Thailand Cassava Market - Trend Analysis & Forecast to 2030

Thailand cassava production reached 26.68 million tonnes in 2022/23 and is projected to grow at a CAGR of xx% from 2020 to 2030. Thailand is one of the largest global producers of cassava or tapioca, playing a crucial role in the supply chain for both food and industrial uses. The market is projected to experience steady growth through 2030, driven by demand for cassava in biofuel, animal feed, and food products, alongside increased export opportunities.

Market/ Product Overview

The Thailand cassava market is a significant player in the global agricultural landscape, with cassava being a key cash crop. Primarily cultivated for its starch content, cassava is used in industries ranging from food processing to biofuels. Thailand’s climate and soil conditions favor high cassava yields, making the country one of the largest exporters of tapioca or cassava products like starch and chips. In recent years, cassava has gained traction in the global biofuel industry, which has bolstered Thailand’s export capacity. By 2030, the Thai cassava market is expected to benefit from technological improvements in farming, sustainability initiatives, and government support to enhance productivity and market penetration. However, competition from other major producers and environmental factors pose challenges.

Thailand’s Significance in the Global Cassava Supply

Thailand's contribution to the global cassava supply chain is pivotal, being the world’s largest exporter of cassava starch and chips. The country’s well-established infrastructure for cassava processing, which includes modern milling facilities and efficient supply networks, enables large-scale production and export. Strategic international trade agreements, particularly with key trading partners like China and the European Union, have bolstered Thailand's role as a major global supplier. Moreover, Thailand’s government actively supports the cassava sector through favorable policies and export incentives, which help maintain its competitive edge. This robust export capacity not only satisfies growing demand in Asia, Europe, and Africa but also positions Thailand as a critical link in ensuring global food security and industrial supply chains reliant on cassava products.

Thailand Cassava Supply & Demand Trend

Thailand's cassava production has witnessed steady growth over the years, primarily due to its favorable climatic conditions, such as tropical weather and rich soil, which provide an ideal environment for cassava cultivation. Thailand’s relatively low production costs and large-scale farming practices also contribute to higher yields. The country has benefited from advancements in farming techniques, including the introduction of disease-resistant cassava varieties and the adoption of precision agriculture. These innovations have improved both the quantity and quality of cassava output, making Thailand one of the world’s leading producers.

Rising demand for cassava from both domestic and international markets has been a key driver of this growth. Domestically, cassava is an essential ingredient in various industries, including the production of starch, ethanol, and animal feed. Internationally, Thailand exports large quantities of cassava starch, which is used in food processing, textiles, and paper manufacturing. Additionally, the bioenergy sector has increasingly turned to cassava as a feedstock for ethanol production, further boosting demand.

Looking ahead, by 2030, Thailand’s cassava demand is expected to rise even further. This is largely driven by growing export needs, particularly to countries like China, which relies on Thai cassava for animal feed and biofuel production. Additionally, cassava’s versatility in industrial sectors such as textiles and bioenergy will continue to fuel demand, as global markets increasingly seek sustainable and cost-effective raw materials. This expected growth positions Thailand as a critical player in the global cassava supply chain, particularly as industrial applications of cassava expand.

Thailand Cassava Market Growth Factors

The Thailand cassava market is primarily driven by increasing demand for biofuel and animal feed, which are derived from cassava products. Cassava starch is a preferred ingredient in many processed foods, which boosts its consumption globally. Technological advancements in cassava farming, such as disease-resistant varieties and precision agriculture, contribute to higher yields and lower production costs. Furthermore, government initiatives aimed at expanding cassava exports have played a critical role in market growth. The increasing global awareness of cassava’s versatility in various industrial applications further accelerates demand.

Thailand Cassava Market Restraints & Challenges

Despite strong demand, Thailand’s cassava market faces several challenges. Fluctuating global commodity prices, especially for starch, pose a significant risk to profitability. Additionally, Thailand competes with major cassava-producing countries such as Nigeria and Brazil, which often leads to price pressure. Environmental concerns, such as soil degradation from continuous cassava cultivation, also hinder sustainable growth. Moreover, labor shortages and rising costs of agricultural inputs further limit the industry's potential.

Thailand Cassava Supply/ Value Chain Bottlenecks/ Challenges

The cassava value chain in Thailand faces logistical and infrastructural bottlenecks that impact market efficiency. Inconsistent quality control standards in cassava production lead to discrepancies in output, affecting Thailand's global competitiveness. Farmers often struggle with access to affordable credit, which impedes the adoption of advanced agricultural practices. Transportation infrastructure, particularly in remote areas, is underdeveloped, causing delays in getting products to market. Additionally, processing capacities can become strained during peak harvest periods, leading to supply chain inefficiencies.

