Thailand Leads Asia's Ice Cream Exports as Trade Deals and Local Flavors Fuel Growth

A $22 million start to 2025 puts Thai ice cream in focus

Thailand exported $22 million worth of ice cream in January and February 2025, up 3 percent from the same period a year earlier. The country is now Asia's largest ice cream exporter and ranks fourth globally, behind the European Union, the United States and the United Kingdom, with the EU counted as a single trading bloc.

Thai government export data shows that this position follows several years of expansion. Between 2020 and 2024, ice cream shipments averaged $106 million a year, with average annual growth of 11 percent. The early figures for 2025 continued that upward movement.

Thailand's success brings together several parts of the economy: factories that can produce frozen desserts at scale, trade agreements that reduce import taxes, transport networks that keep products frozen, and local fruit that gives brands distinctive flavors. Foreign investors and smaller Thai businesses are using those strengths in different ways.

Large manufacturers use Thailand as a base for supplying regional and distant markets. Local producers can build their identity around ingredients such as coconut, mango, tamarind and Marian plum, connecting a finished dessert to the farmers and communities behind it.

As of December 16, 2025, the picture described here combines export figures for January and February, broader border trade figures for the first four months, and the industry's development over several years. A full year export total for 2025 was not given.

The main dates and figures show how the business has developed:

• 2020 to 2024: Thai ice cream exports averaged $106 million annually, with average annual growth of 11 percent.
• 2021: A US Department of Agriculture analysis described preferential access for dairy ingredients from Australia and New Zealand.
• January and February 2025: Ice cream exports reached $22 million, up 3 percent from a year earlier.
• January to April 2025: Thailand's border and cross border trade grew 10.7 percent compared with the same period in 2024.

Those figures connect the rise in finished desserts with the trade and supply networks that make production and delivery possible.

How trade agreements change the price of a scoop

Thailand has 14 free trade agreements covering 18 partner economies. For ice cream and other edible ices, 17 of those partners apply zero import tariffs to Thai products. Japan is the exception, charging duties ranging from 21 percent to 29.8 percent.

A tariff is a tax charged when a product enters another market. Removing that tax can give an exporter room to offer a lower shelf price or retain a larger margin, the money left after costs. For frozen food, where refrigeration and transport are substantial expenses, that room can matter.

In January and February 2025, 87 percent of Thailand's ice cream exports went to markets covered by its free trade agreements. The share shows how closely the industry's sales are connected to Thailand's trading relationships.

Free trade agreements also establish common rules that can make customs procedures more predictable. Exporters generally need to show that their products meet rules of origin, which determine whether goods qualify as coming from a country covered by the agreement. Certificates of origin are essential for claiming the reduced tariffs where they apply.

Thailand benefits on the ingredient side as well. Many dairy inputs can enter the country at lower duty rates under agreements with key suppliers. Factories can therefore gain from trade arrangements when buying ingredients and again when selling finished ice cream abroad.

Imported dairy and Thai fruit share the recipe

Thailand produces some milk domestically, but imported dairy ingredients remain central to its ice cream industry. Manufacturers need consistent supplies of dairy fats, proteins and sugars to keep recipes stable as production expands.

The US Department of Agriculture's 2021 analysis found that Thailand's free trade agreements with Australia and New Zealand gave those suppliers preferential access for products including milk powder and butter fat. Cheaper, reliable supplies help Thai factories increase output while maintaining consistent recipes for export.

Thai fruit provides a different advantage. Coconut, mango, tamarind and Marian plum give producers a range of distinctive tastes and a recognizable connection to the country. Established supply chains for coconut, mango and seasonal specialties help businesses turn those ingredients into products they can sell at home and abroad.

Brands that can show where their ingredients come from and describe partnerships with farming communities have another way to attract attention in crowded supermarket freezers. Traceable sourcing means being able to follow an ingredient back through its supply chain to its origin.

Premium buyers seek distinctive flavors and may be willing to pay more for quality and a clear sense of origin. Thailand's combination of imported dairy ingredients and local fruit allows producers to compete through both reliable manufacturing and products with an individual identity.

