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16 Jun 2005

Industry

Food Supplements in 2005: Market Growing 11 Percent

Food supplements market in Thailand is very interesting. Of late, demand for nutritional supplements has been on the rise, thanks mainly to the prevailing health-conscious trend where people are tending to consume more nutritious diets to prevent them from falling ill and thus having to foot medical bills.

Kasikorn Research Center (KRC) expects that the market turnover for food supplements in 2005 will top around Bt15 billion (equivalent to USD455 million), rising by some 11.0 percent, year-on-year. However, the sales turnover of these food supplements dropped 20 percent in the first quarter of this year due to the economic slowdown that badly affected business overall. During that period, drugstores placed reduced orders, while consumers that were psychologically hit by the slowing economy opted to tighten their purse strings. Still, businesses are expected to see sales volume rise during the second and third quarters because of accelerating sales promotional activities and advertising campaigns to be launched over the remainder of this year.

Net Market Value of Food Supplements
Units: Million USD
2000
2001
2002
2003*
2004*
2005*
Net market value
283
310
341
375
410
455
Total local production
392
431
492
555
628
710
Total exports
179
209
261
318
390
470
Total imports
70
88
110
138
172
215

Source: STAT-USA Market Research Report, strategic.gc.ca

Remarks: Years 2003-2005 are estimated by Kasikorn Research Center

** The net market value = The domestic production value - exports + imports

Food supplements business is worth watching due to its opportunity for further growth. Supportive factors include health care and preventative trends, as well as the expansion of the customer base aided by entrepreneurs providing related information on food supplements derived from the research and development by internationally recognized institutions. However, whether this business will continue to be successful or not will depend on each entrepreneur's marketing techniques and ability to compete with rivals at reasonable prices, not to mention the need for good quality. These factors are consumer priorities when choosing to buy nutritional supplements.

Industry