“thai herbs on threshold of a new economy” · supplements us$ 90.7 billion herbal/traditional...

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“Thai Herbs on Threshold of a New Economy” THAI HERB INNOBIZ NETWORK 2017 Seminar and Discussion on “Opportunities and Market Trends of Thai Herb” 31 st August 2017. Amber 1, Impact Exhibition Center Hall 5-8, Muangthong Thani Mrs. Sureeporn Sahawat Deputy Director-General of Trade Policy and Strategy Office

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Page 1: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

“Thai Herbs on Threshold of a New Economy”

THAI HERB INNOBIZ NETWORK 2017Seminar and Discussion on “Opportunities and Market Trends of Thai Herb”

31st August 2017. Amber 1, Impact Exhibition Center Hall 5-8, Muangthong Thani

Mrs. Sureeporn Sahawat

Deputy Director-General of Trade Policy and Strategy Office

Page 2: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Consumer Health

2016

US$ 217.0 billion

Over-the-Counter

US$ 98.5 billion

Herbal/Traditional

Remedies

US$ 15 billion

Vitamins and Dietary

Supplements

US$ 90.7 billion

Herbal/Traditional

Vitamins and Dietary

Supplements

US$ 22 billion

Weight Management

US$ 15.9 billion

Sports Nutrition

US$ 11.9 billion

Source: Euromonitor 2016

Herbal and Traditional products is

worth almost US$ 37 billion in 2016

(17% of global consumer health industry)

The Value of Herbal Products

Page 3: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Source: Euromonitor 2016

The Value of Natural Prevention and Healing in the World: 2016

Tropical

Analgesics,

1,902 , 5%

Sleep Aids,

1,090 , 3%

Cough, Cold,

and Allergy

Remedies,

8,676 , 23%

Digestive

Remeides,

2,095 , 6%

Dermatologicals

, 1,084 , 3%

Paediatric

Dietary, 408 ,

1%

Dietary

Supplyments,

17,926 , 49%

Tonics, 3,682 ,

10%

VALUE (US$ MILLION)

Herbal and Traditional products in

dietary supplements and cough, cold,

and allergy remedies are ‘STAR’.

WHY?

- Big market size

- High Product Variety

Page 4: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Source: Euromonitor 2016

Drivers of Natural Options and Traditional Medicine in the World

Page 5: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Source: Euromonitor 2016

Herbal/Traditional options to grow faster rates than standard ones

Remedies and Dietary Supplements in 2021

- Standard: growth 11%

- Herbal/Traditional: growth 20%

Page 6: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Herbs as a National Agenda: ‘First S-Curve VS New S-Curve’

First S-curve

Next – Generation Automotive

Smart Electronics

Affluent, Medical and Wellness Tourism

Agriculture and Bio-Technology

Food for the Future

New S-curve

Robotics

Aviation and Logistics

Biofuels and Biochemicals

Digital

Medical Hub

The 2017 – 2021 Master Plan for National Herb

Development

Strategy:

- Promote development and production of

herbal products

- Develop the quality of the herbal industry and

marketing to meet international standards

- Promote the use of herbs for medical

treatment and health promotion purposes

- Strengthen and sustain the implementation of

the government policy

Partners:

Page 7: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Source: Ministry of Commerce

Domestic and export Market for Herbs and Herbal Products in 2016

Cosmetic,

140,000 , 54%

Drugs, 10,000 ,

4%

Dietary

Supplement,

80,000 , 31%

Spa Related

Products,

10,000 , 4%

Etc., 20,000 ,

7%

MILLION BAHT

Total Market Size

260,000Export Volume

100,900Million Baht

Raw Material600 MN THB

Extract300 MN THB

Finished Products>100,000 MN THB

*cosmetics, dietary supplements, foods, drugs, etc.

Page 8: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Source: TPSO

The 4 Flagship Herbs: QUICK WIN!!!

Selection Criteria

Competitiveness Demand Mega Trend

Plai Black

Galingale

TumericGotu Kola

Page 9: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Source: TPSO

Supply Chain: Plai

Production (100%)

Cosmetic & Spa (30%)

Herbal Ball

(85%)Gel 5%)

Aroma Oil

(10%)

Drugs & Medicines (70%)

Internal Medicines (10%)

Traditional (20%)

Pra Sa Plai(80%)

External Medicines (90%)

Oil (60%) Balm (30%)Cream0Gel

(10%)

Page 10: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Source: TPSO

Supply Chain: Black Galingale

Production (100%)

Powder (3%)

Dried (70%)

Extracts (7%)

Drugs & Medicines

(50%)

Capsules (90%)

Liquids (10%)

Powder (<1%)

Foods (50%)

Dietary Supplement

(30%)

Drinks (70%)

Page 11: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Source: TPSO

Supply Chain: Gotu Kola

Production (100%)

Breeding (5%)

Consumption (65%)

Process (30%)

Primary (65%)

Powder (15%)

Liquid (5%)

Dried (80%)

Intermediate (35%)

Extracts (87%)

Condense (8%)

Oil (5%)

Drugs & Supplements

(25%)

Internal (25%)

External (75%)

Cosmetic (40%)

Skincare (60%)

Bath Products

(35%)

Sun Screen (5%)

Food & Beverages

(35%)

Desserts and Ice cream

(10%)

Tea (15%)

Drinks (75%)

Page 12: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Source: TPSO

Supply Chain: Turmeric

Production (100%)

Raw Materials (60%)

Powder (60%)

Dried (30%)

Aroma Oil

(10%)

Extracts (40%)

Powder (80%)

Fluid (20%)

Drugs & Medicines

(10%)

Internal (70%)

External (30%)

Cosmetic (10%)

Skincare (30%)

Spa (70%)

Food (80%)

Dietary Supplement

(50%)

Curry paste (30%)

Drinks (20%)

Page 13: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

Challenges

• Demand & Supply Management (Demand Driven)

• Solid DatabaseOverall

• Product Quality: Chemical, Contaminations, Certification (Organic, GAP, GMP, etc.)

Upstream & Midstream

• Market Awareness

• People / Products & Services / Places / Networking

Downstream

Page 14: “Thai Herbs on Threshold of a New Economy” · Supplements US$ 90.7 billion Herbal/Traditional Vitamins and Dietary Supplements US$ 22 billion Weight Management US$ 15.9 billion

THANK YOU

THAI HERB INNOBIZ NETWORK 2017