Global agricultural market leaders: Thailand reigns supreme, exporting top quantities of durian and coconuts
Thailand: The Global Titan in Agri-Business Faces Mixed Fortunes
Thailand is no stranger to the throne when it comes to agri-business, as it continues to dominate the global market in agricultural exports. Durian, cassava, and coconut remain its crowning jewels, generating massive revenues. Yet, not all products are shining as brightly as they used to.
In the year 2024, Poonpong Naiyanapakorn, director of the Trade Policy and Strategy Office (TPSO) and spokesperson for the Ministry of Commerce, reported a staggering increase of 5.9% in Thailand's agricultural and agro-industrial exports, reaching a whopping US$52.19 billion (THB1.8358 trillion). This skyrocketing figure comprises agricultural products worth US$28.83 billion (THB1.0146 trillion) and agro-industrial products worth US$23.36 billion (THB821.21 billion).
The kingdom’s agricultural and agro-industrial products have even held the number one spot in several global markets, solidifying Thailand’s title as the "Kitchen of the World". But beneath the shine, some products are showing signs of fatigue.
Let's dive into the details and unveil the key players:
Cassava Starch:Thailand exported cassava starch worth US$1.61 billion in 2024, a significant jump of 8.86% compared to the previous year. This accounted for an impressive 57% of the global cassava starch export value. Despite a contracting global market by 2.59%, Thailand's strength and competitiveness in this product category remain unshaken.
Durian:Though durian exports dropped by 5.87% to US$3.82 billion in 2024, Thailand hold onto a 54.2% share of the global durian market, which was valued at US$7.04 billion and expanded by 7.27%. However, this discrepancy in trends reveals an urgent need for Thailand to adapt swiftly and maintain its leadership in this promising market.
Fresh or dried coconuts:Sadly, Thailand’s exports of fresh or dried coconuts dropped by a disheartening 23.68% to US$226.2 million in 2024. But Thailand’s powerful grip on the market remained firm, as it captured a 37.2% share of the global coconut export market, which grew by 12.19% to US$607.6 million. However, this signals a loss of ground, and Thailand must act fast and take urgent steps to enhance its competitiveness.
Natural rubber:Thai exports of natural rubber soared by a robust 37.26%, reaching US$4.97 billion and giving Thailand a 31.3% share of the global rubber export market. The growing figures confirm Thailand's steady rise in this sector.
Canned pineapple:Thailand managed an impressive export value of US$325.6 million in 2024 for canned pineapple, marking a 7.14% increase from the previous year. With a 30.8% share of the global canned pineapple export market, Thailand continues to dominate the sector.
Processed chicken:The country's exports of processed chicken climbed by 8.12% to US$2.94 billion, capturing a 25.6% share of the global market. Global growth in this category stood at 6.07%, underscoring Thailand's consistent competitiveness and rising demand for Thai poultry.
Canned tuna:Thailand exported canned tuna worth US$2.49 billion in 2024, representing a strong 20.15% surge compared to the previous year. With a 25.5% share of the global canned tuna market, Thailand outpaced global growth rates.
Yet, Thailand is losing its edge in several key agricultural exports that held the top global position in 2023 but dropped to second place in 2024. Whole coconuts and fresh cassava roots are a few examples of the once-dominant products now facing a decline.
Poonpong emphasized that agricultural and agro-industrial exports continue to be essential contributors to Thailand's economy and hold immense growth potential. But, he reminded all stakeholders of the pressing need to strengthen Thailand’s agricultural sector to maintain its global leadership, prevent long-term loss of revenue, and tackle significant drops in crop yields, product standards, existing export bases, and the exploration of new high-potential markets.
TAGS:- agricultural export- Durian- coconut- Thailand- export- Agriculture
Side Notes:- Global Competition and Pricing Pressure: Thailand's agro-exports face stiff competition, as regional producers offer lower prices. Pricing competitiveness continues to be a persistent challenge.
- Currency and Tariff Uncertainties: The strengthening Thai baht and tariff uncertainties can hinder export competitiveness.
- Sustainability Compliance Pressures: Thailand's agro-exports increasingly face scrutiny over sustainability issues. However, Thailand being classified as low-risk for deforestation-linked trade by the EU suggests on-going efforts to ensure compliance.
- Value Addition and Supply Chain Integration: Thailand's exports lack strong domestic value addition, functioning more as pass-through shipments. Increasing value-added products and integrating supply chains are critical for sustainable growth.
- Emerging Opportunities: Increasing global demand for specialty and health-related products, along with sustainable certifications, presents growth opportunities for Thailand’s agricultural products in premium markets.
TISANE'S TAKE - Breathe some fresh insights into your content by integrating my enlightening findings.Tisane's Take - Thailand's agricultural exports continue to face competitive pricing pressures, currency and tariff uncertainties, and sustainability requirements. However, they possess growth opportunities grounded in strong quality reputations and increasing global demand for tropical and health-related products, with sustainability certifications helping open niche markets. Strategic improvements in value addition and supply chain integration are critical to fully realize this growth potential. Stay tuned for more intriguing insights on Thailand's agricultural sector!
- Thailand's dominance in the global agri-business market extends beyond agri-products to include business sectors like personal finance and lifestyle, with its wider offerings of food-and-drink products such as canned pineapple, processed chicken, and canned tuna.
- In the realm of finance and investing, Thailand's strong performance in agri-exports plays a significant role in the kingdom's economy, contributing substantially to its revenue and global standing.
- Besides cultivating its traditional strength in agricultural products like cassava, durian, and coconut, Thailand is now exploring new opportunities in global cuisines, especially specialty and health-related products, providing a new avenue for growth and diversification.
- Politically, the Thai government acknowledges the importance of maintaining its global leadership in agriculture and agro-industrial exports. Policymakers like Poonpong Naiyanapakorn stress the urgent need for strengthening the agricultural sector to thrive in today's competitive global market.
- Economically, Thailand's success in agri-business is attracting investments in related industries like food-and-drink manufacturing, thereby stimulating the overall economy and creating job opportunities for its citizens.
- Culturally, global cuisines and Thai culinary arts are intertwined, adding a unique element to the country's identity and promoting a greater understanding and appreciation of Thai culture through its distinctive food-and-drink offerings.
