New Product Development in the Thai Food Industry

Abstract

Changes in food consumption patterns and the growth of international megabrands have put pressure on the Thai food industry, especially in new product development (NPD). This paper, based on research on the food industry in Thailand, shows that the industry has relatively low R and D intensity, gnerally competing more through marketing activities than through innovative NPD. The article describes the industry's approach to NPD, suggesting that innovation is often sourced from mergers and acquisitions and multinationals for products and from suppliers for processes. The paper recommends some strategic and organization changes the industry may need to consider if it is to compete for global food markets.