Food retail industry in Thailand - statistics & facts
Food retail is one of the leading segments in the retail sector in Thailand. The Thai food retail market is highly competitive and includes various formats, ranging from traditional mom-and-pop businesses to convenience stores and hypermarkets. However, the online food retail segment in Thailand is growing. As a result of the COVID-19 pandemic, many food retailers have established an online presence to capitalize on the trend of e-groceries.
Thailand's food retail scene is dominated by chain stores. Lotus’s is one of the market leaders. Under Thailand's largest conglomerate, the Charoen Pokphand Group (CP Group), Lotus's has the highest number of supermarkets in Thailand. Tops, owned by Central Group, follows closely behind. Both retail groups also operate convenience store chains. However, the convenience store market is relatively saturated with CP Group’s 7-Eleven. The most popular food products purchased through these food retail channels were packaged food and drinks.
Despite the relevancy of modern food retail stores post-pandemic, customers and businesses have also become accustomed to buying and selling through e-commerce channels. With Thailand's expanding digital economy and customers' increasing appreciation for convenience, the trend of food shopping online is expected to flourish.
Leading retail outlets for purchasing food products in Thailand
Traditional food retail channels such as Cho-Huay, which translates to local grocers in Thai, and wet markets, remain important, especially in smaller towns. Wet markets are integral to Thai culture and urban food security. Thai people visit wet markets not only for cheaper prices or freshness of food but also to socialize and find local ingredients. Nevertheless, some have recently leaned more toward modern food retailing channels due to product variations and location. As a result, many may frequent convenience stores and supermarkets for food supplies.Thailand's food retail scene is dominated by chain stores. Lotus’s is one of the market leaders. Under Thailand's largest conglomerate, the Charoen Pokphand Group (CP Group), Lotus's has the highest number of supermarkets in Thailand. Tops, owned by Central Group, follows closely behind. Both retail groups also operate convenience store chains. However, the convenience store market is relatively saturated with CP Group’s 7-Eleven. The most popular food products purchased through these food retail channels were packaged food and drinks.
The rise of food retail online shopping in Thailand
The COVID-19 pandemic accelerated the growth of e-groceries as many turned to online food retail for safety and convenience. According to a recent survey, purchasing groceries online appeared on top of the list for weekly e-commerce activities among internet users. By offering discount coupons, free delivery, and cash on delivery, online retailers encourage Thai customers to make purchases. Without the need to visit the store, food delivery services have also increased in popularity. From convenience stores to hypermarkets, consumers can place an order through a store-specific app or on-demand delivery service such as the Grab app and choose for the groceries to be delivered at their convenience. Many use food retail delivery services to avoid going to crowded grocery stores or carrying heavy items.Despite the relevancy of modern food retail stores post-pandemic, customers and businesses have also become accustomed to buying and selling through e-commerce channels. With Thailand's expanding digital economy and customers' increasing appreciation for convenience, the trend of food shopping online is expected to flourish.
