Future Food Booming! Thailand’s Industry Set to Hit 173 Billion Baht in 2025, Braving U.S. Tariff Barriers
Thailand’s future food industry continues to grow steadily, despite facing a host of external and internal risks—from U.S. trade tariffs and domestic economic challenges to soaring production costs and increasingly strict sustainability requirements from trade partners.
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Growth Against Global Headwinds
In 2024, Thailand exported future food products worth 162 billion baht, a 13% increase from the previous year. This growth is expected to continue in 2025, with a projected increase of 5–7%, bringing exports to around 170–173 billion baht. In the first quarter alone, exports have already reached 41 billion baht, up 7% compared to the same period last year.
Top Performing Product Segments
- Functional Food & Functional Ingredients: 37.99 billion baht (+7.3%)
- Medical & Personalized Food: 1.91 billion baht (+9.6%)
- Organic Food: 416 million baht (+15%)
- Alternative Protein: Declined by 15.4%
Key Export Markets Penetrated by Thailand
- ASEAN: 15.86 billion baht
- China: 6.69 billion baht
- USA: 5.93 billion baht
- European Union (EU): 3.15 billion baht
Risks to Watch
- U.S. tariff policies under Donald Trump’s “America First” doctrine may resurface, pressuring Thai exports.
- High domestic living costs could dampen purchasing power, especially for premium goods.
- Labor shortages and lack of technological skills.
- Environmental regulations from abroad, such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and human rights standards.
- Geopolitical and logistics volatility, including tensions in the Middle East.
- Rising competition from regional neighbors like Vietnam and India, both accelerating development in the sector.
Survival Strategy: Diversify and Innovate
Mr. Wisith Limluecha, President of the Future Food Trade Association of Thailand, advises Thai entrepreneurs to adapt quickly by diversifying export markets, raising sustainability standards, investing in technology and innovation, and developing new product lines such as plant-based foods, functional foods, and personalized nutrition.
Despite these mounting pressures, the future food sector remains a golden opportunity for Thailand. With rapid and smart adaptation, the country can overcome tariff barriers and economic volatility to become a global leader in the food of the future.
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