Thailand's Chocolate And Cocoa Confectionery Industry And Competitive Landscape 2023
Updated: December 28, 2023Industry Landscape
Demand Conditions
In 2022, Thailand's imports of chocolate and confectionery containing cocoa (HS code 1806) amounted to USD 177 million in dollar terms (up 23% YoY), more than double the country's chocolate exports which amounted to USD 67 million (up 65% YoY). In volume terms however, Thailand's imports amounting to 25.7 million kilograms (up 16% YoY) were exceeded by exports which amounted to 29.7 million kilograms (up 9.7% YoY).
Supply Factors
Domestic of production of raw materials for chocolate production is limited in Thailand and much of it is imported. Cocoa powder (HS code 1805), and cocoa paste (HS code 1803) are Thailand's principal raw material imports. Imports of cocoa butter (HS code 1804), typically the most expensive component in chocolate formulation, is negligible in Thailand, suggesting domestic production is heavily focused on cocoa-containing confectionery products which are generally cheaper than cocoa-butter containing chocolate products. Cocoa bean (HS code 1801) imports are negligible as well.
Cacao cultivation in Thailand is relatively low, estimated at just around 43 hectares according to data from FAOSTAT (for perspective Malaysia's coca cultivated area is estimated at over 5,500 hectares).
Challenges
At USD 20,679 in 2022, Thailand's per capita income is lower than neighbors like Malaysia (USD 33,523) and Singapore (USD 127,626), making it a relatively challenging market, particularly for chocolate products containing cocoa butter. Production costs present a further challenge as a very limited domestic downstream and intermediate cocoa supply chain means most raw materials for chocolate production have to be imported into Thailand.
Competitive Landscape
Siamaya Chocolate
Homegrown award-winning craft chocolatier Siamaya Chocolate sells chocolate tablets, chocolate drinks, and cacao nibs. Much of their product assortment is comprised of chocolate bars (over 80% of their approximately 30 SKUs are chocolate bars based on data from their online store).
The brand differentiates itself with their assortment of unique, traditional Thai flavors such as Thai Coconut Curry, and Thai Peanut Curry. Channels include their direct-to-consumer online store on their website, and their boutique store in Chiang Mai.
Recent developments:
New product launches and re-inroductions during the year were roughly evenly split between seasonal and non-seasonal launches. At least four non-seasonal launches were rolled out in 2023 all comprised of chocolate bars with new flavors (namely "Bird Food Chocolate", limited edition Japanese Genmai Roasted Rice, Lemongrass & Perilla, and Banana Crunch). At least four new or re-introduced seasonal chocolate bar flavors were rolled out during the year namely Manjo Jelly and Popping Candy Milk Chocolate for Thailand's Loy Krathong festival, Spiced Red Wine Dark Chocolate, Pumpkin Pie White Chocolate for Christmas, and a limited edition strawberry flavored white chocolate for Valentine's Day. In addition, the company rolled out advent calendars for Christmas, chocolate eggs for Easter, and themed packaging and a limited edition collection for Halloween.
Non chocolate launches during the year were relatively few and included chocolate caramel bicuits, and a cacao vinegar mocktail.
On the packaging front, Siamaya Chocolate adopted new environmentally-friendly packaging using recycled materials and soy-based ink.
Marketing initiatives included both online (social media) and offline efforts. At least six offline marketing events were conducted during the year, which included four workshops (for truffle-making, cupcake decoration, chocolate art, and easter egg decoration) and two art exhibitions at their flagship store in Chiang Mai (one in collaboration wth local artist Chatri Keth, and the other with Weave Artisan Society), and