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It's tea time for Thailand in the US

Despite the general slowing of consumption in the United States, the Department of Export Promotion has urged Thai tea producers to accelerate exports to that market in view of rising demand there for health products.

Published on November 12, 2007



The department said there was a good opportunity for growth despite keen competition from the United Kingdom, China and Japan.

Surasak Riangkrul, director of the Thai Trade Centre in New York, said Thailand had high-quality teas with a range of flavours and packaging.

According to a study by the centre, the US imports over 65 per cent of its beverages, and the tea market is expected to be worth US$7.4 million (Bt250 million) this year, doubling to $15 million in the next five years.

Thai tea has only a 0.29 per cent share of this market.

All Thai beverage exports reached $32.4 million in the first seven months of the year, an increase of 1.9 per cent over the same period last year.

Tea was Thailand's 29th largest export to the US.

Surasak suggested manufacturers study demand on the part of teenagers, health and beauty enthusiasts and the elderly.

The study found that American consumers are increasingly demanding decaffeinated, anti-oxidant and low-sugar or sugar-free tea and that 45 per cent of American consumers are swayed by packaging and product design.

Surasak said manufacturers had to improve flavour and packaging to forestall the many new players entering the market and price their products competitively, given slowing economic growth in the US.

He advised them to target the discriminating but wealthy upper class.

Petchanet Pratruangkrai

The Nation


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