Milk market in Thailand

Earlier Report Observations

Between 2018 and 2020, the Thai milk market was shaped by rising consumer interest in alternative options like almond and lactose-free milk, prompting major producers to launch new products and flavors. The COVID-19 pandemic in 2020 reduced out-of-home consumption, but state-led measures to purchase surplus raw milk and a rapid shift to online marketing helped the market volume grow slightly to 1 350 thousand tonnes.

Subsequently, intensified competition in the UHT and pasteurized milk segments coincided with growth in drinking yogurt, driven by new launches from companies like Thai-Danmark and Red Cow. Higher raw material and production costs in 2021 led to a slight market contraction. In 2022, an 8% decline in modern trade channel sales contributed to a larger drop in total volume to 1 256 thousand tonnes. The market recovered to 1 321 thousand tonnes in 2023.

Production milk in Thailand

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Thailand's milk production has grown for the third year in a row. In 2020, the country produced 1 317 thousand tons of milk, marking a 1.9% increase compared to the previous year. Looking at the period from 2017 to 2020, production rose by 10.8%, which translates to an average annual growth rate of 3.5%.

Annual dynamics of production in Thailand in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following two years of growth, Thailand's milk production value experienced a decline. In 2020, the output was valued at 1 995 million US dollars, representing a significant drop of 13.8% year-over-year. Over the span from 2017 to 2020, however, production value still increased by 9.4%, averaging a 3.0% annual rate. The highest value was recorded in 2019 at 2 313 million US dollars, which also saw the largest increase of 12.7% that year.

Annual dynamics of production in Thailand in value, 2017-2020, M $ US

Exports milk from Thailand

Exports in kind, K t

The market displayed volatility during the observed period. Export volumes reached their lowest point in 2019 and peaked in 2020, with a threefold difference between these years. In 2020, Thailand's cross-border shipments of milk amounted to 101.7 thousand tons, showing a sharp increase of 195.1% compared to the previous year. The minimum volume was recorded in 2019 at 34.5 thousand tons, which also experienced the largest decline of 37.2% that year.

Annual dynamics of product's exports from Thailand in kind, 2017-2020, K t

From 2017 to 2020, the top destinations for Thailand's milk exports in volume terms were Cambodia, accounting for 54.7% of exports, Singapore with 18.8%, and Japan at 10.5%. Together, these three countries made up 84.0% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Thailand in kind, 2017-2020

Exports in value, M $ US

Market performance showed noticeable fluctuations over these years. Export values hit their lowest in 2019 and climbed to a peak in 2020, with a 2.5-fold increase between these points. In 2020, milk exports from Thailand were valued at 154.0 million US dollars, reflecting a steep rise of 149.7% year-over-year. The minimum value was recorded in 2019 at 61.7 million US dollars, which also saw the largest decline of 31.1% that year.

Annual dynamics of product's exports from Thailand in value, 2017-2020, M $ US

Between 2017 and 2020, Cambodia led as the top buyer of Thai milk in value terms, comprising 59.4% of exports, followed by Singapore at 14.2% and Japan at 9.5%. Collectively, these three markets accounted for 83.1% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Thailand in value, 2017-2020

Imports milk to Thailand

Imports in kind, K t

The data indicates irregular changes, pointing to a volatile market environment. Import volumes sank to their lowest in 2019 after peaking in 2018, with a twofold difference between these years. In 2020, Thailand imported 135.1 thousand tons of milk, up by 96.4% compared to the previous year. The minimum volume was recorded in 2019 at 68.8 thousand tons, while the maximum was in 2018 at 140.8 thousand tons. The largest decline occurred in 2019, with a drop of 51.2%.

Annual dynamics of product's imports to Thailand in kind, 2017-2020, K t

From 2017 to 2020, New Zealand remained the primary supplier of milk to Thailand in volume terms, contributing 47.2% of imports, followed by Australia at 11.2% and Belgium at 6.2%. Together, these three countries accounted for 64.6% of total import volumes.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Thailand in kind, 2017-2020

Imports in value, M $ US

Volatility was a key feature of the market during these years. Import values hit a low in 2019 and peaked in 2020, with a 2.4-fold increase between these points. In 2020, milk imports to Thailand amounted to 394.0 million US dollars, rising by 142.3% over the past year. The minimum value was recorded in 2019 at 162.6 million US dollars, which also experienced the largest decline of 53.5% that year.

Annual dynamics of product's imports to Thailand in value, 2017-2020, M $ US

Throughout 2017 to 2020, New Zealand dominated Thailand's milk imports in value terms, making up 51.9% of the total, with Australia at 11.0% and Belgium at 5.4%. These three suppliers jointly represented 68.3% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Thailand in value, 2017-2020