Keeping ice cream frozen from factory to shop

Thailand's cold chain has become a central part of its export business. A cold chain is the connected system of storage and transport that keeps a product at the required temperature throughout its journey.

Improved refrigerated warehouses, reliable power supplies, and widely available refrigerated trucks and containers help Thai exporters move ice cream without losing control of its temperature. These trucks and containers are often called reefers.

Road routes connect Thai factories with neighboring ASEAN markets in days. Shipping by sea and direct flights provide connections to North Asia, Oceania and more distant destinations. Maintaining the right temperature helps reduce product losses and protect the texture and taste that consumers expect when they open a pack.

The Department of Foreign Trade reported that Thailand's border and cross border trade grew 10.7 percent in the first four months of 2025 compared with a year earlier. That broader activity points to healthy regional demand and efficient logistics, providing a favorable setting for products that need quick, reliable movement.

Neighboring ASEAN markets benefit from shorter trucking journeys, which help keep costs down and products in good condition. Familiarity with Thai flavors and the popularity of convenience stores across the region also support sales.

Where export demand is growing fastest

ASEAN remains the core market for Thai ice cream. In the first two months of 2025, exports to Malaysia rose 9 percent from the same period a year earlier. Shipments to the Philippines increased 70 percent, while Vietnam recorded growth of 41 percent.

Growth extended beyond Southeast Asia. South Korea bought 9 percent more Thai ice cream, Australia 32 percent more and Hong Kong 116 percent more. Japan recorded an increase of 827 percent from a small base.

The figures show that growth was spread across several destinations, although the pace varied widely. Japan's percentage increase started from a small level of sales, while ASEAN continued to anchor the export business.

Extensive retail networks in North Asia and Australia create opportunities for limited edition and premium products. Thai factories can serve those buyers while also producing larger orders for the mass market.

Thailand's producers therefore have more than one route to customers. Some compete on the ability to supply large volumes consistently; others offer distinctive flavors for specialist retailers or premium shelves. The country's manufacturing base supports both approaches.

Why Japan remains a demanding opportunity

Japan stands apart from Thailand's other free trade agreement partners because its ice cream tariffs remain at roughly 21 percent to 29.8 percent. Exporters face those duties in a competitive market with strong domestic brands and consumers sensitive to price.

Thai shipments to Japan nevertheless rose sharply early in 2025. Efficient transport and production at scale can help exporters narrow the price gap created by tariffs. Distinctive flavors, seasonal releases and collaborations can also support higher prices by giving consumers a reason to choose a particular product.

Food safety requirements, labeling rules and careful management of shelf life shape access to Japan and other destinations. These requirements involve more than the tax charged at the border: a product must also meet the importing market's standards and reach retailers with enough usable life remaining.

Exporters need certificates of origin to claim trade preferences where they are available. In Japan, where tariffs remain, consistent compliance can still shorten customs processing and build confidence among importers.

Japan illustrates how an export opportunity can remain attractive even when a tariff advantage is limited. The challenge for Thai producers is to combine competitive costs with products and delivery standards that make buyers willing to pay.

Global manufacturers make Thailand a production base

Foreign investment has added capacity to Thailand's frozen dessert industry. Chinese conglomerates, including Yili Group, have acquired brands and established production in the country with an emphasis on controlling costs.

A stable production base close to major Asian markets reduces shipping distances and helps companies respond to seasonal demand. Thailand's trade agreements add another reason to manufacture there, allowing firms to serve several markets from one country.

Large producers often make multiple brands in a single factory. Those facilities can supply supermarkets and convenience stores across a wide area, from Bangkok to Busan, while using shared production and distribution resources.

Global groups use Thailand as a regional hub and also ship farther afield. Investments by companies such as Yili reflect confidence in the country's manufacturing base and its network of trade arrangements.

Factories capable of supplying both a multinational company's flagship brand and a local favorite with a clear ingredient origin can serve different price levels and seasons. That variety helps keep export activity going across a broader range of buyers.

Lamoon connects each flavor to a farmer

Danupon Umnouypreechakul, founder of Lamoon Group, has built a boutique ice cream label around ingredients and the farmers who produce them. His approach connects customers with the people and places behind each flavor.