Price Setting Power of Thailand in Global Cassava Value Chain

Thailand holds significant influence over global cassava prices, being one of the top exporters, particularly for cassava starch and chips. Its strong export volume and established presence in international markets give Thailand some leverage in price-setting. However, this influence is tempered by factors such as competition from other major cassava-producing countries like Nigeria and Vietnam. Global demand fluctuations, driven by shifts in sectors like biofuel and animal feed, also impact Thailand's pricing power. Additionally, changes in commodity prices, fuel costs, and global supply chain disruptions can affect cassava prices.

Despite these challenges, Thailand is generally able to command higher prices for its processed cassava products, such as starch and ethanol. This premium pricing is attributed to the consistent quality of its products, its advanced processing capabilities, and the strong trade relationships it has cultivated with key markets such as China and the EU. These factors help Thailand maintain a competitive edge in the global cassava market.

Cassava End-use Industries

Cassava is used in a wide range of industries, including food processing, where it is a key ingredient in starch-based products (such as native starch, modified starch, and other starch derivatives). The biofuel industry also utilizes cassava as a feedstock for ethanol production. Additionally, cassava is widely used in the animal feed sector, while its starch is also used in textiles, pharmaceuticals, and paper industries.

The export demand for tapioca pearls from Thailand has seen a significant rise in recent years, driven by the global popularity of bubble tea, particularly in Asia, North America, and Europe. Thailand exports nearly 37-42 thousand tonnes of tapioca pearls annually. Tapioca pearls, made from cassava starch, are a key ingredient in this beverage trend, fueling their international demand. Thailand, known for producing high-quality tapioca products, has leveraged its strong cassava production capacity and established processing infrastructure to meet this growing demand. As more countries adopt bubble tea as a mainstream drink, the export market for Thai tapioca pearls is expected to expand further, reinforcing Thailand’s position as a leading global supplier.

Thailand Cassava Trade (Export & Import) Trend

Thailand has maintained a strong cassava export market, with key export products being cassava starch, chips, and ethanol. China is the largest importer of Thai cassava, driven by its need for animal feed and industrial products. In recent years, the export volume has increased, supported by growing demand in the biofuel sector. However, the market faces challenges from other cassava-exporting countries, which are expanding their own production capabilities. While Thailand exports a large portion of its cassava, it imports minimal quantities due to its self-sufficiency.

Thailand exported 8.58 million tonnes of tapioca/cassava products & derivatives in 2023. The country plays a major role in the international market, accounting for 80-82% of native starch exports, 57-60% of cassava chip exports, and 30-32% of modified starch exports worldwide.

Thailand Cassava Market Competitive Analysis

The Thailand cassava market is highly competitive, with numerous small and large players involved in cassava cultivation, processing, and export. Key market players dominate in areas like cassava starch production and exports to China and Europe. The competitive landscape is also shaped by government initiatives, encouraging the development of high-quality cassava varieties and sustainable farming practices, improving overall market efficiency.

Thai Wah Starch is a major player in Thailand’s cassava industry, recognized as the largest producer of tapioca starch in the country. With a production capacity of 2 million tons per year, the company plays a crucial role in both the domestic and international markets. Thai Wah’s operations span the entire value chain, from cassava farming to the processing and distribution of various cassava-based products, including native starch, modified starch, and other value-added derivatives. The company is committed to sustainability, incorporating eco-friendly practices in its production processes while continuously investing in research and development to enhance product quality. This focus on innovation, combined with a well-established supply chain, has positioned Thai Wah as a leader in the global cassava starch market.

List of Key Companies (Manufacturers/ Suppliers/ Exporters),

■ Thai Wah Group
■ Chorchaiwat Industry Co., Ltd.
■ Thai Foods International Co., Ltd.
■ General Starch Limited
■ Ubon Bio Ethanol Public Co., Ltd.
■ Sanguan Wongse Industries Co., Ltd.
■ Eiamheng Tapioca Starch Industry Co., Ltd.
■ Uthai Produce Co., Ltd.
■ Banglen Tapioca Flour Co., Ltd.
■ Kalasin Thai Tapioca Company Limited
■ Roquette
■ Pon Srikrung Cassava Co., Ltd.
■ Thai Super Tapioca Co., Ltd.
■ AGRANA T&I

Future Outlook

Thailand’s cassava market is projected to expand steadily through 2030, driven by rising global demand for cassava-based products, particularly starch and biofuel. Innovations in farming techniques and processing will enhance yields and quality, positioning Thailand as a key global supplier. Export opportunities will continue to rise, especially in markets like China and Europe, while government support and sustainability measures will further boost production. However, Thailand must address challenges related to environmental sustainability, competition, and market volatility to sustain long-term growth.