Thailand continues to dominate ASEAN’s dairy market, with exports growing by 11.5% in 2024 and reaching a total value of $582.62 million. The country remains the top regional exporter, driven by strong demand from key markets, including Malaysia, Vietnam, Indonesia, Singapore, the Philippines, and Myanmar. The surge in dairy exports is attributed to Thailand’s manufacturing efficiency, competitive pricing, and zero import tariffs under the ASEAN Trade in Goods Agreement (ATIGA).

According to Deputy Commerce Minister Suchart Chomklin, Thai dairy products benefiting from high regional demand include yogurt, UHT milk, buttermilk, cream, and soy milk mixed with dairy. Increased consumption of dairy-based beverages, such as milk tea and coffee, has further boosted exports in countries experiencing urbanization and rising incomes. Thailand’s proximity and well-established trade links have also strengthened its presence in markets such as Cambodia, Laos, and Malaysia.

Suchart noted that the Free Trade Agreements (FTAs) between ASEAN and major partners, including China, Australia, New Zealand, Chile, and Hong Kong, have eliminated tariffs on Thai dairy products, opening up additional opportunities beyond Southeast Asia. Singapore remains a high-value export destination due to its reliance on imported food, while the Philippines presents a large market with growing demand, importing nearly all of its dairy products.

To expand market access, Thailand is actively pursuing new FTAs with South Korea and ASEAN-Canada, which will create additional export channels for dairy products. The government is also exploring potential agreements with countries in Africa and South America to reduce trade barriers and diversify export markets.