Thailand’s rise as Asia’s top ice cream exporter

Thailand’s ice cream industry breaks into the global big league

Thailand has moved into rare company in the global dessert trade. It is now the largest ice cream exporter in Asia and ranks fourth in the world, behind the European Union, the United States, and the United Kingdom. Export data from the Thai government shows a steady climb. Between 2020 and 2024, ice cream shipments averaged 106 million US dollars per year with an average annual growth rate of 11 percent. The momentum continued into 2025. In January and February, exports reached 22 million dollars, 3 percent higher than the same period a year earlier.

Several forces are driving the rise. A dense network of free trade agreements lets Thai producers ship to most partner markets with low or zero tariffs. Investors have added capacity, including global groups that use Thailand as a production base for regional and long haul markets. The country’s cold chain and freight networks have also matured, allowing brands to move frozen products efficiently by road across Southeast Asia and by sea and air to distant destinations.

Thailand’s border trade has been robust, a sign of healthy regional demand and efficient logistics. In the first four months of 2025, border and cross border trade grew 10.7 percent year on year, according to the Department of Foreign Trade. That backdrop favors products that need quick, reliable movement, such as ice cream, and helps explain why sales to neighboring ASEAN markets remain strong.

Why free trade agreements changed the game

Free trade agreements reduce or remove import taxes. They also set common rules that make customs processes more predictable. Thailand has 14 FTAs covering 18 partner economies. For ice cream and other edible ices, 17 of those partners now apply zero import tariffs to Thai products. Japan is the one exception, with duties that range from 21 percent to 29.8 percent. The breadth of these deals has reshaped export math. In the first two months of 2025, 87 percent of Thai ice cream exports went to FTA partner markets.

Lower tariffs translate into lower shelf prices or higher margins. In many cases, they also simplify paperwork if exporters can show that their products qualify under the agreement’s rules of origin. ASEAN drives much of the growth. Malaysia, the Philippines, and Vietnam have registered brisk gains. Other partners, including South Korea, Australia, and Hong Kong, also bought more Thai ice cream early in 2025.

FTAs also work in Thailand’s favor on the supply side. Many dairy inputs used in ice cream can enter Thailand at lower duty rates under agreements with key suppliers. That helps factories keep costs in check and price exports competitively.

Imported dairy inputs, local fruit, and a strong cold chain

Ice cream demands consistent dairy fats, proteins, and sugars, often sourced from abroad. Thailand produces some milk domestically, yet imported dairy ingredients remain central to the industry. A 2021 analysis by the US Department of Agriculture found that free trade agreements with Australia and New Zealand provided those suppliers preferential access to the Thai market for items such as milk powder and butter fat. Cheaper, reliable inputs help Thai factories scale up and stabilize recipes for export.

Producers then layer in local ingredients that travel well and tell a story. Thailand’s fruit basket is deep. Coconut, mango, tamarind, and Marian plum offer bright flavors and a clear identity. When an ice cream brand can claim traceable sourcing and community partnerships, it differentiates the product in crowded freezers abroad. The approach fits a broader premium trend, where consumers seek distinctive tastes and are willing to pay for origin and quality.

Keeping ice cream at the right temperature from factory to store is a logistical test. Thai exporters benefit from improved refrigerated warehousing, reliable power, and widely available reefer trucks and containers. Overland routes link factories to ASEAN neighbors in days. Seaborne shipments and direct flights connect Thailand to North Asia and Oceania. The result is fewer product losses and tighter control of texture and taste on arrival.

Global brands plant factories, local upstarts craft flavors

Foreign investment has flowed into Thailand’s frozen dessert sector. Chinese conglomerates, including Yili Group, have acquired brands and set up cost efficient production in the country. A stable operating base near key Asian markets reduces shipping distances, lifts responsiveness to seasonal demand, and leverages Thailand’s trade deals. Large producers often run multi brand lines in a single facility, supplying supermarkets and convenience stores from Bangkok to Busan.

At the same time, homegrown brands have carved a niche with craft recipes and origin stories. Thai entrepreneur Danupon Umnouypreechakul, founder of Lamoon Group, built a boutique label around flavors linked to the farmers who grow the ingredients. He says the concept connects consumers to the people and places behind every scoop.

It gave new meaning to every flavour … and our customers loved it.

He frames each flavor as a direct line to a farm and a community.

Now, when people enjoy our Marian plum or coconut ice cream, they are also tasting the story of the farmer behind it.

Lamoon has grown from a single shop to several outlets and an export ready factory. The model shows how storytelling and quality can coexist with the scale needed for international markets. It also pairs well with Thailand’s fruit strengths, where supply chains for coconut, mango, and seasonal specialties are already established.

