US beef eyes growing Thai market despite stiff competition
Thai beef consumption expected to increase by 8% by 2025
12 March 2025
4 minute read
By: Thailand’s beef market is expanding rapidly, presenting a promising opportunity for US exporters, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report.
With beef consumption rising due to increasing affluence, urbanisation, and a burgeoning foodservice industry, demand for high-quality beef is set to climb. However, stiff competition and high import tariffs remain key obstacles for US beef exporters.
Thailand’s beef consumption on the rise
Thai consumers are developing a growing appetite for beef, with consumption expected to increase by 8% by 2025. In 2023, total beef and veal consumption in Thailand reached 216,000 tonnes, a 4% increase from the previous year. By 2025, it is projected to reach nearly 234,000 tonnes. Several factors are driving this trend, including urbanisation, a shift towards premium protein sources, and the country’s dynamic foodservice industry.
The rapid rise in urbanisation—growing from 45% in 2012 to 52% in 2023, with expectations to hit 58.4% by 2030—is significantly reshaping consumer habits. A key demographic in this shift is Thailand’s affluent households, which are forecast to increase by 52% to reach 567,700 by 2025. With more disposable income, these consumers are willing to spend on premium meats, creating a ripe market for high-quality beef imports.
Opportunities for US beef in Thailand
Despite strong competition, the US has made inroads in the Thai market, particularly in the frozen beef segment. US frozen boneless beef exports to Thailand have grown by 24% from 2018 to 2023, reaching 1,083 tonnes in 2023. The total export value of US beef and beef products to Thailand hit $5.8 million last year.
Thailand’s beef market is dominated by fresh and chilled beef, which accounts for over 70% of sales. However, the frozen beef segment offers an opening for US exporters, as competition is less intense. While Argentina and Australia remain the primary players in Thailand’s frozen beef imports, the US can leverage growing consumer interest in premium beef to expand its presence.
The foodservice sector plays a crucial role in boosting beef demand, particularly among younger, affluent consumers. Thailand’s thriving tourism industry, which is rebounding post-pandemic, further fuels demand for high-quality beef, as hotels, restaurants, and international franchises seek premium meat products.
Promotional efforts have helped elevate US beef’s visibility. Events such as the “American Beef Feast” and participation in the Thailand Beef Fest 2024 have showcased US beef to both industry stakeholders and consumers. Continued strategic marketing initiatives could help solidify its position in the market.
The competitive landscape: Australia dominates, US faces tariff hurdles
While Thailand remains a promising market for US beef, competition is fierce. Australia leads as the top beef supplier, holding a 44% market share and exporting 21,450 tonnes of beef to Thailand in 2023. Argentina follows with 33%, while New Zealand, Brazil, and the US collectively hold smaller portions of the market.
One of the biggest challenges facing US beef exporters is Thailand’s high import tariffs. Unlike Australian and New Zealand beef, which enjoy tariff exemptions under trade agreements, US beef faces a 50% import tariff. This makes American beef significantly more expensive compared to competitors benefiting from free trade agreements.
Thailand’s total beef imports reached 49,253 tonnes in 2023, valued at $223.4 million. Of this, Australia secured a 70% value share, highlighting its dominant position. The US, in contrast, ranked as the fifth-largest supplier with just a 3% value share at $5.1 million.
The road ahead for US beef in Thailand
For US beef to expand in Thailand, exporters must focus on strategic positioning. Leveraging Thailand’s growing demand for premium, high-quality beef, and engaging in targeted marketing campaigns can boost visibility and sales. Additionally, collaborating with Thai foodservice businesses and retailers to promote the benefits of US beef—such as superior marbling and consistent quality—could help carve a larger market share.
Reducing trade barriers would significantly enhance US beef’s competitiveness in Thailand. While the current tariff structure poses a challenge, industry stakeholders can explore opportunities for negotiations that could lead to improved market access.
Thailand’s beef market presents both opportunities and challenges for US exporters. With consumption rising and urbanisation expanding the base of premium beef consumers, the potential for growth is evident. However, overcoming tariff disadvantages and fierce competition from Australia and Argentina will require a combination of strategic marketing, industry partnerships, and long-term trade policy advocacy.
