โอกาสทางธุรกิจและการวิจัยพัฒนานวัตกรรมที่ตอบโจทย์อุตสาหกรรม “อาหารแห่งอนาคต (Future Food)” ตอนที่ 1Business Opportunities and Research Development of Innovations Responding to the 'Future Food' Industry, Part 1

By the Innovation Institute for Industry, Federation of Thai Industries

Do you know why the 'Future Food' industry is classified as a global Mega Trend with high business opportunities?

Due to the limitations in traditional food production, including land and resources used for livestock such as water and feed, as well as the increasingly alarming global warming resulting from greenhouse gas emissions from both the industrial and livestock sectors, which rank second in carbon dioxide emissions globally after the industrial sector, the climate is becoming more erratic, agricultural areas are affected, and agricultural yields are declining.

As a result, the quantity of agricultural products from traditional cultivation and meat from conventional livestock farming is decreasing and insufficient to meet the demands of a growing global population. Therefore, 'Future Food' is emerging as a solution to replace traditional food, as it involves the implementation of technology and innovation to create new food sources that can increase yields more rapidly, require less cultivation area, reduce resources needed for nurturing, and, importantly, provide high nutritional value while being sustainable for the planet, as it reduces greenhouse gas emissions and minimizes waste (Zero Waste) from the production process from upstream to downstream.

With the growing emphasis on developing environmentally friendly industries, the Future Food industry has become one of the most prominent industries attracting attention and being driven by countries worldwide, especially developed nations, leading to a remarkable growth in the Future Food industry. In 2021, the global economic value of the Future Food market was 122.927 billion Baht, with projections indicating that the economic value will double by 2025 due to the expansion of consumers seeking specific food preferences, along with continued development opportunities for Future Food.

Furthermore, operators in the Future Food industry can achieve higher returns compared to the traditional food industry, as Future Food can create more value than regular food, providing a competitive advantage that better meets the needs of niche consumers. For example, the profit margins for operators in foreign countries engaged in 'Functional Foods' can yield profits nearly three times higher than those in 'Basic Foods' business (Source: Analysis by Krungthai Macro Research based on five-year average net profit margin data from reuters.com)

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In Thailand, the government has policies to promote the growth of the 'Future Food' industry by designating Future Food as part of the S-Curve target industries, which receive various promotional benefits from the government to boost Thailand's food industry GDP to reach 1.35 trillion Baht by 2026. The Ministry of Industry has issued an action plan for the development of the food processing industry for the first phase (2019-2027) with four measures:

• Measure to create new Food Warriors is aimed at developing new entrepreneurs throughout the supply chain, from agriculture, production, to marketing, to serve as the main driving force for value creation, job creation, income generation, and economic growth of Thailand, with a focus on producing future food, including expected future innovations like health foods, biotechnological foods, and novel foods.

• Measure to create Future Food Innovation aims to elevate food innovation to commercial production by establishing infrastructure to enhance capabilities in science, technology, and innovation. Expected outcomes include the establishment of the Food Industrial Transformation Center, Future Food Lab, and Intelligent Packaging innovations.

• Measure to create business opportunities in agriculture and food (New Marketing Platform) focuses on creating business opportunities through platforms to enable Thai producers to play a role in the global market, connecting trade to the international level, strengthening the grassroots economy through culture and creativity, and linking food products with tourism. Future expectations include organizing food expos, developing Big Data for SMEs, launching SMEs One Portal, advancing a Digital Value Chain, and promoting and developing the food industry, especially SMEs to support community tourism.

• Measure to create enabling factors for accelerating industrial development aims to facilitate the growth of the food industry and reduce barriers to doing business (Ease of Doing Business) by creating an environment conducive to developing Industry 4.0, including promoting food traceability systems, elevating SMEs standards, establishing specific standards (TIS), and creating standards that will support the validation of new extracts from Thai herbs or foods to gain acceptance in both national and international markets, alongside enhancing transparency, public accountability, and private sector participation.

As a result of government policies conducive to the growth of operators in the Future Food industry, Thailand currently has a diverse range of Future Food products entering the market, available both domestically and internationally, categorized into four major groups. In 2021, exports reached 93.6 billion Baht, growing by 4.9% YoY, including the following exported products:

1. Functional Food has an export value of 2 billion Baht, growing by 5.7% YoY, with exported products including:

• Food seasoning or sauces containing vitamins, minerals, or dietary fiber (71% of total Functional Food export value)

• Fruit juices, vegetable juices, and beverages (29%)

1. Novel Food has an export value of 7 billion Baht, contracting -6.0% YoY, with exported products including:

• Plant-based protein and grain-based foods (75% of total Novel Food export value)

• Concentrated protein, dairy products, and cream (24%)

• Canned insects (1%)

1. Medical Food has an export value of 6 billion Baht, growing by 51.6% YoY, with exported products including:

• Foods for severely ill patients (95% of total Medical Food export value)

• Other medically-used foods (4%)

• Vitamin premix to enhance food value (1%)

1. Organic Food has an export value of 2 billion Baht, contracting -25.2% YoY, with exported products including:

• Organic brown rice (70% of total Organic Food export value)

• Organic fruits (30%)

Read more in Part 2

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References

1. Novel Food: New Innovative Food, a Golden Opportunity for Thai SMEs | SME One

2. The Future Food Industry | Krungsri Research

3. 'Functional Food': Innovation for Future Food | National Science and Technology Development Agency (NSTDA). https://www.nstda.or.th/home/news_post/nstda-itap-tcels-functional-food/

4. Cultured Meat: Another Food Security Choice for the Future | PETROMAT Technology Excellence Center, Chulalongkorn University. https://petromat.org/home/cultured-meat/

5. Thai Rice Enriched with Medical Food Innovations for Diabetic Patients | Bangkok Bank Public Company Limited. https://www.bangkokbanksme.com/en/rice-thai-medical-food-diabetes

6. Diabetics Wanting to Lose Weight Must Quickly Become Acquainted with ISOMALTULOSE | Goodlife Update. https://goodlifeupdate.com/healthy-body/124008.html

7. “Plant-based Foie Gras”: A Thai Innovation Responding to Health Needs | Bangkok Business. https://www.bangkokbiznews.com/tech/innovation/1028830

8. FMCG Gurus. Top Ten Trends 2021 Report. Retrieved from https://fmcggurus.com/top-10-trends-2021-report-sm-download/

9. David Henkes, Emerson Climate Technologies. Food Industry Forecast: Key Trends Through 2020, Crucial Trends Transforming the Industry. Retrieved from https://climate.emerson.com/documents/dallas-%E2%80%93-food-industry-forecast-key-trends-through-2020-pt-br-3632778.pdf

10. Future of Protein: Preparing for Success in an Uncertain Environment. Retrieved from https://www2.deloitte.com /content/dam/Deloitte/ch/Documents/consumer-business/deloitte-ch-the-future-of-protein-Jan-2021.pdf

11. Department of International Trade Promotion. Future Food Fact Sheet. Retrieved from https://ditp.go.th/ditp_web61/article_sub_view.php?filename=contents_attach/754468/754468.pdf&title=754468&cate=2514&d=0