Bangkok: The Thai food service market has reached a valuation exceeding 1.3 trillion baht this year, underscoring its pivotal role in the nation's economic landscape.
According to Thai News Agency, insights from a recent Food Economy seminar reveal that the food sector significantly influences various facets of the Thai economy, including purchasing power, agriculture, small and medium enterprises (SMEs), and tourism. Projections estimate the food and beverage market in Thailand will grow to about 700 billion baht by 2026, with the food service market anticipated to surpass 1.3 trillion baht by the same year.
During the seminar titled "Food Economy: When Food Becomes a Driving Force for the Thai Economy," organized by Krungthai Card Public Company Limited (KTC), Ms. Warittha Pattanarat, Chief Marketing Officer of KTC Credit Cards, highlighted the continued importance of food despite consumers' cautious spending. Restaurant expenditure remains the top category, witnessing a 6% growth in the first four months of the year. KTC emphasized that restaurant spending is intricately linked to businesses, raw materials, labor, SMEs, and the local economy, making the Food Economy a crucial indicator of domestic economic circulation.
Ms. Paiyada Hanchaisukskul, Director of the National Food Institute (NFI), noted the Food Economy's impact on the grassroots economy through its connection to the agricultural sector, producers, SMEs, restaurants, and tourism. The agricultural sector employs around 11 million people, accounting for 28% of the Thai workforce. Additionally, approximately 128,000 food processing SMEs employ over 5 million individuals. The Thai restaurant and beverage market is projected to grow by 2-3% by 2026, employing around 650,000 people and serving as an economic shock absorber.
Ms. Thaniwan Kulmongkol, President of the Thai Restaurant Association, reflected on the restaurant business as an indicator of purchasing power. She pointed out challenges such as reduced dining frequency and rising costs, including raw materials, labor, and delivery fees, which result in "sales not growing but costs growing." To address these, businesses are urged to manage costs, embrace digital technology, and enhance customer experience. She called for government and private sector support in reducing costs, providing access to low-interest loans, developing digital skills, upgrading standards, promoting food tourism, and helping SMEs access knowledge, capital, and markets.
Assoc. Prof. Dr. Chuthamas Wisalsingh, Chair of the Thailand Gastronomy Network (TGN), highlighted that Thailand's foodservice market is expected to reach approximately US$38.1 billion, or more than 1.3 trillion baht, by 2026, according to Mordor Intelligence. With over 482 restaurants listed in the Michelin Guide, food and beverage spending ranks second for tourists, making Gastronomy Tourism a vital mechanism for economic growth.