As Thailand’s economy recovers from the impact of the pandemic, aided by government stimulus and a revival of exports and tourism, consumer spending on baby products is set to increase in the coming years. As a result, the Thai baby food sector is forecast to reach THB30.7 billion ($998.9 million) by 2028, registering a compound annual growth rate (CAGR) of 2-3% over 2022-28, according to GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Thailand Baby Food – Market Assessment and Forecasts to 2028’ reveals that the baby milk category dominated the market in both value and volume terms in 2022. The baby wet meals & others category is projected to record the fastest growth over the forecast period.

Shraddha Shelke, Consumer Analyst at GlobalData, comments: “Government stimulus, the lifting of all COVID-19 restrictions, and the resurgence of key export markets, such as China, accelerated the recovery of core sectors of the Thai economy, such as retail, construction, and tourism sectors in 2022. In line with the economic recovery, the per capita expenditure (PCE) on baby food in Thailand increased from $314.2 in 2017 to $497.3 in 2022. This surpassed the Asia-Pacific average PCE of $177.7 and the global average of $164.8 in 2022. A rebound in consumer purchasing power following an expected easing of inflation in 2023 will further stimulate sales of baby food in Thailand, with the PCE on baby food projected to reach $694 by 2027.”

Hypermarkets & supermarkets was the leading distribution channel in 2022 in the Thailand baby food market, followed by convenience stores and drugstores & pharmacies. Amid high inflation, cost-conscious consumers are shopping more often for baby food at modern retail stores and e-commerce stores in search of bulk discount offers. Nestlé, Danone, and Mead Johnson (Reckitt Benckiser) were the top three leading companies in the Thailand baby food sector in 2022.

Tim Hill, Key Account Director at GlobalData Singapore, concludes: “New entrants, new product launches, and increasing marketing and distribution investments by multinational companies will catalyze the growth of the Thai baby food market in the coming years. For instance, after 17 years, Japanese manufacturer Meiji re-entered Thailand’s baby food market in 2022, offering toddler milk in a novel powder cube format. Rising consumer disposable incomes and product innovation will stimulate premiumization, in turn lending more momentum to Thailand’s baby food sector.”