Expanding your F&B business to Thailand
Discover the advantages and considerations when launching your food and beverage business in Thailand, a country celebrated for its culinary scene and strategic business benefits.
Expanding your food and beverage (F&B) or hospitality, restaurant and café (horeca) business to a new country can open up new markets and boost your revenue. It’s an opportunity to scale operations, test your brand’s ability to adapt and potentially increase profits by reaching a wider audience.
Thailand, with its rich culinary tradition and growing food and beverage market, stands out as a strong choice for expansion. Its street food and innovative dining experiences have made it a hotspot for food lovers. As the second largest economy in ASEAN, Thailand offers a good market size with diverse opportunities. The government, too, has created appealing incentives for foreign F&B and horeca businesses to enter the market.
Trends in F&B in Thailand
If you’re looking to expand your business in Thailand, the food and beverage industry is seeing some exciting trends. One key trend is the rising demand for premium, healthy ingredients and viewing food as a way to improve health. Following the pandemic, there’s been a notable shift towards immunity-boosting foods, with vitamin and minerals sales expected to grow annually by over 5% for the next five years.
From a 2023 survey of Thai consumer lifestyle choices, 66% of respondents said they like to exercise regularly, 65% were paying more attention to healthier ingredients and 58% regularly consumed dietary supplements or vitamins.
Another significant trend is the growing focus on sustainability. Thai consumers are increasingly considering the environmental impact of their purchases, opting for sustainably produced and packaged products and plant-based foods. This shift is becoming an important factor in their decision-making process.
Thailand’s foodservice market is also on the rise, with forecasts showing continued expansion in the coming years. In particular, quick service restaurants (QSR) – those with low prices, simple menus and an emphasis on takeaway – are in high demand, while cloud kitchens – a commercial space dedicated to preparing delivery and takeout with minimal overheads – are gaining traction.
These developments show the vibrant and evolving nature of Thailand’s F&B industry, providing numerous opportunities for businesses to meet the changing tastes of Thai consumers.
Factors contributing to a favourable business environment in Thailand’s F&B industry
Reasons why Thailand is a hotspot for international F&B businesses looking to grow in the region include:
Thailand’s strategic advantages
With abundant natural resources, Thailand’s position as an agricultural hub offers great benefits to the F&B industry. Thanks to its fertile lands and climate, over 80% of raw materials needed for food processing can be sourced locally, leading to lower costs and high-quality products. These include sugarcane, rice, cassava and palm oil.
Its position in the heart of Southeast Asia, combined with well-planned logistics infrastructure, means that businesses in Thailand have fast access to millions of consumers in the region.
Growing customer interest
Thailand’s food market and consumer preferences are changing rapidly, shaped by the country’s emerging middle class with higher disposable incomes. These new consumers, typically young professionals in urban areas, are seeking quality, variety and dining experiences that reflect their identity. This willingness to spend on premium food products is reshaping the F&B landscape, encouraging businesses to innovate and diversify.
Tourism and international exposure
Every year, millions of tourists flock to Thailand, drawn by its famous local cuisine and unique dining experiences. This exposure introduces Thai food to a global audience and provides a lucrative market for both local and international cuisines.
Tourists are attracted to the high-quality yet affordable dining options, giving F&B businesses a continuous flow of new customers keen to try different flavours. It also helps them gain international exposure when trying to expand globally.
Government support and incentives
With over 20% of the Thailand’s GDP coming from the food and beverage industry, it’s clear why the Thai government actively supports those looking to start a business in Thailand within this sector. This encouragement is part of a broader push to strengthen the economy and promote industry growth.
High-tech food processing has been marked for growth, but the entire F&B sector benefits from supportive policies. Foreign entrepreneurs enjoy privileges such as full ownership of their companies, the ability to buy land, employ skilled international workers and no restriction on foreign currency transactions.
The government also offers appealing tax incentives such as up to 13 years of tax exemptions and additional reductions for five more years, along with waived import duties on specific materials or machinery.
In Thailand, getting a visa is simplified for investors and entrepreneurs. The SMART visa covers your family and allows you to live and work in the country without a separate work permit.
