Growing market for Thailand producers

       Growing global concern for health has created a timely opportunity for Thai functional food entrepreneurs to develop and export products to high-potential markets, said Yuthasak Supasorn, president of the National Food Institute.
       Functional food's global market will be worth at least US$53 billion in 2009 and $90 billion in 2013, up from $44.9 billion in 2008, according to research by just-food.com, the food industry's online resource.
       Key markets for Thai operators include South Korea, Japan, China, India, the UK, Germany, the United States and Australia, as well as Thailand.
       "People around the world are concerned about their health. This creates an opportunity for Thai operators because Thai foods are well-known, especially for the use of herbs as ingredients.But we must apply creativity and high standards to our products. Besides, there is also a need for entrepreneurs to understand market demand and how to build a business in each market," said Mr Yuthasak.
       Consumers are especially attracted to products that can reduce the risks of heart and cardiovascular diseases, cancer,diabetes and hypertension, he told a seminar yesterday.
       Foods that prevent obesity or enhance immunity, digestion and beauty are also in demand, he said.
       Asian markets like China, India and South Korea are likely to soar. Japan's market is estimated to be be the world's biggest, with a value of $8.42 billion, but is already saturated.
       "The South Korean market consists mostly of female consumers," he said."They look for quality products and raw materials from reliable producers. They love natural products and care quite a bit about beauty. Doing business in South Korea would require a business partner with insight into its Functional Health Food Law."
       The functional food markets in China and India are set to surge because of the countries' fast-growing economies and immense populations. Chinese consumers favour capsules while Indians prefer drinks.
       The UK is the largest market in Europe,with an estimated value of $2.48 billion.Germany's market is expected to be worth $1.3 billion in 2013, up from $0.97 billion in 2008.
       Thai operators should not overlook the US, which has the world's second biggest market after Japan, said Mr Yuthasak.
       The US market may rise to $6.51 billion in 2013, up from $5.25 billion in 2008.But operators must understand the country's strict import regulations as well as its diversified demand because of its racial and cultural diversity.