September 9, 2009

Thai food exporters are pinning their hopes on the changing lifestyles of China's younger generation to boost sales of ready-to-eat meals in the huge market.

Industry sources said Thai processed and frozen-seafood products have great potential to serve this group, whose modern lifestyles and higher purchasing power see them opting for meals that can be prepared quickly and easily.

Thai National Shippers Council chairman Paiboon Ponsuwanna said Thai food exporters in general should look to capture more of the Chinese market, of which they currently have only a 3-4 percent share.

Ponsuwanna said Chinese consumers' purchasing power is still relatively high as the impact of the global economic downturn was less dramatic in China than in other countries.

He also noted that the lifestyles of young Chinese, and the middle class, have changed to resemble those in the West, with people living in condominiums and eating fast food and ready-to-eat meals.

Thailand's major export markets for processed food products are concentrated mainly in the US, the EU and Japan. However, these markets have been hit by the economic crisis, lowering the purchasing power of consumers, who have turned to cheaper goods.

Ponsuwanna suggested Thai exporters conduct market surveys to find out which products have the most potential in China.

He said Thai processed-food and frozen-seafood prices have declined, but total export volume has increased.

Shrimp prices are trending downward as global consumption drops, particularly in economic powerhouses like the US and Japan. The price of shrimp is expected to drop by 8-10 percent this year, with total export volume reaching 800,000 tonnes.

The value of Thailand's food industry is expected to drop by 7 percent to THB720 billion this year, an improvement over an earlier projection of a 15-percent decline.