One of the major drivers of the nutraceuticals market in Thailand is the emphasis that the Thais place on physical appearance. They consider a thin figure a sign of good health and this indirectly boosts their self-confidence. As a result, weight management supplements are forecast to have the highest growth in the nutraceuticals market in Thailand.
In 2005, the sale of green tea and its extract grew as a result of significant investment in marketing campaigns by manufacturers that promoted the weight loss benefits of green tea – it was valued at $146.1 million.
Currently, green tea products are sold at a high price. However, as the claims made by the manufacturers of green tea do not have strong scientific evidence to support their associated benefits, the government is creating a ceiling price on green tea products. As a result of this, the market for green tea products is expected to decrease in 2006.
Health claims related to disease prevention that are allowed on food products have a strong influence on the purchasing habits of Thais.
Functional foods are not regulated in Thailand due to uncertainties in their classification. However, the Thai Food and Drug Administration (FDA) is developing a functional food and health claim regulation as a measure to avoid any negative impact that might arise from the growth of this market.
Food supplements have to be registered with the Thai Food and Drug Administration of the Ministry of Public Health.
The recommended dietary intake for vitamins and minerals in Thailand is comparatively low. Most dietary supplements registered as food supplements in the USA are registered as drugs in Thailand and can only be sold in pharmacies. Herbal products, registered as traditional Chinese medicine are also classified as drugs.
The two main distribution channels used in Thailand are multi-level marketing (MLM) companies and pharmacies. The two leading MLM companies in the nutraceuticals market are Amway and Giffarine. Amway is an American company while Giffarine is a local MLM firm.
MLM companies are increasingly gaining popularity as a distribution channel for nutraceutical products. Through this channel, all the details of the product can be explained to the potential customer at a personal level. Moreover, the salesperson can identify supplements that fit the customer’s actual needs and is available to answer any specific questions. This can increase the customer’s confidence in using the products.
The share of sales generated by MLM companies is expected to increase from 2006 to 2012. The second major distribution channel involves pharmacies, better known as drug stores in Thailand. There are two categories of drug stores in the country: traditional drug stores and modern drug stores.
Thai Food & Drug Administration – www.fda.moph.go.th/enginfo.htm
Health Food and Supplements Association (HFSA)
Tel: (+662) 264 9888
Fax: (+662) 264 9899