Where Thai ice cream is selling fastest

ASEAN remains the core. Early 2025 data shows Malaysia up 9 percent, the Philippines up 70 percent, and Vietnam up 41 percent compared with the same period a year earlier. Proximity helps. Shorter haul trucking keeps costs low and freshness high. Familiarity with Thai flavors and the popularity of convenience stores across the region also support steady sales.

Beyond Southeast Asia, demand is rising in North Asia and Australia. South Korea was up 9 percent. Australia climbed 32 percent. Hong Kong rose 116 percent. Japan surged 827 percent from a small base. Those gains are helped by extensive retail networks hungry for limited edition and premium products, and by the ability of Thai factories to supply both mass market and niche orders.

Prices, tariffs, and why Japan still matters

Japan is the outlier on tariffs for Thai ice cream. Import duties of roughly 21 percent to 29.8 percent still apply. Price sensitivity is real in a competitive market with strong domestic brands. Even so, shipments to Japan jumped early in 2025. Several factors can offset tariffs. Exporters who manage transport efficiently and scale production can narrow the price gap. Unique flavors, seasonal releases, and collaborations create excitement that supports higher price points.

Non tariff measures also shape outcomes. Exporters must meet labeling and food safety rules and manage shelf life tightly. Certificates of origin are essential to claim FTA preferences where they apply. When tariffs do not fall to zero, like in Japan, consistent compliance still shortens customs times and builds trust with importers.

How Thai ice cream rides a growing global market

The global ice cream market is expanding in both volume and value. Industry data shows consumption at roughly 24 million tons in 2024, with projections of 27 million tons and a value of 86.5 billion dollars by 2035. Growth in value slightly outpaces volume as consumers trade up for premium textures, lower sugar options, and fruit forward flavors. Thailand’s product mix, which ranges from value lines to artisanal batches, sits well in that environment.

Europe’s producers account for a large share of world trade, with Germany, France, and Belgium often ranked among the top exporters. Thailand’s fourth place global ranking, counted behind the European Union as a bloc along with the United States and the United Kingdom, reflects more than volume. It signals a deliberate strategy of open trade, efficient logistics, and a product identity that stands out. If global demand expands steadily, Thai suppliers should find new shelf space and new partnerships, particularly in markets where tariffs have already fallen to zero.

What investors and brands are watching

Cost control is critical in a frozen category. Dairy prices can swing. Energy costs for freezing and transport are substantial. Exporters hedge by diversifying ingredient sources, investing in efficient refrigeration, and running plants closer to full capacity. Exchange rates add another layer. A stronger baht trims profits on dollar or yen sales. Longer term contracts and mix adjustments, for example pushing premium flavors with higher margins, are common responses.

Rules matter. Any change in tariff schedules or rules of origin can lift or cut margins at short notice. Exporters also watch sanitary and phytosanitary standards, especially for items that contain fresh fruit pieces. Certifications can open doors. Halal certification is essential for parts of ASEAN and the Middle East. Sustainability expectations are rising too. Lighter packaging, recycled content, and responsible sourcing claims now influence buying decisions in many markets.

How a Thai brand’s story meets global demand

Story driven products make a difference in crowded freezers. Brands that link flavors to growers can command attention at home and abroad. The Lamoon example shows how a small label, backed by an export capable factory, can sell to niche retailers and premium grocers without losing its roots. That model scales better in Thailand because local fruit supply is abundant and because FTAs cut costs at the border.

Large manufacturers benefit too. Several global players have made Thailand a regional hub, supplying ASEAN and shipping farther afield. Investments from Chinese groups, including Yili, reflect confidence in the manufacturing base and the trade architecture. When factories in Thailand can supply both a multinational’s flagship brand and a local favorite with origin claims, the export pipeline remains full across price tiers and seasons.

Key Points

• Thailand is Asia’s largest ice cream exporter and ranks fourth globally, behind the EU, the US, and the UK.
• Exports averaged 106 million dollars per year from 2020 to 2024, growing 11 percent annually.
• In the first two months of 2025, exports reached 22 million dollars, up 3 percent year on year.
• Thailand has 14 FTAs covering 18 partners, with 17 granting tariff free access for Thai ice cream, Japan remains the exception at 21 to 29.8 percent duty.
• About 87 percent of 2025 year to date shipments went to FTA partners, with ASEAN the top destination.
• Early 2025 growth by market: Malaysia up 9 percent, Philippines up 70 percent, Vietnam up 41 percent, South Korea up 9 percent, Australia up 32 percent, Hong Kong up 116 percent, Japan up 827 percent from a small base.
• Imported dairy inputs benefit from Thailand’s FTAs with key suppliers, while local fruits add distinct identity and value.
• Cold chain reliability and cross border logistics underpin consistent quality and lower losses.
• Global demand for ice cream is set to rise to an estimated 27 million tons and 86.5 billion dollars in value by 2035.
• Investors watch dairy and energy costs, exchange rates, and regulatory shifts, while brands compete with quality, origin stories, and efficient scale.