Thailand’s Tuna Exports Plummet in the First Half of 2021

Published 2021년 11월 5일

Demand for pocket-friendly canned due increased in 2020 as consumers started hoarding processed foods with a long shelf life. During this year, Thailand’s canned tuna exports grew by 8.28% compared to the previous year. However, as demand for packed products settled as consumers adapted themselves to online shopping and limited their hoarding. Thailand’s canned tuna exports decreased by 22.76% in volume and 23.8% in value during the first eight months of 2021 compared to the same period last year. The outlook for Thailand’s exports remains bleak as the global demand has fallen down and the export situation, in general, remains uncertain due to high sea freight rates and container shortages.

In the initial months of 2020 when COVID-19 infections and lockdowns had just started to pick up speed, panic buying of packed food was very common. There was a substantial increase in demand for food items like canned tuna as it had a long shelf life and could be stored for a long time. An increase in consumption of inexpensive canned tuna was seen across the world in 2020 which also led to an increase in international trade. The global value of prepared or preserved tunas, skipjack, and Atlantic bonito exports increased by 8.28% from USD 7.48 billion in 2019 to 8.04 billion in 2020. The situation has now become better as consumers became more adaptable to the lockdown situation and online grocery shopping. As of 2021, canned-tuna trade has weakened due to lower demand in the retail trade compared with 2020.

Thailand is the largest canned tuna producing and exporting country in the world with its main markets in the United States, Japan, Australia, Egypt, and Canada. Supported by the positive consumption trend for canned tuna worldwide, exports of Thai canned tuna increased in 2020 by 8.28% in value and 9.33% in volume compared to 2019. Exports to the U.S increased by over 47% and the exports to the EU increased by roughly 25%. As people stopped hoarding food for the lockdowns and gained faith in online grocery shopping, Thailand’s exports of canned tunas, skipjack, and Atlantic bonito started falling down.

Source: Tridge. Trade Data.

During the first eight months of 2021 (January - August), Thailand’s exports of canned/processed tuna decreased by 22.76% in volume (307,980 tonnes) and 23.8% in value (USD 1.22 billion) in comparison to the same period in 2020. There was a significant decline in canned tuna exports to the top markets, including a 37.48% fall in the volume of exports to the U.S. During the same period, quantity exports to Japan fell by only 4.76% while exports to Australia and Canada fell by 20.10% and 18.80% respectively. In the coming months, Thailand’s canned tuna exports are projected to fall down even more in comparison to 2020.

Source: ITC TradeMap. Hs Code: 160414

COVID-19 had impacted Thailand’s Agri - economy and exports sharply due to global supply chain disruptions, travel restrictions, and a decline in domestic and external demand. Canned tuna was one of the star products in 2020 as people hoarded canned tuna which increased the production levels and skyrocketed the export levels. With a fall in global demand, it is highly unlikely that canned tuna exports will recover as external factors like high sea freight rates and container shortages will negatively impact exports.