stores
Convenience stores
Discounters
Open markets
Other channels
Source:
2011
2014
2017f
1,118
16,340
10,506
0
1343
n/a
1,360
16,469
13,103
0
1407
n/a
1,552
16,557
15,367
0
1525
n/a
Trade associations, trade press, company research, trade interviews, Euromonitor International
estimates
Key Retail Formats in Thailand
Supermarkets
Supermarkets were the second fastest-growing channel in terms of value sales in 2014. Both
domestic and international players are in competition to expand new outlets. The best potential
locations are upcountry and metropolitan areas. Each supermarket implements its own loyalty
programs to keep its customers shopping at its stores. Loyalty cards are the most popular
technique to collect points and redeem cash rewards and other discounts on selected items.
Hypermarkets
Hypermarkets in Thailand were heavily characterized by and therefore dependent on two
brands - Big C and Tesco Lotus - in 2014. There were six new store openings in 2014 compared
with 16 in 2013. The slowdown in the number of new store openings stems from the unstable
political situation in the country. The government is in a transitional period, with the country
being taken in no obvious direction in terms of policy. After the interim government was set up in
the last quarter of 2014, the progress of hypermarkets is expected to remain bright during the
forecast period.
Table 10
Leading Supermarket Chains in Thailand, Sites/Outlets 2012-2014
Brand
Company name
Talad Lotus
Tops Market
Big C Market
Villa Market
Tops Super
MaxValu
Foodland
Home Fresh Mart
Gourmet Market
Central Food Hall
Plus One
Isetan
Others
Total
Source:
Ek-Chai Distribution
System Co Ltd
Central Retail Corp
Big C Supercenter PCL
Villa Market JP Co Ltd
Central Retail Corp
Aeon (Thailand) Co Ltd
Foodland Supermarket Co Ltd
Mall Group Co Ltd, The
Mall Group Co Ltd, The
Central Retail Corp
Tung Hua Seng Dept Store
Co Ltd
Isetan (Thailand) Co Ltd
Others
Total
2012
2013
2014
108
120
150
48
18
20
50
15
11
7
5
4
2
58
30
28
35
21
14
7
5
5
2
68
38
35
30
29
15
7
5
5
2
1
640
929
1
668
994
1
694
1079
Trade associations, trade press, company research, trade interviews, Euromonitor International
estimates
© Euromonitor International
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
Table 11
Passport
Leading Hypermarket Chains in Thailand, Sites/Outlets 2012-2014
Brand
Company name
Big C
Tesco Lotus
Tesco Khum Kha
Big C Extra
Tesco Lotus Extra
Others
Total
Source:
Big C Supercenter PCL
Ek-Chai Distribution
System Co Ltd
Ek-Chai Distribution
System Co Ltd
Big C Supercenter PCL
Ek-Chai Distribution
System Co Ltd
Others
Total
2012
2013
2014
96
97
101
99
103
100
47
50
51
16
3
16
9
17
10
259
275
281
Trade associations, trade press, company research, trade interviews, Euromonitor International
estimates
Independent food stores
Small grocers, such as family-owned stores, are gradually leaving the retail industry, unable
to compete with modern retail formats such as convenience stores and supermarkets. Small
grocers are still present in some areas, however, especially in rural communities. There are also
mobile formats which sell grocery products and remain popular in more remote rural areas, as
well as some residential areas in urban areas. These mobile formats usually sell fresh
vegetables, fruits and fresh foods, and operate in the same location almost every day.
Convenience stores
Convenience stores recoded a better performance with regard to stronger growth of outlet
expansion and retail value sales compared with supermarkets and hypermarkets in 2014. Given
the unstable economic and political climate in the country, expansion of convenience stores is
less risky compared with supermarkets and hypermarkets, as the level of investment and
operational requirements of convenience stores are much lower than stores with much larger
retail space. However, given the economic road blocks and uncertainty which has characterized
the country for a time, consumers prefer not to venture too far from home when doing their
shopping, finding convenience stores an acceptable solution. 24/7 opening hours have made
convenience stores the best place for many Thai consumers to shop for grocery and nongrocery products.
Convenience stores are expected to be the fastest-growing channel in sales terms in the
forecast period. A number of new convenience stores are likely to be introduced, such as 7Eleven, Lawson 108, MaxValu Tan Jai, Tesco Express, Family Mart and 108 Shop. Chained
brands have been aggressive in their retail expansion. Supermarkets are expected to continue
expanding throughout the country. Standalone formats are particularly expected in upcountry
areas, while discounters will continue to be negligible over the forecast period.
Discounters
Discounters had no presence in the Thai market in 2014. The focus on decreasing retail outlet
size was quite noticeable over the review period, and this trend is likely to persist over the
forecast period. The players in grocery retailing foresee that smaller stores will have better
growth potential compared to large formats that require greater resources such as real estate
and commercial space. More importantly, consumer preference for shopping at small
© Euromonitor International
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
convenience stores is expected to continue, making the need for the discounter format even
less significant.
Open markets
Thais still prefer to visit open markets for fresh fruits, vegetables and nuts in Thailand. Open
markets have been an integral part of Thai society for all income levels for centuries.
Consumers, especially those living in the provinces, still regard foods via this channel to be
fresher and lower in price. Also, the proximity to home is one pull factor for most consumers to
visit open markets in Thailand.
Additionally, bargaining is normally welcome at open markets, and vendors can strongly
influence consumer purchasing decisions by providing information on variety, country of origin,
product and price comparison.
Imported products are increasingly sold in this channel However, information on varieties and
country of origin is not usually disclosed at the point of purchase. Price tags are often not
shown, and consumers need to ask the seller for the retail price.
Prices in this channel typically fall in a close range, as sellers are regulated by local
authorities. Due to the lack of cold-chain facilities, most products available in open markets are
sold loose without packaging, with relatively short shelf lives.
Other formats (as relevant)
The channel of other grocery retailers in Thailand consists of online sales as well as kiosks,
market stalls and street vendors, which focus on selling fresh foods and bakery products. Other
grocery retailers were extremely fragmented, with many small independent players and a high
turnover rate. This means that new stores open each day while other stores close down.
Smaller retailers located near office buildings open and close when businesses do, and are not
open on the weekend. Other small vendors in or near residential areas tend to be open every
day.
Internet retailing of grocery products emerged in Thailand in 2010 from Big C, followed by
Tops (Central Retail Corp). The latest player is Tesco Lotus, which introduced internet shopping
in 2013. Although internet retailing has been present in Thailand for a few years and
demonstrated an increasing value sales trend, sales via internet retailing maintained a wide gap
with store-based sales at the end of the review period. Therefore, internet retailing of grocery
products remains in the nascent stage in Thailand. A few key players such as Big C, Tops,
Home Fresh Mart and Tesco Lotus are interested in this channel, whereas other small players
are unlikely to enter this retail format. Some people remain doubtful that when buying products
online they will receive the quality of products they would choose themselves when shopping in
brick-and-mortar stores. Furthermore, some people enjoy shopping in stores to see new
products and try samples of new foods as well as perceiving the activity as a form of light
exercise. Therefore, promotions and attractive campaigns implemented by online retailers could
attract consumers and increase the popularity of online shopping in the future.
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EXPORT MARKET DEVELOPMENT REPORT: PISTACHIOS IN THAILAND
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