Key considerations when starting a business in Thailand
When expanding your F&B or horeca business to Thailand, there are some important considerations for a successful market entry.
Understanding local tastes and preferences
Local food preferences can vary across the different regions of Thailand. Consumers prefer authentic flavours and fresh ingredients, with a growing trend towards health-conscious and premium dining experiences. Street food remains a staple, reflecting the bustling lifestyle, while international cuisine is increasingly popular among urbanites. Tailoring your products to embrace these tastes can attract a broader customer base.
Understanding the business landscape
Taxes: Stay up-to-date with Thailand’s tax structure for foreign businesses, especially food service-related taxes, and the benefits available. The type of business and company registration will determine your tax status.
Special Economic Zones: Thailand has several Special Economic Zones (SEZs) to attract foreign businesses. These zones are situated in various provinces, each with its own set of advantages. Each comes with its own tax breaks and incentives, too. Some are near major transport routes for easier access to ASEAN markets, while others provide infrastructure and services focused on specialised industries such as food processing.
Free trade agreements: As a part of ASEAN, Thailand has extensive free trade agreements with Asian countries and Australia, India and Chile, among others. Several more trade agreements are under discussion. These help reduce tariffs and simplify trade processes, making Thailand an attractive destination for international business.
Cross-border finance
Managing finances across borders can be complex. Multi-currency accounts like the World Account allow you to pay suppliers and get paid by customers like a local. Benefits include fast transfers, competitive exchange rates and low fees. You can even target currency exchange rates for future payments to manage cash flow.
- Open 10+ local currency accounts with local account details
- Direct CNH payments to 1688.com
- Pay suppliers, partners and staff in 40+ currencies and 130+ destinations
- Collect secure payments from 100+ marketplaces and payment gateways, including Amazon, AliExpress, Paypal and Shopify
- Lock in currency conversion rates for up to 24 months
Logistics
Thailand’s logistics infrastructure is highly developed, serving as a crucial hub in Southeast Asia. It’s well-connected by highways, railways and waterways, both domestically and with neighbouring countries.
As international trade and e-commerce have grown in Thailand, the region’s infrastructure has developed and is set to expand further. This growth will make it even easier for businesses to distribute products across the region.
Wholesale opportunities for F&B businesses in Thailand
A new sourcing hub has just launched, dedicated to food and beverage in Thailand. It allows buyers and sellers to connect both online and offline. PHENIX is Thailand’s pioneering B2B online marketplace tailored for the food and beverage industry. With WorldFirst powering its payments, transactions are safe and simple, making international payments a breeze.
Alongside this is the AEC Food Wholesale Pratunam in Bangkok, which aims to become a central hub for food sourcing from local and international suppliers. There’s space for over 800 food wholesalers and it integrates everything from logistics and storage to human resources to cater to businesses of all sizes.
At AEC Food Wholesale Pratunam, the entire order fulfillment process – from sourcing and negotiating to delivery – happens on PHENIX. The platform also handles the cross-border payments, offering an end-to-end solution for both buyers and sellers.
Why start your F&B business in Thailand now?
Now is a great time to launch your F&B business in Thailand. The country’s vibrant food scene and strong economic growth offer a welcoming environment for new ventures. With supportive government policies, strategic trade advantages and solid logistics, Thailand presents a unique opportunity for growth. Adapting to local tastes and leveraging the current market trends can set your business up for success in this dynamic landscape.
Use the World Account to power your expansion into Thailand
Ready to take your F&B or horeca business to new heights in Thaliand? Open a World Account for free and streamline your transactions with the Thai baht (THB) currency account. It offers control over your currency conversions with competitive rates and transparent fees.
Customers can pay you in THB, allowing you to manage payments to local Thai suppliers efficiently or transfer earnings home.
With a World Account, you can also open multiple local currency accounts in USD, SGD, HKD, AUD and more – no overseas address needed. Get local details in minutes and handle your payments across various currencies with ease.
Expanding your F&B business to Thailand
Explore how to successfully expand your F&B or horeca business to Thailand, tapping into its vibrant market and leveraging strategic business incentives.
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