Danupon described how that connection changed the meaning of the product for customers:

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

The Lamoon founder also explained how the brand presents Marian plum and coconut ice cream as a link to the grower:

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

Lamoon has expanded from a single shop to several outlets and a factory ready for export. Its development shows how craft recipes and an ingredient's origin can sit alongside the production capacity needed to reach international markets.

A smaller label with a factory capable of exporting can target niche retailers and premium grocers without abandoning its identity. Thailand's supply of local fruit and the cost reductions available through free trade agreements make that approach more practical.

Lamoon's model also illustrates a different kind of competition from that of the largest manufacturers. A small brand can focus on quality, community partnerships and individual flavors, while a global producer may place more weight on scale, broad distribution and supplying several brands from one facility.

A growing world market offers more shelf space

Industry data puts global ice cream consumption at roughly 24 million tons in 2024. Projections place it at 27 million tons by 2035, with a market value of $86.5 billion.

Projected growth in value slightly outpaces growth in volume as consumers choose premium textures, options with less sugar and flavors centered on fruit. Thailand's products range from value lines to artisanal batches, giving its manufacturers ways to serve different parts of that demand.

European producers account for a large share of world trade. Germany, France and Belgium often appear among the leading exporters. Thailand's fourth place ranking uses the European Union as a bloc, followed by the United States and the United Kingdom.

Thailand's position reflects a combination of open trade, efficient logistics and products with a distinctive identity. Continued expansion in global demand could create room for new retail placements and partnerships, especially in markets where import tariffs on Thai ice cream have already fallen to zero.

The opportunity extends across price levels. Large factories can supply everyday products in volume, while smaller producers can target buyers seeking unusual flavors, carefully sourced ingredients or a stronger connection to the place where the product was made.

Costs and standards still shape the business

Dairy prices, electricity bills and transport costs remain central concerns for Thai producers. Freezing products and keeping them frozen throughout distribution require substantial energy, while changes in ingredient prices can quickly affect factory costs.

Exporters manage those pressures by diversifying ingredient suppliers, investing in more efficient refrigeration and operating factories closer to full capacity. Producing more from existing facilities can help spread running costs across a larger number of products.

Exchange rates add another pressure. A stronger baht can reduce the profits Thai exporters receive from sales priced in dollars or yen. Contracts covering longer periods and changes in the product mix, such as selling more premium flavors with higher margins, are common responses.

Tariff schedules and rules of origin also require attention because changes can raise or reduce margins at short notice. Exporters must watch sanitary and phytosanitary standards, the rules intended to protect human, animal and plant health, particularly when products contain pieces of fresh fruit.

Certification can determine which customers a producer can reach. Halal certification is essential for parts of ASEAN and the Middle East. Sustainability expectations also affect purchasing decisions, with lighter packaging, recycled material and responsible sourcing claims becoming more relevant in many markets.

Thailand's export strength rests on keeping these elements working together: affordable and reliable ingredients, factories that can meet orders, frozen transport that protects quality, and products that satisfy the importing market's rules. Trade agreements create an advantage, while manufacturers and brands still have to manage the cost and quality of each shipment.

Key Points

• Thailand is Asia's largest ice cream exporter and ranks fourth globally when the European Union is counted as a bloc.
• Exports averaged $106 million a year from 2020 to 2024, with average annual growth of 11 percent.
• January and February 2025 exports reached $22 million, up 3 percent from a year earlier.
• Thailand has 14 free trade agreements covering 18 partners. Seventeen apply zero tariffs to Thai ice cream; Japan charges 21 percent to 29.8 percent.
• Free trade agreement partners received 87 percent of Thai ice cream exports in the first two months of 2025.
• ASEAN remains the core market, while exports also grew in South Korea, Australia, Hong Kong and Japan.
• Imported dairy ingredients, Thai fruit, foreign investment and reliable refrigerated transport support the industry.
• Lamoon Group pairs flavors with farmers' stories, while large manufacturers use Thailand as a regional production hub.
• Global consumption is projected to reach 27 million tons and a market value of $86.5 billion by 2035.
• Dairy and energy costs, exchange rates, food standards, certification and packaging expectations remain key business concerns.