Australian retail company Coles has recently signed an agreement with Thai retailer Central Food Retail Company (CFR) to sell 200 “Coles Own Brand” products in Thailand. The deal will unlock new opportunities for Australian farmers and producers in the dynamic Thai food and drinks market, which is set to expand by 5.7% compound annual growth rate (CAGR) over 2023-27*, says GlobalData, a leading data and analytics company*.
Coles Own Brand was launched at the “Taste of Australia: The Magical Foods of OZ” event organized in Bangkok, Thailand from February 22 to March 7, 2023. During the event, Coles introduced its Australia-made range of baking goods, biscuits, butter, cheese, chips, coffee, honey, nuts, muesli, and spreads. Coles will leverage the strong online and offline retail presence of CFR in Thailand. The retail chain operator plans to expand across other Southeast Asian markets, including Malaysia, Singapore, and the Philippines.
Bobby Verghese, consumer analyst at GlobalData, comments: “As one of the largest food and beverage markets in Asia, Thailand is attracting interest from consumer packaged goods companies across the globe. Rapid urbanization, the rise of the upper and upper-middle classes, and the growing health & wellness trend have catalyzed the demand for high-quality, healthy, clean-label, and sustainable food and beverages imported from North America, Europe, Japan, and South Korea. Accordingly, 30% of Thai respondents said they typically bought bakery, cereals, and morning goods made by foreign/global multinational brands in GlobalData’s Q4 2022 consumer survey **.”
Tim Hill, key account director at GlobalData Singapore, adds: “Australian brands and private labels are joining the race, targeting the largest food and beverage categories: fish & seafood, dried food, meat, dairy & soy food, spirits, and soft drinks*. The reduced tariffs on beef and dairy products under the ASEAN-Australia–New Zealand free trade agreement (FTA) and Thailand–Australia FTA delivers a competitive edge to Australian producers. Coles and other retailers will leverage their inherent strengths in the prepared meals, syrups & spreads, meat substitutes, and wines categories, which GlobalData projects will be the fastest-growing categories in the Thai food and beverage sector over 2023-27*.”
Verghese concludes: “With the Thailand economy recovering from the COVID-19 pandemic-induced lull, domestic demand for premium imported food and beverages is set to boom. Australian food and drink manufacturers can leverage indigenous superfoods, such as manuka honey, lupin beans, and Kakadu plum, to address the rising demand for novel and better-for-you consumption experiences among Thai Millennials and Gen Z youth. While high inflation can undermine domestic demand for high-end imports in the short term, the impact will be cushioned by the revival in international tourist inflows, and the resurgence of the Thai foodservice sector.”
*GlobalData Consumer Intelligence Center—Market Analyzers, accessed in March 2023
**GlobalData Q4 2022 Consumer Survey— Thailand, with 525 respondents, published in November 2022
