SET‑listed Tipco Foods, best known for its canned fruit and fruit juice products, is diversifying into the herbal sector as it seeks to capture rising domestic demand and expand exports across Southeast Asia.
The company plans to focus on the business‑to‑consumer segment, aiming to position itself in Thailand's fast‑growing health and wellness market.
Chief executive Vivat Limsakdakul said the move reflects changing consumer behaviour as more people prioritise healthy lifestyles.
"The company expects the herbal business will generate revenue of 100-200 million baht this year, continuing to grow in line with market demand," he said.
Thailand's herbal market has been expanding at an average rate of 10% annually, with a market value of roughly 60 billion baht. Government projections place the market value at 70 billion baht by 2027.
The sector is a key component of Thailand's health and wellness strategy, which aims to strengthen the country's position as a global medical tourism hub by integrating advanced medicine with holistic care, longevity services and organic local herbs.
Tipco Biotech Co, a subsidiary of Tipco Foods, is spearheading the herbal expansion.
Senior manager Anan Chaikitwattana said the company is focusing on Thai herbs such as plaunoi, grachai, turmeric and andrographis. These products not only meet rising consumer demand, but also support local farmers by increasing the value of agricultural produce.
The company's extraction plant has a capacity of 15,000 litres, with a second phase planned to add 8,000 litres, backed by an investment of more than 20 billion baht. Under contract farming agreements, local farmers supply about 25,000 tonnes of raw materials daily to the plant for extraction.
Tipco also urged the government to address ethanol prices, which are a major cost factor in herbal extraction. Ethanol, widely used as a solvent in food and pharmaceutical industries due to its purity and safety, costs about 44-55 baht per litre.
Mr Anan said such high costs, compounded by rising energy and logistics expenses, pose challenges for small businesses in the herbal sector.
